Volumes slow, but revenue robust: UK broadband, telephony and pay TV trends Q2 2016
23 August 2016
UK residential communications market revenue growth was broadly unchanged at 5% in Q2, despite volume growth continuing to slow across all products, with pricing and fibre adoption helping to boost ARPU
The combination of weakening market growth and an accelerating Virgin Media (on the back of its Project Lightning network extension) is putting pressure on the other operators, all of which were weak in subscriber terms
These factors bode for a competitive Q3 with the major operators offering very aggressive promotions in the battle for subscribers at the start of the football season. Underlying pricing though looks firm with price rises already implemented, scheduled or expected in Q4