1. Telecommunications Markets in the 10 new EU Member States
An overview of recent developments

2. Structure of the telecom market
Total telecom service markets in the 10 new Member States: 20 billion EUR
Poland, Hungary, the Czech Republic and Slovakia account for 90% of the market
Mobile services : 48% of total value (38% in 2001)
Growth (est.) : 9% increase in value at market prices in 2004 , against 4.1% in the EU-15 and 4.5% for the whole EU-25
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3. Fixed/mobile substitution
Mobile expansion : 24% density at end-2000 ; 60% at end-2003
Stagnation of fixed network despite poor density level.
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4. Recent expansion of the Internet market
4.3 million Internet subscribers at year-end 2003, 80% of which through dial-up, up from 1.7 million at year-end 2000.
Driving factors :
Computer equipment rate
Regulatory framework
Development strategy of operators
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5. Bridging the gap with Western Europe
Trends in diffusion of mobile, fixed telephony and Internet access
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6. Bridging the gap with Western Europe
Disparities within the 10 new Member States
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7. Competition development
Competition in the mobile market, acting as an indirect source of competition in the fixed market
Full liberalization completed on 1 January 2003
Progress in implementing pro-competitive regulations (CPS, interconnection), resulting in increased competition mainly in the business segment and LD/international traffic
Strong hold of incumbents on the local loop.
24 November 2004

8. FDI : positioning of Western European telcos
Incumbent
Mobile
Others
Deutsche Telekom
Matav (HUN)
Slovak Telecom (SLO)
Westel (HUN)
PTC (POL)
Eurotel Bratislava (SLO)
France Télécom
TP Group (POL)
Centertel (POL)
Orange Slovensko (SLO)
TeliaSonera
Eesti Telekom (EST)
Lattelekom (LAT)
Lietuvos Telekomas (LIT)
EMT (EST)
LMT (LAT)
UAB Omnitel (LIT)
Telia Latvia (LAT) – 100%
TDC
Bite (LIT)
Polkomtel (POL)
Contactel (CZE) – 50%
Telekom Austria
Si.Mobil (SLI)
Vodafone
Vodafone Hungary (HUN)
Vodafone Malta (MAL)
Tele2
Tele2 Eesti (EST)
SIA Tele2 (LAT)
UAB Tele2 (LIT)
SIA Tele 2 (LAT)
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9. Telecom operators
Growth and restructuring challenges
24 November 2004

10. Outlook
Significant opportunities for growth in the medium term: impact of general economic development, expansion of Internet & data market, rise in ARPU
Stronger pressure on tariffs through increased competition
VoIP accelerating the transformation of the industry?
Regulatory challenges: adapting to the new EU framework
24 November 2004