The UK’s first two trials of broadcast mobile TV, run by Arqiva/O2 and BT Movio/ Virgin Mobile, reported results in the last week. 3G-based mobile TV is already available in the UK, but its one-to-one nature severely limits the number of simultaneous users; for a mass market service, a broadcast network is required.

The arrival of 21CN, possibly in 2008, will see the launch of rate adaptive ADSL2+ services (up to 18Mbit/s) which should allow around 50% of customers to receive downstream data rates of 8Mbit/s

Vodafone announced last week a new extension to its range of music services that will offer European subscribers interactive mobile radio through a collaboration with Sony NetServices

More prominent profile of media in Free's mix of broadband, telephony and IPTV to improve customer retention and attract content owners to Free's broadband distribution channel, while VoIP remains the principal driver for non-access revenues

Egypt-based mobile operator Orascom’s investment in Hutchison Telecom creates an intriguing if convoluted link between the 3rd and 4th players in the Italian market, Wind and H3G

3G datacards slot into laptops to provide Internet connectivity when on the move. They make good use of the current patchy 3G networks: demand is likely to be concentrated in areas that are currently covered, while GPRS is a good back-up outside these areas and the ‘bursty’ nature of their usage does not put an unsustainable load on the 3G networks. However, they are far more expensive and much slower than fixed line broadband, and they are likely to remain so for the foreseeable future, leaving their appeal as a ‘last resort’ rather than a genuine alternative.

The resulting outlook for C&W UK’s performance in the short term is uncomfortable

Longer term, the strategy looks feasible, but better implemented under private ownership

Bulldog’s strategy is unchanged and remains dubious

Mobile TV is being hailed as the next killer consumer mobile data application, and is already credited with being the most popular 3G service where it is offered.

This report examines recent developments in Local Loop Unbundling (LLU) in the UK and their implications for market structure and BT’s revenue from residential customers.

Ofcom, BT and the industry are getting closer to completing the Telecoms Strategic Review (TSR), currently in its Phase 3, and scheduled to complete in the Autumn. Ofcom's proposals and the supportive measures announced by BT offer some good news for virtually all players in the UK market, although clearly such judgements depend on what was expected prior to these announcements. We have always considered it unlikely that Ofcom would choose the option of investigating BT and possibly making a referral to the Competition Commission, which could have led to the break-up of BT. However the reaction of the financial markets suggests that at least some City analysts considered that BT has secured a major win by avoiding this outcome.

Strong growth in both online and mobile music revenues was not enough to compensate for the erosion of the core CD market

France has become the largest market for broadband in Europe (7.7 million connections at the end of Q1 2005) as a result of the aggressive price competition unleashed by local loop unbundling (LLU) since 2002. In addition, ADSL2+ line speeds have become standard in densely populated areas (where customers are within 2 kilometres of the exchange).

Digital TV growth trends following the record surge of Freeview homes in December 2005;

Financial assessment of Sky’s broadband/telephony strategy following the acquisition of Easynet;

ITV1 audience and advertising revenue prospects for 2006 in the wake of more than a 10% decline in commercial viewing share in 2005.

Broadband growth has been very strong in the UK, with 7 million businesses and households connecting to the Internet via a broadband cable or DSL connection at the end of Q1 2005. Driven by rapid migration of dial-up Internet users to broadband, we expect high levels of net adds to continue in 2005 and 2006, before declining steeply as the market approaches saturation.

As unbundlers in France increasingly look to migrate their customers from shared to full access – principally to sever the underlying telephony customer relationship with the incumbent and reduce churn – Fastweb in Italy has decided to go in the opposite direction.