Introduction and Abbreviations 

Report coverage and definitions 
Consumer research 
ACORN 
Advertising data 
Abbreviations 


Executive Summary 

94% of households have a landline 
Mobiles on the move 
Wealth of the nation 
Domestic landline market hits £265 million in 2004 
Far from just hanging on 
BT remains dominant... 
...but other key players have designs on top spot 
An adspend recovery? 
Telewest Broadband Eurobell tops the list 
Electrical multiples remain the main route to market 
Smooth talkers 
Cost issue weighs in 
Older people prefer landlines 

Technology could save the day 

Market Drivers 

Telephone lines and answering services hit a wall 
Done talking? 
Figure 1: Proportion of households with none, one, two, three or more telephone lines, 2001-04 
All in one and one for all 
Figure 2: Ownership of telephone equipment, by main type, 1998-2004 
Cordless phones most popular among wealthier families 
The ubiquitous mobile 
Figure 3: Mobile phone subscribers, in millions, 1994-2004 
Voicemail standoff 
Worldwide and home-based - the Internet 
Figure 4: Internet usage at home and work, place of study or elsewhere, 2003-04 
A little more conversation 
Broadband broad base 
Wi-Fi and Internet phones on the way for homeowners 
The email effect 
Digital switchover 
Employment impact 
The popularity of working from home 
Figure 5: Trends in working from home, by gender, age and socio-economic group, 1999-2004 
A popular option for the self-employed 
Figure 6: The UK workforce and self-employed as a percentage of the workforce, 1999-2004 
A high-spending, high-tech culture 
Figure 7: PDI and consumer expenditure, at constant prices, 1999-2008 
Smaller households are becoming the norm 
Figure 8: Trends in household size, 1999-2009 


Market Size and Trends 

A wealthier market...but room for caution 
Figure 9: UK retail sales of telephones and answering machines, by volume and value, 1999-2004 
Topped out? 
Figure 10: UK retail volume sales of telephones and answering machines, by sector, 2000-04 
On a slippery slope? 
What price an answer? 
Figure 11: UK retail value sales of telephones and answering machines, by sector, 2000-04 
Corded phones cling to a third of the market 
Figure 12: UK volume sales of telephones and answering machines, by sector, 2004
Time to give up the ghost? 
Figure 13: UK value sales of telephones and answering machines, by sector, 2004 
The average price of a landline phone and answering machine rises 
Figure 14: Average cost of a telephone and telephone answering machine, 1999-2004 


Market Segmentation 

A healthy market? 
Figure 15: UK retail sales of cordless telephones, by volume and value, 1999-2004 
Integrated answering machines 
Figure 16: UK retail volume sales of cordless telephones, by type, 2000-04 
Value of corded phone sector has halved since 1999 
Figure 17: UK retail volume and value sales of residential corded telephones, by type, 1999-2004 
Cheap at half the price 
Figure 18: Average price of corded phones, 1999-2004 
TAMs and answering machines endure a steep decline 
Figure 19: UK retail sales of TAMs and answering machines, by volume and value, 1999-2004 
A nail in the coffin for standalone units 
Figure 20: UK retail value and volume sales of TAMs and answering machines, by type, 2000-04 
What can be done?


The Supply Structure 

BT remains the biggest provider of cordless phones 
Figure 21: Selected estimated brand shares of cordless phones, 2000-04 
Four companies account for 75% of the corded phone sector 
Figure 22: Manufacturer brand shares of corded phones, 2000-04 
BT and Betacom stand out in a shrinking market 
Figure 23: Manufacturer brand shares of TAMs and answering machines, 2000-04 
Key players 
BT 
Binatone 
Betacom 
Philips 
Panasonic 
Significant others 
Amstrad 
Doro 
Geemarc 


Advertising and Promotion 

Above-the-line adspend in decline 
Figure 24: Main monitored media advertising expenditure on residential telephone answering machine equipment, 1999-2004 
Phone sexy 
Telewest Communications tops the list 
Figure 25: Main monitored media advertising expenditure on residential telecommunications equipment, by selected companies, 1999-2004 
Telewest adspend far outstrips the rest 
Figure 26: Main monitored media advertising on residential telecommunications equipment, by market share of selected companies over the period 1999-2004 


Distribution 

Independents and specialist phone shops fade away 
Figure 27: UK retail value sales of cordless telephones, by outlet type, 2000-04 
Storing up trouble? 
Catalogues get a bigger slice of a smaller pie 
Figure 28: UK retail value sales of corded telephones, by outlet type, 2000-04 
No winners in a shrivelling sector 
Figure 29: UK retail value sales of TAMs and answering machines, by outlet type, 2000-04 
In the public eye 
Figure 30: Phone and answering machines sold through selected retailers, by manufacturer/agent, January 2005 
Who will sell the high-tech solutions? 


The Consumer 

Cordless is king 
Figure 31: Type of telephone owned, 1998-2004 
Cordless phones for the settled down 
The bigger the better 
Consumers in London and the South East are big cordless supporters 
Pay-as-you-go is the way to go 
Figure 32: Types of communication used, December 2004 
Almost a quarter of 35-44-year-olds have an answering service/machine 
Third agers provide long-time support 
Storing up messages 
Attitudes towards communication 
Figure 33: Attitudes towards communication, December 2004 
Thumbs up for texting 
It's good to talk, but better to text? 
Figure 34: Attitudes towards communication, by types of communication used, December 2004 
Stressing the text 
The write way 
A cordless incentive for those who think mobiles are intrusive 
Home telephone advocates... 
Figure 35: Home telephone usage, December 2004 
...and who they are 
Pay-as-you-go could win over the masses 
It's a buyers' market 


The Consumer - Detailed Demographics 

Telephone and answering machine ownership 
Figure 36: Type of phone, by age, presence of children and marital status, 2004 
Figure 37: Type of phone, by household size, lifestage and Mintel's Special Groups, 2004 
Figure 38: Type of phone, by gender, socio-economic group, working status and region, 2004 
Answering machines and voicemail 
Figure 39: Types of answering service/device used, profiles for VoIP email/answering machines, by gender, age, socio-economic group, region, working status, presence of children, household size, lifestage, supermarket usage, media usage, tenure, commercial TV viewing, ACORN categories and Mintel's Special Groups, December 2004 
Attitudes towards the home telephone 
Figure 40: Home telephone usage, by gender, age and socio-economic group, December 2004 
Figure 41: Home telephone usage, by media usage, tenure and supermarket usage, December 2004 


The Future 

Time is running out for answering machines... 
...but technology may buoy the cordless and corded phone industry 
Answer-fun... 
...and practical too 
The next step or a great leap forward 
The next generation of telephony 
Not just cordless...but wireless 
Help on the high street 
Safe as houses? 


Forecast 

Figure 42: Forecast of the UK retail sales of telephones and answering machines, by value, 2004-09 
Cordless phones continue to lead the way 
Corded phones continue to suffer 
TAMs and answering machines will fade out eventually 
Figure 43: Forecast of the UK retail sales of telephones and answering machines, by volume, 2004-09 
Threats to the market 
Factors used in the forecast