2013 Croatia - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

This report provides a comprehensive overview of trends and developments in Croatia’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:

MAXtv extends to satellite and mobile platforms; Novi-Net granted national WiMAX licence; IPTV among the more successful in Central and Eastern Europe; B.Net bought by Telekom Austria; VelaTel Global Communications expands wireless broadband capacity; DVB-T2 to be employed in two MUXES; regulator awards funding to promote rural broadband; GTS Central Europe extends fibre network through Croatia; High Court upholds regulator’s pricing for incumbent’s wholesale fibre access; Amis Telekom builds fibre network in Zagreb; B.net launches subscription Video-on-Demand service; H1 Telekom launches IPTV service; GDP shows continuing decline in 2012; state transfers remaining shares in T-HT to Pensioners’ Fund; Croatia anticipates joining EU in mid-2013; T-HT invests in cloud computing; VIPNet extends 42Mb/s HSPA+ services to four cities; two operators launch LTE; Croatian government abolishes 6% tax on mobile services revenue; regulator auctions digital dividend spectrum; T-HT authorized to manage e-money services; regulator’s market data to Q3 2013; telcos’ operating and financial data to September 2012; market developments to early 2013.

Companies covered in this report include:

VIPNet, Tele2 Croatia, T-HT, B.net, Digi TV, SBB, H1 Telekom, Optima Telekom, Metronet.

Researcher:- Henry Lancaster
Current publication date:- February 2013 (12th Edition)

Executive Summary

Fibre deployment encouraged by amended wholesale pricing

BuddeComm’s annual publication, Croatia - 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 more Europe’s smaller and more dynamic markets. The report includes regulator’s market data to Q3 2013; telcos’ operating and financial data to September 2012; market developments to early 2013.

Economic background

Croatia’s economy saw cumulative negative GDP growth of 9% between 2009 and 2012, while further contraction is expected into 2013 as the recession (exacerbated by the economic instability of key trading partners) continues. GDP is expected to have fallen 1.8% in 2012, with reduced industrial production exacerbating one of the highest unemployment rates in the region. This has hobbled the government’s ability to meet its commitments in a raft of areas. For consumers, the sum effect has been a reduction in personal consumption, including all but the essential telecom services, resulting in lower revenue for telcos.

Broadband market overview

Internet penetration in Croatia is the highest in the Balkans region. Despite the increase in subscriber numbers, Croatia’s broadband market remains a significant growth opportunity for ISPs, with fewer than half of households subscribed to broadband services ISPs have focused on increasing broadband uptake, with hopes of generating additional revenue through sales of IPTV) and bundled offerings. In late 2012 the regulator selected a number of telcos to receive funding to deploy broadband networks in remote and rural areas.

Mobile market overview

Croatia’s mature mobile market has one of the highest penetration rates in the region. Three MNOs offer services, while MVNOs thus far they have had little impact on overall competition. Competition among MNOs together with regulatory measures on roaming and termination tariffs led to a fall in mobile services revenue in 2012. This trend, particularly in the greater consumer use of services following operator investments in LTE, is set to continue in coming years.

Key telecom parameters – 2010; 2013

Sector

2010

2013 (e)

Subscribers by sector (thousand):

Fixed broadband subscribers

0.80

0.95

Mobile phone

6.36

5.45

Fixed-line telephony

1.86

1.37

Penetration by sector:

Fixed broadband

18%

23%

Mobile

143%

126%

Fixed-line

42%

32%

(Source: BuddeComm)

Market Highlights

  • Rationalisation of the definition of mobile subscribers resulted in a large number of subscribers being removed from operator databases during 2011.
  • In late 2011 Parliament abolished the 6% fee on revenues generated by mobile services imposed in 2009 as part of the government’s response to Croatia’s economic crisis.
  • VIPNet and T-HT have launched LTE services in a bid to develop the revenue potential of mobile broadband and associated services.
  • In mid-2012 the 6% tax on mobile services revenue was abolished. The tax is estimated to have reduced investment in the mobile sector, as well as lowered operator revenue while providing an estimated HRK300million annually for the state.

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

Table of Contents

  • 1. Key Statistics
  • 2. Telecommunications Market
    • 2.1 Economic background
    • 2.2 Overview of Croatia’s telecom market
  • 3. Regulatory Environment
    • 3.1 Background
    • 3.2 EU regulatory framework
    • 3.3 Revised NFR
    • 3.4 Regulatory authority
    • 3.5 Telecom sector liberalisation in Croatia
      • 3.5.1 Privatisation
      • 3.5.2 Interconnect
      • 3.5.3 Access
      • 3.5.4 Number portability (NP)
      • 3.5.5 Carrier PreSelection (CPS)
  • 4. Fixed Network Market
    • 4.1 Fixed network operators in Croatia
      • 4.1.1 T-Hrvatski Telekom (T-HT)
      • 4.1.2 VIPnet
      • 4.1.3 Optima Telekom
      • 4.1.4 Metronet
  • 5. Telecommunications Infrastructure
    • 5.1 Overview
    • 5.2 Telecoms and IT
    • 5.3 Wholesaling
      • 5.3.1 Overview
    • 5.4 Cloud computing
  • 6. Internet Market
    • 6.1 Overview
    • 6.2 Internet statistics
  • 7. Broadband Market
    • 7.1 Fixed broadband market
      • 7.1.1 Overview
      • 7.1.2 Broadband statistics
      • 7.1.3 Asymmetrical Digital Subscriber Line (ADSL)
      • 7.1.4 Cable modems
      • 7.1.5 Fibre-to-the-Home (FttH) networks
    • 7.2 Wireless broadband
      • 7.2.1 WiFi
      • 7.2.2 WiMAX
    • 7.3 Mobile broadband
  • 8. Digital Media
    • 8.1 Overview of broadcasting market
      • 8.1.1 Regulatory issues
      • 8.1.2 Digital TV
    • 8.2 Croatia’s emerging internet economy
      • 8.2.1 Overview
      • 8.2.2 E-government
      • 8.2.3 E-education
      • 8.2.4 E-health
  • 9. Mobile Communications
    • 9.1 Overview of Croatia’s mobile market
      • 9.1.1 Mobile statistics
    • 9.2 Regulatory issues
      • 9.2.1 Third GSM licence and 3G licences
      • 9.2.2 Fourth GSM licence
      • 9.2.3 Spectrum auctions
      • 9.2.4 Mobile number portability (MNP)
      • 9.2.5 Network interconnection
    • 9.3 Mobile technologies
      • 9.3.1 Digital
      • 9.3.2 Third generation (3G) mobile
    • 9.4 Major mobile operators
      • 9.4.1 T-HT
      • 9.4.2 VIPnet
      • 9.4.3 Tele2 Croatia
      • 9.4.4 Mobile Virtual Network Operators (MVNOs)
    • 9.5 Mobile voice services
      • 9.5.1 Prepaid cards
    • 9.6 Mobile data services
      • 9.6.1 Short Message Service (SMS)/Multimedia Messaging Service (MMS)
      • 9.6.2 General Packet Radio Service (GPRS)
      • 9.6.3 Enhanced Data for GSM Evolution (EDGE)
      • 9.6.4 Evolved High Speed Packet Access (HSPA+)
      • 9.6.5 Long-term Evolution (LTE)
      • 9.6.6 Mobile TV
    • 9.7 Mobile content and applications
      • 9.7.1 M-commerce
  • 10. Forecasts
    • 10.1 Forecasts – fixed broadband subscribers – 2010 - 2013; 2020
      • 10.1.1 Scenario 1 – higher broadband subscriber growth
      • 10.1.2 Scenario 2 – lower broadband subscriber growth
      • 10.1.3 Notes on scenario forecasts
  • 11. Glossary of Abbreviations
  • Table 1 – Country statistics – 2012 (e)
  • Table 2 – Telephone network statistics – 2012 (e)
  • Table 3 – Internet user statistics – 2012 (e)
  • Table 4 – Broadband subscriber statistics – 2012 (e)
  • Table 5 – Mobile statistics – 2012 (e)
  • Table 6 – National telecommunications authority
  • Table 7 – Telecom services revenue by sector, annual change – 9M 2012
  • Table 8 – Accumulated number portings – 2005 - 2012
  • Table 9 –CPS lines – 2008 - 2012
  • Table 10 – Fixed-line market share by operator – 2008 - 2012
  • Table 11 – T-Hrvatski Telekom financial data – 2008 - 2012
  • Table 12 – T-Hrvatski Telekom revenue by sector – 2010 - 2012
  • Table 13 – T-Hrvatski Telekom fixed lines by type – 2005 - 2012
  • Table 14 – T-HT voice ARPU – 2004 - 2012
  • Table 15 – VIPnet financial data – 2004 - 2012
  • Table 16 – Optima Telekom financial data by sector– 2010 - 2012
  • Table 17 – Optima Telekom operational data – 2010 - 2012
  • Table 18 – Fixed lines in service and teledensity – 2000 - 2013
  • Table 19 – T-HT unbundled lines – 2006 - 2012
  • Table 20 – Internet users, subscribers and penetration rates – 2000 - 2012
  • Table 21 – Fixed broadband subscribers and penetration rate – 2003 - 2013
  • Table 22 – DSL accesses by type –2010 - 2012
  • Table 23 – T-HT ADSL subscribers – 2002 - 2012
  • Table 24 – Cable broadband subscribers – 2010 - 2012
  • Table 25 – Total mobile broadband subscribers – 2007 - 2013
  • Table 26 – VIPnet mobile broadband subscribers – 2008 - 2012
  • Table 27 – TV market share by platform – 2011 - 2012
  • Table 28 – MAXtv subscribers – 2006 - 2012
  • Table 29 – IPTV subscribers – 2011 - 2012
  • Table 30 – Cable TV subscribers – 2003 - 2013
  • Table 31 – Satellite TV subscribers – 2011 - 2013
  • Table 32 – DTTV subscribers – 2011 - 2013
  • Table 33 – Uptake of e-government services by businesses – 2007 - 2012
  • Table 34 – Uptake of e-government services by individuals – 2008 - 2012
  • Table 35 – E-education usage by individuals – 2007 - 2012
  • Table 36 – E-education usage by businesses – 2009 - 2012
  • Table 37 – Mobile subscribers and penetration rate – 1997 - 2012
  • Table 38 – Mobile market share by subscribers – 2008 - 2012
  • Table 39 – Mobile ported numbers – 2006 - 2012
  • Table 40 – T-HT mobile revenue – 2004 - 2012
  • Table 41 – T-HT mobile ARPU – 2004 - 2012
  • Table 42 – T-HT mobile customers – 2007 - 2012
  • Table 43 – VIPnet prepaid, postpaid and blended monthly ARPU – 2004 - 2012
  • Table 44 – VIPnet Minutes of Use (MOU) – 2007 - 2012
  • Table 45 – VIPnet subscribers – 2007 - 2012
  • Table 46 – Tele2 financial data – 2007 - 2012
  • Table 47 – Tele2 subscribers – 2007 - 2012
  • Table 48 – Total prepaid users – 2002 - 2012
  • Table 49 – T-Mobile prepaid subscribers – 2001 - 2012
  • Table 50 – VIPnet prepaid subscribers – 2004 - 2012
  • Table 51 – Total SMS and MMS messages sent – 2003 - 2012
  • Table 52 – Forecast fixed broadband subscribers – higher growth scenario – 2010 - 2013; 2020
  • Table 53 – Forecast fixed broadband subscribers – lower growth scenario – 2010 - 2013; 2020
  • Chart 1 – Fixed-line market share by operator – 2008 - 2012
  • Chart 2 – T-Hrvatski Telekom financial data – 2008 - 2012
  • Chart 3 – VIPnet financial data – 2004 - 2012
  • Chart 4 – Optima Telekom operational data – 2010 - 2012
  • Chart 5 – Fixed broadband subscribers and penetration rate – 2003 - 2013
  • Chart 6 – Total mobile broadband subscribers – 2007 - 2013
  • Chart 7 – Mobile subscribers and penetration rate – 1997 - 2012
  • Chart 8 – Mobile market share by subscribers – 2008 - 2012
  • Chart 9 – VIPnet prepaid, postpaid and blended monthly ARPU – 2004 - 2012
  • Chart 10 – Tele2 financial data – 2007 - 2012
  • Chart 11 – T-Mobile prepaid subscribers – 2001 - 2012
  • Chart 12 – VIPnet prepaid subscribers – 2004 - 2012
  • Exhibit 1 – The EU regulatory framework for communications
  • Exhibit 2 – Access and the local loop

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