Telefonica O2 Tops BT As UK's Largest Telco - Ofcom Report
August 05 2009 - 7:31PM
Dow Jones News
Telefonica SA's (TEF) O2 overtook fixed-line incumbent BT Group
PLC (BT.LN) as the largest U.K. telecoms provider by connections in
2008, according to research by U.K. communications regulator Ofcom,
underscoring the decline of fixed-line traffic compared with
mobile.
Ofcom's annual communications market report, which examines data
for 2008 and the first quarter of 2009, also showed the number of
calls originating from a mobile phone will overtake those from a
fixed line by 2010.
It said O2, already the U.K.'s largest mobile operator by sales,
had 21.5 million subscriptions by the end of 2008, or 19.5% of the
total, compared with 20.6 million subscriptions to BT's analog and
digital lines.
The findings underline the long-term decline of fixed-line voice
telephony, which continued its downward trend, generating GBP9
billion of revenue in 2008 from GBP9.3 billion a year earlier.
The problem is most acute at BT, where voice calls and line
revenue contributed 28% of sales in its last financial year,
compared with 31% the year before.
BT reported retail revenue fell 2% in the three months to June
30 to GBP2.11 billion as call and line revenue fell, although the
company is cutting costs to mitigate the declines. It also has a
healthy broadband business within the retail unit.
Still, both fixed-line and mobile providers offer an element of
inclusive calls within their monthly tariffs, Ofcom said. This hits
voice call revenue, but is offset to some extent by access revenue,
which includes line rental and inclusive call bundle revenue.
Company Web site: www.btplc.com
-By Kathy Sandler, Dow Jones Newswires; 44-207-842-9293;
kathy.sandler@dowjones.com