This report assesses the performance of the retail telecommunications market since the last report in May 2006 and focuses primarily on telephone equipment and related accessories.

Demand for fixed line equipment is weakening as a result of sexier, more innovative mobile technologies. Inevitably the report focuses on this part of the market, which has seen strong growth thanks to rising levels of ownership, now in excess of 85% of the British adult population. New content and features are also key drivers in the mobiles segment, stimulating the replacement market. Phone manufacturers, network providers, independent retailers and consumers have all embraced this rapidly changing marketplace.