Slovakia Mobile Network Operator Subscriber Data 2007-2011

Table & Charts

Table 1: Slovakia Mobile Market & % Quarterly Change 3Q 2006 - 2Q 2011

Table 2: Slovakia Mobile Subscribers & Mobile Penetration 3Q 2006 - 2Q 2011

Table 3: Slovakia Mobile Operator Market Share 2006 - 2010

Defined as an upper middle-income country by the World Bank, Slovakia until recently enjoyed strong economic growth, in part due to its status as a European Union member. An export-dependent economy, the recent global economic turmoil impacted Slovakia's exports, which counts Germany, Czech Republic and France as its principal trading partners, as well as softening demand at home due to falling confidence and employment. Slovakia entered its first recession since independence in 1993 although the economy is expected to record real GDP growth of 2.7% for 2010 and 3.6% for 2011.

Buddecom in its Slovakia - Telecoms, Mobile, Broadband and Forecasts notes that despite the difficult conditions Slovakia's competing telecom operators noted the recent economic turmoil did not impact telecoms and IT services as much as other industries, such as manufacturing and finance, given that telecoms and IT services are productivity enablers. However it has increased the difficulty in securing financial funding for telecoms projects.

Despite market liberalisation telecoms incumbent Slovak Telecom continues to hold a near monopoly of the fixed-line services market. Alternative operators have entered the market although tough competitive pressures have forced a number of mergers and acquisitions, resulting in small number of larger alternative operators. Fixed-line penetration is declining due to fixed mobile substitution.

Broadband represents the majority of Internet connections. Competition is predominantly infrastructure-based, with DSL, cable, FttX and wireless broadband available. Increased Internet usage is supporting Slovakia’s Internet society, which has received substantial EU funding to develop and improve access to e-government services.

Digital terrestrial TV has been launched although digital TV is widely available via cable TV, satellite and broadband TV.

Source: The Worldwide Directory of Mobile Network Operators 2011 copyright TelecomsMarketResearch.com 2011


Source: The Worldwide Directory of Mobile Network Operators 2011 copyright TelecomsMarketResearch.com 2011


Source: The Worldwide Directory of Mobile Network Operators 2011 copyright TelecomsMarketResearch.com 2011

Slovakia's mobile market is serviced by three mobile network operators. Penetration is at near saturation levels, with multiple SIM card ownership evident. Mobile broadband represents a significant growth opportunity, given the launch of HSDPA networks although one established mobile network operator has embarked on a plan to become an integrated telecoms services provider by deploying FttX networks.

Market highlights:

> Broadband represents the majority of Internet subscriptions. Healthy infrastructure based competition is evident given the reach of cable TV networks and deployment of FttX infrastructure by major players. Slovakia's dominant cable TV operator has implemented Euro DOCSIS 3.0 technology across most of its network, promising speeds of up to 120Mb/s.

> Building on greater broadband penetration and Internet usage is development of online applications and services that form the Internet society; an e-government development strategy until 2013 has been approved and a project is underway to define an integrated IT architecture for the public administration to support delivery of e-government services. Slovakian e-health developments are guided by a government approved e-health national strategy for 2009-2013.

> Digital Terrestrial TV has finally launched commercially, with availability extending to most of the population. Mobile broadcasting trials based on DVB-H technology have been approved.

> Strong growth rates recorded by Slovakia’s relatively new mobile network operator stands in contrast to the steady or declining results of established operators, with one expanding its focus to become an integrated telecoms service provider. Mobile broadband presents a new revenue growth opportunity for all three mobile networks, given existing low mobile broadband penetration. Competitively-priced mobile broadband access services have been launched, bundling generous prepaid amounts of data.

Slovakia broadband and telecoms statistics – 2010

Sector	2010	2011
Fixed broadband penetration	17%	20%
Mobile broadband penetration	30%	36%
Subscribers to Telecoms Services (thousand)
Fixed-line telephone subscribers	970	920
Mobile phone subscribers	5,700	5,700

(Source: BuddeComm based on industry data)

Business Monitor's Slovakia Telecommunications Report 2011 notes that notable developments in recent months within the Slovak telecoms market include the news, in October 2009, that Slovak Telekom and T-Mobile Slovakia would be merged into a single company in 2010 as part of a wider strategy by their parent, Deutsche Telekom, to consolidate its wireline and wireless businesses. The T-Mobile and Slovak Telekom's T-Com brands will be retained.

The latest figures from Slovakia's cellular operators showed that the mobile subscriber market grew by just 0.6% in the first nine months of 2009. It appears that all the new customer growth experienced in the first nine months of 2009 came from the country's third largest mobile firm, O2 Slovakia. By contrast, both Orange and T-Mobile reported a net loss of mobile customers in the first nine months of the year.

Despite the moderate growth, many observers believe that Slovakia's mobile market has now reached saturation point. This is not to say that the market no longer offers growth potential - indeed, as this report shows, all three of Slovakia's mobile operators continue to report growth in the number of new contract customers, 3G subscribers and mobile broadband users.

In 2009, the market for traditional fixed telephone lines entered a period of sustained decline. Reasons for the decline include the proliferation of mobile and IP telephony services. Another notable development within the Slovak telecoms market has been the relatively recent expansion in the number of mobile broadband connections. According to the regulator, customers who use a cellular network to access the internet, either via a mobile handset or by using a USB device or mobile data card, grew by 195% in 2008 to surpass 567,000. The growth of mobile broadband occurred alongside a number of interesting changes in the fixed broadband market. The number of fixed broadband connections increased by over 31% in 2008 to reach 619,000 at the end of the year; this gave Slovakia a broadband penetration rate of 11.4%.

Ongoing investments by T-Com and cable operator UPC Slovakia in new high-speed broadband networks is thought to be having a positive impact on the subscriber market; BMI estimates that, by the end of 2009, Slovakia's broadband penetration rate had risen to almost 14%.

Slovakia has fallen from sixth to seventh place in BMI's latest Business Environment Ratings for Central and Eastern Europe. The country receives a weaker overall rating as a result of lower scores in the Telecoms Market and Country Risk categories. The weaker Telecoms Market score reflects, among other things, a mobile subscriber market that is looking increasingly saturated. The weaker Country Risk score, meanwhile, reflects the recession that Slovakia’s economy experienced in 2009.