openPR Logo
Press release

Key trends on the telecoms market in Central and Eastern Europe

09-28-2011 08:15 AM CET | Media & Telecommunications

Press release from: PMR Ltd

Key trends on the telecoms market in Central and Eastern Europe

The telecommunications market in the CEE has become more mature. Telecoms are facing problems typical of saturated markets, which are lowering ARPU and higher expectations of consumers. Convergence and growing significance of data transmission services in mobile networks will continue to shape the market.

Current situation

According to the latest report “Telecommunications market in Central and Eastern Europe. Forecasts for 2011-2016” published by PMR, a market research company, the total value of the telecommunications services market in the CEE region amounted to approx. €28.3bn in 2010, which represented an increase of just 0.9% year on year. Conversely, in 2004-2008, the telecommunications services market in the CEE witnessed a compound annual growth rate of 7.5%. The market grew relatively quickly, fuelled chiefly by the dynamic development of the Ukrainian and Romanian market. The worldwide economic crisis, together with the regulatory policy aimed at cutting mobile termination rates, negatively influenced the market value in 2009-2010.

The limited rates of growth which have recently characterised the CEE countries are also a consequence of the fact that these markets have become more mature and competitive and have faced constant price erosion, seen in practically every market area. The growth potential of the countries is now based mainly on the development of data transmission and broadband services, which, however, still represent a relatively low percentage of the total revenues from telecommunications services. Additionally, especially fixed broadband in the CEE countries has also seen first serious signs of saturation.

Key trends

According to PMR calculations in the recent few years, more healthy net additions could be observed actually only on the internet market, and chiefly thanks to dynamically growing subscriber base in Ukraine. There may be observed a constant outflow of fixed-line telephony subscribers, which has been more significant each year since 2006. SIM card base numbers also seem to reach their peak and a further explosive growth is hardly possible. Another sign of market maturity concern the monthly revenue per user indicators which suggest a continual declining tendency. However, the extent of the decline is not impressive, particularly considering the fact that, as market saturation increases, in all market sectors there appear users who only make moderate use of the services offered, and who fail to immediately generate revenue comparable with the market average.

As far as the broadband internet access market is concerned, in actually each of the CEE countries there is a tendency to offer customers higher and higher data transfer speeds: the same price buys a faster connection every year. Moreover, some operators include an option to change their terms in the long-term deals, should the operator introduce a different special offer at a later date.
Another key tendency is the convergence between telecommunications services and multimedia services, as well as the integration of data transmission services with voice services. The gradual switch to wireless transmission is also worth noting. It is a clear trend in both in Western and in Central and Eastern Europe. More and more often, operators undertake to offer their clients full service covering telephone, internet and television. There is an observable tendency for cable TV operators to use the IP network to offer voice services. Another effect of the convergence is an increased interest of mobile operators in the fixed-line market (home zone-based services).
In the area of mobile telephony, a trend worth noting is the steady increase in the importance of non-voice services. Every year, these services constitute a greater proportion of the total revenue of the operators, who have been enriching their offer with new services of this type. Consequently mobile internet, fuelled by the growing penetration of smartphones, has recently become a driving engine of the mobile network revenues. In fact, in all of the CEE countries 3G coverage has been constantly increasing. “First LTE trials have been already conducted in each of the countries and the region has already seen the first commercial retail offer in the LTE network in the third quarter of 2011 by Cyfrowy Polsat (based on the Aero2 group infrastructure)” – comments Pawel Olszynka, a PMR analyst and one of the report authors.

Development forecasts

In the coming two years PMR analysts expect that the major telecoms in the CEE will uphold the strategy of increasing the variety of services offered. The target will be firstly aimed at maintaining its current client base and minimise the rotation of the base (churn). Bundles are the strategic tool to meet this target. Hence, the convergence tendency will grow stronger, as will the mutual interdependencies between the sectors of the telecommunications market. Players on the market will reach outside their key activity areas to offer customers more comprehensive solutions. The tendency to utilise telecommunications as a platform to offer other, non-related services, will grow stronger.

It is also worth noting that further actions of the market regulators, particularly with regard to the mobile wholesale market and interconnection rates, have been and potentially remain one of the key determinants of the value of the telecoms market. This is mainly due to the fact that on the mobile telephony market – which is most strongly affected by the regulatory efforts and it also has by far the largest share in the total telecoms revenues – even changes that are small, percentage-wise, often translate into hundreds of millions of euros.
The situation of the data transmission and ISP sector in the CEE may be improved in the coming years by a greater than expected increase in the data transmission and the corporate services market. The last piece of the puzzle is the fixed-line market. There is an increasingly strong trend among the CEE households for substituting fixed lines with mobile services. The fixed-to-mobile substitution has been progressing in recent years at a stronger or lighter rate practically in all of the CEE countries. In our opinion, in the coming two years the value of the fixed-line market will continue to shrink. However, the fall will gradually become gentler, also due to increasing popularity of VoIP.

This press release is based on information contained in the latest PMR report entitled “Telecommunications market in Central and Eastern Europe 2011. Forecasts for 2011-2016”

For more information on the report please contact:
Marketing Department:
tel. /48/ 12 618 90 00

PMR ( is a British-American company providing market information, advice and services to international businesses interested in Central and Eastern European countries as well as other emerging markets. PMR's key areas of operation include business publications (through PMR Publications), consultancy (through PMR Consulting) and market research (through PMR Research). Being present on the market since 1995, employing highly skilled staff, offering high international standards in projects and publications, providing one of most frequently visited and top-ranked websites, PMR is one of the largest companies of its type in the region.

Dekerta 24
30-703 Kraków

This release was published on openPR.

Permanent link to this press release:

Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Key trends on the telecoms market in Central and Eastern Europe here

News-ID: 193669 • Views:

More Releases from PMR Ltd

60% of Polish SMEs use IT services
60% of Polish SMEs use IT services
Approx. 60% of small and medium sized enterprises use IT services in Poland. Some 30% of SMEs declare to employ people responsible for IT. The number of portable computers used by SMEs has been growing. On average, there are five such computers per one SME. The proportion of companies which use EU funds to finance ICT development has gone down over the last two years. Use of IT services According to the
Ukrainian IT industry to keep on growing in 2012-2013
Ukrainian IT industry to keep on growing in 2012-2013
In the last two years Ukrainian IT market has been recovering after a sharp decline experienced in 2009. The market will continue to record double digit growth rates in 2012-2013. The macroeconomic and political situation will remain of crucial importance in the country. Current situation and key trends According to the latest report “IT market in Ukraine 2012. Development forecasts for 2012-2017” published by PMR, a market research company, the total
Retail grocery market to provide €117bn in 2014 in the CE region
Retail grocery market to provide €117bn in 2014 in the CE region
PMR estimates that in 2011 the grocery market in six Central European (CE) countries was worth nearly €107bn, 2.8% more than the previous year when expressed in local currencies. The increase was generated foremost by the discount stores and supermarket segments, and was driven by the skyrocketing prices of foodstuffs. Schwarz Group, which operates the Lidl and Kaufland chains, is a leading grocery player in the CE region – as
Hungarian construction market to recover in 2013-2014
After a poor 2009-2012 for the Hungarian construction industry, from 2013 a visible market recovery is expected. The growth in 2013-2014 will result from the intense execution of EU co-financed infrastructure investments as well as some revival in building construction, particularly in non-residential buildings. According to the research company PMR’s latest report, entitled “Construction sector in Hungary 2012 – Development forecasts for 2012-2014”, weak macroeconomic environment, falling investment demand and poor

All 5 Releases

More Releases for CEE

CEE to Host STEM Program for Students
McLean, Va. (February 21, 2022) - The Center for Excellence in Education (CEE) is inaugurating a new program for high school students that will nurture their interest in science, technology, engineering, and mathematics (STEM) careers. The free virtual STEM Lyceums kickoff event is on Thursday, February 24, 2022, from 4:00 pm to 5:00 pm ET via Zoom. Tune in by registering at . Everyone welcome regardless of location. This spring
CEE Index of Excellence in STEM Education
McLean, VA (October 15, 2019) – Economic competitiveness is driven by scientific innovation of the nation’s top achievers. To get visibility of how well U.S. students stack up against those in other countries, the nonprofit Center for Excellence in Education (CEE) has developed an index of STEM education preparedness. The CEE Index of Excellence in STEM Education measures educational preparation for the highest levels of international academic competition. It analyzes individual
SMi’s Defence Logistics (CEE) – New Speakers & Updates
Join the world's leading military logisticians at Defence Logistics Central and Eastern Europe in Prague this March, to hear updates on enhancing multinational logistics collaboration for regional collective defence. This highly anticipated two-day event will focus specifically on regional logistics operations, joint interoperability, and strategy optimisation, covering a blend of: transport, supply chain and MRO management, medical logistic operations, lifecycle management, C2, and much more. SMi are delighted to welcome
The CEE Aviation Conference 2017 will cover the latest industry news and updates, current technologies and future trends of the aviation sector. We also aim to analyze airline and airport business development strategies in the CEE region, all while providing business networking opportunities for guests, sponsors, speakers and the media. Taking place 21-22 November in the Danubius Hotel Gellért in Budapest, Hungary, the conference features Great Speakers confirmed at the conference: Mr
CEE & CIS Downstream Project Management Conference,
Successful implementation of complex revamp and construction projects without budget overruns and schedule slippage is the dream of any refinery manager. VPs and Project Managers of companies such as LUKOIL, GAZPROM NEFT, MOL, SLOVNAFT, SOCAR and KAZMUNAYGAZ will take part in the 4th CEE & CIS Downstream Project Management Conference, 2- 3 November 2017 in Vienna, to exchange best practices in the project execution and capital efficiency. The conference includes • A technical
Automotive Report 2008 - CEE
The Central and Eastern European - CEE region is one of the dynamic growth regions, following the accession of key countries to the European Union, and increasing economic growth and stability in the region. Additionally, with its proximity to established Western European markets, CEE provides a unique opportunity for vehicle manufacturers (VM) and suppliers looking for sales growth or lower-cost production close to a major market region. Automotive and OEM