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Telecommunications Resellers in the UK - Market Research Report (2014-2029)

Thomas Weale Thomas Weale London, United Kingdom Last Updated: December 2024 SIC J61.900

Revenue

£4.2bn

2024-25

£4.2bn

Past 5-Year Growth

Profit

£XXX.Xm

Employees

13,870

Businesses

357

Wages

£XXX.Xm

Telecommunications Resellers in the UK industry analysis

Telecommunications resellers benefit from access to wired and wireless services at a fairly low cost, as they don't own any infrastructure but pay carriers fees for indirect access to their networks. Resellers tend to target their products to specific, bespoke niche markets to mitigate the adverse effects of high competition pushing down prices, like mass coverage for outdoor consumers. Over the five years through 2024-25, revenue is anticipated to dip at a compound annual rate of 3.4% to £4.2 billion, mostly driven by heightened competition and adverse economic conditions constraining average revenue per user (ARPU).

Trends and Insights

  • Tough competition caps prices, compelling some resellers to bow out. Entry barriers are lax, letting known brands diversify into telecom reselling. Wired and wireless carriers remain adversaries to resellers – they introduce innovations before resellers so have an edge.
  • Consumers switch from text messaging to alternative data services. The commercial rollout of 5G has supported demand for mobile data services over traditional telephone and text messaging platforms.
  • London remains the UK’s telecom resellers hotspot. The region is ideal because of its dense population, which provides resellers with a large customer base.
  • Telecom resellers tap into niche markets. This is a great way to differentiate themselves from their competitors and expand their market share.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 3.0 % over the past five years, to reach an estimated £4.2bn in 2024.

Trends and Insights

The smartphone revolution recalibrates telecoms, hiking the need for data

  • Smartphones have evolved into a necessity to consumers, with Uswitch finding that 86% of people in the UK used their phone to go surfing online in 2022. The growth of mobile apps especially those that swallow loads of data, like video and calling services, has led to consumers favouring data services over old school mobile telephone and text messaging. WhatsApp demonstrates this as it’s the highest-reaching smartphone app, reaching nine in ten UK adult internet users in 2024-25, according to Ofcom. SMEs also increasingly rely on wireless services, particularly international communication, for all their communication needs. This is pushing telecommunication resellers to offer premium data plans that offer unlimited or high-volume data services to capitalise on high-data volume needs and picking up more revenue.
  • Additional trends and insights available with purchase
Telecommunications Resellers in the UK
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Demand for mobile and data connectivity swells, but price competition restricts revenue growth

  • Improvements in 4G services and the rapid expansion of 5G networks will support revenue. Government targets include deploying 5G to most of the country by 2027 and 95% of the UK's landmass having high-quality 4G mobile coverage by 2025. This will allow companies to offer more appealing contracts to remote locations and access a wider market of customers.

Biggest companies in the Telecommunications Resellers in the UK

Company
Market Share (%)
2025
Revenue (£m)
2025
Tesco Mobile Limited
1,135.2
Giffgaff Ltd
586.1
Gamma Communications plc
439.7

To view the market share and analysis for all 7 top companies in this industry, view purchase options.

Products & Services Segmentation

Telecommunications Resellers in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Mobile services, Data services and Wired services. Mobile services is the largest segment of the Telecommunications Resellers in the UK.

Trends and Insights

The emergence of communications apps constrains revenue from mobile services

  • Mobile services refer to wireless connectivity provided to customers for the use of voice calls and messages.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Telecommunications resellers provide fixed, mobile and data telecommunication services over networks owned by a third party. They purchase network capacity from network providers and sell it on through their own channels.

What's included in this industry?

Mobile servicesData servicesWired servicesPhone cards

Companies

Tesco Mobile LimitedGiffgaff LtdGamma Communications plc

Purchase this report to view all 7 major companies in this industry.

Related Terms

LOCAL LOOP UNBUNDLING (LLU)MOBILE VIRTUAL NETWORK OPERATOR (MVNO)METALLIC PATH FACILITIES (MPF)MOBILE NETWORK OPERATOR (MNO) QUAD-PLAYWHOLESALE LINE RENTAL (WLR)CHURN RATE

Industry Code

SIC 2007

SIC 61.90 - Telecommunications Resellers in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Tough competition caps prices, compelling some resellers to bow out. Entry barriers are lax, letting known brands diversify into telecom reselling. Wired and wireless carrier...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Consumers switch from text messaging to alternative data services. The commercial rollout of 5G has supported demand for mobile data services over traditional telephone and t...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

London remains the UK’s telecom resellers hotspot. The region is ideal because of its dense population, which provides resellers with a large customer base.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Telecom resellers tap into niche markets. This is a great way to differentiate themselves from their competitors and expand their market share.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Giffgaff keeps wages low through innovation. The company has no customer service lines and is run by consumers in exchange for payback points they can spend.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Tesco Mobile Limited's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Giffgaff Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Gamma Communications plc's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 4 additional companies

Detailed analysis

  • Description and key data for Tesco Mobile Limited, and factors influencing its performance in the industry
  • Description and key data for Giffgaff Ltd, and factors influencing its performance in the industry
  • Description and key data for Gamma Communications plc, and factors influencing its performance in the industry
  • Description, key data and performance trends for 4 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The number of mobile connections sways demand. It indicates the potential market size for mobile services. MNVOs can secure more subscribers and rake in more revenue when mob...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Marketing efforts help telecom resellers differentiate themselves. Resellers are splashing the cash on marketing to bring in customers and stand out against their competitors...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2018-2022)
  • Coverage Ratios (2018-2022)
  • Leverage Ratios  (2018-2022)
  • Operating Ratios (2018-2022)
  • Assets (2018-2022)
  • Liabilities (2018-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Telecommunications Resellers in the UK industry in United Kingdom in 2024?

The market size of the Telecommunications Resellers in the UK industry in United Kingdom is £4.2bn in 2024.

How many businesses are there in the Telecommunications Resellers in the UK industry in 2024?

There are 357 businesses in the Telecommunications Resellers in the UK industry in United Kingdom, which has declined at a CAGR of 0.0 % between 2019 and 2024.

Has the Telecommunications Resellers in the UK industry in United Kingdom grown or declined over the past 5 years?

The market size of the Telecommunications Resellers in the UK industry in United Kingdom has been declining at a CAGR of 3.0 % between 2019 and 2024.

What is the forecast growth of the Telecommunications Resellers in the UK industry in United Kingdom over the next 5 years?

Over the next five years, the Telecommunications Resellers in the UK industry in United Kingdom is expected to grow.

What are the biggest companies in the Telecommunications Resellers in the UK market in United Kingdom?

The biggest companies operating in the Telecommunications Resellers market in United Kingdom are Tesco Mobile Limited, Giffgaff Ltd and Gamma Communications plc

What does the Telecommunications Resellers in the UK in United Kingdom include?

Mobile services and Data services are part of the Telecommunications Resellers in the UK industry.

Which companies have the highest market share in the Telecommunications Resellers in the UK in United Kingdom?

The company holding the most market share in United Kingdom is Tesco Mobile Limited.

How competitive is the Telecommunications Resellers in the UK industry in United Kingdom?

The level of competition is high and increasing in the Telecommunications Resellers in the UK industry in United Kingdom.

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Methodology

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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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