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Croatia Telecommunications Report Q4 2009

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An electronic version (mostly PDF, but can be Excel or PPT), which is either available for immediate download or will be sent via email by the Publisher of the report. The licencing for an electronic version is for use by the purchaser ONLY.

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Market

Telecommunications

Report Type

Market Research

Country

Croatia

Published

21 September 2009

Number of Pages

81

Report Delivery

Download

Delivery Lead Time

Immediate

Publisher

Business Monitor International

Croatia Telecommunications: Croatia’s fixed-line sector is dominated by incumbent T-Hrvatski Telekom (T-HT), which had an 84.3% market share at the end of 2008

In our Q409 Telecommunications report for Croatia, we have updated our fixed-line, internet user and broadband forecasts along with the market data analysis sections across the country’s telecoms markets.

Croatia’s fixed-line sector is dominated by incumbent T-Hrvatski Telekom (T-HT), which had an 84.3% market share at the end of 2008, down from around 88% at the end of 2007. The operator has been suffering at the hands of intensifying competition from the country’s nine active alternative operators such as Optima Telekom, H1 Telekom and Vipnet. This resulted in T-HT’s fixed-line subscriber base declining by 4.1% during the year to 1.539mn. The incumbent’s large subscriber decline is being offset by strong performance from its competition, which resulted in Croatia’s fixed-line subscriber base increasing by 0.2% during 2008 to reach 1.851mn subscribers. However, looking ahead, we see the number of fixed lines entering a period of decline as fixed-to-mobile substitution and the growing popularity of VoIP services begin to outpace the growth of the alternative operators. In an effort to counter this and strengthen their fixed-line businesses, Croatia’s fixed-line operators have been looking to bundled services, packaging their fixed-line services with other service lines such as broadband and IPTV.

The country’s broadband sector is also dominated by T-HT and to a greater extent than the fixed-line sector as the competition has struggled to carve out such a strong position. Although the alternative operators are developing their own proprietary network infrastructure, due to the fragmented nature of Croatia’s wireline market, they are struggling to compete with T-HT. Bitstream access (BSA) was introduced by the regulator in 2008, which sees the alternative operators gain greater access to T-HT’s network and T-HT witnessed the number of unbundled local loop (ULL) lines more than double during 2008. This should see T-HT’s market share continuing to fall. However, in April this year, the incumbent revealed its network investment plans and plans to cover 1mn households by the end of 2009. T-HT is also expanding its fibre-optic network and plans to have 50,000 fibre subscribers by the end of the year. If competition promoting regulations are not put in place with regards to T-HT’s next generation network development, then T-HT could consolidate its position at the head of the market.

In the first quarter of 2009, Croatia’s mobile sector grew by 2.9% to reach 6.049mn subscribers. Although penetration is now over 130%, it is believed that the market holds a significant number of inactive SIMs as a result of the predominantly prepaid nature of the sector and a trend for multiple SIM ownership as customers look to exploit different tariffs and promotions. The country’s second largest operator, Vipnet, reported a net loss of 7,000 prepaid customers in the first quarter of 2009, which we believe was the result of the operator discounting inactive SIMs. ARPU saw double-digit declines in the first quarter of 2009 as intense price competition exacerbated the effects of Croatia’s slowing economy. Tele2, which prides its itself on being the price leader in the market is increasingly turning its attention towards the postpaid segment and mobile data users in an effort to attract higher quality customers. While this appears to be working for the operator, it is having an adverse affect on mobile ARPU, and this is something we see becoming more of a problem throughout 2009.

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Select License Type

Electronic License

Electronic License

An electronic version (mostly PDF, but can be Excel or PPT), which is either available for immediate download or will be sent via email by the Publisher of the report. The licencing for an electronic version is for use by the purchaser ONLY.

£330.00

Change Currency

GBP EURO USD

Change Currency

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