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Monday, March 7, 2011

New forecast says Everything Everywhere market share will increase

Canada-based IE Market Research says the UK mobile phone market will see Everything Everywhere’s market share increasing to 38.5% by the end of 2012 - despite the Orange and T-Mobile partnership recently announcing a drop in customer numbers. The IEMR forecast also predicts market share declines at O2 and Vodafone, falling to 27.3% and 19.7% respectively by the end of 2012. By 2015, IEMR anticipates the UK having 99 million mobile connections with around 40% on Everything Everywhere.

Nizar Assanie, Vice President of Research at IEMR, said “Given the latest quarter numbers, we expect that the number of mobile subscriber connections in the UK will rise to 88.8 million in 2012. In the UK market where prepaid is widely accepted as a payment model rather than an option for the credit-unworthy, the majority of the mobile subscriber connections is prepaid. We expect that about 55% of the total number of connections will continue to be prepaid over the next two years. 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.”

However, the report notes that profitability at Vodafone is expected to remain higher than at Everything Everywhere, with Vodafone having an EBITDA margin of approximately 26% in 2012.

[Report]

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7/8/2011 12:01 PM

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