Poland Telecom Report - 2014

USD $149.00
Poland Telecom Report - 2014

This report covers the market developments in FY 2013 and the data available as of October 2014.

The Polish telecom market shrank y/y for the second consecutive year, driven downwards by the poor performance of the fixed-line and telephony segments. The internet segment was the only one that recorded positive annual performance in 2013, namely 3.7% y/y growth.

The decline of the Polish telecom market in 2013 was the result of a cumulus of factors, among which regulatory measures (such as MTR cuts), the high level of saturation with services, which added to the tight competition between market players.

The Polish telecom market is regarded as a mature one and most segments are saturated. Accordingly, the players increased their focus on new services, combining energy and telecommunications services, and started to cooperate with banks in their product offers. Considering that the worst of tariff cuts is already behind, the revenues in the sector will likely slow down decline in 2014 and gradually pick up in the coming years.

Key points:
• Telecom market shrinks y/y for second consecutive year, driven downwards by poor performance of fixed-line, mobile segments
• Revenues from TV services marginally up y/y in 2013
• Regulator UKE announces LTE auction, awaits bids until Nov 24
• UKE deregulates broadband infrastructure access in 76 municipalities
• Mobile market penetration in Poland remains above EU average
• EBRD sells 33% of its shares in Cyfrowy Polsat
• Vectra cancels tender offer for 33% of listed telecom operator Netia


Table of Contents

Contents
Executive summary 5
Market overview 6
Telecom market shrinks y/y for second consecutive year, driven downwards by poor performance of fixed-line, mobile segments 6
Total revenues from post, telecommunication activities down 7.2% y/y in 20133 6
… but inch up 0.7% y/y in H1/2014 8
Digital radio to further increase coverage, launch new stations 8
Cumulated market share of top three players shrinks, number of telecom firms continues declining 9
Telecom market expected to slow down annual decline this year 9
Regulator UKE announces LTE auction, awaits bids until Nov 24 10
UKE deregulates broadband infrastructure access in 76 municipalities 10
Fixed-line 11
Fixed-line segment continues y/y decline in terms of revenues, number of subscribers 11
Telekomunikacja Polska’s market share in terms of revenue, customer base shrinks, but maintains leader position 12
Netia reports lower profit in H1/2014, lowers 2014 revenue forecasts 13
Netia splits operations into separate B2B, B2C divisions 14
Netia wins four-year contract for provision of voice services to Polish parliament 14
Mobile 15
Mobile telephony revenues shrink for second consecutive year, affected by poor performance of roaming segment 15
Data transmission volume maintains accelerated growth pace 16
Mobile market penetration in Poland remains above EU average 16
T-Mobile maintains leader position by number of mobile service users, Polkomtel climbs to first place by revenues 16
Cyfrowy Polsat’s takeover of Polkomtel’s owner completed in May 17
Orange Polska expands 3G, LTE network coverage 17
T-Mobile to develop network, run quality improvement program 18
Orange Polska secures extension of 900MHz frequency reservation for further 15 years 18
Play reports double-digit y/y rise of revenue, higher customer base in Q2/2014 18
Internet 19
Revenues from internet access services slow down growth in 2013 19
Subscribers, penetration rate of internet access services up y/y in 2013 20
Telekomunikacja Polska has largest internet user base in 2013 21
Poland falls to 32nd place globally by average internet connection speed in Q2/2014 22
Pay TV 23
Revenues from TV services marginally up y/y in 2013 23
Polish pay TV market to rank 6th in Europe by revenues in 2014- report 23
Number of free-to-air terrestrial TV users rises 23
EBRD sells 33% of its shares in Cyfrowy Polsat 24
Vectra cancels tender offer for 33% of listed telecom operator Netia 24
Vectra’s customer base jumps to 909,000 as of end-Jun 2014 24

Table 1 Revenues from sales of communication products, services in 2011-2013 (PLN bn, y/y) 7
Table 2 Communication activity selected indicators in 2011-2013 (PLN bn, y/y) 8
Table 3 Telecom investments in 2011-2013 (PLN mn) 9
Table 4 Forecasts on telecom market value by 2015 (PLN bn) 10
Table 5 Number of subscribers, traffic volume of VoIP services in 2010-2013 12
Table 6 Netia S.A.- Selected financials in 2012-2014 (PLN thou, consolidated) 14
Table 7 Mobile market traffic volume in 2009-2013 (bn minutes, y/y) 16
Table 8 SMS traffic volume in 2009-2013 (number, y/y) 16
Table 9 Mobile data transmission volume in 2009-2013 (bn MB, y/y) 16
Table 10 Mobile telephony- Penetration rate and number of users in 2005-2012* 16
Table 11 T-Mobile Polska- Selected financials in 2012-2013 (PLN thou) 18
Table 12 Broadband internet penetration rate in 2010-2013 (%) 21
Table 13 TV, radio subscriber base in 2003-2013 (mn subscribers, annual, y/y) 23
Table 14 Top 10 pay TV countries in Europe in 2014 23

Figure 1 Telecom market value in 2010-2013 (PLN bn) 6
Figure 2 Revenues from sales of communication products, services in 2012-2013 -Segmentation by activity (%) 7
Figure 3 Revenues from sales of telecommunication services in 2005-2013 (PLN bn) 8
Figure 4 Polish Communications Market - Selected indicators in 2005-2017 (USD bn) 10
Figure 5 Fixed telephony- Average monthly revenue per user (ARPU) in 2008-2013 (PLN) 11
Figure 6 Value of fixed telephony services market in 2007-2013 (PLN bn, y/y) 12
Figure 7 Number of subscribers for fixed telephony services in 2007-2013 (mn, y/y) 12
Figure 8 Market shares of major fixed-line operators by revenues in 2012-2013 (% of total) 13
Figure 9 Market shares of major fixed-line operators by subscribers in 2012-2013 (% of total) 13
Figure 10 Value of mobile telephony services market in 2009-2013 (PLN bn) 15
Figure 11 Market shares of major mobile operators in 2013- Revenues, users (% of total) 17
Figure 12 Internet access services market - Value, ARPU in 2011-2013 (PLN, annual) 19
Figure 13 Revenue structure by internet access technology used in 2012-2013 (%) 20
Figure 14 Structure of internet users by technology used in 2013 (% of total) 20
Figure 15 Number of subscribers to mobile, fixed-line internet services in 2010-2013 (mn) 21
Figure 16 Market shares of major internet providers by user number in 2012-2013 (% of total) 22
Figure 17 Market shares of 2G/3G internet access providers by user number in 2009-2013 (% in total) 22

Number of pages: 24
Release Date: Fri, 31 Oct 2014