Market Information
Overall situation in countries of South East Europe
Telecom sector in countries of SEE is characterized with three main networks:
- Public switch telephone networks (PSTN)
- Mobile networks
- Broadband networks
PSTN
Like in other parts of Europe, PSTN is now declining in the terms of revenue and in terms of subscribers in SEE. On average penetration of this network is about 26% across the region, and declining.
Except for positive effect this decline has for the mobile networks, PSTNs are not of particular interest of telcro.
Mobile networks
All of the countries in the region demonstrate strong growth in this sector. The average penetration being at approximately 60%, with growth rates ranging from 5 PP (in Albania), up to 26 PP in Montenegro in the year 2005.
Broadband networks
Broadband access is very important indicator of the development of society, as it provides basis for information based society. Broadband use in the region is extremely low comparing to the EU levels. Average penetration in EU at the end of 2005 was about 11.5%, while average penetration of broadband in SEE is at 1.6% (ranging from no reported broadband access in Albania to 3.5% in Romania - at the end of 2005).
Based on these overall high level facts, the opportunity exists in providing of the broadband access and in providing more segmented approach in mobile.
In depth: Croatia
Mobile in Croatia
Croatian mobile market is approaching maturity. With penetration reported at more than 100% (January 2007) it is becoming harder to penetrate and serve efficiently all of the segments with only slightly differentiated offers. At this penetration level in the most of EU countries, regulator has encouraged entrance of MVNOs (Mobile Virtual Network Operators).
Currently market is served by three operators: T-Mobile, VipNet (mobilkom Austria) and Tele2.
The total market revenues are estimated at €1.0B
Regulation, although advanced in many areas, somewhat trails EU, with mobile number portability introduced in October 2006 and framework for MVNO defined in law and regulation at the end of 2005 � although there is no commercial application as of yet.
Broadband access in Croatia
Although Croatia is ranked second (after Romania) in the region with broadband penetration at 2.5% (end of 2005) these levels are still significantly behind EU average (11.5%).
95% of all access lines are xDSL, with WiFi, Cable TV and some leased lines accounting for the rest. Most of xDSL is provided by the incumbent T-Com (part of T-HT group that is owned in majority by Deutsche Telekom, that also includes T-Mobile Croatia in its ownership). The rest of the technologies are mainly provided by alternative providers.
Recently, Croatian government has published a strategy for broadband development until the year 2008 and accompanied it with corresponding action plan for year 2007.
This strategy and plan calls for growth in broadband access to reach 500.000 users by the end of 2008. Action plan offers array of suggestions and support, including support for the use of alternative technologies and providing broadband access in rural areas (or areas where providing access may not be commercially attractive).
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