Title: Telecommunications Markets in the 10 new EU Member States
1Telecommunications Markets in the 10 new EU
Member States
- An overview of recent developments
2Structure of the telecom market
- Total telecom service markets in the 10 new
Member States 20 billion EUR - Poland, Hungary, the Czech Republic and Slovakia
account for 90 of the market - Mobile services 48 of total value (38 in
2001) - Growth (est.) 9 increase in value at market
prices in 2004 , against 4.1 in the EU-15 and
4.5 for the whole EU-25
3Fixed/mobile substitution
- Mobile expansion 24 density at end-2000 60
at end-2003 - Stagnation of fixed network despite poor density
level.
4Recent expansion of the Internet market
- 4.3 million Internet subscribers at year-end
2003, 80 of which through dial-up, up from 1.7
million at year-end 2000. - Driving factors
- Computer equipment rate
- Regulatory framework
- Development strategy of operators
5Bridging the gap with Western Europe
- Trends in diffusion of mobile, fixed telephony
and Internet access
6Bridging the gap with Western Europe
- Disparities within the 10 new Member States
7Competition development
- Competition in the mobile market, acting as an
indirect source of competition in the fixed
market - Full liberalization completed on 1 January 2003
- Progress in implementing pro-competitive
regulations (CPS, interconnection), resulting in
increased competition mainly in the business
segment and LD/international traffic - Strong hold of incumbents on the local loop.
8FDI positioning of Western European telcos
Incumbent Mobile Others
Deutsche Telekom Matav (HUN) Slovak Telecom (SLO) Westel (HUN) PTC (POL) Eurotel Bratislava (SLO)
France Télécom TP Group (POL) Centertel (POL) Orange Slovensko (SLO)
TeliaSonera Eesti Telekom (EST) Lattelekom (LAT) Lietuvos Telekomas (LIT) EMT (EST) LMT (LAT) UAB Omnitel (LIT) Telia Latvia (LAT) 100
TDC Bite (LIT) Polkomtel (POL) Contactel (CZE) 50
Telekom Austria Si.Mobil (SLI)
Vodafone Vodafone Hungary (HUN) Vodafone Malta (MAL) Polkomtel (POL)
Tele2 Tele2 Eesti (EST) SIA Tele2 (LAT) UAB Tele2 (LIT) Tele2 Eesti (EST) SIA Tele 2 (LAT)
9Telecom operators
- Growth and restructuring challenges
10Outlook
- Significant opportunities for growth in the
medium term impact of general economic
development, expansion of Internet data market,
rise in ARPU - Stronger pressure on tariffs through increased
competition - VoIP accelerating the transformation of the
industry? - Regulatory challenges adapting to the new EU
framework