Additional InformationEircom succumbs to Ireland’s economic pressuresBuddeComm’s annual publication, Ireland - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in Ireland.
The poor economic climate has deeply affected the Irish telecom market since the second half of 2008. The government in 2009 underwrote some €50 billion worth of toxic debt accumulated by the three major banks. Mounting debts, compounded by low corporate tax and reduced income tax, obliged the government to accept up to €90 billion as a bailout from the EU and IMF in late 2010, while a four-year economic plan was devised aimed at driving down the country’s deficit from 12% to 3% of GDP by the end of 2015 by cutting €15 billion off state spending. Ireland’s last three budgets have already cut public spending by up to €14 billion. In early 2011 a new coalition government was formed between Fine Gael and Labour to help push through a revised economic programme.
The government’s indebtedness has made it difficult to honour its former pledges of public money to upgrade national telecoms networks, and so it has had to lean increasingly on the cash-strapped private sector. The telecom sector has also been affected by reduced consumer spend on all but essential services. While mobile and broadband services are considered a ‘safe’ revenue stream for operators, there is little extravagance among consumers, and so operators have faced reduced revenue and with it the cash to invest in networks, infrastructure and upgrades.
Over the past six years or so changes in telecom sector revenue have mirrored economic output, and as the current recession has deepened both GDP and telecom revenue have declined. Nevertheless, the contribution of the telecom sector to GDP has grown during the last three years, suggesting that the sector is moderately healthier than other sectors of the economy.
Ireland’s mobile penetration is on a par with the EU average, having grown at one of the fastest rates in the EU in recent years. The country also has an above average level of data revenue as a percentage of total mobile revenue Although blended ARPU has continued to fall steadily, it remains among the highest in the EU. Despite economic constraints ARPU should remain stable towards the end of 2012 as increased mobile data traffic outweighs a shift to prepaid usage among consumers.
Growth in the number of broadband subscriptions has slowed in recent quarters and is largely propped up by the mobile broadband sector. DSL remains the dominant platform, though a gradual shift to FttX networks will see this dominance decline in coming years. The cable sector has been supported by UPC’s investment in DOCSIS 3.0 technology, which provides considerably higher data rates than is currently possible through DSL.
Eircom’s dominance in the broadband market is gradually slipping, representing about 65% of subscriptions by the beginning of 2012. Greater efforts by the government and regulator have led to higher broadband penetration in Ireland, though the country still ranks near the bottom of OECD countries. In the EU it is ranked above only Greece. The slow process of LLU is a major reason for Ireland’s poor position: competitors via LLU provide only about 9% of all DSL accesses.
Key telecom parameters – 2010; 2012
Sector 2010 2012 (e)
Subscribers to telecoms services:
Fixed broadband subscribers (million) 1.59 1.75
Fixed-line telephony (million) 1.86 1.75
Mobile broadband subscribers (thousand) 570 790
Mobile phone (million) 5.27 5.62
Penetration by telecom service:
Fixed broadband 35% 39%
Fixed-line telephony 49% 45%
Mobile SIM penetration 118% 127%
Ireland’s FttX networks have developed slowly as a result of eircom’s financial constraints. The cost of extending network builds beyond certain exchanges in the main towns remain prohibitive and so further developments during the next few years will be restricted. The absence of a regulatory mechanism to encourage network construction and investment has added to the sector’s difficulties.The MVNO market remains underdeveloped, with few operators involved. In early 2012 an existing MNO, O2, launch its own low-cost service targeted at the youth market.The regulator’s final decision on ASO will see the process completed in three phases during the first four months of 2012. Released digital dividend spectrum will be auctioned as part of the government’s efforts to raise €700 million, so fulfilling financial conditions reached with the EU and IMF.The chaotic DTTV market remains in limbo. The failure of Boxer (awarded three national DTTV multiplexes) as well as the One Vision consortium was compounded by the refusal of the third bidder for the DTTV service, the Easy TV consortium (comprising RTÉ and Liberty Global), to negotiate with the Broadcasting Authority of Ireland (BAI). The BAI has ruled out introducing commercial DTTV until after analogue TV services are switched off at the end of 2012, with services not to be launched until 2013. all three groups which contested the 2008 DTT contest have withdrawn from the process.This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Ireland.
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.
More 3G & 4G reports by Paul Budde Communication Pty Ltd
Czech Republic - Mobile Market Insights, Overview and Statistics by Paul Budde Communication Pty Ltd
Mobile penetration in the Czech Republic is among the highest in Central European nations and is high even by western European levels. With mobile voice ...
Guatemala - Telecoms, Mobile and Broadband by Paul Budde Communication Pty Ltd
World Bank invests in mobile network infrastructure, helping migration to 4G Growth in Guatemala’s telecom sector has been affected by the continuing global economic ...
New Zealand - Mobile Communications - Statistics, Analysis and Major Operators by Paul Budde Communication Pty Ltd
In 2012 we saw mobile network operator 2degrees growing on average at around one thousand customers a day since its launch. By late 2012 we ...
Australia - Mobile Communications - Spectrum Auctions by Paul Budde Communication Pty LtdSee all reports like this >>
Radio spectrum for mobile phone services in Australia was first auctioned in 1997. Since then, spectrum has been divided and traded between industry firms to ...
More Ireland 3G & 4G reports
Ireland Telecommunications Report Q2 2013 by Business Monitor International
The Irish telecoms market has not been exempt from the stresses affecting the rest of the economy, puttingoperators under significant pressure. Both the mobile market ...
Ireland - Telecoms, IP Networks, Digital Media and Forecasts by Paul Budde Communication Pty Ltd
Eircom commits to network investment despite high debt BuddeComm’s annual publication, Ireland - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of ...
Ireland - Key Statistics, Telecom Market and Regulatory Overviews by Paul Budde Communication Pty Ltd
Ireland’s telecom market has suffered from poor broadband uptake, underinvestment and mismanagement within some of the key operators. Eircom has perhaps suffered most from the ...
European Wireless and Mobile Communications: Country and Operator Profile - Ireland (2006) by IDCSee all reports like this >>
This IDC study analyzes the mobile market opportunity in Ireland. In addition to identifying the key trends currently shaping the market, the study profiles ...
More Ireland reports
D&B Country RiskLine Report: Ireland by Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...
Communications Trends and Expenditure in Ireland, 2010 by IDC
IDC's annual Communications Trends and Expenditure in Ireland survey provides the most comprehensive view of the Irish telecoms sector available in the market. For those ...
Ireland: Country Profile by MarketLine
INTRODUCTIONThis report provides a detailed analysis on Ireland, providing an overview of its political, economic and business environment, represented both textually and in graph and ...
2007 Ireland Industry & Market Outlook report by Barnes ReportsSee all reports like this >>
The 2007 Ireland Industry & Market Outlook report is the leading annual publication that describes over 100 major industries in Ireland and 500+ minor industries ...
We can help you find what you need. Call us or write us:
Need help in your search?
- Cell Phones
- Smart Phone
- Internet Applications
- Telecommunications Equipment
- Fiber Optics
- General Telecommunications
- Telecom Networks
- 3G & 4G
3G & 4G Reports