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MAPA > the Telecommunications Market in Austria

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The telco’s of Austria have been looking forward to the major spectrum auctions for the 5G Austria telecom market has been dominated by the incumbent. The Telekom Austria as well as cableco UPC Austria, despite there being much greater competitive pressure in fixed-line broadband as well as the mobile sectors in recent years. As always with the operators elsewhere in Europe, the ones in Austria have been focused on provision of the bundled services as the measure to be able to attract as well as retain the customers.

To be able to compete effectively with the Telekom Austria, by far main players in the segment. The T-mobile Austria in the late 2017 got to acquire UPC Austria. This deal was approved by the competition authorities in the year 2018 on July, on the basis that the service offerings have been complimentary. Austria’s very competitive mobile market has been dominated by three network operators. This includes T-Mobile Austria, Telekom Austria, and 3 Austria. However, market benefits from the growing number of the new entrants in MVNO sectors that by early 2018 collectively got about 6.8% of market by subscribers. Development in MVNO sector is somehow due to the regulatory concessions by which the 3 Austria as the condition of the takeover of Orange Austria, that was obliged to offer the third of the network capacity to be able to support a maximum of 16 MVNOs.

Austrian fixed-line broadband market has been dominated by DSL market, while cable broadband sector has been able to hold a steady share of close to a third of the connections. Fiber sector has been slow in terms of development but recent years. We have witnessed a superb effort among the telco’s to be able to develop the infrastructure as well as promoting take-up of the bundled services. The UPC Austria has continued to invest in the DOCSIS3.1 technology while the Telekom Austria has been able to invest in the G.fast technology to enhance connectivity in the areas where it hasn’t been prioritized fiber. Despite the fiber penetration remaining a bit low, with a platform having a minimum of 2% market share of the subscribers, there has been a considerable vigor among the operators to be able to build out the network infrastructure; the Telekom Austria is in the process of extending to the fiber infrastructure to the additional 300,000 premises.

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