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Summary: The overall picture for operators in Eastern Europe has remained consistent since 2005, with a declining market for fixed voice services, increasing mobile penetration and stagnating top-line growth. In the past year, however, we have seen much activity in terms of defensive strategies for traditional voice services and also a wealth of value-added services hitting the market aimed at both stemming the decline and generating new sources of growth.

In this report, we aim to provide an overview of key developments in the Eastern European telecoms market in 2006. To do this we compare financial and operational data for a range of key operators within the region: BTC (Bulgaria), Eesti Telekom (Estonia), Invitel and Magyar Telekom (Hungary), Netia and TP (Poland), Romtelecom (Romania), TEO LT (Lithuania) and Telefónica O2 CR (Czech Republic). All data is for the years ending 31 December 2005 and 2006.

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