openPR Logo
Press release

Telecommunications market in Poland will grow to PLN 40bn in 2008

10-20-2008 03:35 PM CET | Media & Telecommunications

Press release from: PMR Ltd

According do research and consulting company PMR the value of the Polish telecommunications services market will exceed PLN 40bn. The dominating trends lead to the sector more closely resembling the mature markets of Western Europe.

The telecommunications services market in Poland has entered the maturity phase. The increases in value noted in the previous three years were only minimal, 2-5% annually. Despite a forecast increased dynamic in 2008 compared with 2007, a reverse of this trend and even higher growth should not be expected in the next years. The segment still having the most negative impact upon the sector value is fixed-line telephony. Additionally, development of the mobile telephony and internet markets, in the face of pressure upon decreases in service prices, is not able to efficiently drive growth of the entire market.

According to PMR estimates included in the report “The telecommunications market in Poland 2008. Development forecasts for 2008-2012”, the value of the telecommunications services market in Poland, measured in local currency, grew by more than 2% y-o-y, reaching PLN 38.6bn. This implies less than half the dynamic of 2006. Similarly to previous years, the growth in market value was possible primarily thanks to the continuously increasing revenues of mobile operators. Although in mobile telephony segment, due to increased competition and primarily, decreases in mobile termination rates (MTR), the growth was the lowest in history.

The second segment regarding value is still fixed-line telephony, however its share in the market of telecommunications services is systematically declining – from 58% in 2000 to 27% in 2007. For another year in a row, this segment noted an almost 10% decrease in value, primarily due to fixed-to-mobile substitution. Moreover, nothing demonstrates the possibility to reverse this trend in the next 2-3 years.
The smallest, and at the same time the most dynamically developing segment of the Polish telecommunications market remain data transmission, line rental, and internet services provision (DLISP). In 2007, the DLISP market generate approximately PLN 4.7bn of revenues, the major part of these represented by inflows in the sector of internet access services.
Regarding dominating trends the Polish telecommunications market is gradually approaching Western European markets. Service saturation is becoming more noticeable (in the case of internet, this refers primarily to regions bringing the most rapid return on investment and the highest margins, i.e. urban agglomerations). Consequently, increases in market value depend to a lower extent on winning new customers. Therefore, telecommunications operators are focusing more on retaining their current base of users. Offering larger volumes (such as free minutes) or better service quality (such as higher bandwidth) at the same price has become a trend. At the same time, operators are systematically extending their range of services in order to offer packages consisting of telecommunications, multimedia and other services, not necessarily related to the telecommunications industry (for example banking services). On the other hand, price competition is losing importance, primarily due to its contribution to decrease in average revenues per user.

In August 2008, PMR conducted a survey amongst the 100 largest telecommunications companies in Poland. For the seventh time, the telecoms managers provided their opinions about the market situation and trends. The forecasts of the industry representatives regarding the market development remain optimistic. More than 80% of those surveyed believe that the value of the Polish telecommunications market will increase in 2009. Only 3% expect a negative growth dynamic. Nevertheless, compared with the previous edition of the survey, the enthusiasm of companies weakened regarding the forecast growth dynamics.

According to representatives of the 100 largest telecommunications companies in Poland, at present poorly developed infrastructure has the largest negative impact upon the development of the telecommunications sector. This is the opinion of 45% respondents. With a similar frequency, respondents indicated barriers of poor legal regulations existing on the Polish market and the dominant position of TP SA – this was stated by, respectively, 44% and 42% of those surveyed. It is worth mentioning that the significance of the poor infrastructure factor grew considerably compared with the previous year. In 2007, this was indicated as the most important barrier by 23% respondents, thus we see an increase of 22 percentage points. On the other hand, a 10 percentage points decrease was noted in case of people listing high prices of telecommunications services as a barrier, and a 6 percentage points fewer respondents indicated problems with competitiveness on the market.

Polish telecommunications services market will develop at an average annual rate of approximately 2.5% in the next four years. The action of the regulator (for example planned more restrictive decrease in mobile termination rates and attempts to separate TP SA) will be of crucial importance for the market development. “In case of larger than expected drops of revenues on wholesale markets and a possible slowdown of the entire economy growth rate, a temporary stagnation or even a decline in the total value of the telecommunications services market in Poland is even more probable than one year ago” – summarised Pawel Olszynka, PMR analyst and one of the report’s authors.

For more information please contact the authors of the report:

Pawel Olszynka – Head IT&Telecoms analyst
tel. /48 12/ 618 90 61

Edyta Kosowska – Telecommunications market analyst
tel. /48 12/ 618 90 64

For more information on the report please contact:
PMR Ltd.
Marketing department:
tel. /48/ 12 618 90 20

PMR is a publishing, consulting and market research company providing information, advice and services to international businesses interested in Central and Eastern Europe. With highly skilled staff, top ranked web sites and over ten years of experience, PMR is one of the largest companies of its type in the region.

PMR Ltd.
ul. Supniewskiego 9, 31-527 Krakow, Polska
tel. /48/ 12 618 90 00, fax /48/ 12 618 90 08

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 Telecommunications market in Poland will grow to PLN 40bn in 2008 here

News-ID: 57164 • 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 Polish

Furniture Polish market report 2019
Furniture Polish market report presents a comprehensive overview, market shares, and growth opportunities of it by product type, application, key manufacturers and key regions and countries. According to this study, over the next five years the Furniture Polish market will register a xx% CAGR in terms of revenue, the global market size will reach US$ xx million by 2024, from US$ xx million in 2019. Download FREE Sample of this Report
Global Nail Enamel Sales Market Top Manufacturers Light Nail Polish, Transparent …
Geographically, this report split global into several key Regions, with sales (K MT), revenue (Million USD), market share and growth rate of Nail Enamel for these regions, from 2013 to 2025 (forecast), covering United States China Europe Japan Southeast Asia India Request for discount @ Global Nail Enamel market competition by top manufacturers/players, with Nail Enamel sales volume, Price (USD/MT), revenue (Million USD) and market share for each manufacturer/player; the top players including OPI Bobbi Brown Essie Revlon Japan Glaze Dior ORLY COSMAY CND Cover Girl Loreal Paris Sally
Consolidation of the Polish telecommunications market
Over the past twelve months there have been a lot of important events and developments in the Polish telecommunications sector, all of which have had a significant influence on the current state of the market. The market is becoming increasingly consolidated, and more and more often mergers and acquisitions concern firms at the top end of the market, and leading firms in their respective segments. Important events The most important, and perhaps
AAA Reports On Polish Property Boom
The Polish property market is hotting up in response to investors looking for alternative places to put their cash, claims Alternative Asset Analysis (AAA). Boston, MA, November 07, 2011 - The Polish property market is hotting up in response to investors looking for alternative places to put their cash, claims Alternative Asset Analysis (AAA). According to a recent report in the Financial Times, a new focus has been drawn to the real
Atlanta Polish Chamber of Commerce Launched
PACC Atlanta launched in support of the mission of the Embassy of Poland which has recently opened the Honorary Consulate of Poland in Atlanta, Georgia April 5th, 2011 Atlanta, Georgia – 2011 is turning out to be a productive year in the State of Georgia-Poland relations. During his March 31st visit to Atlanta, Ambassador of Poland to the United States Robert Kupiecki spoke about the relationships that Poland and Georgia share, including
Polish VoIP market 2010
Over the past two years, falling fixed telephony prices and the prominence of fixed mobile substitution have not managed to hinder the development of internet telephony. This was particularly notable in small and medium enterprises segment, where VoIP technology is used most because it is easy to integrate VoIP telephony with IT systems alongside the dropping prices. On the other hand, growth in the individual clients segment was most visible