Consumer strategy: What should telcos do?

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Our detailed analysis of the consumer markets in the UK and Brazil shows some common trends and highlights important differences. Beyond the triple play, innovation is sparse, particularly in the UK. So what can telcos do to grow?


Format: PDF filePages: 59 pagesCharts: 37Author: David PringlePublication Date: November 2020

Table of Contents

  • Executive Summary
  • Introduction
    • The UK market: Convergence is king
    • BT: Trying to be broad and deep
    • Virgin Media: An aggregation play
    • O2 UK: Changing course again
    • Vodafone: A belated convergence play
    • Three UK: Small and focused
    • Takeaways from the UK market: Triple play gridlock
  • Brazil: Land of new opportunities
    • The Brazilian mobile market
    • The Brazilian fixed-line market
    • The Brazilian pay TV market
    • The travails of Oi
    • Vivo: Playing catch-up in fibre
    • Telefónica’s financial performance
    • América Móvil goes broad in Brazil
    • TIM: Small, but perfectly formed?
    • Takeaways from the Brazilian market: A potentially treacherous transition
  • Index

Table of Figures

  • Figure 1: Most UK telcos have focused on the provision of connectivity
  • Figure 2: The markets being pursued by the UK’s network operators
  • Figure 3: The UK consumer market has seen only small changes in market share
  • Figure 4: Virgin Media has outperformed its rivals in 2018 and 2019
  • Figure 5: UK telcos’ contrasting connectivity and entertainment strategies
  • Figure 6: BT’s connectivity proposition is both broad and deep
  • Figure 7: BT’s online shop sells consumer electronics from the major Internet players
  • Figure 8: BT offers some home electronics under its own brand
  • Figure 9: BT Sport may have helped BT drive demand for fibre
  • Figure 10: BT’s broadband market share has risen significantly over the past decade
  • Figure 11: BT’s share of fixed-line telephony revenues has been shrinking
  • Figure 12: BT’s Consumer division is no longer a growth engine
  • Figure 13: Virgin Media’s connectivity proposition leans on partners
  • Figure 14: Virgin Media is gaining in mobile, but losing in video
  • Figure 15: O2’s consumer proposition is narrower than that of rivals
  • Figure 16: O2 has been struggling to grow in the UK market
  • Figure 17: The Mobile IoT has been the main growth engine for O2 UK
  • Figure 18: Vodafone goes broad in connectivity and light in entertainment
  • Figure 19: Vodafone UK is dabbling in consumer IoT devices
  • Figure 20: Vodafone UK – losing in mobile, gaining in fixed
  • Figure 21: Three UK concentrates mostly on connectivity
  • Figure 22: Three UK’s top line is under pressure
  • Figure 23: The markets being pursued by Brazil’s network operators
  • Figure 24: Oi has been losing market share to rivals in Brazil
  • Figure 25: All of Brazil’s major telcos are building a broad consumer play
  • Figure 26: Vivo has overtaken rivals to become the leading telco brand in Brazil
  • Figure 27: Vivo is consolidating its lead in the Brazilian mobile market
  • Figure 28: The Brazilian broadband market is very fragmented
  • Figure 29: The pay TV market is under pressure from video-on-demand
  • Figure 30: Satellite and cable TV cede ground to fibre
  • Figure 31: Vivo continues to lean heavily on its mobile business
  • Figure 32: Vivo is gradually expanding beyond connectivity
  • Figure 33: Vivo is seeing growth in mobile service and fibre revenues
  • Figure 34: América Móvil is pushing well beyond connectivity
  • Figure 35: Claro has its own music streaming service
  • Figure 36: Mobile and broadband shore up América Móvil’s revenues in Brazil
  • Figure 37: TIM looks to broaden its offering through partnerships

Technologies and industry terms referenced include: 5G, Advertising, Amazon, america movil, B2C, brand, BT, Coordination age, entertainment, fibre, Financial Services, gaming, google, handsets, Innovation, Netflix, O2 UK, retail stores, security, Sky, Telefonica, TIM, triple play, video-on-demand, virgin media, Vivo, Vodafone