What Happens When Data Bundles Eclipse Consumer Demand?

August 2026

Telecoms & Connectivity

Alex Webb

Senior Research Analyst

At the start of the 5G era, the mobile ecosystem was inundated with hype about the future potential of mobile data growth. Propelled by use cases such as 8K video, augmented reality, and cloud gaming, the era of 5G was expected to be defined by continued leaps in mobile data demand and usage by consumers. 

Demand for these use cases has never really materialised as significant drivers of mobile data growth, with increases being driven by use cases such as video streaming and short form video content. Enterprises delivering these services over mobile networks are also keen to minimise mobile data consumption, as this enables users to use their service for longer.

This means that new use cases are not driving demand, while existing use cases are working to minimise mobile data use. In contrast, mobile data allowances have continued to grow, and price per GB has fallen, particularly in markets such as the UK. This has led to the growth in data bundles eclipsing growth in consumer demand.

The UK’s Data Bundles Grow to Eclipse Average Mobile Data Usage

The cost per GB of mobile data in the UK has declined considerably in the past decade. In 2015, Ofcom reported that the price per GB of mobile data in the UK was £6.68. In 2026, consumers can now buy 5GB for less than £6.50 from Lebara Mobile, Smarty Mobile, and more. Moreover, the data bundles offered for under £10 per month often exceed 40 GB, and the cheapest unlimited plans start at less than £15 per month.
 
In contrast, in its telecommunications market data update, Ofcom reported total cellular data volume in the UK for 2025 as 11743 PB. Juniper Research notes that this traffic includes other end users such as fixed wireless access (FWA) connections. As FWA typically carries far higher data volume than individual mobile subscriptions, their inclusion in the total likely inflates the per-subscription average shown below; indicating that average data usage per mobile phone subscription is likely lower than 11.3 GB.

Table 1: Ofcom Quarterly Telecommunications Market Data Update July 2026

Source: Ofcom

Note: Average Cellular Data Traffic per Mobile Subscriber per Month was calculated by dividing the total cellular data volume by the year prior and year current average of mobile subscribers and 12 - other methodologies may vary in result.

The 11.3 GB per month figure is a fraction of the data bundles now being offered by many mobile service providers, with continued decline in cost per GB exacerbating this disparity. In a sense, the supply of mobile data in bundles is outstripping actual usage, suggesting data consumption is increasingly capped by consumer behaviour rather than by price or allowance size.

Whilst a large number of consumers still require increased data bundles, and most consumers will pay for some headroom between data bundles and actual usage; Juniper Research argues that a growing number of consumers perceive these data bundles as offering diminishing returns on investment. 

According to Ofcom, the average monthly retail revenue per mobile subscriber in 2025 is £15.98 for a postpaid mobile subscriber (75% of total UK mobile subscribers). Under many Mobile Virtual Network Operators (MVNOs) and sub brands, this monthly cost can provide access to unlimited mobile data, whilst their consumers paying around two thirds of this monthly cost can access more than 40GB per month.

Without the emergence of new data-intensive mobile use cases, the UK mobile market is increasingly trending towards favouring those who can compete beyond data bundles. Consumers still value mobile data highly, but the apparent diminishing return on investment as GB bundles grow means the market must rethink how to differentiate.

What Could the Future of UK Mobile Subscriptions Look Like? 

The principal question for UK MNOs, MVNOs, and other mobile players will be how they can compete beyond expanded data bundles. Data bundles will remain at the centre of the value proposition, but the value-added for consumers is declining as these data bundles grow. 

Juniper Research expects that traditional offers of bundling and mobile roaming will likely grow in importance over the next five years. Bundles such as those including music and video streaming services enable consumers to reduce costs by consolidating their memberships into a single subscription. Mobile roaming services remain costly for consumers, suppressing demand; meaning cheaper or bundled roaming access stands to unlock demand that lower domestic pricing increasingly cannot. This is particularly relevant since the UK left the European Union (EU), meaning consumers there are no longer covered by EU roaming legislation when travelling within the bloc.

However, the most successful MNOs, MVNOs, and sub brands will go beyond these more traditional value propositions. Juniper Research expects the following trends to become increasingly common in the UK mobile market:

• Cross-business Value – A growing number of enterprises such as fintechs are becoming involved in mobile markets, enabled by telecommunications as a service providers such as Gigs and 1global. Juniper Research expects these enterprises will increasingly leverage their wider businesses over the next five years to add value to their mobile offers; thus creating a strong value proposition for consumers searching for a mobile subscription that goes beyond large data bundles.
• AI Services – Juniper Research expects that MNOs will introduce a number of AI-based value-added services to mobile subscriptions, such as AI assistants, that can leverage mobile channels to perform tasks such as restaurant and garage bookings. Freemium access via mobile subscriptions would provide MNOs with a strong value offer to consumers beyond basic data bundles, especially as increasingly these tasks will involve consumers communicating with AI on the enterprise side. Juniper Research expects that competition will be significant in this market, so MNO capacity to leverage their existing customer relationships and infrastructure will be critical.
• Quality-based Pricing – MNOs in particular are increasingly positioning their connectivity as a premium offer. For example, EE offers a number of unlimited data allowances with varying speed gaps which range from 10Mbps to uncapped. Juniper Research notes that this shows that data can still be the value proposition even if data bundles are not. MNOs could also explore competing on customer experience, offering premium access to services such as customer support.

In conclusion, Juniper Research argues that the future of UK mobile subscriptions will be oriented around how providers can deliver value beyond larger data bundles, including increased quality, cross business value offer, streaming bundles, and AI services.