UK mobile subscriber connections to reach 88.8 million in 2012, says IEMR

55% of the total number of connections to be prepaid over the next two years

The number of mobile subscriber connections in the UK is expected to reach 88.8 million in 2012, with prepaid payment model as widely accepted payment model, according to a new report by IEMR.

The report revealed that the majority of the mobile subscriber connections are prepaid and it is expected that about 55% of the total number of connections will continue to be prepaid over the next two years.

IEMR research vice president Nizar Assanie said market dynamics are changing rapidly especially with the increasing presence of Everything Everywhere - the joint-venture between T-Mobile and Orange.

"We forecast that Everything Everywhere's market share will increase to 38.5% by the end of 2012," Assanie said.

The report 1Q.2011 United Kingdom Mobile Operator Forecast, 2010 - 2015 expects that in the competitive UK market, wireless carriers are battling to attract and retain customers and Everything Everywhere enjoys strong customer additions.

The research firm expects market share to decline at O2 and Vodafone over the next eight quarters and that the subscriber market shares at O2 and Vodafone will be 27.3% and 19.7%, respectively, by the end of 2012.

However, smartphones will drive Vodafone UK's revenue growth and expects EBITDA margins at Vodafone and Everything Everywhere to be approximately 26% and 20%, respectively in 2012.

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