This report provides
commentary
on key market
developments in the
UK communications
sector. It is a
supplement to the
interactive report,
which contains data
and analysis on
broadcast television
and radio, fixed and
mobile telephony,
internet take-up
and consumption,
and post.
We publish this report to
support Ofcom’s regulatory goal
to research markets constantly
and to remain at the forefront
of technological understanding.
It also fulfils the requirements
on Ofcom under Section 358 of
the Communications Act 2003
to publish an annual factual
and statistical report. It also
addresses the requirement
to undertake and make public
our consumer research, as
set out in Sections 14 and 15
of the Communications Act.
Much of the data included
in this report is available for
anyone to access, use and
share on the open data pages
of Ofcom’s website:
ofcom.uk/opendata
A variety of data sources were
used in compiling this report:
Ofcom’s technology tracker
survey, its residential consumer
postal tracking survey, its
business postal tracking survey
and its media tracking survey,
a range of ad-hoc research,
the data Ofcom collects using
statutory powers from industry,
and third-party data sources.
Please see the separate annex
for an overview of Ofcom’s
research methodologies.
About this document
Main Contents
1 Market in context
Introduction
2 TV
3 Radio
4 Telecoms & networks
5Internet & online content
6 Post
Communications
Market Report7
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UK Communications Market Report 2018Introduction4444
This year’s
Communications
Market Report
highlights
continuing changes
in how consumers
use communications
services.
Our data shows how the
increasing take-up of faster
fixed and mobile data services
is extending people’s choice
over how, where and when
they communicate with
others, watch or listen
to content services, seek
information, shop and
participate in the digital world.
This has raised consumers’
expectations for connectivity.
In an ‘always on’ society,
people expect to be connected
everywhere through a plethora
of devices. Most recognise that
the benefits of being online
outweigh the disadvantages,
although increasingly, many
acknowledge that ubiquitous
internet access is disrupting the
quality of human relationships.
Since the advent of the iPhone
and the launch of the BBC
iPlayer in 2007, there has
been a steady increase in the
penetration of connected
devices across the UK
population, with smartphones
owned by four of every five UK
consumers and smart TVs in
almost half of all households.
This, coupled with growing
access to superfast broadband
and 4G availability, has laid the
foundation for the growth of
online and on-demand services.
Demand for data continues to
grow rapidly for UK consumers,
with 190GB consumed by
an average fixed residential
broadband line and 1.9GB via
an average mobile subscription
per month, last year. In 2017,
the number of ADSL fixed
broadband connections was
overtaken by the number of
next-generation access (NGA)
fibre and cable broadband
connections, and the number
of call minutes originating on
mobile phones declined for the
first time. After a decade of the
smartphone, UK consumers
are now incredibly reliant on
this device for most of their
online activity; almost half of
them claim they would miss it
more than of any other device.
Enhanced connectivity and
the proliferation of connected
devices has also transformed
the way we consume
media, further fragmenting
audiences for TV broadcasters.
Subscription services now
account for 18 minutes of
our daily viewing, YouTube 29
minutes, and all non-TV viewing
a total of 89 minutes of our
time every day. Nevertheless,
despite more choice across
more platforms, broadcasters
continue to account for the
majority of our viewing. This
increased fragmentation has
affected viewing patterns in
various ways, depending on
the TV genre. Shows with mass
appeal, those with 8 million+
audiences, are now increasingly
difficult to generate, particularly
in the soaps and entertainment
TV genres, but high-end
drama and major sport
events continue to deliver
mass viewing for linear TV.
Like the television sector, radio
is being disrupted by the growth
of digital platforms, connected
devices and on-demand and
streaming services. But radio
is resilient; nine in ten adults
in the UK listen to the radio
for an average of nearly 21
hours a week, and 75% of all
audio listening is via live radio.
Introduction。