Regional Telecoms Overview: Eastern Europe

Publication Date	May 2007
Publisher	Ovum
Product Type	Report
Pages	20
ISBN Number	not applicable
Product Code	OVM00242

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Summary

The overall picture for operators in Eastern Europe has remained consistent since 2005, with a declining market for fixed voice services, increasing mobile penetration and stagnating top-line growth. In the past year, however, we have seen much activity in terms of defensive strategies for traditional voice services and also a wealth of value-added services hitting the market aimed at both stemming the decline and generating new sources of growth.

In this report, we aim to provide an overview of key developments in the Eastern European Telecoms market in 2006. To do this we compare financial and operational data for a range of key operators within the region: BTC (Bulgaria), Eesti Telekom (Estonia), Invitel and Magyar Telekom (Hungary), Netia and TP (Poland), Romtelecom (Romania), TEO LT (Lithuania) and Telefnica O2 CR (Czech Republic). All data is for the years ending 31 December 2005 and 2006.

Content

Key messages
Fixed markets continue to decline
TV added to portfolio to generate new revenue streams
Fixed-to-mobile substitution continues
Mobile market is saturated
Broadband growth continues
X-play bundling: a strategic priority in 2006
Top-line growth is stagnant
Profitability remains under pressure
Market overview
Mobile saturation progresses
FMS reigning
Broadband is providing some growth...
...but not enough to offset the decline in fixed revenues
Total revenues are slow to grow
Focus on costs and efficiency continues
Increased capex growth
Profitability under pressure
Debt under control
Table of figures
- Figure 1 Mobile growth and penetration
- Figure 2 Proportion of mobile subscribers as % of total connections, 2005 and 2006
- Figure 3 Change in fixed lines, 2006/2005
- Figure 4 Broadband lines
- Figure 5 Change in domestic fixed revenues, 2006/2005
- Figure 6 Change in total revenues, 2006/2005
- Figure 7 Employee change, 2006/2005
- Figure 8 EBITDA margins
- Figure 9 Revenues per employee (€ 000s)
- Figure 10 Capex change, 2006/2005
- Figure 11 Capex as a percentage of revenues
- Figure 12 EBIT margins
- Figure 13 Net income margins
- Figure 14 Cash efficiency
- Figure 15 Debt/revenues ratio