Change Accelerating in Communications Industry

Now 11 Million UK Broadband Homes

Ofcom's annual Communications Market Report shows significant changes are now happening in consumer behaviour, including today's generation of online consumers deserting traditional media like TV, radio and newspapers. For the first time. the UK national communications market exceeded £50 billion, more than a 4% share of the GDP, Britain's gross domestic product.

According to Ofcom chief Ed Richards, their research reveals changes that are both dramatic and accelerating across all communications industries. "The sector is being transformed by greater competition, falling prices and the erosion of traditional revenues and audiences. A new generation of consumers is emerging for whom online is the lead medium and convergence is instinctive."

Other Report Highlights:

• Digital television households up to a total of 18.3 million, including nearly 2 million new Freeview homes.
• Total television revenues exceeded £10 billion, with subscription income as the growth factor. Subscription now exceeds advertising revenue by a 10% margin.
• Homes and small businesses with a broadband connection has risen to 11 million.
• Online advertising revenues rose to around £1.3 billion, three times the value of radio advertising and a third of TV advertising's £3.8 billion.
• Year on year revenues from broadband access were up 70%, now almost £2 billion.
• Mobile revenues up by 10% to £13 billion, but landline revenues fell 7.5% to just £10 billion.
• Consumer spend on communications rose overall, but fell as a proportion of household spending, because of a lowering of fixed line charges.

More data available from the Ofcom web site

www.ofcom.org.uk

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