Amid ongoing speculation that AT&T will make a bid for Vodafone post its Verizon Wireless divestment, in this note we consider the validity of AT&T’s hypothesis that there is "a huge opportunity for somebody" to repeat the US experience of heavy capital investment coupled with firm pricing in Europe

Our annual series of reports on expenditure on advertising in the classified verticals of jobs, property and autos, kicks off with an overview of the print-to-digital transition that has lifted the share of digital to close to 50% by 2012. The advantages of online for professional classified advertisers in relation to print include: national reach; measurability and tracking software; value-for-money for listings; dense user experience; and advertiser add-ons. Aside from the fragmented recruitment market, the UK’s online classified marketplaces for property and autos are highly consolidated around one or just two suppliers. Second-tier property supplier Zoopla Property Group is slated for an IPO in 2014 or in 2015, and the sale will be helped by the buoyant housing market. An IPO of AutoTrader is also widely expected, amidst a more general recovery of transactions in the sector. Our recruitment segment analysis highlights the more positive trends in the labour market in 2013, which are to continue in 2014 and 2015. However, the online recruitment market is highly fragmented on the advertiser side due to the myriad of companies and positions being filled, also splintering the online market across a large number of job boards, aggregated by Indeed. On the jobseekers side, professionals are increasingly being drawn to LinkedIn or category-specific professional networks, attracting employer expenditure on recruitment advertising. LinkedIn is the single biggest online supplier in the UK and is also the more dynamic through network effects and price competition on listings. We project about 5-7% annual growth of expenditure on online recruitment to 2017, amidst a terminal collapse in advertising in print.

Property is the second category in our annual series of reports on UK classified advertising, following Recruitment [2013-090] and with Autos to follow. Our Property market report analyses the key drivers in the communications marketplace for UK domestic property, notably transaction rates and house prices, but also substantial developments in government policy. We analyse the Estate Agent marketplace and drill down into expenditure patterns for property advertising across all media, and provide five year forecasts. In digital the competitive battle between Rightmove and Zoopla is heating up, and we analyse the implications for this in the next few years.

Auto is the third category in our annual series of reports in UK classified advertising, following UK classifieds and recruitment category outlook [2013-090] and Property classified advertising [2013-091]. Our Auto market report analyses the key drivers in the communications marketplace for used cars, notably transaction volumes and pricing. Overall the auto market is reasonably stable, with new car sales picking up substantially in recent months, while used car sales are roughly flat. AutoTrader remains the big beast in the marketplace, having closed its print product and now focused on developing its digital services alongside its core search. Our report analyses media usage by Car Dealers, and provides five year expenditure forecasts.

EE’s 4G base continued to accelerate, with 8% of its contract subscribers now on a 4G plan less than a year after launch, and it should accelerate further with the launch of cheaper 4G handsets allowing much lower entry price points from next month

However, the market remains weak, with EE’s underlying growth still negative, and any benefits of 4G being more-than-countered by accelerating weakness in overage and prepay revenues

Firmer price increases are needed for full market repair, but these appear more evasive than ever with Ofcom’s recent decision severely restricting the scope for mid-contract adjustments

2014 will be a tough year for Sky as it strives to improve the connectivity across its base while facing the challenge of BT in premium sports. 2014 has started well in terms of product growth and BT Sport has had no discernible impact on Sky broadband take-up and little, if any, impact on acquisition and retention discounts offered to new and existing Sky customers. With eyes focused on the impending auction of European Champions League pay-TV rights, we think BT has every incentive to push the price up, but not actually to win them.

For the BBC’s DG Tony Hall, “Where next?” primarily means more digital, expanding its iPlayer internet TV and radio application and offering greater personalisation

These moves form part of a wider strategy to ensure BBC services and programming can be delivered seamlessly across devices in the most relevant form, whilst maintaining access and appeal to all age groups

Reaction from commercial rivals and commentators has been muted, likely saving powder for the soon-to-begin battle over the BBC’s scope and funding from 2017, when the current Royal Charter expires

Apple’s two new iPhones both secure its grip on the high end (for now) and extend a cautious toe into (slightly) cheaper waters. They will not deliver a step change in global sales growth, but should deliver solid performance

9m unit sales at launch are impressive, but 200m updates to iOS 7 (double last year’s figure) point to the continuing strength of Apple’s ecosystem and its ability to deploy innovative new features

We continue to believe there is room in Apple’s portfolio for a $350-$450 phone without weakening Apple’s quality of experience or brand positioning, but this is clearly now off the agenda for another year

On 30 October, two days after criminal trials for alleged phone hacking begin, the Privy Council will finally seal a Royal Charter to set up regulation of the press. The end of this drawn-out process might be thought near

Several major publishers are planning to boycott the system by setting up their own regulator, which will not meet the Charter’s standards. In recent days, Conservative ministers have said the press is ‘free’ to take that route

The Recognition Panel set up by Parliament’s Royal Charter may not report on the system’s success or (more likely) failure until the autumn after the 2015 election. Whether to have a showdown with publishers who reject the Royal Charter is a decision being put off by everyone

Press display advertising fell 10% in 2012, and we forecast a slower decline this year (about 7%), as press benefits from the deluge of telecoms advertiser spend and the ongoing commitment of retailers to national newspapers and fashion and beauty brands to leading magazine

But structural factors are gathering pace relentlessly: circulation decline is accelerating in some categories and rate cards remain under pressure. Some smaller newspapers and poorly differentiated magazines face the possibility of an existential crisis in the next five years

Publishers able to embrace creative marketing solutions from an integrated digital and print platform will stimulate a more sustainable model in the medium term – but this requires a more radical rethink than is commonly assumed