Having joined the EU in mid-2004, Poland enjoyed a sustained period of economic growth until the regional financial turmoil led to declining demand for its exports, a slowdown of credit activity, and lower foreign direct investment. Nevertheless, Poland’s GDP increased by an estimated 4.5% in 2011, year-on-year, and growth of 3-4% is anticipated for 2012. Overall economic recovery has been reflected in the telecoms market, where both revenue and investment have increased steadily since 2009. This is largely supported by the strong mobile and broadband sectors which have partly compensated for falling fixed-line voice telephony revenue.

Telecom market overview

Poland’s telecoms market has been reformed in line with the policies of the EU. Competition has been introduced though the incumbent operator, the rebranded Orange Poland, retains a major share of the overall market. The fixed-line market has contracted due to the migration to VoIP and mobile alternatives. The market remains fluid, with continuing consolidation among the smaller cable operators, and with the telcos TK Telekom and Exatel due to be sold later in 2012. The main players together with the regulator have stepped up efforts and strategies to complete a national broadband infrastructure, and so benefit from trans-sector and capabilities which broadband can deliver.

Mobile market

The mobile sector is now the largest comms market in terms of revenue. High penetration rates have focussed MNOs’ attentions to mobile data services. These are set to develop swiftly in 2013 following the anticipated auction of spectrum in the 2.6GHz and 800MHz bands. LTE services will become a dominant feature of the mobile landscape, while the additional spectrum will facilitate rural broadband connectivity in coming years.

Key telecom parameters – 2010; 2013

(Source: BuddeComm)

Market Highlights

• ASO has been confirmed for mid-2013, though satellite and digital cable TV remain the most common form of receiving TV.
• The regulator’s recent agreement with Ukraine concerning the use of frequencies in the 790-862MHz band in border areas will help the development of 4G services in Poland for mobile services. The agreement follows similar ones already undertaken with Russia and Belarus.
• FttX deployments remain low key though the government’s broadband policy has provisioned for network infrastructure access to promote fibre deployments.
• The dominant cable UPC Polska, which merged the operations of Aster in early 2012, continues to upgrade networks, offering up to 150Mb/s. The higher data rate will help reduce customer churn to FttX networks as the latter are built out in coming years.
• Further market changes are expected later in 2012 and 2013 pending the sale of some operators. This includes Polish State Railways proposed sale of TK Telekom and PGE’s sale of the regional telco Exatel.
• The regulator may extend its responsibilities to include the cable sector, with a decision expected by mid-2013.

BuddeComm’s annual publication, Poland – Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in one of Eastern Europe’s largest and most competitive markets. It includes data from the regulator’s 2010 annual report, telcos’ operating and financial data to March 2012 and market developments to mid-2012.

For detailed information, table of contents and pricing see: Poland – Telecoms, IP Networks, Digital Media and Forecasts