Business Monitor International


Slovakia Telecommunications Report

Published 15 January 2014

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Slovakia Telecommunications Report

Executive Summary

BMI View: The Slovak telecoms regulator TU SR concluded its auction of 4G spectrum in December 2013, with all three major operators acquiring frequencies, as well as one new entrant. While growth in the Slovakian mobile market has stalled since around 2010, growth in 3G has been impressive, with 3G subscriptions accounting for around 30% of total mobile subscriptions at the end of 2012. With the entrance of a new player, we expect growth to accelerate over the long term , and LTE would be the main beneficiary of this.

Key Data

  • The mobile sector declined by 0.8% in 9M13, compared to growth of 0.8% during the same period in 2012.

  • The market weighted average ARPU fell by 6.3% in 9M13

  • The fixed-line sector contracted by 0.6% in H113.

  • Mobile and fixed broadband subscriptions grew by 0.4% and 2.8% respectively in H112.

Risk/Reward Ratings (RRRs)

Slovakia is in fifth position in BMI's Q114 RRR table. The country scores above the regional average in all four categories of ratings, although its best score is in the Industry Risks category which reflects steady progress towards the alignment of its telecoms policies with wider EU policies. Slovakia's lowest score is in the Industry Rewards category, where its favourable rating for relatively high ARPUs and strong subscriber mix is counterbalanced by weak subscriptions growth and declining EBITDA figures.

Key Trends

Competition in the mobile market received a boost in December 2013 with the licensing of a fourth network operator in the public auction for 4G LTE spectrum. The new player, Slovak Wireless Access Network (SWAN). is a smaller provider of broadband internet, TV and fixed line services in Slovakia, and also has a presence as an MVNO. BMI maintains that the entrance of a new player will provide a boost for LTE. However, we caution that SWAN will struggle to compete with its larger, established rivals in the mobile market. SWAN acquired the most 1,800MHz spectrum in the...

Table of Contents

Executive Summary
7
SWOT Analysis
8
Slovakia Mobile SWOT Analysis
8
Slovakia Wireline SWOT Analysis
9
Slovakia Political SWOT
10
Slovakia Economics SWOT
10
Slovakia Business Environment SWOT
11
Business Environment Ratings
12
Central And Eastern Europe
12
Central And Eastern Europe Risk/Reward Ratings, Q113
15
Slovakia
16
Industry Forecast Scenario
18
Mobile
18
Table: Telecoms Sector - Mobile - Historical Data & Forecasts
18
ARPU
20
Table: ARPU Forecast, 2010-2017 (EUR)
20
Fixed Line
22
Table: Telecoms Sector - Fixed Line - Historical Data & Forecasts
22
Internet
23
Table: Telecoms Sector - Internet - Historical Data & Forecasts
23
Mobile Data Analysis
24
Regional Perspective
24
Table: Slovakia Mobile Market Regional Comparison, 2011
24
Key Developments
25
Mobile Growth
25
Market Shares
26
Table: Slovakia Mobile Subscribers, Q311-Q312 (-000)
27
Table: Subscriber Net Additions, Q311-Q312 (-000)
27
Subscriber Mix
27
ARPU
29
Networks
29
3G
29
Country Outlook
31
Value-Added Services Timeline
33
Table: Selected VAS
33
Mobile Contract Wins
34
Table: Mobile Contract Wins
34
Mobile Operator Data
35
Table: Slovakia Mobile Market Overview
35
Table: Orange
36
Table: T-Mobile
37
Table: O2
38
Regional Mobile Content
38
Fixed Line
43
Internet
46
Table: Internet
46
FTTH
48
Key Trends And Developments
51
Table: Wireline developments
52
Regulatory Environment & Industry Developments
53
Slovakia: Regulatory Bodies And Their Responsibilities
53
Legislation And Market Liberalisation
54
Regulation
54
Licensing And Spectrum
55
Competitive Landscape
57
Key Players
57
Table: Key Players - Slovakia Telecoms Market
57
Table: Selected Operators Financial Indicators
57
Company Profiles
58
T-Com (Slovak Telecom)
58
Orange Slovakia
62
T-Mobile Slovakia
65
Regional Overview
67
Vendor Profile
67
Table: Revenue By Business Segment (HRK '000)
67
Table: Revenue By Geography (HRKmn)
68
Key Contracts, 2011-2012
71
Country Snapshot: Slovakia Demographic Data
72
Section 1: Population
72
Table: Demographic Indicators, 2005-2030
72
Table: Rural/Urban Breakdown, 2005-2030
73
Section 2: Education And Healthcare
73
Table: Education, 2002-2005
73
Table: Vital Statistics, 2005-2030
73
Section 3: Labour Market And Spending Power
74
Table: Employment Indicators, 2001-2006
74
Table: Consumer Expenditure, 2000-2012 (US$)
74
Table: Average Annual Wages, 2000-2012
75
BMI Telecoms Industry Glossary
76
Table: Telecommunications Glossary Of Terms
76
BMI Methodology
77
How We Generate Our Industry Forecasts
77
Table: Key Indicators For Telecommunications Industry Forecasts
77
Telecoms Business Environment Ratings
79
Risk/Reward Ratings Methodology
79
Ratings System
79
Indicators
79
Table: Ratings Indicators
80
Weighting
81
Table: Weighting Of Indicators
81
Sources
81

The Slovakia Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of Slovakia's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.

BMI's Slovakia Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Slovakia.

Key Benefits

  • Benchmark BMI's independent telecoms industry forecasts for Slovakia to test other views - a key input for successful budgeting and strategic business planning in the Slovak telecoms market.
  • Target business opportunities and risks in Slovakia's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Slovakia.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts and views, covering the ICT, fixed-line, mobile (including 3G), internet and broadband markets.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.

Business Environment Rankings

BMI's Telecommunications Business Environment Rankings provides a country-comparative Risk-Reward Rankings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.

The rankings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.

BMI Industry Forecast Scenario

Historic data series and forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

  • Fixed-Line Telephony - Telephone lines ('000); telephone lines/100 inhabitants.
  • Cellular Telephony - Mobile phone subscribers ('000); mobile phone subscribers/100 inhabitants; mobile phone subscribers/100 fixed line subscribers.
  • Internet Markets - Internet users ('000); internet users/100 inhabitants; broadband internet subscribers ('000); broadband internet subscribers/100 inhabitants.

Market Data Analysis

Detailed market analysis of the mobile, mobile content, fixed line and internet segments, broken down into:

  • Market Data - Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
  • Technology/Service Rollout - Analysis of rollout/adoption of new technology, such as 3G, WiMAX, IPTV, pay-TV, LTE and value-added handset services (gaming, music, video, apps etc.).
  • Mobile Content - The latest trends in content and services available and being introduced by mobile operators. Including a timeline of all the latest major mobile content developments.
  • Company Database - A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).

Regulatory Environment

Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. The latest updates in the market's development and regulatory rulings.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.

The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc