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Telecommunications Markets in the 10 new EU Member States. An overview of recent developments. 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
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Telecommunications Markets in the 10 new EU Member States An overview of recent developments
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 Structure of the telecom market
Fixed/mobile substitution • Mobile expansion : 24% density at end-2000 ; 60% at end-2003 • Stagnation of fixed network despite poor density level.
Recent 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
Bridging the gap with Western Europe • Trends in diffusion of mobile, fixed telephony and Internet access
Bridging the gap with Western Europe • Disparities within the 10 new Member States
Competition 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.
Telecom operators • Growth and restructuring challenges
Outlook • 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