Denmark Telecommunications Report Q2 2016
BMI View: The Danish telecommunications sector will experience limited growth over our forecast perioddue to the saturated nature of the market. Growth in mobile market subscriptions will stagnate as operatorsfocus on offering additional services for existing customers, while fierce competition will continue to driveARPUs downwards. The fixed-line segment offers some room for growth, with operators moving towardsadvanced services, such as fibre, to regain market share from mobile broadband.Latest Updates & Industry Developments
The mobile market in Denmark performed poorly in 2015, with the number of subscribers falling by1.3% y-o-y to 7.8mn. We forecast this number to decrease slightly to 7.7mn in 2020 and believeoperators will focus on retaining existing customers through new services, rather than attempting toattract new users.
Usage of 3G/4G networks continues to rise, with 7.0mn mobile subscribers forecast to have access tosuch services in 2016, representing 89.9% of the Danish mobile market. BMI predicts this will growmarginally to 7.1mn in 2020, with market saturation obstructing any further significant growth.
The failure of the merger between TeliaSonera and Telenor will hinder market consolidation efforts. Itwill ensure that incumbents continue to operate in a market that is highly competitive and will, in turn,drive down ARPUs.
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