Businesses reluctant to give up fixed-line connections

Ofcom : Businesses keeping fixed lines

Despite the growth of mobile voice and data, businesses are still reluctant to give up their fixed-line connections, according to communications regulator Ofcom.

The watchdog's sixth annual report into the UK telecoms sector The Communications Market 2009, shows that fixed-line business call volumes fell by 10 per cent during 2008, but the number of fixed business lines fell by only 1.8 per cent.

"[Fixed lines] are considered important in order for contact with clients, suppliers and customers," says the report.

Ofcom highlighted the continuing growth of mobile services in the business sector, showing that over the five years to 2008 the fastest growth came from these services, averaging 14 per cent per year.

Companies spent £13.9bn on telecoms services in 2008, up two per cent from 2007. Business mobile revenue increased 6.4 per cent to £6.9bn in 2008, the net increase in spend (£0.4bn) offsetting the 6.9 per cent decrease in fixed voice revenue to £3.1bn, giving a net decrease of £0.2bn.

Corporate data services revenue was unchanged at £3.2bn, as was revenue from non-corporate internet services, unchanged at £0.5bn.

The £6.9bn business mobile revenue breaks down into £1.1bn from mobile data services (including SMS), a 17.5 per cent increase from 2007, and £5.8bn for mobile voice calls and rental.