Growth in UK mobile service revenue remained becalmed in the third quarter at 0.9 per cent according to the latest survey to be compiled by Enders Analysis, although on an underlying basis growth increased by 0.1 per cent to 1.4 per cent.
The research reinforces a broader picture of modest improvement over the past 12 months whilst recorded growth has continued to hover at around the one per cent mark – attributed to the re-introduction of MTR cuts on 1 May.
Drilling down into the data Enders singled out O2 as a star performer, in contrast to Vodafone which suffered a decline in service revenue growth. EE’s fortunes by comparison were more mixed, with a strong increase in net contract adds offset by weak ARPU growth.
Commenting on a recent spate of industry acquisitions, namely BT’s purchase of EE and H3G’s move on O2 Enders urged caution in making any branding changes: “Both acquirers would be wise in our view to be wary of making any rapid changes to branding and/or channel strategy, given that EE and O2 account for nearly 60% of UK gross subscriber additions between them and disrupting these sales will have a significant impact on subscriber growth, as EE’s experience since dropping Orange and T-Mobile has shown.”