Last updated: 28 Sep 2010 Update History
Report Status: Archived
Report Pages: 87
Analyst: Henry Lancaster
Publication Overview
This report provides a comprehensive overview of trends and developments in Austria’s telecommunications market. The report analyses the mobile, Internet, broadband, digital TV and converging media sectors. Subjects include:
Researcher:- Henry Lancaster
Current publication date:- September 2010 (9th Edition)
Next publication date:- September 2011
Executive Summary
BuddeComm’s annual publication, Austria - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets a key central European market.
Although Austria’s telecom market has been progressively liberalised since the early 1990s, the incumbent Telekom Austria has remained the dominant player in all sectors despite Austria having one of the most competitive markets Europe. In the mobile sector, all four network operators are international players, with mobilkom austria having a particularly strong presence in central and eastern Europe. T-Mobile and Orange have the full resources of their parent companies at their disposal, which will help them secure the required technology upgrades for their networks during the next few years. A small number of MVNOs has aided competition, though most resellers are owned and operated by the MNOs in a bid to secure market share in the no-frills segment.
More than 70% of the population uses the Internet, and broadband household penetration at 58% (or about 87% if mobile broadband is taken into account) is above the EU average, largely the result of effectively competing cable and ADSL platforms. The number of fixed lines continues to fall as a result of consumer substitution for VoIP and mobile-only solutions. Together, TA and UPC Austria provide around two-thirds of all fixed broadband connections, with a substantial portion of the remainder provided by a small number of regional cablecos.
Although local loop unbundling was mandated in 2001, Telekom Austria was initially slow to implement its provisions, with the result that competition in the DSL sector fell far below that in other European markets. Amendments to the Telecommunications Act in June 2009 have addressed similar concerns with Austria’s future All-IP NGNs, aiming to provide improved access to existing infrastructure, both telecoms and other infrastructure such as electricity poles and sewage systems. However, the regulator’s proposal that Telekom Austria provide access to its copper network to alternative operators via a virtual unbundling access product – while making it easier for these companies to offer services – nevertheless excludes fibre networks and so does not establish rules to encourage competition in this sector. The EC has appealed to the regulator to ensure full fibre unbundling of TA’s network as soon as it is technically and economically possible.
Telecom revenue has fallen steadily since 2006, in recent years aggravated by unfavourable economic conditions. It is expected to be stable in 2011 and to show only moderate growth to 2013, being hampered by the effects of regulated tariffs on termination rates and mobile roaming, competition among players, as well as the continuing decline in voice revenue. Nevertheless this will be countered by increasing revenue anticipated from mobile data services, and stability in the market for bundled services.
Investments in the sector have also been affected by the troubled liquidity markets, having fallen steadily year-on-year. In common with other European markets, pressure to maintain investment momentum during the next few years will come from mobile operators: the auction for licences in the 2.6GHz spectrum band will enable them to develop their plans to deploy LTE technology, and so establish networks better able to manage bandwidth. This in turn will allow them to capitalise on high-end mobile data applications and services, and so generate higher ARPU.
Digital switchover in Austria progressed earlier than in most other EU countries. Analogue broadcasting was shutdown in Vienna/Lower Austria towards the end of 2007, with other areas achieving ASO sequentially by region. By early 2010 most households had switched to DVB-T, while a few could receive it but were still provided with analogue signals by their local cableco. During the switch-off phase additional space was made available for a further six multiplexes – by mid-2010, 95% of households could receive the channels bundled on MUX A and 87% were within the coverage area of MUX B. Further expansion of the MUX B platform coverage area is not currently planned, while a fourth multiplex (MUX D) has been reserved for mobile broadcasting.
Key telecom parameters – 2009 – 2011
Sector |
2009 |
2011 (e) |
Broadband: |
||
Fixed broadband subscribers (million) |
1.89 |
2.32 |
Fixed broadband penetration rate |
25% |
27% |
Mobile broadband subscribers (million) |
1.20 |
1.68 |
Subscribers to telecoms services: |
||
Fixed-line telephony (million) |
2.6 |
2.5 |
Mobile phone (million) |
11.5 |
12.45 |
Mobile penetration (population) |
140% |
145% |
(Source: BuddeComm based on industry data)
This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Austria. It provides further information on:
Data in this report is the latest available at the time of preparation and may not be for the current year.
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