This report discusses developments in the telecom sector in Poland through 2013, with a market overview and corporate news for firms including TPSA, PTK Centertel, T-Mobile, Orange Poland, and Cyfrowy Polsat, among others.
The revenues from telecom activities in Poland dropped by approximately 2.4% y/y to PLN 41.7bn (EUR 10bn) in 2012, thus sliding into the negative area after the moderate 1.1% y/y advance in 2011. The decline was driven by the double-digit slump of fixed-telephony revenues, as well as by the first historical annual decrease of revenues in the mobile telephony segment, in the context of the overall economic slowdown.
The performance of the Polish telecom market follows the same overall downward tendency at EU level, where operators’ revenues are also negatively affected by tightening competition and regulatory and macroeconomic pressures. Furthermore, Polish operators also follow an international trend toward combining energy and telecommunications services. In order to alleviate the shrinking revenues from traditional activities, operators have been increasingly diversifying their offer, including services not connected to their core business, such as selling electricity. The Polish telecom market value is projected to maintain a downward path in the short run. On the upside, market players expect the price war to temper gradually, as customers have become less price-sensitive. In 2013, however, the operators’ profit margins will continue to be affected by lowering prices for mobile and landline services.
• In corporate news, Poland’s fixed-line telecom incumbent Telekomunikacja Polska SA (TPSA) remained the main player in 2012, with 57.4% share of the market in terms of subscribers and 55.7% share in terms of revenues.
• In the mobile telephony segment, PTK Centertel led the market in 2012 in terms of revenues, but T-Mobile climbed to first place in terms of number of users.
• Orange Poland has launched its first LTE transmitters in Warsaw, and to start full commercial services in 2014.
• Polsat TV, a division of TV broadcaster and DTH operator Cyfrowy Polsat, completed the acquisition of broadcaster of TV4 and TV6 channels Polskie Media from Karswell Ltd and Sensor Overseas Ltd.
• According to EC data, the EU telecom sector revenues dropped by 1.1% y/y in 2012, driven by shrinking fixed and mobile service revenues.
• While Poland’s mobile telephony segment was negatively affected by tightening competition and further MTR cuts, the internet access market continued to grow at dynamic pace, surging by 10.7% y/y in 2012.
Table of Contents
1. Market overview
1.1 Telecom market performance slides in negative area in 2012
1.2 Telecom sector revenues expected to contract further in 2013
1.3 Total revenues from post, telecommunication activities inch up 3.8% y/y in 2012
1.4 Operators diversify service offer to alleviate shrinking revenues from traditional activities
1.5 Telecom regulator UKE launches consultation on 800 MHz, 2.6 GHz frequency blocks
1.6 UKE belatedly signs decision for assigning 1,800MHz frequency blocks
2.1 Fixed-line segment continues on downward path in terms of revenues, number of subscribers
2.2 TPSA maintains market leader position in terms of revenue, customer base
2.3 TPSA expects steeper revenue decline in 2013, driven by MTR cuts, ongoing price war
2.4 Netia’s revenues shrink 10.4% y/y, profitability improves in H1/2013
3.1 Mobile telephony revenues shrink 1% y/y in 2012
3.2 Data transmission volume continues to rise at accelerated pace
3.3 Mobile market penetration in Poland is above EU average
3.4 PTK Centertel is market leader by revenues, but T-Mobile climbs to first place by number of users
3.5 Polkomtel refinances EUR 1.9bn worth of debt
3.6 Orange Poland launches first LTE transmitters in Warsaw, to start full commercial services next year
3.7 Play reports rising retail revenues in Jan-Sep 2013, to launch LTE services in November
4.1 Internet access market rises at double-digit growth pace in 2012
4.2 Internet traffic in Poland to grow 19% CAGR in 2012-2017- study
4.3 Poland earmarks EUR 2bn for digital development in 2014-2020 under 4.4 dedicated governmental programme
4.5 Bundling uptake to prop further broadband growth in Poland
4.6 Negotiations for GTS Central Europe’s acquisition close to clash over price tag
5. Pay TV
5.1 Pay TV market to continue growing, despite saturation- study
5.2 Poland completes TV digitalisation process
5.3 Cyfrowy Polsat finalises acquisition of Polskie Media
5.4 Netia buys UPC Polska’s cable networks in Warsaw, Krakow
5.5 … And plans to invest PLN 200mn in fibre-optics next year
5.6 Vectra’s subscriber base jumps to 856,200 at end-June
5.7 Telecom firm EmiTel acquires peer Info-TV-Operator
Release Date: Wed, 23 Oct 2013