2010 Slovakia - Telecoms, Mobile, Broadband and Forecasts

Publication Overview

This report covers trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP and IPTV developments. Subjects include:

• Market and industry analyses, trends and developments;
• Facts, figures and statistics;
• Industry and regulatory issues;
• Infrastructure;
• Major players, revenues, subscribers, ARPU, MOU;
• Internet, VoIP, IPTV;
• Mobile voice and data markets;
• Broadband (FttH, DSL, cable TV, wireless);
• Convergence and digital media.

Researcher:- Paul Kwon
Current publication date:- September 2010 (9th Edition)
Next publication date:- September 2011

Executive Summary

Slovakia feels the need for broadband speed

Defined as an upper middle-income country by the World Bank, Slovakia until recently enjoyed strong economic growth, in part due to its status as a European Union member. An export-dependent economy, the recent global economic turmoil impacted Slovakia’s exports, which counts Germany, Czech Republic and France as its principal trading partners, as well as softening demand at home due to falling confidence and employment. Slovakia entered its first recession since independence in 1993 although the economy is expected to record real GDP growth of 2.7% for 2010 and 3.6% for 2011.

Despite the difficult conditions Slovakia’s competing telecom operators noted the recent economic turmoil did not impact telecoms and IT services as much as other industries, such as manufacturing and finance, given that telecoms and IT services are productivity enablers. However it has increased the difficulty in securing financial funding for telecoms projects.

Despite market liberalisation telecoms incumbent Slovak Telecom continues to hold a near monopoly of the fixed-line services market. Alternative operators have entered the market although tough competitive pressures have forced a number of mergers and acquisitions, resulting in small number of larger alternative operators. Fixed-line penetration is declining due to fixed mobile substitution.

Broadband represents the majority of Internet connections. Competition is predominantly infrastructure-based, with DSL, cable, FttX and wireless broadband available. Increased Internet usage is supporting Slovakia’s Internet society, which has received substantial EU funding to develop and improve access to e-government services.

Digital terrestrial TV has been launched although digital TV is widely available via cable TV, satellite and broadband TV.

Slovakia’s mobile market is serviced by three mobile network operators. Penetration is at near saturation levels, with multiple SIM card ownership evident. Mobile broadband represents a significant growth opportunity, given the launch of HSDPA networks although one established mobile network operator has embarked on a plan to become an integrated telecoms services provider by deploying FttX networks.

Market highlights:

• Broadband represents the majority of Internet subscriptions. Healthy infrastructure based competition is evident given the reach of cable TV networks and deployment of FttX infrastructure by major players. Slovakia’s dominant cable TV operator has implemented Euro DOCSIS 3.0 technology across most of its network, promising speeds of up to 120Mb/s.
• Building on greater broadband penetration and Internet usage is development of online applications and services that form the Internet society; an e-government development strategy until 2013 has been approved and a project is underway to define an integrated IT architecture for the public administration to support delivery of e-government services. Slovakian e-health developments are guided by a government approved e-health national strategy for 2009-2013.
• Digital Terrestrial TV has finally launched commercially, with availability extending to most of the population. Mobile broadcasting trials based on DVB-H technology have been approved.
• Strong growth rates recorded by Slovakia’s relatively new mobile network operator stands in contrast to the steady or declining results of established operators, with one expanding its focus to become an integrated telecoms service provider. Mobile broadband presents a new revenue growth opportunity for all three mobile networks, given existing low mobile broadband penetration. Competitively-priced mobile broadband access services have been launched, bundling generous prepaid amounts of data.

Slovakia broadband and telecoms statistics – 2010

(Source: BuddeComm based on industry data)

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

• 1. Key Statistics
• 2. Telecommunications Market
  • 2.1 Overview of Slovakia’s telecom market
• 3. Regulatory Environment
  • 3.1 History
    • 3.1.1 Electronic Communications Act 2003
    • 3.1.2 EU Regulatory Framework
  • 3.2 Regulatory authority
    • 3.2.1 Telecommunications Office of the Slovak Republic (TOSR)
  • 3.3 Telecom sector liberalisation in Slovakia
    • 3.3.1 Privatisation of Slovak Telecom
    • 3.3.2 Interconnection
    • 3.3.3 Access
    • 3.3.4 Number portability (NP)
    • 3.3.5 Carrier selection and Carrier PreSelection (CPS)
• 4. Fixed Network Market
  • 4.1 Introduction
  • 4.2 Slovak Telecom (T-Com)
  • 4.3 GTS Slovakia
  • 4.4 Slovak Wireless Access Network (SWAN)
• 5. Telecommunications Infrastructure
  • 5.1 National telecom network
    • 5.1.1 Alternative operators
  • 5.2 Wholesaling
    • 5.2.1 Overview
• 6. Internet Market
  • 6.1 Overview
    • 6.1.1 Internet statistics
  • 6.2 Slovakia’s emerging Internet society
    • 6.2.1 Legislation
    • 6.2.2 Government support
    • 6.2.3 E-government
    • 6.2.4 E-health
    • 6.2.5 E-education
• 7. Broadband Market
  • 7.1 Overview
    • 7.1.1 Broadband statistics
  • 7.2 Asymmetrical Digital Subscriber Line (ADSL)
  • 7.3 Cable modems
  • 7.4 Fibre-to-the-Home (FttH) networks
  • 7.5 Wireless broadband
    • 7.5.1 WiFi
    • 7.5.2 WiMAX
• 8. Digital Media
  • 8.1 Overview of broadcasting market
  • 8.2 Digital TV (DTV)
    • 8.2.1 Broadband TV (IPTV)
    • 8.2.2 Cable TV (CATV)
    • 8.2.3 Satellite-based pay TV developments
    • 8.2.4 Digital Terrestrial TV (DTTV)
• 9. Mobile Communications
  • 9.1 Overview of Slovakia’s mobile market
    • 9.1.1 Mobile statistics
  • 9.2 Regulatory issues
    • 9.2.1 GSM licences
    • 9.2.2 UMTS licences and third GSM licence
    • 9.2.3 Fourth mobile network operator licence
    • 9.2.4 Mobile Number Portability (MNP)
    • 9.2.5 Mobile Termination Rates (MTR)
  • 9.3 Mobile technologies
    • 9.3.1 Digital
    • 9.3.2 Third Generation (3G) mobile
  • 9.4 Major mobile operators
    • 9.4.1 T-Mobile Slovensko
    • 9.4.2 Orange Slovensko
    • 9.4.3 Telefónica 02
  • 9.5 Mobile voice services
    • 9.5.1 Prepaid
  • 9.6 Mobile data services
    • 9.6.1 Enhanced Data for GSM Evolution (EDGE)
    • 9.6.2 BlackBerry
    • 9.6.3 Mobile TV
    • 9.6.4 Mobile broadband
  • 9.7 Mobile content and applications
• 10. Forecasts
  • 10.1 Forecasts – fixed broadband subscribers – 2010 - 2013; 2020
    • 10.1.1 Scenario 1 – higher broadband subscriber growth
    • 10.1.2 Scenario 2 – lower broadband subscriber growth
• 11. Glossary of Abbreviations

• Table 1 – Country statistics Slovakia – 2010
• Table 2 – Telephone network statistics – 2010
• Table 3 – Internet user statistics – 2010
• Table 4 – Internet subscriber statistics – 2010
• Table 5 – Broadband subscriber statistics – 2010
• Table 6 – Mobile statistics – 2010
• Table 7 – National telecommunications authority
• Table 8 – Slovak Telekom interconnection rates – 2006 - 2010
• Table 9 – Slovak Telekom financial data – 2009 - 2010
• Table 10 – Fixed lines in service and teledensity – 2000 - 2011
• Table 11 – Total international Internet bandwidth – 2000 - 2009
• Table 12 – Cost of local loop unbundling and share access – 2006 - 2009
• Table 13 – Internet users, subscribers and penetration rate – 2000 - 2011
• Table 14 – Workplace network usage by network type – 2004 - 2010
• Table 15 – Online purchases by individuals – 2005 - 2010
• Table 16 – Electronic sales as percentage of total non-VAT turnover for non-financial sector businesses with 10 or more employees – 2009
• Table 17 – Uptake of e-government services by businesses – 2004 - 2010
• Table 18 – Uptake of e-government services by individuals – 2004 - 2010
• Table 19 – E-education usage by individuals – 2007 - 2010
• Table 20 – E-education usage by businesses – 2007 - 2010
• Table 21 – Broadband subscribers and penetration rate – 2002 - 2010
• Table 22 – Slovak Telekom ADSL subscribers – 2005 - 2010
• Table 23 – Audience share by broadcaster – Prime time – 2005 - 2010
• Table 24 – Audience share by broadcaster – All day – 2005 - 2010
• Table 25 – Total TV advertising spending – 2004 - 2009
• Table 26 – Magio subscribers – 2008 - 2010
• Table 27 – UPC – homes passed – 2003 - 2010
• Table 28 – UPC – Subscribers by service type – 2003 - 2009
• Table 29 – Mobile subscribers and penetration rate – 1998 - 2011
• Table 30 – T-Mobile subscribers – 2006 - 2010
• Table 31 – T-Mobile financial data and monthly ARPU – 2004 - 2010
• Table 32 – Orange subscribers – 2007 - 2010
• Table 33 – Orange Slovensko revenue and monthly ARPU – 2003 - 2010
• Table 34 – Orange monthly total and data ARPU – 2008 - 2010
• Table 35 – Telefónica O2 subscribers – 2007 - 2010
• Table 36 – Ratio of prepaid to postpaid subscribers – 2000 - 2010
• Table 37 – T-Mobile Slovensko prepaid users – 2004 - 2010
• Table 38 – Telefónica 02 prepaid users – 2007 - 2010
• Table 39 – Total SMS messages sent – 2003 - 2010
• Table 40 – Mobile broadband subscribers and penetration rate – 2006 - 2011
• Table 41 – Forecast fixed broadband subscribers – higher growth scenario – 2010 - 2013; 2020
• Table 42 – Forecast fixed broadband subscribers – lower growth scenario – 2010 - 2013; 2020

• Exhibit 1 – The EU regulatory framework for communications
• Exhibit 2 – Access, the local loop and unbundling – an overview
• Exhibit 3 – 2G spectrum awarded in Slovakia