Broadband services soar as competition increases in Slovakia, Pyramid finds

Broadband services will be a significant source of growth over the next five years in Slovakia, generating $340 million between now and 2015 due to increased competition and operator investment in network expansion, according to a new report from Pyramid Research.

“Slovakia: Is It time for Slovak Telecom to Change Hands?” offers a precise profile of the country's telecommunications, media, and technology sectors based on proprietary data from Pyramid's research. It provides competitive analysis of the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies.

Pyramid expects the implementation of EU telecom policies to stimulate further market competition, resulting in a total service revenue growth of 5.5 percent CAGR in local currency terms.

"Pyramid foresees the strongest revenue growth in broadband, IPTV, and VoIP services with a cumulative revenue opportunity of euro 1.75 billion ($2.04 billion) between 2010 and 2015, derived from a combination of further expansion of FTTH infrastructure and increased competition through more effective LLU," says Julian Morrison, Pyramid's research manager.

Broadband service expansion, driven by competition, as well as the support of the EC Digital Agenda, will be the main revenue generator for the fixed segment. The expansion of broadband coverage will in turn drive the adoption of ancillary services, such as IPTV, to grow at a CAGR of 16.3 percent in local currency terms during the forecast period.

"With the ensuing increase in competition, the importance of integrated services strategies and converged bundled offerings is set to increase markedly. These offerings will provide not only a defensive mechanism against churn for operators but also an ARPS growth opportunity and the ability for operators to command a greater share of a household's combined telecom spend," Morrison adds. "Slovak Telecom's decision to integrate their mobile and fixed arms to be able to offer converged products highlights the increased level of competition that the former incumbent is now experiencing in both segments."

“Slovakia: Is It time for Slovak Telecom to Change Hands?” is part of Pyramid Research's Europe Country Intelligence Report Series and is priced at $990.