Monday, July 15, 2013

Austria, Nigeria & Spain Telecommunications Market Q3 2013 Reports

RnRMarketResearch.com adds “Austria Telecommunications Report Q3 2013” “Nigeria Telecommunications Report Q3 2013” and “Spain Telecommunications Report Q3 2013” on its database.

Austria Telecommunications Report Q3 2013

Austria’s all-important mobile market reported slower than expected growth in 2012 as the weaker domestic economy weighed on consumer spending and made operators’ low-cost ‘no frills’ services more appealing than ever. Market saturation also has a role to play in the slowdown of growth and operators must work harder to extract more value from the customers they already have. The postpaid user base contracted slightly as a result and was buoyed only by the higher value service from 3 Austria. This leaves some interesting opportunities in the MVNO space, and Tele2 and UPC appear to be ready to move in on the converged services opportunity.


Key Data
- We believe the mobile market registered its first-ever quarter of decline in Q113, although data from Hutchison will not be released until Q313. This was mostly due to purging inactive subscribers from user bases following the merger of 3 Austria and Orange, as well as Yesss! and A1 Telekom Austria.
- Price competition and cuts to mobile termination rates continued to drive down monthly ARPU in the mobile market. Data reported by Telekom Austria and T-Mobile showed respective declines of 16.2% and 17.6% y-o-y to Q113.
- Regulatory data show that the amount of data consumed is rapidly rising. In Q412, this was an increase of 62.1% y-o-y for a total of 21,570TBps.
- Data from Telekom Austria indicated the first signs of IP substitution, with total SMS sent down 10.3% y-o-y to 724.3mn in Q412.

Nigeria Telecommunications Report Q3 2013

After a wave of regulatory penalties, including fines and a ban on promotions, Nigeria’s mobile operators have announced plans to expand and upgrade their networks to cope with strong subscriptions growth and increasing data usage. BMI expects this trend to continue over the medium term as the market is forecast to add around 45mn new subscribers in the five years to 2017. Meanwhile, consolidation and, subsequently, transition to LTE technology appears to be a growing trend among tier two telecoms service providers in Nigeria. BMI sees this as a positive development as, through consolidation, tier-two operators are able to gain scale for bigger network deployments while the transition to LTE should enable them compete better with 3G HSPA+ offerings from the GSM operators.


Key Data
- The mobile market grew 3.6% in Q113 and 18.6% in the 12 months to March 2013.
- The number of internet connections via mobile networks rose by 11.7% in Q113.
- Market weighted blended ARPU fell by 10.2% in 2012.
- The fixed-line sector contracted by 5.5% in Q113 and 26.9% in the 12 months to March 2013.

Spain Telecommunications Report Q3 2013

Spain’s economy continues to falter, as the country attempts to emerge from recession, but the short-term prospects are bleak. As is to be expected, high levels of unemployment have drastically cut consumers’ spending power, with telecoms one of the many sectors that are feeling a pinch. Full-year data for mobile subscribers in 2012 showed declines in subscriber numbers accelerated towards the end of the year; early figures from 2013 are far from promising, with over 1mn subscribers lost in the first quarter of the year. This cutback in subscriber numbers has had its greatest impact on larger, more established operators; newer players and MVNOs have weathered the storm better, with lower-priced offerings (and, in the case of MVNOs, no additional expense on network development). 2013 will see the launch of 4G services. Expectations are high – many operators hope this will breathe life into the mobile sector – but we caution that the price will most definitely have to be right to attract consumers.


Key Data:
- The mobile market contracted by 6.7% y-o-y in Q113, reaching 50.421mn. This was the result of the squeeze on consumer spending and inactive subscription discounting by market leader Movistar and second-ranked Vodafone.
- The disconnection of active subscribers has helped maintain APRU rates this quarter, but we forecast that these will continue to fall during the course of the year because of costumers’ heightened price sensitivity of consumers and the implementation of mobile termination rate cuts.
- Dedicated mobile broadband subscriptions saw the largest declines, according to CMT data, down 26.4% in Q113 to 2.884mn.