2011 Austria - Telecoms, IP Networks, Digital Media and Forecasts

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:

  • 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;
  • 3G subscriber and mobile ARPU forecasts to 2015;
  • Broadband market forecasts for selective years to 2020.

Key developments:

LTE to be available to a quarter of all Austrians by 2013; mobile TV streaming success with more than 50 channels available; 2011 Frequency Utilization Plan opening up 800MHz spectrum for 4G use; spectrum auction planned for late-2012; strong subscriber growth keeping mobile sector revenue steady; 3 Austria launches LTE; Telekom Austria forms TA Group M2M subsidiary to manage its involvement in the M2M sector; retailer Spar launches as an MVNO; 3 Austria buys Orange; Telekom Austria expands in CEE through additional acquisitions; infrastructure investment increases 25% in 2010; mobile sector revenue accounting for two-thirds of total telecom revenue; ASO completed in mid-2011 with 98% DTTV coverage; regulator prepares DTT Muxes for DVB-T2; Telekom Austria’s IPTV service rebranded as A1 Kabel TV; Xlink launches 1Gb/s FttH broadband offer; Telekom Austria targets connecting 2.3 million homes with FttH by 2013; mobile broadband subscribers approach two million mark, representing almost 60% of all broadband customers; TA’s GigaNet FttX network reaches 52% of households; UPC Austria tests 1.3Gb/s service; TA trials vectoring technology; regulator data to Q3 2011; operator data to end-2011, market developments in early 2012.

Companies covered in this report include:

Telekom Austria, UPC Austria, Xlink, Orange, 3 Austria, A1, T-Mobile, Tele2, tele.ring, eTel Austria.

Researcher:- Henry Lancaster
Current publication date:- March 2012 (10th Edition)

Executive Summary

Austrian MNOs relying on FttX infrastructure for LTE deployment

BuddeComm’s biannual 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. The report provides regulator market data to Q3 2011 as well as operator data to the end of 2011 and market developments into 2012.

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 network operators are international players, with the incumbent’s A1 having a particularly strong presence in Central and Eastern Europe. A significant developed in early 2012 was the acquisition of Orange Austria by the fourth-placed operator 3 Austria. This consolidation asserted 3 Austria’s commitment to the market but also reflected the fiercely competitive environment which since 2006 has seen the number of MNOs fall from five to three.

Revenue from the telecoms sector has declined steadily since 2006. The mobile sector (including mobile broadband) has become the largest in terms of revenue, representing 65.3% of the total, while fixed-line telephony has a 22.3% share and fixed-line broadband a 9.5% share. The trend in declining revenue is likely to continue during the next few years as operators adjust to competition and regulatory measure. In the mobile sector some respite is expected after 2013 as consumers make greater use of high-end mobile data services. The regulator reported that in the second quarter of 2011 total telecom sector revenue was about €1.14 billion (unchanged from the previous quarter). Revenue from the mobile sector increased 1.2% quarter-on-quarter, to some €750 million or about two-thirds of total revenue. Revenue from voice telephony fell 2.8% while that for broadband fell 1.7%.

Infrastructure investment increased substantially in 2010, to €635 million compared to €503 million in 2009. Of the total investment of €693 million, some 7.2% went to spectrum auctions to provide for LTE and next-generation mobile services. Further investment in both spectrum and infrastructure is expected during the next two to three years following the imminent auction of available spectrum in several bands.

Digital switchover in Austria was completed in mid-2011 sequentially by region. Only 5% of TV subscribers make use of the service, while the remainder rely on cable and satellite reception. During the switch-off phase additional space was made available for a further six multiplexes, some of which will be based on the new DVB-T2 technology which can provide for more channels. Multiplex D has been reserved for mobile broadcasting.

Key telecom parameters – 2010; 2012

Sector

2010

2012 (e)

Subscribers to telecoms services:

Fixed broadband subscribers (million)

2.03

2.51

Mobile phone (million)

12.8

13.4

Fixed-line telephony (million)

2.69

2.75

Mobile broadband subscribers (million)

2.37

4.64

Penetration of telecoms services:

Fixed broadband

27%

31%

Mobile

146%

151%

Fixed-line

36%

36%

(Source: BuddeComm)

Market Highlights

  • The regulator’s auction of remaining spectrum in the 800, 900 and 1800MHz bands in late 2012 will enable MNOs to improve their services in rural areas, and expand the availability of LTE networks. The auction follows that in late-2010 for 2.6GHz frequencies which required MNOs to deploy LTE to 25% of the population by the end of 2013. These developments will dramatically improve broadband connectivity in coming years.
  • Fibre infrastructure has been slow to gain traction in Austria, though considerable improvement is expected in coming years, albeit from only a small number of players. Telekom Austria has expanded its FttH infrastructure in Vienna, and by early 2011 around 52% of households were passed by its GigaNet infrastructure. The company has a target to connect 2.3 million homes by 2013.
  • All MNOs have advanced plans for LTE roll-outs, with T-Mobile offering services in four cities by early 2012. Both T-Mobile and Telekom Austria are utilising existing FttX infrastructure to provide data backhaul for their LTE networks.
  • Despite ASO having been completed in mid-2011, DTTV has only a small share of the TV market. The satellite TV sector is particularly strong in Austria, with the Astra system the market leader: about two thirds of digital TV households are Astra subscribers. Among DTH households, digital satellite has an 89% market share, compared to 39% for digital cable networks. The market has sufficient room to expand, with Austriasat introduced as a new competitor in late 2010.

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:

  • Market liberalisation and regulatory issues;
  • The impact of the global economic crisis;
  • Telecoms operators – privatisation, acquisitions, new licences;
  • Mobile data market developments in coming years in light of new spectrum auctions and awards;
  • 3G developments, regulatory issues and technologies including HSPA and LTE;
  • Broadband migration to an FttH architecture;
  • Historical and current subscriber statistics and forecasts;
  • ARPU statistics and forecasts.

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 Austria’s telecom market
  • 3. Regulatory Environment
    • 3.1 History
      • 3.1.1 EU regulatory framework
      • 3.1.2 Revised NFR
    • 3.2 Regulatory authorities
      • 3.2.1 Austrian Regulatory Authority for Broadcasting and Telecommunications
      • 3.2.2 Telekom Control Commission
      • 3.2.3 Austrian Communications Authority (KommAustria)
    • 3.3 Telecom sector liberalisation in Austria
      • 3.3.1 Privatisation of Telekom Austria
      • 3.3.2 Interconnect
      • 3.3.3 Access
    • 3.4 Number portability (NP)
    • 3.5 Carrier PreSelection (CPS)
  • 4. Fixed Network Operators in Austria
    • 4.1 Telekom Austria
      • 4.1.1 Consolidating European markets
    • 4.2 Tele2UTA
    • 4.3 tele.ring
    • 4.4 UPC Austria
    • 4.5 eTel Austria
  • 5. Telecommunications Infrastructure
    • 5.1 National telecom network
    • 5.2 Next Generation Network (NGN)
    • 5.3 Structural separation
    • 5.4 Wholesaling
    • 5.5 International infrastructure
      • 5.5.1 Submarine cable networks
      • 5.5.2 Satellite networks
  • 6. Broadband Market
    • 6.1 Market overview
      • 6.1.1 Regulating wholesale access
      • 6.1.2 Wholesale market
      • 6.1.3 Broadband statistics
      • 6.1.4 Government support
      • 6.1.5 Regional broadband
    • 6.2 Cable modems
      • 6.2.1 UPC Austria
    • 6.3 Asymmetrical Digital Subscriber Line (ADSL)
    • 6.4 Fibre-to-the-Home (FttH) networks
    • 6.5 Mobile broadband
    • 6.6 Broadband Powerline (BPL)
    • 6.7 Wireless broadband
      • 6.7.1 Wireless Local Loop (WLL)
      • 6.7.2 450MHz frequency band
      • 6.7.3 3.5GHz frequency band
      • 6.7.4 Wireless LANs/WiFi
      • 6.7.5 WiMAX
      • 6.7.6 Internet via satellite
  • 7. Digital Media
    • 7.1 Key general trends
    • 7.2 Business models
      • 7.2.1 Bundled services
    • 7.3 Regulatory issues
    • 7.4 Digital TV
      • 7.4.1 Overview
      • 7.4.2 TV-over-DSL (IPTV)
      • 7.4.3 Cable TV
      • 7.4.4 Satellite TV
      • 7.4.5 Digital terrestrial TV
      • 7.4.6 Free-to-Air (FTA) TV
      • 7.4.7 VoIP (Voice over Internet Protocol) services
  • 8. Mobile Communications
    • 8.1 Overview of Austria’s mobile market
      • 8.1.1 Mobile statistics
      • 8.1.2 Operator market shares
    • 8.2 Regulatory issues
      • 8.2.1 Regulatory authority
      • 8.2.2 Spectrum regulations and spectrum auctions
      • 8.2.3 Roaming
      • 8.2.4 Mobile number portability (MNP)
      • 8.2.5 Mobile termination rates (MTRs)
      • 8.2.6 Network sharing
    • 8.3 Mobile technologies
      • 8.3.1 Digital
      • 8.3.2 Third Generation (3G) mobile
    • 8.4 Major mobile operators
      • 8.4.1 Orange
      • 8.4.2 3 Austria
      • 8.4.3 A1
      • 8.4.4 T-Mobile
      • 8.4.5 Mobile Virtual Network Operators (MVNO)
    • 8.5 Mobile voice services
      • 8.5.1 Prepaid cards
    • 8.6 Mobile Messaging
      • 8.6.1 Short Message Service (SMS)
      • 8.6.2 Multimedia Messaging Service (MMS)
    • 8.7 Mobile data services
      • 8.7.1 General Packet Radio Service (GPRS)
      • 8.7.2 Push-to-Talk (PTT)
      • 8.7.3 Enhanced data for GSM Evolution (EDGE)
      • 8.7.4 High-Speed Packet Access (HSPA)
      • 8.7.5 High-Speed Circuit-Switched Data (HSCSD)
      • 8.7.6 High-Speed Uplink Packet Access (HSUPA)
      • 8.7.7 LTE
      • 8.7.8 Mobile TV
      • 8.7.9 Femtocells
    • 8.8 Mobile content and applications
      • 8.8.1 M-commerce
      • 8.8.2 Mobile VoIP
  • 9. Forecasts
    • 9.1 Broadband subscribers – 2007 - 2012; 2020
      • 9.1.1 Scenario 1 – higher broadband subscriber growth
      • 9.1.2 Scenario 2 – lower broadband subscriber growth
    • 9.2 Mobile market – 2006 - 2010; 2012 - 2015
      • 9.2.1 UMTS forecasts
      • 9.2.2 Mobile ARPU forecasts
    • 9.3 Notes on scenario forecasts
  • 10. Glossary of Abbreviations
  • Table 1 – Country statistics Austria – 2011 (e)
  • Table 2 – Telecom revenue and investment statistics – 2010
  • Table 3 – Telephone network statistics – September 2011
  • Table 4 – Internet user statistics – Mar 2011
  • Table 5 – Broadband statistics – 2011 (e)
  • Table 6 – Mobile statistics – 2011 (e)
  • Table 7 – National telecommunications authorities
  • Table 8 – Retail telecoms revenue by sector – 2003 – 2012; 2015
  • Table 9 – Retail telecoms revenue by sector – 2003 – 2012; 2015
  • Table 10 – Telecoms revenue by sector - retail, business – 2009 - 2013
  • Table 11 – Telecom traffic by sector – 2005 - 2012
  • Table 12 – Market share of retail telecoms revenue by sector – 2003 - 2010
  • Table 13 – Telecom investment by sector – 2006 - 2010
  • Table 14 – Telecom investments – 2004 - 2012
  • Table 15 – Price index for telecom services – 2005 – 2011
  • Table 16 – LLU, shared access price – connection, monthly rental – 2006 - 2009
  • Table 17 – Telekom Austria unbundled lines – 2008 - 2011
  • Table 18 –Ported numbers by year– 2006 - 2011
  • Table 19 – CPS and CbC lines – 2004 - 2011
  • Table 20 – Fixed-line retail revenue – 1997 - 2013
  • Table 21 – Telekom Austria Group financial data – 2001 - 2011
  • Table 22 – Telekom Austria: PSTN and ISDN access lines – 2005 - 2011
  • Table 23 – Telekom Austria: retail and wholesale DSL lines – 2005 - 2011
  • Table 24 – Telekom Austria: retail and wholesale DSL lines – 2005 – 2011
  • Table 25 – Telekom Austria traffic statistics in minutes – 2007 - 2011
  • Table 26 – Telekom Austria traffic statistics, annual change – 2009 - 2011
  • Table 27 – Telekom Austria financial data by sector – 2009 - 2011
  • Table 28 – Telekom Austria financial data – 2009 - 2011
  • Table 29 – Tele2 financial data by sector – 2007 - 2011
  • Table 30 – Tele2 subscribers – 2007 - 2011
  • Table 31 – UPC Austria revenue and annual change – 2005 - 2011
  • Table 32 – UPC Austria subscribers – 2006 – 2011
  • Table 33 – Fixed lines in service and teledensity – 1999 - 2012
  • Table 34 – Online advertising spend – 2001 - 2010
  • Table 35 – Broadband penetration of households – 2006 - 2012
  • Table 36 – ICT development – households with computers, internet, broadband (%) – 2002 - 2011
  • Table 37 – ICT development – businesses with computers, internet, websites (%) – 2003 - 2011
  • Table 38 – Bitstream access lines by type – 2004 - 2011
  • Table 39 – Unbundled loops and access lines – 2004 - 2011
  • Table 40 – Internet users and penetration rate – 1995 - 2012
  • Table 41 – Total fixed-line broadband subscribers by access type – 2002 - 2013
  • Table 42 – Total fixed-line broadband penetration – 2002 - 2013
  • Table 43 – Broadband market share by technology – 2002 - 2013
  • Table 44 – Revenue from retail and wholesale broadband connections – 2005 - 2013
  • Table 45 – UPC Austria broadband subscribers – 2005 - 2011
  • Table 47 – Telekom Austria ADSL subscribers – 2004 - 2011
  • Table 48 – ADSL subscribers and annual change – 2000 - 2013
  • Table 49 – Telekom Austria FttX addressable households – 2010 - 2011
  • Table 50 – Fibre broadband subscribers – 2007 - 2013
  • Table 51 – Mobile broadband subscribers – 2005 - 2015
  • Table 52 – Mobile broadband share of broadband market – 2008 - 2012
  • Table 53 – A1 mobile broadband subscribers – 2009 - 2011
  • Table 54 – Fixed-line wireless broadband subscribers – 2006 - 2012
  • Table 55 – Telekom Austria bundled services subscribers – 2010 - 2011
  • Table 56 – Household TV reception by technology – 2007 - 2009
  • Table 57 – TV households by technology – 2000 - 2012
  • Table 58 – Digital receiver sales by technology – 2006 - 2009
  • Table 59 – Telekom Austria IPTV subscribers – 2007 - 2011
  • Table 60 – Cable and satellite TV households – 2000 - 2012
  • Table 61 – UPC Austria revenue and annual change – 2005 - 2011
  • Table 62 – UPC Austria subscribers – 2006 – 2011
  • Table 63 – Mobile call minutes – 2003 - 2013
  • Table 64 – Mobile market revenue (regulator data) – 2007- 2015
  • Table 65 – Mobile service revenue, retail and wholesale – 2000 - 2015
  • Table 66 – Average subscriber use of services – 2008 - 2011
  • Table 67 – Price index for mobile services – 2006 - 2011
  • Table 68 – Mobile operators, subscribers and annual change – 2011
  • Table 69 – Mobile subscribers and penetration rate (regulator data) – 1999 - 2016
  • Table 70 – Mobile subscribers by operator (regulator data) – 2005 - 2011
  • Table 71 – Mobile SIMs in use, 2G and 3G – 2004 - 2012
  • Table 72 – Mobile market share by operator – 2006 - 2011
  • Table 73 – GSM spectrum distribution among MNOs (MHz) – 2010
  • Table 74 – 2.6GHz spectrum auction results – Sept 2010
  • Table 75 – European roaming charges – 2007 - 2012
  • Table 76 – Cumulative ported mobile numbers – 2004 - 2010
  • Table 77 – Mobile termination charges by operator – 2008 - 2011
  • Table 78 – 2G spectrum allocations by operator
  • Table 79 – 3G spectrum allocations by operator
  • Table 80 – 3 Austria subscribers – 2009 - 2011
  • Table 81 – 3 Austria revenue and annual change – 2008 - 2010
  • Table 82 – 3 Austria annualised ARPU – 2008 - 2011
  • Table 83 – A1 group subscribers; Europe and Austria – 2000 - 2011
  • Table 84 – A1 group subscriber breakdown – 2007 - 2011
  • Table 85 – A1 - mobile financial data – 2004 - 2011
  • Table 86 – A1 annualised monthly ARPU – 2004 - 2011
  • Table 87 – T-Mobile Austria revenue – 2003 - 2011
  • Table 88 – T-Mobile Austria subscribers – 2004 - 2011
  • Table 89 – T-Mobile Austria annualised ARPU – 2006 - 2011
  • Table 90 – Mobile numbers in use, contract and prepaid – 2004 - 2011
  • Table 91 – A1 prepaid subscribers – 2005 - 2011
  • Table 92 – SMS messages sent – 2004 - 2013
  • Table 93 – A1 SMS sent – 2006 - 2011
  • Table 94 – A1: data as proportion of revenue – 2004 - 2011
  • Table 95 – MMS messages sent – 2005 - 2013
  • Table 96 – Smartphone penetration – 2008 - 2013
  • Table 97 – Mobile data services revenue as proportion of total – 1999 - 2013
  • Table 98 – Mobile data traffic – 2008 - 2013
  • Table 99 – Forecast broadband subscribers – higher growth scenario – 2007 - 2012; 2020
  • Table 100 – Forecast broadband subscribers – lower growth scenario – 2007 - 2012; 2020
  • Table 101 – Forecast UMTS subscribers – 2006 - 2015
  • Table 102 – Forecast mobile ARPU – 2005 - 2010; 2012 - 2015
  • Chart 1 – Telecom traffic by sector – 2005 - 2012
  • Chart 2 – Market share of retail telecoms revenue by sector – 2003 – 2010
  • Chart 3 – Telecom investment by sector – 2006 – 2010
  • Chart 4 – Telecom investments and annual change – 2004 - 2012
  • Chart 5 – Price index for telecom services – 2005 – 2011
  • Chart 6 – Tele2 financial data by sector – 2007 – 2011
  • Chart 7 – Tele2 subscribers – 2007 – 2011
  • Chart 8 – Internet users and penetration rate – 2000 – 2012
  • Chart 9 – Total fixed-line broadband subscribers by access type – 2002 – 2013
  • Chart 10 – Broadband market share by technology – 2002 – 2013
  • Chart 11 – Revenue from retail and wholesale broadband connections – 2005 - 2013
  • Chart 12 – TV households by technology – 2000 – 2012
  • Chart 13 – Mobile service revenue, retail and wholesale – 2000 – 2015
  • Chart 14 – Mobile subscribers and penetration rate (regulator data) – 1999 – 2016
  • Chart 15 – Mobile SIMs in use, 2G and 3G – 2004 - 2012
  • Chart 16 – Mobile market share by operator – 2006 – 2011
  • Chart 17 – 3 Austria subscribers – 2009 – 2011
  • Chart 18 – 3 Austria annualised ARPU – 2008 – 2011
  • Chart 19 – A1 annualised monthly ARPU – 2004 – 2011
  • Exhibit 1 – EU – The New Regulatory Framework (NRF)
  • Exhibit 2 – Access and the local loop
  • Exhibit 3 – Regional WLL licenses in 3.5GHz spectrum by operator – 2004
  • Exhibit 4 – Regional WLL licenses in 3.5GHz spectrum by operator – 2009
  • Exhibit 5 – 450MHz frequency allocation overview – 2006
  • Exhibit 6 – 3.5GHz frequency allocation – 2008
  • Exhibit 7 – Overview of digital media
  • Exhibit 8 – Active mobile providers – 2012
  • Exhibit 9 – 3G licence results - 2000
  • Exhibit 10 – 450MHz licence results – 2006

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