the communications market 2012

7/30/2019 The communications market 2012

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1

The Communications Market Report 2012


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Media coverage

2


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UK is now texting more than talking


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4

1

1

1

2

5

1010

67

0 20 40 60 80

Post

Social networking

Instant messaging

Email

Text messaging

Voice calls via fixed landline phoneVoice calls on mobile phone

Meet face to face

% of adults who communicate with friends and family

Preferred method of communication with friends and family

We say we prefer to communicate face to face

Source: Ofcom research, 2012


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But texting is more popular on a daily basis

5

Source: Ofcom research, 2012

Methods used at least once a day to communicate with friends and family

% of adults

1

912

26

29

30

33

47

49

58

0 10 20 30 40 50 60

Post (letters/cards/packages)

VoIP (e.g. Skype)Comments on websites

Instant messaging

Voice calls on fixed landline

Emails

Social networking

Voice call on mobile phone

Face to face

Text messages

Any textbased

services

68%

Any voice

basedservices

63%


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For 16-24s the difference is even greater

6

Methods used at least once a day to communicate with friends and family

74


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7

129 125116 124

0

100

200

Fixed Mobile

20102011

Source: Ofcom/operators

Volumes of outgoing fixed minutes and mobile minutes

Minutes (billions)

Fixed and mobile call volumesboth

down forfirst time ever

AnnualChange -10.0% -1.1%


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Number of texts per person has more thandoubled in four years

8

Average monthly mobile messaging volumes per person

70 90115

141172

200

0

50

100

150

200

2006 2007 2008 2009 2010 2011

Source: Ofcom / operators

Note: Includes estimates where Ofcom does not receive data from operators.

Messages per month

+16.6%


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Social networking is up while email switchesto mobile

9

3.1

1.0

1.7

3.3

0.8

2.1

0

2

4

Social networking onPC/laptop

Email on PC/laptop Mobile internet

2010

2011

Hours per month

Average monthly use per person of telecoms services

Changebetween2010 and

2011

+5.3% +24.7%-19.1%


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Source: Ofcom research, Q1 2012. DAB take-up from RAJAR Q1 2012.

11

100% 92%83% 77% 71%

55% 47% 45% 43%

17% 12% 12% 12% 5%0%

20%

40%

60%

80%

100%+4 +1 -1 +2 +3 +1 +1 +12+11 +5 -4 +8

Percentage point change vs 2011

Take-up of key communications services anddevices


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Source: Ofcom research, Quarter 1 2012

Households owning at least X+ devices

85%

72% 56%40%

27%15%

0

25

50

75

100

P r o p o r t

i o n o

f h o u s e

h o

l d s (

% )

On average, each UK household owns 3different types of internet-enabled devices

1+2+

3+

4+5+

6+


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2745 47

71

0%

20%

40%

60%

80%

100%

Q1 2011 Q2 2012 Q1 2011 Q2 2012

P r o p o r t i o n o

f U K a

d u

l t s ( % )

Source: Ofcom Technology tracker, Jan/Feb 2012

13

Take-up of smartphones, UK adults

More than 4 in 10 people now own asmartphone 7 in 10 of 16-24s

UK 16-24


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Source: Ofcom omnibus research, March 2011/2012

Smartphones are becoming most importantdevice for accessing the internet

88%

31%

42%

51%

42%

0% 20% 40% 60% 80% 100%

Regularly text

Regularly instant message

Regularly use for socialnetworking

Regularly use for email

The most important device for accessing the internet


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A smartphone phenomenon

the robo -shopper


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Source: Ofcom omnibus research, March 2012

11

1319

19

21

25

31

57

0% 20% 40% 60%

Searched for coupons or deals online

Used phone to redeem a mobile couponResearched product features online

Read product reviews online

Scanned a bar code to get more product info

Compared a price to a price online

Took a picture of the product

Any of below

Smartphone users (%)

Activities conducted on smartphone while out shopping

A smartphone phenomenon the robo -shopper


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12% of households now own a tabletcomputer

17%

34%

37%

66%

87%

0% 20% 40% 60% 80% 100%

"I intend to buy a tablet in the next year"

"I could not live without my tablet"

"I browse the internet more since owning atablet"

"I share my tablet with friends and family"

"I use my tablet mainly at home"


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38%

60%44%

0%

20%

40%

60%

80%

"Reading more books since Iowned an e-reader"

"Reading less paper bookssince I owned an e-reader"

I doubt I will buy many paper books any more

Source: Ofcom research

12% own an e-reader, and 38% say they arereading more books - but not on paper


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Other key market developments


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Television and audio-visual

20


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3.6

2.4 2.7 3.33.5 3.9

4.44.9

4.0

2.5 2.8 3.3

3.94.5

5.35.8

0

2

4

6

Individuals Children 16-24 25-34 35-44 45-54 55-64 65+

2002

2011

Source: BARB.

Average daily hours of TV viewing, by age: 2002 vs. 2011

UK viewers watched an average of four hoursof TV per day in 2011


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39.544.4 42.6

35.6 35.3 35.0 34.1 30.9 32.530.6 30.2 28.5

3.1 5.411.0

18.2 23.0 20.2 24.1 23.1 23.9

3.04.6 4.5

6.3 8.9 11.5

0

20

40

60

80

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

26" to 32" 33" to 42" 43+"

Source: GfK sales data estimates. *2012 data represents Q1 only.

Percentage of TV sets sold larger than 26: 2001 Q1 2012

TV screens are getting bigger


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23

Radio and audio


25/3824

22.5

17.0

0

4

8

12

16

20

24

28

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

All Adults

15-24

Average hours listened per week by age from 2001 to 2011

Long-term listening trend is down,particularly 15-24s

Source: RAJAR


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Digital radios share of radio listening, Q1 2012

D i g i t a l r a

d i o p

l a t f o r m s s h a r e o

f

a l l r a d

i o h o u r s

24% 27%29%

35% 38%43%

0%

20%

40%

60%

Q1 2010 Q1 2011 Q1 2012

Digital Listening DAB Ownership

Digital now accounts for 29% of radiolistening

Source: RAJAR


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26

Telecoms and networks


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27

64% 59% 55% 52% 51% 48%

36% 41% 45% 48% 49% 52%

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 2010 2011

Mobile

Fixed

Source: Ofcom/operators

Volumes of outgoing fixed minutes and mobile minutes

Minutes (billions)

For the first time, over half (52%) of all callvolumes were made from a mobile phone


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12.310.9

10.09.0 8.5 8.5

7.0 7.67.9 7.8 7.7 8.3

0

5

10

15

2006 2007 2008 2009 2010 2011

Mobile

Fixed

Comparison of average fixed and mobile voice call chargesPence per minute

Source: Ofcom / operators

Cost of making a mobile voice call fell tobroadly the same level as a fixed line call in2011


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29

79%65%

15% 33%

0%

20%

40%

60%

80%

100%

All 16-24

None

Mobile only

Fixed andmobile

Fixed only

Household penetration of fixed and mobile telephony, by socio-economic group and age

Source: Ofcom research, Q1 2012 data

A third of people aged 16 to 24 live in mobile-only homes more than double the 15% UKaverage


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30

Home internet access, by age, socio-economic group and gender

7584 86 87

69

51

23

7785 88 87

73

55

26

8090 90 88

7564

27

0

20

40

60

80

100

UK 16-24 25-34 35-54 55-64 65-74 75+

2010

20112012

Eight out of 10 people in the UK haveinternet access


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51% 53% 54% 55% 57%60%

0

20

40

60

Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12

31

Proportion of homes (per cent)

Source: Ofcom / operatorsNote: Superfast broadband is defined as speeds of 30Mbps and above

Estimated household availability of superfast broadband services

BT and Virgin Medias superfast broadbandservices available to around 60% of UKhomes by March 2012


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32

Post


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1

8

23

29

19

14

5

1

0 20 40

Don't know

Don't send mail

Don't always send post each

month

1 or 2 items

3 or 4 items

5 to 10 items

10 to 20 items

20 or more

% of consumers

33

Claimed volume of letters sent in an average month

Average number of letterssent per month = 3.2

UK adults say they send an average of 3.2letters or cards a month

Source: Ofcom research December 2011


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17% 17%14%

11%

5% 4%1% 1%

-4%

-30%-30%

-20%

-10%

0%

10%

20%

Net claimed changes in communications methods used in last two years

Email SMS Socialnetworks Mobile-voice Instantmessage VoIP Websitecomments Face toface

Landlinecalls Post

Claimed use of post has fallen in past twoyears, with 30% of adults saying they use itless


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35

Communication methods ever used to send greetings (e.g. Birthdays)

2

11

2021

30

33

36

55

58

0 20 40 60 80

Any comments on website forums

Any instant messaging eg MSN

Any email Any social networking eg Facebook

Voice calls via fixed landline phone

Voice calls on mobile phone

Text messaging

Meet face to face

Post ( letters/cards/packages)

Post is still the preferred way of sending agreeting, such as for a birthday


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Implications for government communications

The smartphone and the mobile web

Mobile-only homes

Text messaging is a mass medium

TV remains strong

Young people are switching off radio

Post significant for important communications and older people

36


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Questions

the communications market 2012

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