Five major changes are set to occur in the UK telecoms market, leading to significant changes in the broadband landscape, it has been claimed.
In a new note, Morgan Stanley said the UK is converging towards five major providers, with Sky likely to be a disruptive operator following its decision to launch mobile services on O2's network.
The financial services firm believes Sky will use its marketing expertise to push hard on broadband bundles and succeed in attracting mobile customers from its rivals.
The second major change in UK telecoms in 2015 will be Vodafone's entry into the home broadband market, Morgan Stanley predicted.
The operator plans to use the fibre infrastructure it acquired from Cable & Wireless, along with BT's infrastructure, to offer fixed-line services.
Vodafone is also expected to move into the growing TV market before the end of the year, Morgan Stanley added.
Thirdly, the financier highlighted the potential of Virgin Media's Project Lightning to cause a shift in the UK telecoms industry.
The five-year initiative should extend the cable operator's coverage by around four million homes, from 49 per cent of UK households to 65 per cent.
"With its faster speeds and regular price promotions, we expect Virgin can successfully penetrate its new footprint," Morgan Stanley stated.
"However, competition will be intense, given higher BT speeds and Vodafone's new entrant model."
The fourth major change identified by the firm is BT's quad-play push following its takeover of 4G mobile operator EE.
Morgan Stanley said this acquisition will create a mass-market, convergent market leader, with a strong wireless network and faster fixed speeds.
"We would expect BT/EE to push broadband/TV via EE's 550 stores, use sports as a discounting mechanism for quad-play and push convergent family mobile plans," the firm added.
Finally, Morgan Stanley said the potential merger of Hutchison's Three and Telefonica's O2 UK brands will have an impact on UK telecoms.
The new, larger company would begin as mobile-only, but Morgan Stanley believes it could decide to explore and enter into home broadband in order to defend its market share.
This would add another fixed-line broadband provider to the UK market and increase competition for customers.