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Europe Telecom Insider / Vol. 1, No 9, Edition 11 - Fixed Broadband Competition Impacts Mobile Broadband Uptake in European Markets
Pyramid Research, Inc, December 2009, Pages: 15
More consumers in Europe are basing their broadband service subscriptions on price rather than on whether the service is delivered via fixed or mobile networks, a trend that will have a major impact on how network operators position and market their services, according to this latest report.
Fixed Broadband Competition Impacts Mobile Broadband Uptake in European Markets, analyzes the adoption of broadband services across Eastern, Central, and Western Europe. The 15-page report compares the uptake of fixed and mobile broadband services in 17 countries in the region and highlights those markets where adoption is much higher or lower than might be expected. It analyzes the relationships between fixed and mobile broadband, as well as the correlation with GDP per capita. Finally, we present four case studies of broadband markets: The Czech Republic, Hungary, Romania and Slovakia.
In Europe, the level of competition in each market and pricing have emerged as the determining factors affecting subscriber broadband purchase decisions. "The dynamics in the fixed broadband market are shaping those in the mobile broadband segment, and as mobile technologies improve and mature, they will have a stronger impact on the fixed segment," notes Jan ten Sythoff, Manager of mobile content at Pyramid Research and author of the report.
"There is a stronger correlation between GDP per capita and broadband adoption when cellular and fixed networks are measured together than if fixed and mobile broadband technologies are examined separately, which strongly suggests that subscribers tend to choose between the two when making purchase decisions," says Sythoff. "Mobile operators now need to ensure that their broadband packages are positioned competitively with other mobile and fixed broadband offers, while fixed operators also need to focus on both sectors, with pricing and bundling as key differentiators."
Fixed Broadband Competition Impacts Mobile Broadband Uptake in European Markets is part of the Europe Telecom Insider report series. Telecom Insiders are packed with trend analysis, industry best practices, market sizing and forecasting, competitor analysis, and case studies, providing you information you can leverage to make better business decisions.
There is a strong link between fixed and mobile broadband adoption. These markets can no longer be looked at in isolation.
Broadband market dynamics are largely governed by the degree of competition in the fixed segment, which is more mature than the mobile segment. However, as competition intensifies, coverage widens and speeds increase, mobile broadband will increasingly affect the fixed sector.
Growth in mobile broadband can be expected in markets where overall broadband penetration is low. We expect rapid uptake of 3G in Russia, Slovakia and Ukraine once the networks provide good coverage.
We see limited opportunities for fixed-mobile broadband bundles, because the services are competitive more than they are complementary.
THE DYNAMICS OF ONE MARKET IMPACT THE OTHER
A. Mobile broadband adoption is lower where fixed broadband competition is intense, driving higher-speed infrastructure investments
B. Fixed and mobile broadband adoption rates track income levels more closely when combined than in isolation, suggesting that subscribers tend to choose between the two when making purchase decisions
C. In competitive fixed markets, mobile broadband players are finding ways other than price to compete against the fixed players
CASE STUDY: SLOVAKIA
CASE STUDY: HUNGARY
CASE STUDY: CZECH REPUBLIC
CASE STUDY: ROMANIA
Table of exhibits
Exhibit 1: Fixed and mobile broadband subscriptions in Europe, 2008-2014
Exhibit 2: Fixed versus mobile broadband prices and maximum advertised downlink speeds, Romania
Exhibit 3: Total (fixed + mobile) broadband penetration, 2009
Exhibit 4: Total (fixed + mobile) broadband penetration by GDP per capita, 2009
Exhibit 5: Fixed and mobile broadband prices, Slovakia
Exhibit 6: Fixed and mobile broadband prices in Hungary, October 2009
Exhibit 7: Fixed and mobile broadband prices in the Czech Republic, October 2009
Exhibit 8: Fixed and mobile broadband prices, Romania, October 2009
- Antenna Hungaria
- Magyar Telekom
- RCS & RDS Romtelecom
- Slovak Telecom
- T-Com Telefónica O2
- T-Home T-Mobile
- U:fon UPC
- WiMAX Telecom Zapp
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