Challenger firms in the UK telecoms sector are playing a vital role in driving competition in the B2B market, according to data and analytics firm, GlobalData.
In a new report about the UK telecoms market, GlobalData suggested the wide range of providers highlighted across the value chain, covering networks to managed services, signifies a “dynamic and highly competitive market” when selling to businesses.
GlobalData has estimated that the UK market of 5.5 million registered private sector businesses, alongside the public and third sectors, has created a B2B communications market worth £10bn a year.
“It is remarkable how much competition there is: from laying fibre in the ground, to selling communications solutions to enterprise customers, both directly and through the channel,” said principal analyst at GlobalData, Robert Pritchard. “This gives rise to what is probably the most competitive national B2B market in Europe, if not the world.”
GlobalData’s analysis also suggested there is a “once-in-a-generation opportunity” as the UK looks to switch off the public switched telephone network (PSTN) in December 2025 – meaning that all companies will be using digital voice alongside other digital services.
The analytics firm said a “churn effect” is already having an impact and all service providers are looking to capitalise on this technology revolution.
Pritchard added: “The likes of BT Business, Virgin Media O2 Business, and Vodafone Business are the most familiar names in this market. But its structure is far more fragmented and expansive – for example, there are about 150 companies rolling out fibre, and the number of resellers and agents is thought to amount to 10,000 companies.
“Within such a wide range of enterprises, there are plenty of options to meet individual businesses’ needs and drivers, be they price, enhanced customer service, or delivering operational efficiency, to name a few.”
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