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UK communications market profiled

David Meyer ZDNet.co.uk

Published: 11 Aug 2006 16:35 BST

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Ofcom’s annual report into the UK’s communications market has shown several interesting trends in the domestic and business markets, with some technologies capturing our imaginations and others hitting hard times.

Online advertising is on the up, due in part to a major shift in the nation’s media consumption habits, particularly within the 16-24 age bracket. But are 70 percent of that group really using social networking so enthusiastically?

Internet telephony is also booming. Ten percent of the country’s households already using VoIP technology, often through Skype or simple analogue-to-IP adaptors.

Another surprising fact was a drop in the company mobile subscriptions, which seem to be falling victim to the rise of home-working.

Meanwhile 3G comes off quite badly in the report, which shows uptake to be nowhere near what the operators were hoping for as they ploughed tens of billions of pounds into the technology over the decade. It remains to be seen if further auctions for 4G spectrum will succeed.

VoIP takes off
Internet telephony is ready to hit the big time in the UK, thanks to a surge in broadband uptake and the introduction of devices that don't require a PC

Ofcom hints at 4G auction strategy
Details are emerging of the auctions that may kickstart so-called 4G mobile technology, as figures show that 3G has been somewhat less than a success story

Company mobiles in decline?
The proportion of small and medium-sized businesses with mobile phones has fallen, possibly thanks to the rise of home-working, while business broadband connections are soaring

Online advertising overtakes magazines
Report reveals online has become the fourth-largest display advertising market in the UK as media consumption shifts, especially among the 16-24 age bracket

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Could it be that ISP’s are making this out to be a bigger problem than it actually is? We’re a small country with an internet penetration of less than 60%, for every Youtuber there’s someone who only uses the internet to check their emails, more people surf on their mobile handsets than a few years ago. Surely things should even themselves up.

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