2014 Austria - Telecoms, IP Networks, Digital Media and Forecasts

Mobile broadband approaching two-thirds of all broadband connections

Austria’s telecom market is dominated by the incumbent Telekom Austria and the cableco UPC. Nevertheless, there has been considerable competitive pressure in the fixed-line and mobile sectors in recent years. The regulator has also encouraged local loop unbundling to improve competition in the broadband market, and has introduced ‘virtual’ unbundling in the fibre sector.

The broadband market is dominated by the DSL platform, with Telekom Austria retaining a market lead, while cable is the principal alternative technology. Telekom Austria has invested in vectoring VDSL and G.fast technologies in a bid to deliver fast broadband services in urban areas with less investment than is required via FttP. For its part, UPC Austria has invested in DOCSIS3.o technology, and by delivering services at 120MB/s the has managed to retain customers and indeed attract new subscribers from DSL.

Austria’s market for converged media benefits from these excellent upgraded broadband networks. The strong TV market is served by mature the cable and satellite sectors as well as a fast developing DTTV infrastructure. Digital services have been available since 2006, with three multiplexes assigned to national and regional services and a fourth reserved for mobile broadcasting. This report profiles media convergence in Austria, including developments in the digital broadcast market, IPTV and VoD, as well as regulatory measures on the switch to digital TV.

The mobile market has undergone considerable changes in recent months. 3 Austria acquired the network and assets of Orange, so consolidating the market to three network operators, while the number of MVNOs and resellers is growing steadily. Part of this growth is due to regulatory concessions by which 3 Austria, as part of its Orange take-over, must provide 30% of network capacity to support up to 16 MVNOs. The competitive environment has led to relatively low ARPU for operators, as well as some of the region’s lowest tariffs for consumers. The 3G networks have seen impressive growth in subscriber uptake, largely at the expense of existing GSM offerings, while mobile broadband, based on HSPA and LTE technologies, has similarly shown extraordinary growth. LTE can be accessed by about half of the population. The late-2013 auction of spectrum in several bands will go far to expand mobile broadband in rural areas and improve capacity nationally.

This report presents key aspects of the Austrian telecom and ICT markets, including statistical data on the fixed network services sector and telecom infrastructure. It presents an overview of recent regulatory developments, including as it relates to broadband access and carrier preselection. The major fixed network operators are profiled, together with the most recent financial and operating data and an analysis on operators’ market strategies. The report also covers the mobile market, providing historical and current subscriber statistics, an overview of key operators, an analysis of emerging technologies and data services, and forecasts for ARPU and subscribers. It assesses the broadband market and public data services, including technologies such as xDSL, leased lines, cable modems, FttP, powerline broadband, WiFi and internet via satellite.

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