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Mobile phone customers are changing their phones and contracts less frequently than before the recession but they are spending more on music downloads and internet services.
O2, the country's largest mobile company, said UK revenues rose by 7% in the first three months of this year which chief executive Matthew Key said meant it continued to outperform its competitors.
With speculation rising that Deutsche Telekom is poised to sell T-Mobile the battle for Europe's mobile customers is hotting up. O2 and Vodafone have recently agreed to share masts and networks to cut their fixed costs. Key said: "We delivered a strong set of results [and] have reported impressive cash flow growth while maintaining our levels of investment to ensure the long-term health of the business."
The broader group Telefónica Europe, owned by Spain's leading phone group and which also includes Ireland, Germany and the Czech Republic, saw a 4% rise in first-quarter revenues. Ireland sustained a downturn in all areas of business and Germany is recovering from a major downturn. Total European customer base rose by 9% to 46.7 million.
