"Sweden Telecommunications Report Q2 2013" Published
New Fixed Networks research report from Business Monitor International is now available from Fast Market Research
[UKPRwire, Thu Apr 25 2013] The Swedish telecommunications market is one the most developed in the world with high penetration levels for mobile voice, mobile data, fixed-voice and broadband services. This makes Sweden a mature market, with the concomitant limits to growth prospects. As well as having a high level of penetration, price erosion has been less pronounced than in the majority of Western European markets and operators have managed to continue to grow revenues. Meanwhile, in terms of technology, Sweden is at the forefront of development with, not only high levels of next generation wireline and wireless data services, but also machine-to-machine services and other consumer value-added services.
* Pending the receipt of H212 data from Hi3G Sweden, we believe the mobile market grew less dynamically in 2012 than previously expected, reaching 14.286mn subscribers by Q412. This represents annual and quarterly growth of 4.6% and 0.7%, respectively, and reflects the maturity and saturated nature of the market.
* However, operator efforts to improve subscriber mix are bearing fruit. ARPU ticked upwards at TeliaSonera and Tele2 in Q412, while Telenor witnessed a further contraction. With price competition now to the fore and further termination rate reductions still to be factored in, we expect ARPUs to shrink over the 2013-2017 period, though not as sharply as previously thought.
Full Report Details at
The Swedish mobile market has proved robust in terms of subscriptions and ARPU compared to many markets in Western Europe in recent years. However, there are signs that trends affecting some its neighbours may begin to undermine operator financial performance. For instance, PTS reported data or H112 showing the number of SMSs sent per user per month declined 15.2% from 138 in H211 to 117. BMI believes this indicates the onset of SMS IP substitution as smartphone users increasingly turn to services such as WhatsApp. This trend has hit operator performance in markets such as the Netherlands, and can have a significant impact on financial performance because of the high margin nature of SMS for operators. That said, with Sweden a highly developed market, a large number of SMSs were already bundled with the subscription fee.
Contrasting with the threat of SMS IP substitution is the ongoing growth in machine-to-machine (M2M) subscriptions. The Swedish market is a global leader with the presence of incumbent TeliaSonera, as well as global frontrunner Telenor Connexion. Both operators achieved strong subscription growth y-o-y to the end of June 2012 with Telenor Connexion subscriptions increasing 56.6% to 1.638mn and TeliaSonera increasing subscriptions 18.8% y-o-y to 461,900. BMI expects both operators will continue to benefit from growth in Sweden as they expand into new verticals.
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