Telekom Austria Group announces that the number of fixed net access lines fell to 2.4 million at end-2007, from 2.6 million at end-2006, as the fixed-to-mobile migration continued. The Fixed Network division added 28,600 net xDSL customers in Q4 2007, compared to 23,700 customers added in Q4 2006, to reach a total of 750,600 at end-2007, compared to 693,600 at end-2006. The group boosted its mobile customers by 44.6 percent to 14.8 million in 2007, boosted by the contribution of the recently-acquired MDC in Belarus and positive development across all countries. Excluding MDC, group mobile customers reached 11.7 million in 2007, up by 14.7 percent from 2006, with 510,700 net additions in Q4, compared to 454,000 net additions in Q4 2006. Mobilkom Austria added 105,600 net mobile customers in Q4, compared to 101,100 added in Q4 2006, to end with 3.96 million customers, up by 9.1 percent from end-2006. Mobilkom Austria boosted its market share to 40.3 percent at end-2007, from 38.7 percent at end-2006.
Mobiltel in Bulgaria added 284,900 net mobile subscribers in Q4 2007, versus 231,600 net additions in Q4 2006, to end with 5.1 million customers, up 19.5 percent from end-2006. Its market share fell from 52.5 percent in 2006 to 50.3 percent in 2007 in the face of stiff competition. MDC in Belarus had 3.06 million customers at end-2007, up 23 percent from end-2006, for a market share of 43.4 percent. Croatian mobile operator Vipnet ended 2007 with 2.18 million customers, up 14 percent from 2006, adding 102,600 net subscribers in Q4, compared to 106,700 net additions in Q4 2006. Vipnet’s market share was 43 percent at end-2007. Si.mobil in Slovenia had 497,200 mobile customers at end-2007, up 18.2 percent year-on-year, adding 17,400 net customers in Q4, compared to 15,000 net additions in Q4 2006. Its market share was 26.9 percent at end-2007.
Wireless Mobile Telecom Wireless News
Vipnet looks to capitalise on low fixed broadband penetration with FMS products; competition in mobile space intensifies as pricing pressures bite.
Croatia’s stunted fixed-line and broadband market plus a highly developed mobile space equals a significant opportunity for the country’s mobile players.
And Croatia’s second largest mobile operator, Telekom Austria-owned Vipnet, has its sights firmly set on poaching fixed minutes and data customers.
“We see a big chance for Vipnet to enter with mobile broadband products,” said Marie-Helene Magenschab, CEO of Vipnet, speaking at a Telekom Austria press event in Vienna last week.
According to Vipnet, fixed broadband penetration in Croatia stands at just 8.3%, largely as a result of a “very monopolistic market situation”; incumbent operator T-Com (Deutsche Telekom acquired a controlling stake in Hrvatski Telekom in 2001) holds fixed-line market share of over 95%.
By contrast, “the mobile market is very well developed,” said Magenschab, which means mobile players are looking towards fixed-mobile substitution and mobile data products to expand their businesses.
A key product for Vipnet is its Homebox, sourced from partner Vodafone, which it brought to market in the fourth quarter of last year.
“[Homebox is] a clear fixed substitution product for people who want to keep their fixed number,” said Magenschab.
The device enables customers to retain their fixed phone number, or to have a new “fixed” number, without having a fixed line. Users plug their fixed-line phone, and a PC if they so desire, into the Homebox, which routes calls over the mobile network.
Vipnet also offers Vodafone’s Connect Cards for laptop users and in March 2007, offering speeds of up to 7.2 Mbps on HSDPA.
Most people in Croatia have dial-up internet access, Magenschab explained. “If you provide them with EDGE they are quite impressed.”
Vipnet’s EDGE network is available to over 90% of the population, while customers in urban areas have access to 7.2-Mbps HSDPA “to compete with ADSL”, Magenschab said. Furthermore, “we are very quick,” she added. It can take several months to get an ADSL connection installed.
Thanks to these products and services, “the data traffic took off,” said Magenschab. And Vipnet has seen an “increase in the data users of almost 400%.”
As of June 2007, the mobile networks accounted for 40% of all minutes in Croatia, up from 31% a year earlier.
But competition in the mobile space is strong. Vipnet shares the market with leading player T-Mobile – the pair command shares of 42.7% and 47% respectively, according to Vipnet - and Tele2’s local unit. Tele2 was the last to come to market when it launched just over two years ago, and it has since built up a share of more than 10% of the market, although Vipnet insists that it has gained this market share largely at the expense of T-Mobile.
Croatia’s SIM penetration stands at 107%, driven by high pre-paid usage, although real user penetration is approximately 76%, Magenschab said. 80% of the market is pre-paid.
“Post-paid is [not necessarily] always the better option,” Magenschab said, since operators have fraud and non-payment of bills to contend with. Tele2 heavily pushed its post-paid offerings, she added. “They have a severe bad debt problem now.”
Nonetheless, Vipnet is pushing its own post-paid offers now, albeit carefully, as it seeks to boost ARPU. “Prices are dropping,” Magenschab admitted.
Pricing pressures could be exacerbated if mobile virtual network operators begin operating in Croatia. “There are a lot of MVNOs trying to enter the market,” but none have been successful so far, said Magenschab. “We hope to keep it like that.”
Like parent company Telekom Austria, VIP has launched a low-cost brand, the interestingly named Tomato, to address the cut price end of the market, rather than compromising its main brand. “[Our brand] is the basis for success,” Magenschab said.
Wireless Mobile Telecom Wireless News
Croatia’s second largest mobile operator by subscribers, VIPnet, has launched a mobile VoIP service under the brand ‘Vip Over IP’, free of charge for a six month trial period. VoIP calls can be connected to mobile handsets and computers via any ISP of the user’s choice. According to a press release, unlike some other VoIP services such as Skype, Vip Over IP users will keep their mobile identity when calling fixed or mobile networks using a computer, ie their full number will be visible to the call recipient. VIPnet is wholly owned by Telekom Austria’s wireless unit Mobilkom Austria.
Wireless Mobile Telecom Wireless News
During the second quarter, Croatia became the latest country in Europe to pass the 100 percent mobile telephony penetration level. Some 90,000 new customers connected during the period, taking the market total to 4.5 million. This figure represents 101.2 percent of the population. Despite the entry of a third operator in December 2005, T-Mobile and VIPnet still dominate the market, with Tele2 only managing a market share of under 7 percent. T-Mobile ended the quarter with 2.22 million customers, ahead of VIPnet’s 2 million and it also enjoys a higher ARPU, with an average of EUR 20 against EUR 15.
Wireless Mobile Telecom Wireless News
Croatian mobile operator Vipnet, a Telekom Austria Group company, registered 56,900 net customer additions in Q1 2007, up from 49,000 net additions in Q1 2006. It had a total of almost 2 million customers at end-March, up 18.5 percent year-on-year, with pre-paid customers accounting for 82 percent. Vipnet’s market share was almost stable at 43.1 percent at end-March, versus 43.3 percent a year earlier. ARPU fell 12 percent year-on-year to EUR 14.60 in Q1 2007, following the launch of the tomato no-frills brand and falling tariffs due to increased competition. Minutes of use (Mou) charged per customer rose to 83.6 minutes in Q1 2007, from 83.4 minutes in Q1 2006. Vipnet generated Q1 revenue of EUR 102.4 million, up 1.3 percent year-on-year, with adjusted EBITDA up 9.2 percent to EUR 37.9 million. Operating income was up 32.9 percent to EUR 19 million.
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Telekom Austria Group unveils xDSL, mobile growth (Austria)
