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

Slovenia’s regulated FttH infrastructure gaining wider foothold

BuddeComm’s annual publication, Slovenia - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in one of Central Europe’s more progressive markets. The report includes the regulator’s market data to the end of 2011, State Statistical Office data for Q1 2012, telcos’ financial and operating data to June 2012, and market developments to mid-2012.

Economic background

Having joined the EU in 2004, Slovenia was since slow to privatise a number of state enterprises, including the incumbent telco. In common with all other regional markets, the global financial crisis continues to negatively impact the economy, with moderate GDP growth in 2010 having faltered, and expected to shrink by 1% for 2012.

Telecom market overview

A poor economic performance will continue to impact on the telecom market, where revenue has failed to match its high point of 2008. Nevertheless, sector investment has risen steadily since 2009 as operators renewed their efforts to developing fibre networks and upgrading mobile networks, supported by government and EC-funded programmes.

Broadband market

DSL remains the principal broadband platform though it is steadily losing market share to upgraded cable networks and FttH alternatives. The government’s broadband strategy to 2020 has encouraged investment in an FttH national infrastructure, including measures to facilitate access to Telekom Slovenije’s network. The main fibre-based altnet T2 has benefited from access regulation though its own business difficulties have slowed its network expansion in recent quarters. Nevertheless, the country has an ambitious target to provide FttH to 90% of the country by 2020. Strong broadband infrastructure has contributed to Slovenia having one of the highest VoIP and IPTV take-up rate in Europe.

Key telecom parameters – 2010; 2012

(Source: BuddeComm)

Market Highlights

• Delayed due to frequency issues, LTE is set to be launched by Mobitel in several bands in 2013, further supporting the government’s commitment to expand broadband in rural areas.
• DTTV has expanded following ASO in late 2010, though the launch of the remaining seven of nine multiplexes has been hampered by neighbouring countries which have not yet concluded digital switchover and which have restricted Slovenia’s use of additional frequencies.
• Slovenia’s IPTV market is among the most developed in Europe, with household penetration at about 25%, far above the EU average.
• The FttH market is dominated by two operators, with T-closely followed by Telekom Slovenije. However, T-2 has recently been burdened with a pre-bankruptcy compulsory settlement procedure it has been limited in its ability to invest in further fibre infrastructure.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Slovenia. 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.