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Austrian mobile market grows to more than 14 mln Sims, Q2 revenues up to EUR 600 mln

Tuesday 12 September 2017 | 18:32 CET | Background

The Austrian mobile market continued to grow, for a fifth consecutive quarter in Q2, reaching more than 14 million Sims at the end of June, after winning almost 180,000 during the quarter. The growth was driven by prepaid users, up by 3.5 percent during the quarter to more than 4.6 million Sims, according to Telecompaper’s semi-annual Austrian Mobile Operators’ update. The number of postpaid Sims grew by just 0.2 percent in the period.

T-Mobile grows thanks to M2M, MVNO

T-Mobile Austria reported the highest growth of all operators, with 5.8 percent more Sims compared to the first quarter and 16.6 percent more year-on-year. The growth was driven by its M2M business, as T-Mobile Austria is a M2M hub for the Deutsche Telekom group, although the demand for M2M and IoT is growing in Austria as well. Another growth driver is the successful MVNO HOT by Austrian discount supermarket chain Hofer, which operates on T-Mobile’s network and claims to have more than 730,000 customers.



A1 is still the largest operator in terms of customers, despite losing 35,000 Sims during the second quarter. 3 Austria is number three with almost 3.7 million Sims, after a loss of 57,000 during the second quarter of 2017.

Service revenues grow year-on-year

The Austria mobile service revenues increased 1.9 percent year-on-year to EUR 600 million in the second quarter. The growth was driven by 3 Austria, with annual revenue growth of 4.9 percent. Its revenue growth is driven by more customers using mobile broadband at home; these customers carry a higher ARPU. T-Mobile Austria reported 3.4 percent more revenues in the same period. For T-Mobile, the revenue growth came from the expansion in the M2M market as well as an increase in home mobile broadband subscriptions. 

A1 meanwhile recorded a 1 percent decrease in service revenues. Despite the revenue loss, A1 is still largest mobile operator in terms of service revenues with a share of 41.4 percent. T-Mobile follows with 30.8 percent of the Austrian mobile service revenues, up compared to a year ago, and 3 Austria took 27.8 percent of the market, up by 0.8 percentage points compared with the same quarter of 2016.

3 Austria goes fixed, MVNOs on network reach 4

Following the acquisition of Orange Austria in 2013, 3 Austria has decided to enter the fixed market as well with the announced acquisition of Tele2 Austria. 3 claims this will make it the largest alternative operator in Austria, with 4 million subscribers including 209,000 for fixed services.

3 Austria also has room to grow in the wholesale market. Only four MVNOs have launched on its network, nowhere close the 16 MVNOs the European Commission wants to see before 2024 as part its approval of the acquisition of Orange Austria. The MVNOs launched to date include UPC Austria, which ended the second quarter with 47,200 customers, and Spusu, which started in Q2 2015 and claims to have reached 100,000 subscribers earlier this year. 



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