History of cellular mobile communications

Cellular mobile phones are often regarded as a fairly recent innovation, however, they have been freely available in the UK for over 20 years.

The first type of mobile phone was large and cumbersome and similar in size to a large briefcase. These phones were analogue based and in the early days not overly reliable, due to the two existing network operators needing to install an effective infrastructure of network coverage quickly.

With the launch of the second generation (2G), consumer popularity rose steadily. Mobile phones became smaller and easier to handle. Network coverage improved greatly and it became more reliable.

During the period between December 1999 to December 2000 a total of 46,000 new users a day joined the UK mobile phone network. 5.1 million phones were bought in the UK during the 2000 Christmas period.

Number of mobile phone subscribers

Mobile Phone Usage

In its report, 'The Communications Report 2007' Ofcom provides the following information for the period ending December 2006 (with some data from Q1 2007 where available):

70 million mobile phone subscriptions in the UK

More UK households now have mobile phone than have a landline phone (93% mobile connection and 90% fixed connection) and the proportion of households relying on mobile phones exclusively (9%) is greater than the proportion who only use landline phones (7%)

Total 2006 telecoms revenue reached £47 billion, of which £38.5 billion was retail revenue. (i.e. revenue from end-users). Retail revenue rose by 6.9% compared to 2005

Mobile industry revenues grew to £13.9 billion while traditional landline revenue continued to decline

84% of adults reported personally using a mobile phone in Q1 2007

35% of all UK calls were mobile-originated

Some 35% of consumers surveyed now consider their mobile to be their main telephone in Q1 2007, up from 33% in Q4 2005

The average outbound calls per mobile connection rose to over 100 mins per month in 2006

The average mobile phone user is now sending more than 12 text messages a week with usage increasing by 20% between 2005 and 2006

Network

With the rapid growth in mobile phone use and the introduction of advanced third generation (3G) services in 2003, the UK's five network operators will be dedicating their energies to building a reliable and sustainable network for the new technology.

At the start of 2008 there were about 50,300 base station sites in the UK. Two-thirds of these are installed on existing buildings or structures. Less than 2% are mounted on schools.

UK Economy and GDP associated with the mobile phone industry:

The continual increase in demand for mobile communications has contributed significantly to the welfare of the UK economy. In 2003 the number of employees dependent on the mobile phone sector rose to around 197,000. The industry contributes £15 billion a year to government finances*.

The UK is one of the most advanced telecommunications markets in Europe and provides the lowest prices for mobile phone usage. With the speed of new technology within the telecoms industry, the swift introduction of the new third generation (3G) over the next few years will be key to maintaining the UK's competitive edge.

* O2 May 2004 report: "The Contribution of Mobile Phones to the UK Economy"