Policy paper

Telecommunications providers survey October 2021 to February 2022 - Research notes

Published 5 September 2022

This was published under the 2019 to 2022 Johnson Conservative government

As the UK government continues to work to support digital infrastructure in the UK, it is crucial that the Department for Digital, Culture, Media, and Sport has a clear and accurate understanding of the telecommunications providers that are operating within the UK.

Telecommunications providers are the primary group that own and operate the UK’s digital infrastructure. Any policy proposal or government decision should consider the market structure and capabilities of telecommunications providers, as well as the impact of any intervention on these groups.

To further the evidence base, in the last quarter of 2021, the Department for Digital, Culture, Media, and Sport commissioned Team Telemarketing LTD to conduct a telephone based market research survey aimed at telecommunications providers in the UK.

The purpose of the telecoms market research survey is to help further understand and classify the types of providers of telecommunications networks and/or services in the UK. This includes understanding more about the number of telecoms providers operating in the UK including their size, activities of companies providing electronic telecommunications networks and services as well as the segments they operate in and their expected growth and whether they will be affected by the Telecommunications (Security) Act 2021. The telecoms market research survey is designed for DCMS to gain a better understanding of telecommunications providers to further support the development of the UK’s digital infrastructure.

Please contact [email protected] if you have any questions or would like to discuss the results in more detail.

Summary

• The telecoms market research survey ran from 1st December 2021 to 3rd February 2022.
• This project was undertaken by Team Telemarketing LTD who was awarded the contract through Invitation To Tender.
• Team Telemarketing LTD sourced a dataset of 4,101 records.
• From the dataset of 4,101 records, over 18,000 calls were made to companies in the dataset of which 759 business owners/business decision makers were spoken to.
• 450 telephone surveys were completed. A further 309 companies that were contacted were screened out on the opening qualifying question due to not being in scope (not providing an Electronic Communication Network, Electronic Communication Service or Associated Facility).

Methodology

The project is comprised of two phases:

1. Develop a comprehensive list of the types of company that can be considered a ‘telecommunications provider’.

2. Carry out research into the characteristics of telecommunications providers by surveying a sample of telecommunications providers operating in the UK.

For phase 1 of the project, the definitions in section 32 of the Communications Act 2003 were used as a starting point to identify the types of companies that could be considered as a ‘telecommunications provider’. The research then also considered other telecommunications providers that are not clearly defined in the Communications Act.

Team Telemarketing LTD researched the SIC codes linked to the telecommunications industry and identified four SIC codes that companies are registered under. They are 61100, 61200, 61300 and 61900.

Team Telemarketing sourced a dataset of 4,101 records that were not registered as TPS or CTPS^{[footnote 1]} and therefore could be contacted for research purposes.

The dataset is broken down as follows:

Total (all businesses)	4101
Micro (0 to 9)	2796
Small (10 to 49)	980
Medium-sized (50 to 249)	285
Large (250+)	40

The data sourced by Team Telemarketing LTD is a representative sample of the telecoms industry as a whole and was purchased for the second phase of the project.

For phase 2 of the project, Team Telemarketing LTD and DCMS identified the survey sample required for each size bracket that will reflect the number of companies within the telecommunications SIC codes.

The survey then commenced on 1st of December 2021 and ended on the 3rd of February 2022.

Caveat

• Please bear in mind the sample size when referring to any survey results.
• This was a data gathering exercise to understand the types of companies from all sizes with a specific focus on micro and small companies.
• Results from the survey are unweighted, with each business assigned the same weight regardless of turnover or size.
• Self-selection bias may be present. Therefore, responses are illustrative and they should be treated with caution as results reflect the characteristics of those who completed the survey and not necessarily the wider business population.

Tables

Table 1: Organisation size

How many PAYE employees do you have in the UK?

Organisation Size	Micro (0-9 employees)	Small (10-49 employees)	Medium (50-249 employees)	Large (250+ employees)	Total
Survey size	295	113	33	9	450

Table 2: Telecoms classification

Does your company provide an: (select all that apply) (Multi Select)

1. Electronic communications network (a system for conveying signals of any kind using electrical, magnetic, or electro-magnetic energy. It includes the equipment which makes up the system, switching or routing equipment and software and stored data.)

2. Electronic communications service (a service provided using an electronic communications network. It includes internet access services such as provision of broadband services over equipment owned by somebody else.)

3. Associated facility (a facility or service that is used by or is available for use by an electronic communications network or service.)

Total (all businesses)	450
Electronic Communications Service Only	193
Electronic Communications Network Only	80
Associated Facility Only	84
Multiple Option Selected	93

Table 3: Telecoms network

Is the network, service, or facility that you provide: (Multi Select)

1. A public network (An off-the-shelf, paid-for network or service available to customers i.e., publicly available)

2. A private Network (A bespoke network or service provided to specific standards agreed via a negotiated contract)

3. Other (free type)

Total (all businesses)	450
Private Network only	147
Public Network only	114
Both	172
Other (Free type)	17

Table 4: Who do you provide services to?

Whom do you provide these services too? (Multi Select)

1. Individuals

2. Businesses using telecommunications services

3. Other businesses providing telecommunication services

4. Government organisations

5. Other (free type)

Service type	Individuals	Businesses using telecommunications services	Other businesses providing telecommunication services	Government organisations	Other (free type)	Total
Who do you provide services to	100	399	84	65	13	661

Note: This was a multiple selection question. The results will not tally to 450.

Table 5: Are you headquartered in the UK?

Are you a UK headquartered company?

UK headquartered	Yes	No	Total
UK headquartered	440	10	450

Table 6: Where do you provide your services in the UK?

In what area of the UK do you provide these services?

Service provided in UK	Nationwide	Other	Total
Service provided in UK	334	116	450

Note: The respondents that selected other provide their services local to them or outside the UK.

Table 7: Company turnover

What is your company turnover from activities in the UK?

Total (all businesses)	450
Under £1 Million	159
Between £1 - £5 Million	67
Over £5 Million	29
Other	195

Note: The respondents that selected other refused to answer or were unable to answer

Table 8: Business growth expectations

Over the next 5 years, what are the company’s expectations regarding business growth in the UK?

Total (all businesses)	450
Increase	325
Decrease	20
Stay the same	100
Not sure	5

Table 9: Regulation awareness by organisation size

Are you aware of the Telecoms (Security) Act? (Selected Yes)

Total (all businesses)	261
Micro (0-9 employees)	162
Small (10-49 employees)	70
Medium (50-249 employees)	22
Large (250+ employees)	7

Note: This table shows all respondents that selected yes. The results will not tally to 450.

1. The Telephone Preference Service (TPS) and Corporate Telephone Preference Service (CTPS) are opt-out registers. ↩