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Austria - Telecoms, IP Networks, Digital Media and Forecasts


Attention: There is an updated edition available for this report.

This report covers Austria, a major European telecom market. The report analyses trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP, VoD and IPTV developments. Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Major Players, Revenues, Subscribers, Prepaid;
  • VoIP, IPTV, VoD, digital TV and DTTV;
  • Convergent media and mobile broadband;
  • Telecom market forecasts for selective years to 2014 and 2018.


BuddeComm’s annual publication, Austria - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in Austria.  

Austria’s mid-sized telecom market is one of the most competitive in Europe, with numerous operators providing voice and data services, led by Telekom Austria, Tele2UTA, and eTel Austria. The main telcos are well placed to take advantage of opportunities in the less mature and rapidly developing markets of central and eastern Europe.  

In recent years the Austrian telecoms market has witnessed rapid growth in revenues from mobile and data communications, generally declining rates and charges, and lower fixed-voice traffic. These trends are likely to continue through to 2010 at least, with the continuing decline in overall revenue being propped up by mobile data service revenue and broadband increasingly becoming a single service within popular broader bundled packages. Market revenue showed rapid growth until 2006, since when it has dipped, falling 3.7% in 2007 and 5.4% in 2008 and an estimated 4% in 2009 as the effects of the economic downturn reflects more constricted consumer spending habits.  

In the mobile sector there are four network operators as well as a small number of MVNOs and resellers. The market has been adjusted on several occasions following a number of acquisitions - tele.ring by T-Mobile (2006), One by Orange and Mid Europa Partners (July 2007), and Tele2’s mobile division by Telekom Austria (early 2008).  

Broadband penetration is slightly below the EU average, though as a result of effectively competing cable and DSL platforms, as well as low average access prices, about 55% of Internet households had a broadband connection by mid-2009 (83% if mobile broadband is also taken into account). Together, Telekom Austria and UPC Austria provide around two-thirds of all fixed broadband connections.  

Austria - key telecom parameters - 2008 - 2009
Sector | 2008 | 2009(e) |
Broadband: |   |   |
Fixed broadband subscribers (million) | 1.76 | 2.15 |
Fixed broadband penetration rate | 37% | 39% |
Mobile broadband subscribers (million) | 0.97 | 2.60 |
Subscribers to telecoms services: |   |   |
Fixed-line telephony (million) | 2.66 | 2.63 |
Mobile phone (million) | 1.8 | 11.6 |
Mobile penetration (population) | 129% | 137% |
| (Source: BuddeComm)

  Key highlights:

  • The retail market continues to be dominated by Telekom Austria, which has about 60% share of voice traffic and 90% of revenue from the residential and business rectors. Competitors such as Tele2, UPC and COLT are gradually increasing market share as their build their own networks. Nevertheless, the 10% fall in fixed-line voice revenue year-on-year will require these operators to exploit bundled offers in coming years to attract and retain customers.
  • Despite regulated access to Telekom Austria’s network since 2001, the proportion of unbundled lines remains low. The company, slow to implement LLU, was fined €1.5 million in 2009 for operating an LLU policy deemed unfair to competitors. By taking a firmer line on access, the regulator should have substantially improved the conditions for alternative operators in 2010.
  • Frequencies in the 3.5 GHz band suitable for broadband wireless access services were auctioned in December 2008, valid to 2019. The regional operators will substantially augment rural broadband access and make up for the failed and much delayed auction of frequency in the 450 MHz band.
  • Fibre continues to impact telecom networks, supported by government-sponsored rural broadband initiatives. Local operators are expected to pass about 1.2 million homes by 2015. Growth in the number of fibre subscriptions, at about 25% in 2009, will push the proportion of FttH/FttB subscribers to about bout 8% of all broadband subscribers by the end of 2010.
  • Digital switchover has progressed well, and by early 2009 most households had switched to DVB-T. About 92% of households receive the channels bundled on MUX A, and while no further expansion of the MUX B platform coverage area is planned the regulator has reserved licences for a third digital multiplex (MUX C) to regional broadcasters and initiatives.
  Data in this report is the latest available at the time of preparation and may not be for the current year.

1. Key Statistics
2. Telecommunications Market
2.1 Overview of Austria’s telecom market
3. Regulatory Environment
3.1 History
3.1.1 EU regulatory framework
3.2 Regulatory authorities
3.2.1 Austrian Regulatory Authority for Broadcasting and Telecommunications
3.2.2 Telekom Control Commission
3.2.3 Austrian Communications Authority (KommAustria)
3.3 Telecom sector liberalisation in Austria
3.3.1 Privatisation of Telekom Austria
3.3.2 Interconnect
3.3.3 Access
3.4 Number portability
3.5 Carrier PreSelection (CPS)
4. Fixed Network Market
4.1 Overview of operators
4.2 Telekom Austria
4.3 Tele2UTA
4.4 tele.ring
4.5 UPC Austria
4.6 eTel Austria
5. Telecommunications Infrastructure
5.1 National telecom network
5.2 Next Generation Network (NGN)
5.3 Structural separation
5.4 Wholesaling
5.5 International infrastructure
5.5.1 Submarine cable networks
5.5.2 Satellite networks
6. Broadband Market
6.1 Overview
6.1.1 Regulating wholesale access
6.1.2 Wholesale market
6.1.3 Broadband statistics
6.1.4 Government support
6.1.5 Regional broadband
6.2 Cable modems
6.2.1 UPC Austria
6.3 Asymmetrical Digital Subscriber Line (ADSL)
6.4 Fibre-to-the-Home (FttH) networks
6.5 Mobile broadband
6.6 Broadband Powerline (BPL)
6.7 Wireless broadband
6.7.1 Wireless Local Loop (WLL)
6.7.2 450MHz frequency band
6.7.3 3.5GHz frequency band
6.7.4 Wireless LANs/WiFi
6.7.5 WiMAX
6.7.6 Internet via satellite
7. Convergence
7.1 Key general trends
7.2 Business models
7.2.1 Triple play
7.3 Regulatory issues
7.4 Digital TV
7.4.1 Overview
7.4.2 TV-over-DSL (IPTV)
7.4.3 Cable TV
7.4.4 Satellite TV
7.4.5 Digital terrestrial TV
7.4.6 Free-to-Air (FTA) TV
7.4.7 VoIP (Voice over Internet Protocol) services
7.4.8 Personal Video Recorders (PVRs)
8. Mobile Communications
8.1 Overview of Austria’s mobile market
8.1.1 Mobile statistics
8.1.2 Operator market shares
8.2 Regulatory issues
8.2.1 Regulatory authority
8.2.2 Spectrum regulations and spectrum auctions
8.2.3 Roaming
8.2.4 Mobile number portability (MNP)
8.2.5 Mobile termination rates (MTRs)
8.3 Mobile technologies
8.3.1 Digital
8.3.2 Third Generation (3G) mobile
8.4 Major mobile operators
8.4.1 Orange
8.4.2 Hutchison 3 Austria
8.4.3 mobilkom austria
8.4.4 tele.ring
8.4.5 T-Mobile
8.4.6 Mobile Virtual Network Operators (MVNO)
8.5 Mobile voice services
8.5.1 Prepaid cards
8.6 Mobile data services
8.6.1 Short Message Service (SMS)
8.6.2 Multimedia Messaging Service (MMS)
8.6.3 General Packet Radio Service (GPRS)
8.6.4 Push-to-Talk (PTT)
8.6.5 Enhanced data for GSM Evolution (EDGE)
8.6.6 High-Speed Downlink Packet Access (HSDPA)
8.6.7 High-Speed Circuit-Switched Data (HSCSD)
8.6.8 High-Speed Uplink Packet Access (HSUPA)
8.6.9 LTE
8.6.10 Mobile TV
8.6.11 BlackBerry
8.6.12 Femtocells
8.7 Mobile content and applications
8.7.1 M-commerce
8.7.2 Mobile Internet
8.7.3 Mobile VoIP
9. Forecasts
9.1 Forecasts - broadband subscribers - 2007 - 2012; 2018
9.1.1 Scenario 1 - higher broadband subscriber growth
9.1.2 Scenario 2 - lower broadband subscriber growth
9.2 Forecasts - mobile market - 2006 - 2010; 2012 - 2014
9.2.1 UMTS forecasts
9.2.2 Mobile ARPU forecasts
10. Glossary of Abbreviations
List of Tables and Exhibits
Table 1 - Country statistics Austria - 2009
Table 2 - Telecom revenue and investment statistics - 2008
Table 3 - Telephone network statistics - March 2009
Table 4 - Internet user statistics - June 2009
Table 5 - Broadband statistics - March 2009
Table 6 - Mobile statistics - March 2009
Table 7 - National telecommunications authorities
Table 8 - Retail telecoms revenue by sector and annual change - 2003 - 2009
Table 9 - Total telecoms revenue - 2006 - 2008
Table 10 - Telecom investments - 2004 - 2008
Table 11 - Telecom traffic by sector - 2005 - 2009
Table 12 - Market share of retail telecoms revenue by sector - 2003 - 2008
Table 13 - LLU, shared access price - connection, monthly rental - 2005 - 2008
Table 14 - Unbundled loops and access lines - 2004 - 2009
Table 15 - Ported numbers by year - 2006 - 2009
Table 16 - Cumulative ported numbers - 2008 - 2009
Table 17 - CPS lines - 2004 - 2008
Table 18 - Telekom Austria financial data - 2001 - 2009
Table 19 - Telekom Austria: PSTN and ISDN access lines - 2005 - 2008
Table 20 - Telekom Austria: retail and wholesale DSL lines - 2005 - 2009
Table 21 - Telekom Austria traffic statistics in minutes - 2005 - 2009
Table 22 - Telekom Austria traffic statistics annual change by sector - June 2009
Table 23 - Telekom Austria financial data by sector and annual change - 2006 - 2009
Table 24 - UPC Austria revenue and annual change - 2005 - 2009
Table 25 - UPC Austria subscribers and operating statistics - 2005 - 2009
Table 26 - Fixed lines in service and teledensity - 1999 - 2009
Table 27 - Fixed-line retail revenue - 1997 - 2007
Table 28 - Telekom Austria broadband wholesale and LLU lines - 2006 - 2009
Table 29 - Broadband penetration of Internet households - 2006 - 2009
Table 30 - Online advertising spend - 2001 - 2007
Table 31 - Household broadband access by type - 2008
Table 32 - Bitstream access lines by type - 2004 - 2009
Table 33 - Leased line revenue by data capacity - 2005 - 2007
Table 34 - Leased lines by data capacity - 2004 - 2007
Table 35 - Internet users and penetration rate - 1995 - 2009
Table 36 - Total broadband subscribers by access type - 2002 - 2009
Table 37 - Revenue from retail and wholesale broadband connections - 2005 - 2009
Table 38 - UPC Austria broadband subscribers - 2005 - 2009
Table 39 - UPC Austria revenue - 2005 - 2009
Table 40 - Telekom Austria ADSL subscribers - 2004 - 2009
Table 41 - ADSL subscribers and annual change - 2000 - 2009
Table 42 - Telekom Austria Internet subscribers and annual change - 2000 - 2008
Table 43 - Fibre broadband subscribers - 2007 - 2009
Table 44 - Mobile broadband subscribers - 2005 - 2009
Table 45 - Retail mobile broadband lines by type - Jan 2009
Table 46 - Fixed-line wireless broadband subscribers - 2006 - 2009
Table 47 - Household TV reception by technology - 2007 - 2009
Table 48 - Digital receiver sales by technology - 2007 - 2009
Table 49 - Telekom Austria IPTV subscribers - 2007 - 2009
Table 50 - Cable and satellite TV households - 2000 - 2009
Table 51 - UPC Austria revenue and annual change - 2005 - 2009
Table 52 - UPC Austria subscribers and operating statistics - 2005 - 2009
Table 53 - Mobile operators, subscribers and annual change - June 2009
Table 54 - Mobile subscribers and penetration rate (regulator data) - 1999 - 2010
Table 55 - Mobile subscribers by operator (regulator data) - 2005 - 2009
Table 56 - Mobile SIMs in use, 2G and 3G - 2004 - 2009
Table 57 - Mobile revenue and call minutes - 2003 - 2009
Table 58 - Mobile market share by operator - 2006 - 2009
Table 59 - EC maximum roaming charges - 2007 - 2009
Table 60 - Cumulative ported mobile numbers - 2004 - 2009
Table 61 - Mobile termination charges by operator - 2008 - 2009; 2011
Table 62 - 2G spectrum allocations by operator
Table 63 - 3G spectrum allocations by operator
Table 64 - 3 Austria subscribers - March 2009
Table 65 - 3 Austria revenue and ARPU- 2008
Table 66 - mobilkom austria group subscribers; Europe and Austria - 2000 - 2009
Table 67 - mobilkom austria group subscriber breakdown - 2005 - 2009
Table 68 - mobilkom austria - mobile financial data - 2004 - 2009
Table 69 - mobilkom austria monthly ARPU - 2004 - 2009
Table 70 - tele.ring subscribers (historic) - 2005
Table 71 - T-Mobile Austria revenue, subscribers, ARPU - 2003 - 2009
Table 72 - Mobile numbers in use, contract and prepaid - 2004 - 2009
Table 73 - mobilkom austria prepaid subscribers - 2005 - 2009
Table 74 - Mobile data services revenue as % of total - 1999 - 2009
Table 75 - SMS messages sent - 2004 - 2009
Table 76 - mobilkom austria SMS sent - 2006 - 2009
Table 77 - mobilkom austria: data as proportion of revenue - 2004 - 2009
Table 78 - MMS messages sent - 2005 - 2009
Table 79 - Mobile broadband subscribers - 2005 - 2009
Table 80 - Retail mobile broadband lines by type - January 2009
Table 81 - Forecast broadband subscribers - higher growth scenario - 2007 - 2012; 2018
Table 82 - Forecast broadband subscribers - lower growth scenario - 2007 - 2012; 2018
Table 83 - Forecast UMTS subscribers - 2006 - 2010; 2012 - 2014
Table 84 - Forecast mobile ARPU - 2005 - 2010; 2012 - 2014
Exhibit 1 - EU - The New Regulatory Framework (NRF)
Exhibit 2 - Access, the local loop and unbundling - an overview
Exhibit 3 - Chart of broadband access by technology - 2002 - 2008
Exhibit 4 - Chart of broadband connections by technology - 2002 - 2008
Exhibit 5 - Regional WLL licenses in 3.5GHz spectrum by operator - 2004
Exhibit 6 - 450MHz frequency allocation overview - 2006
Exhibit 7 - 3.5GHz frequency allocation - 2008
Exhibit 8 - Overview of media convergence
Exhibit 9 - Chart of mobile market revenue, wholesale and retail - 1997 - 2008
Exhibit 10 - Active mobile providers - 2009
Exhibit 11 - 3G licence results
Exhibit 12 - 450MHz licence results - 2006
Exhibit 13 - 3.5GHz licence regions - December 2008
Exhibit 14 - 3.5GHz licence regions - August 2009

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