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INDEPENDENT PUBLICATION BY 30 / 10 / 2016 #0413 raconteur.net Mobile is a powerful and fast-moving force transforming the way we live and work From 1G to 4G and beyond, the mobile phone has rapidly evolved to change lives forever Mobile technology impacts most, if not all, walks of working life, but some more than others ARE WE A NATION OF 'SCREENAGE' JUNKIES? DISRUPTIVE POTENTIAL OF MOBILE TECHNOLOGY MOBILE MOMENTS THAT CHANGED THE WORLD EXECUTIVE JOBS MOBILE WILL AFFECT MOST As boundaries between work and leisure blur, smartphones are always in our lives 03 04 06 08 MOBILE BUSINESS Visit our website: www.mtmy.io Advertising that delivers exceptional return on ad spend. Ad agency for mobile apps Although this publication is funded through advertising and sponsorship, all editorial is without bias and spon- sored features are clearly labelled. For an upcoming schedule, partnership inquiries or feedback, please call +44 (0)20 8616 7400 or e-mail info@raconteur.net Raconteur is a leading publisher of special-interest content and research. Its publications and articles cover a wide range of topics, including business, finance, sustainability, healthcare, lifestyle and technology. Raconteur special reports are published exclusively in The Times and The Sunday Times as well as online at raconteur.net The information contained in this publication has been obtained from sources the Proprietors believe to be correct. However, no legal liability can be accepted for any errors. No part of this publication may be repro- duced without the prior consent of the Publisher. © Raconteur Media SIMON BROOKE Award-winning freelance journalist, who writes for a num- ber of international publications, he specialises in lifestyle trends, health, busi- ness and marketing. GABRIELLA GRIFFITH Freelance business journalist and as- sistant commercial editor at News UK, she has also worked for City A.M. and Management Today. BENJAMIN CHIOU Business and eco- nomics writer, his specialisms include a range of topics including financial markets and com- modities. GIDEON SPANIER Head of media at advertising maga- zine Campaign and Broadcasting Press Guild chairman, he writes about busi- ness for the London Evening Standard and The Times. NICK EASEN Award-winning free- lance journalist and broadcaster, he pro- duces for BBC World News and writes on business, economics, science, technology and travel. TIM STAFFORD Freelance journal- ist, specialising in business and management, he was launch editor of CEB Blogs. FINBARR TOESLAND Freelance journal- ist, he specialises in technology, business and economic issues, and contributes to a wide range of publications. MARK FRARY Science, technology and business writer with eight published books, he speaks reg- ularly on technology and futurology at conferences. DISTRIBUTED IN PUBLISHED IN ASSOCIATION WITH BUSINESS CULTURE FINANCE HEALTHCARE LIFEST YLE SUSTAINABILIT Y TECHNOLOGY INFOGRAPHICS raconteur.net/mobile-business-2017 RACONTEUR PUBLISHING MANAGER Nathan Wilson DIGITAL CONTENT MANAGER Jessica McGreal HEAD OF PRODUCTION Natalia Rosek DESIGN Samuele Motta Grant Chapman Kellie Jerrard PRODUCTION EDITOR Benjamin Chiou MANAGING EDITOR Peter Archer CONTRIBUTORS SMARTPHONE PENETRATION UK SMARTPHONE FORECAST Source: eMarketer 2016 UK must move faster to keep up with mobile Although a frontrunner in mobile development, the UK is now showing signs of fatigue and falling behind global competition OVERVIEW NICK EASEN B y any measure the UK has one of the most advanced and de- veloped mobile phone markets on the planet. Walk up any high street and there's no doubt that we have an insatiable desire to interact and trans - act on our handsets. The UK is ranked in the top ten globally when it comes to harnessing information technology, according to a recent ranking by the World Economic Forum. It helps that the telecoms market is one of the most competitive and regulated in the world. "The UK's smartphone appetite for faster mobile speeds continues to grow," says Derek McManus, chief operating officer at O2. "Four in every five adults own a smart - phone and 4G data usage has almost dou- bled in the last year. The consumer appe- tite and growth oppor- tunity are clear." Markets such as South Korea, Japan and the United States have long led the global race, but for some measures the UK ranks favourably. For example, access to phone banking is far more advanced here than across the Atlan - tic. The UK also has some of the world's fast- est mobile internet speeds, according to a report by content delivery company Akamai. "We know that 92 per cent of British mil- lennials now view their mobile as their primary device for accessing the inter- net," says Chris Worle, digital strategy director at investment firm Hargreaves Lansdown. "The UK has one of the most sophisticated markets in the world." And when squared up to Continental Europeans, the UK is a 600-pound goril - la – it's one of the largest in terms of sub- scribers, as well as total revenues, and has some of the most competitive pricing. It is also one of the most advanced in terms of roll-out and up-take of 4G. So the market should be in rude health, right? Not quite. While brand names have evolved over three decades alongside handsets, the big players driving the market have largely stayed the same. Four operators dominate – BT 's mobile busi - ness EE, Vodafone, Hutchison's Three and Telefonica's O2 – all heav y weights on the international scene. "Had the merger earlier this year be - tween O2 and Three not been stopped by the EU, things could have been very dif- ferent," explains Ernest Doku, telecoms expert at uSwitch.com. "Austria reduced its operators from four to three and prices there soared by up to 30 per cent." Competition is fantastic for consumers, but it's not great for a sector that's been consolidating globally because of price squeezes. The UK is also highly saturat - ed, for instance mobile penetration in the US and Europe's big five countries has reached 91 per cent, according to research by Kantar, and now ageing infrastructure dogs the sector. "The return on in - vestment for mobile operators is meagre to say the least. This needs to be ad - dressed," says Simon Beresford-Wylie, chief executive of Arqiva, providers of mobile infrastructure. Telecoms companies have also com - plained about BT 's lack of investment in infrastructure. Many were disappointed when the regulator did not force it to sell its Openreach business outright. This company owns the pipes and cables that connect nearly all businesses and homes in the UK. "The regulator wants BT to place more em - phasis on improving the network, but this will be costly," says Helal Miah, investment research analyst at the Share Centre. The UK was at the forefront of deploy - ments in 2G and 3G. When 4G came along, the country lagged behind South Korea, Japan and the US. Many European mar- kets already have 100 per cent coverage; the UK does not. The regulator wants BT to place more emphasis on improving the network, but this will be costly South Korea will also unveil the next generation 5G in 2018 to coincide with the Winter Olympics. In the UK, it is unlikely to be launched until at least 2020. "5G will be important since it has the potential to support a whole new range of applications and industries. If the UK is serious about having a vibrant digital econ - omy, being a 5G leader is a must," says Mr Beresford-Wylie. "This will be a basic competitive require- ment for advanced economies. If we're not a 5G leader, there will be negative consequences for the economy and our global competitiveness." Yet who is going to utilise these services? At present the con - suming public is suffering from handset fatigue, which shows few signs of abating. This not just a national issue but something with global impact, which is keenly felt in the UK where Apple and Sam - sung dominate. Globally mobile services are now becom- ing more like other utility services and therefore as time progresses the consumer is increasingly differentiating contracts in terms of price. "Let's hope that we don't end up with a mobile market that resembles the supermarket sector," says Mr Miah. Some providers have now made strides towards new payment structures, sepa - rating airtime from handset costs, for in- stance. "But we're some way from a truly value-driven market in terms of what cus- tomers are getting for their money in a Eu- ropean context," says Mr Doku. One of the biggest developments in the UK going forward will be the increasing uptake of multi-play services, broadband internet, television and telephone with mobile thrown in, also called quad-play. Consumers are used to separate suppli - ers, but this situation is changing. "Con- vergence is key and what that means for pricing discounts," says Guy Peddy, head of European telecoms research at Mac- quarie Group. The question is whether fast-growing and profitable mobile services should subsidise fixed lines or ageing infra - structure. "The main challenges facing operators will also be maintaining voice prices anywhere close to current levels in this multi-play environment," explains Dr Windsor Holden, head of forecasting at Juniper Research. Ma king the U K's mobile sector work and pay in the years to come could be a trick y business. Share this article online via raconteur.net If we're not a 5G leader, there will be negative consequences for the economy and our global competitiveness Penetration is the percentage of mobile users who own a smartphone Global smartphone users (bn) Penetration rate 47.9m people in the UK are expected to have a smartphone in 2020, up from 38 million in 2015 86% of UK mobile users use a smartphone 2014 2015 2016 2017 2018 2019 2020 Global smartphone users (bn) Global penetration rate UK penetration rate 90% 80% 70% 60% 50% 40% 30% 3.0 2.5 1.5 0.5 0 2.0 1.0

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