Following Channel 4’s decision not to proceed with its plans for digital radio, there is a glut of unused capacity on the existing national digital commercial radio multiplex (owned by Digital One) which threatens its commercial viability
Distribution connection numbers were strong (+9%), especially on contract (+21%), despite a reduction in store expansion and the consumer slowdown which is affecting other consumer electronics businesses
Channel 4 has announced the immediate withdrawal of its majority stake in 4 Digital Group, a new venture that was awarded the licence by Ofcom in 2007 to build the UK’s second national commercial radio DAB multiplex, and Channel 4 will not be launching its promised portfolio of broadcast radio channels
The obvious culprit is the weak economy, with mobile telecoms seeming to be more vulnerable to consumer cutbacks than previously thought, a hypothesis supported by recent consumer research
With European economic growth forecast to decline further, revenue growth is likely to drop below zero by the beginning of 2009, and then progressively worsen through 2009 as regulatory effects worsen, creating a very tough environment for mobile operators to preserve margins
Carphone Warehouse had a solid quarter on the distribution side given the current environment, with 6-7% underlying organic retail growth and roughly stable like-for-like figures
Project Kangaroo, the planned joint venture between BBC Worldwide, ITV and C4 to pool archival resources and supply video-on-demand (VOD) to UK retail and wholesale customers, was referred by the Office of Fair Trading to the Competition Commission on 30th June
This report explains Ofcom’s ongoing review of Openreach’s financial framework, why it is important, the myriad factors involved, our view on the likely outcome and the implications for BT and unbundlers, in particular Carphone Warehouse and BSkyB
Carphone Warehouse had a solid quarter, and its expectation of a currency-aided 9-10% growth rate in 2008/2009 distribution revenue looks achievable, as does guidance of 4-5% growth in fixed line revenue, unless loss of telephony-only customers accelerates
This report considers recent activity concerning the radio sector’s Digital Audio Broadcasting (DAB) platform and examines the implications, particularly in view of the recent establishment of a government working group examining the future of digital radio, and given weak consumer acceptance of DAB. It concludes that overcapacity of DAB spectrum is an issue that will only be exacerbated by the planned launch of a further DAB national multiplex by Channel 4 in 2008
Distribution growth improved considerably (retail grew 13% versus 8% last quarter), with strong contract sales more than counteracting a relatively weak prepay performance
The distribution side was slightly weak again, but the prospects for the Christmas quarter are much better, with the iPhone exclusivity a big help even if its sales prove to be weak