Recent Study: Austria Telecommunications Report Q4 2014

Austrian mobile market has reached its saturation point and BMI believes that the subscriber growth will plateau at the end of the forecast period thus any potential growth will come from cannibalising the market shares of existing operators. Expanding 3G and 4G services will offer new revenue streams, but increasing competition is likely to erode the average revenue per user.

Mobile subscriber base has decreased an average of 0.4% every quarter since Q113. The regulator allowed for T-mobile and Drei Austria, two of the largest operators, to use some of their existing spectrum for 3G and 4G services. This will decrease the costs of developing new networks. However, with only 10,220k 4G subscribers in the market in Q213, growth will need to pick up quickly. The entrance of MVNOs, combined with new mobile termination rates (MTRs) imposed by the regulator and lower consumer spending, means we expect lower ARPU rates in 2014, and this may have a negative impact on operators. In addition to operators purging their subscriber bases of inactive SIM cards, a weaker economy is weighing on consumer spending and made low-cost no-frills services more appealing. 2014 is likely to see the MVNO market heat up as a result of these trends and ultra-low wholesale prices being offered by Drei. International mobile virtual network operator (MVNO) Lycamobile had already soft-launched with the intention of exploiting this opportunity and Bosnian telecom operator Telekom Srpske entered the market in 2014.

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The major mobile carriers will hope that LTE plans mitigates this trend somewhat.

Key Data

* Mobile subscriptions have fallen significantly since Q412 from 13.42 to 13.128 in Q214.
* In 2013 ARPUs were down by 12.6% and 9.2% respectively. This may mean an enduring war price between carriers, even with Orange out of the market and growing data use albeit ARPU's have been relatively stable throughout 2014.
* According to regulatory data, growth of broadband...

The Austria Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of Austria's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.

BMI's Austria Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Austria.

Key Benefits

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