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Slovenia telecoms market: Revenue steadily falling since 2008 high

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PR-Inside.com: 2014-04-28 12:37:02
Slovenia´s telecom market revenue has fallen steadily since the high point of 2008. The market remains dominated by Telekom Slovenije though its lead in all sectors is gradually falling. In the FttH sector the market leader is T2: its advantage is partly due to its own network build, but also the result of regulated access to Telekom Slovenije´s network. In the fixed-telephony market the incumbent retains a high market share compared to the EU average, though the collapsing number of PSTN lines is eroding this share as customers migrate to VoIP. The IPTV sector is particularly strong, with the country having the highest IPTV penetration in the EU.

Identified risks for telcos include subdued growth prospects and the continuing difficulty in accessing finance. The economic crisis initially affected the construction of fibre networks, leading to the main operators largely halting their investment and programs in 2009. To stimulate the sector, the regulator complemented its unbundling copper infrastructure measures to include unbundling the fibre loop as well. Investment has since grown, largely channelled to fibre networks and upgrading mobile networks with HSPA and LTE technologies. The auction of spectrum in mid-2013, a precursor to a larger auction expected in 2014, was aimed at addressing the shortfall in available frequencies for MNOs to develop their LTE plans.

Economic background

Slovenia joined the EU in 2004 and adopted the euro three years later. The country lagged behind its peers in privatising state enterprises, and the state still controls about half of economic output. The global financial crisis negatively impacted Slovenia´s economy, exacerbated by its reliance on exports, particularly to its main trading partners Germany and Italy. The economy contracted by 8% in real terms during 2009, and though GDP grew 1.4% in 2010 is has since faltered, shrinking by 0.2% in 2011 and worsening to an expected 1% fall for 2012 before showing slight recovery in 2013. The government hopes to cut the budget deficit to the EU-approved maximum of 3% of GDP by 2015, from 7.9% anticipated for 2013. The government is aiming to sell of its interest in 15 concerns, including the dominant telco Telekom Slovenije in a bid to avoid an EU-funded bailout.

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