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2012 Austria - Telecoms, IP Networks, Digital Media and Forecasts

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Last updated: 6 Feb 2013 Update History

Report Status: Archived

Report Pages: 98

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:

Telekom Austria expands in CEE through additional acquisitions; infrastructure investment growth; mobile sector revenue accounting for two-thirds of total telecom revenue; 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; LTE to be available to a quarter of all Austrians by end-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; UPC signs up as an MVNO on H3’s network; mobile data traffic shows strong growth; A1 boasts 88% LTE coverage in Vienna and surrounds; retailer Spar launches as an MVNO; 3 Austria buys Orange; regulator’s market data for Q1 2012; telcos’ financial and operating data to September 2012; market developments to early 2013.

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:- February 2013 (11th Edition)

Executive Summary

Further consolidation in Austrian mobile sector highlights H3’s market commitment

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 sectors in one of Central Europe’s key markets. The report includes the regulator’s market data to mid-2012, telcos’ financial and operating data to September 2012 and market developments to early 2013.

Telecom market overview

Austria’s liberalised telecom market is one of the most competitive in Europe, with numerous operators providing voice and data services, The mobile market has been consolidated in recent years following a number of purchases, most recently that of Orange by H3 Austria. Most of the population uses the internet, and broadband household penetration at 57% is above the EU average, largely the result of effectively competing cable and ADSL platforms. The number of fixed lines continues to fall – about 10% of all new broadband customers opt for internet without fixed-line access. The ICT sector still employs over 100,000 people and contributes about 4.4% to the country’s GDP. Revenue from the telecoms sector has been inconsistent, with a renewed decline seen since 2010, largely due to the continuing tough economic conditions.

The mobile sector (including mobile broadband) has become the largest in terms of revenue, representing about two-thirds of the total, while fixed-line telephony has a only a fifth of the market, fixed-line broadband about 10% and leased lines the remaining 3%. 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 in coming years as consumers make greater use of high-end mobile data services.

Fibre broadband market

There remains little significant fibre deployment outside Vienna, though a number of promising regulatory measures will encourage further developments in coming years. Telekom Austria aims to connect 2.3 million homes by the end of 2013, while smaller players such as Infotech Ried and Xlink now operate 1Gb/s networks in a growing number of towns such as Klagenfurt, Villach and Salzburg. The incumbent’s own ‘FiberCities’ network complements its VDSL2 coverage in rural areas using existing fibre backbone and complemented by mobile base stations connected to the fibre network to support its LTE projects.

Key telecom parameters – 2010; 2013

Sector

2010

2013

Subscribers by sector (million):

Fixed broadband subscribers

2.03

2.15

Mobile broadband

2.37

4.97

Mobile phone

12.80

13.55

Fixed-line telephony

2.69

2.79

Penetration by sector:

Fixed broadband

22%

26%

Mobile

146%

163%

Fixed-line

58%

58%

(Source: BuddeComm)

Market Highlights

  • The auction of remaining spectrum in the 800, 900 and 1800MHz bands in late 2012 has enabled MNOs to improve their services in rural areas, and expand the availability of LTE networks. These bands complement the existing 2.6GHz allocations which required MNOs to deploy LTE to 25% of the population by the end of 2013.
  • Though fibre infrastructure has been slow to gain traction in Austria, considerable improvement is expected in coming years, albeit from only a small number of players.
  • 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 reached nationally, DTTV retains only a small share of the TV market. The satellite TV sector is particularly strong, with about two thirds of digital TV households subscribing to Astra. The regulator has promoted DVB-T2 as a future broadcasting format.

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 spectrum auctions and new license 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.

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