Central and Eastern European telecom operators take bold approach in broadband market and beyond, Arthur D. Little finds
<p><ul><li>While DSL has been the dominant fixed broadband technology in the EU, the CEE experience has confirmed that other technologies, such as wifi, LAN, and FTTx, may better fit local markets</li><li>Spectrum licences represent major opportunity for new players to enter the market, and for current players to expand their service offerings</li><li>Pay TV and telecom operators are reacting to increasing competition by expanding their services and diversifying revenues</li></ul></p>
Arthur D. Little’s new report, “Space for Creativity: Innovative Solutions in Central and Eastern European Telecommunications", has revealed that operators in CEE have often deployed new innovative technologies earlier and faster than their Western European counterparts. This bold approach has driven growth in the broadband market, contributed to the ascendancy of mobile telecommunications, and effaced the line between telecom companies and TV operators.
By looking for solutions that best fit local conditions, broadband development in CEE has been different from Western Europe, with a wide variety of access technologies successfully deployed for service delivery. Mobile broadband has taken off in countries with a relatively low GDP/capita because of a lack of fixed broadband infrastructure, while FTTx has been rolled out by incumbents in relatively developed mobile broadband markets.
While cable TV operators currently dominate the content and triple play markets, telecom operators have defended their customer base with new TV offers on several platforms. With the emergence of IPTV, incumbents have also gained an opportunity to offer bundled services, which can be leveraged to fight line loss or, at least, partially offset revenue decrease in the fixed voice segment.
The upcoming availability of new licenses, issued by regulators to further fuel competition and stimulate investment, provides maneuvering room for both existing and new players in these markets. As long as creative and competitive tensions continue, CEE telecom markets will remain a focus for investors.
“The next two years will be decisive in shaping the future telecommunication landscape in most CEE countries," says Karim Taga, co-author of the report and Director at Arthur D. Little’s Telecoms, Information, Media & Electronics (TIME) Practice. “Operators interested in moving into the CEE markets could capitalize on new license opportunities, or alternatively transfer valuable CEE know-how to their Western operations, such as own MVNO or hybrid TV."
Central and Eastern European telecom operators take bold approach in broadband market and beyond, Arthur D. Little finds
<p><ul><li>While DSL has been the dominant fixed broadband technology in the EU, the CEE experience has confirmed that other technologies, such as wifi, LAN, and FTTx, may better fit local markets</li><li>Spectrum licences represent major opportunity for new players to enter the market, and for current players to expand their service offerings</li><li>Pay TV and telecom operators are reacting to increasing competition by expanding their services and diversifying revenues</li></ul></p>
Arthur D. Little’s new report, “Space for Creativity: Innovative Solutions in Central and Eastern European Telecommunications", has revealed that operators in CEE have often deployed new innovative technologies earlier and faster than their Western European counterparts. This bold approach has driven growth in the broadband market, contributed to the ascendancy of mobile telecommunications, and effaced the line between telecom companies and TV operators.
By looking for solutions that best fit local conditions, broadband development in CEE has been different from Western Europe, with a wide variety of access technologies successfully deployed for service delivery. Mobile broadband has taken off in countries with a relatively low GDP/capita because of a lack of fixed broadband infrastructure, while FTTx has been rolled out by incumbents in relatively developed mobile broadband markets.
While cable TV operators currently dominate the content and triple play markets, telecom operators have defended their customer base with new TV offers on several platforms. With the emergence of IPTV, incumbents have also gained an opportunity to offer bundled services, which can be leveraged to fight line loss or, at least, partially offset revenue decrease in the fixed voice segment.
The upcoming availability of new licenses, issued by regulators to further fuel competition and stimulate investment, provides maneuvering room for both existing and new players in these markets. As long as creative and competitive tensions continue, CEE telecom markets will remain a focus for investors.
“The next two years will be decisive in shaping the future telecommunication landscape in most CEE countries," says Karim Taga, co-author of the report and Director at Arthur D. Little’s Telecoms, Information, Media & Electronics (TIME) Practice. “Operators interested in moving into the CEE markets could capitalize on new license opportunities, or alternatively transfer valuable CEE know-how to their Western operations, such as own MVNO or hybrid TV."
RELATED INFORMATION
Strong growth and major shifts in CEE TV markets create opportunities for market players, states Arthur D. Little
In its latest Viewpoint “Major Transformation in CEE TV Markets: Shake Up Likely to Continue”, global management consultancy Arthur D. Little assesses the recent dramatic growth and TV platform shift…
Mergers & Acquisitions: Bust or Boom in CEE Telecoms?
Telecommunications transactions in CEE reached a volume of EUR 3.9 billion Euros in 2007. But will CEE M&A activity remain at high levels in spite of the credit-crunch situation? This insight…
Major Transformation in CEE TV Markets
Television markets in the CEE region have experienced rapid growth in recent years. The number of multichannel TV households (households that can receive cable or satellite television, as well as…