PRESS RELEASE BY MBD...

UK TELECOMMUNICATIONS EQUIPMENT MARKET RESEARCH REPORT

RELEASED: FEBRUARY 2008

After researching the UK telecommunications equipment market development and taking into account various other factors the following conclusions can be drawn from MBD's report:

Market Review 2003 - 2007

The UK telecommunications equipment markets is believed to have increased by 2% to £8458.6 million in 2007, consolidating marginal growth in the previous year. The value of the market is believed to have increased throughout the five year review period, although annual growth rates are believed to have moderated overall. The slower growth in the latter two years is believed to reflect slower growth in the mobile phone sector due to the high level of penetration in the sector as well as increased price competition. Overall between 2003 and 2007, sales increased by an estimated 40%.

Market Forecast 2008 - 2012

MBD anticipate the UK telecommunications equipment market will increase throughout the five year review period, with annual real term growth rates at between 1% and 3%. By 2012, the value of the market is projected to reach a peak of £9365.3 million (at 2007 prices), representing real term growth of 11% since 2007. Potential growth areas include the integration of electronic and mobile technologies. Indeed, as penetration of mobile handsets reached saturation earlier in this decade, further growth is likely to be largely dependent on technological advances to reduce the average replacement cycle. Demand is anticipated to be boosted by technological developments in the mobile phones sector, such as picture and video phones and the continued roll out of 3G technology, with the latter projected to generate further strong demand in the short term.

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