U.K. Office Workers Lose 2.5 Hours per Week Seeking Good Signal

Research released by ip.access, a U.K.- based manufacturer and supplier of small cell solutions, based on a survey of 2,000 office workers at companies of varying sizes, found that the average U.K. worker loses 2.5 hours of work per week seeking good mobile reception for work-related calls while in the office. Extrapolating from that, ip.access estimates that U.K. office workers are spending 2.53 million hours per week seeking mobile reception, thus costing U.K. businesses an estimated £33 million (US $50.6 million) per week. ip.access reports that even in the telecom industry, 50 percent of professionals feel that the mobile signal in their office is inadequate.

This study joins a growing number of recent studies pointing to inadequate telecommunications technology in the workplace in the U.K. Many of these studies monetize the cost of the situation, citing the price that businesses are paying in wasted time as employees hunt for service. In addition, there is the cost in morale due to the frustration felt by employees who are used to a level of mobile service in their personal lives that is not matched in the workplace. Several of these studies, including the one referred to here, are being done by companies that offer their own products and solutions for improving patchy indoor coverage in the workplace, using technologies such as small cells. We feel that the MNOs must approach this issue with urgency and invest in the appropriate available technologies in order to significantly boost productivity and revenue for their business customers. 

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues or to speak with the research team: http://www.tarifica.com/contactus.aspx

3 UK CEO: Consumer Demand for Quad Play Still Uncertain

David Dyson, the CEO of mobile operator 3 UK, told the Financial Times this week that it is still not clear whether consumers actually want quad play services in the U.K. The operator’s parent company, Hutchison Whampoa, is currently in talks to buy Telefónica’s UK operator O2. Purported consumer demand for converged services was one of the arguments put forward by fixed operator BT when it announced its intention to acquire EE, the country’s number-one MNO. Dyson said that although there does not seem to be much demand for quad play now, customers could be encouraged to adopt it in the future if operators are willing to discount individual parts of the converged packages. “It depends how hard companies push it,” he said. We have written frequently here about growing demand for multiple play packages in many markets around the world and about the mergers between mobile operators and cable providers driven by that demand. Dyson’s statement is certainly a contrarian one, given the general perception in the industry, but he is doing more than just talking. His company is betting on the future of pure mobile service over converged service by moving to acquire another MNO, O2, rather than a fixed operator. EE and BT are pursuing the opposite strategy, following the more conventional wisdom. Cable provider Sky is taking the same approach, interestingly by doing a deal with Telefónica, to offer quad plays using O2’s U.K. network, starting in 2016. 3 UK, on the other hand, not only intends to buy O2 but to keep all of 3’s and O2’s cellular towers in operation after the merger instead of eliminating some to cut costs. This move indicates that 3 views mobile coverage as the most important factor in getting and retaining business. Whether Dyson is right about customer preferences remains to be seen—as do the outcomes of regulatory scrutiny of both the 3–O2 deal and the BT–EE deal.

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week or to contact the Tarifica Research department:  http://www.tarifica.com/contactus.aspx

Vodafone to Ask U.K. Regulator to Set Conditions for British Telecom

In the wake of British Telecom’s announcement that it is in exclusive talks to acquire U.K. mobile operator EE from Deutsche Telekom and Orange, Vodafone plans to ask regulator Ofcom to make sure that BT makes its fiber network equally available to all mobile operators that rely on it, according to a report citing a person familiar with the matter. BT’s Openreach unit sells broadband access to mobile operators on a wholesale basis, and according to the source, Vodafone is concerned that if the deal goes through, BT would favor EE’s traffic over that of its rivals when it comes to internet speed. In a statement, Ofcom said that while it is not able to make any decision on transactions, it “may be asked to provide technical advice to the relevant competition authority.”   The 168-year-old BT has, over the past several years, transformed itself from a declining former state-owned telephone monopoly into a major power in fixed broadband. Its proposed acquisition of EE for US $19.5 billion in cash and BT shares would make it a major player in the converged services market that is rapidly emerging as key in the developed world. Combining EE’s mobile network with the fixed offerings of BT could benefit consumers by lowering prices, but it could also hurt competition due to BT’s unique status as a wholesale broadband provider. Vodafone, the third-largest mobile operator in the U.K. after EE and O2, certainly has reason for concern. If the deal goes through, it is by no means sure that any regulatory entity will take steps to force BT to grant, in effect, net neutrality to all operators that use its fiber broadband network. Whatever the case, though, if BT acquires EE, the pressure will be on Vodafone and O2 to follow suit and find their broadband acquisitions. Already Vodafone is said to be considering a merger with Liberty Global, which conducts cable operations in the U.K. under the Virgin brand.

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week or to contact the Tarifica Research department:  http://www.tarifica.com/contactus.aspx