27 Jun 2018
FOR IMMEDIATE RELEASE, Prague – Spending on telecom services and pay TV services in Central and Eastern Europe (CEE) reached $65.45 billion in 2017, representing an increase of 1.9% year on year, according to the Worldwide Telecom Services Database published by International Data Corporation (IDC). IDC believes that the growth rate will drop slightly to 1.6% in 2018, bringing the CEE telecom and pay TV services market value to $66.56 billion. The market is forecast to continue growing until the end of the five-year forecast period (2018-2022), to post a compound annual growth rate (CAGR) of 1.0%.
The CEE telecom services market is expected to record trends similar to the global one: Voice services will continue declining, while data services will keep on pulling the growth rates up. "CEE customers are clearly changing their habits, and voice communication is becoming less and less important," says Kresimir Alic, senior program manager with Telecoms and Networking and Worldwide Telecom Services at IDC CEMA. "Instead, they watch videos and access other content services using their high-speed cable and FTTX Internet connections and interact on social media using their smartphones."
Russia remains the largest telecom services market in Central and Eastern Europe, generating more than one third of total CEE spending. As that market recovered in 2017, and IDC's forecast includes a CAGR of 1.4% between 2018 and 2022, prospects are looking up for the entire region. Poland, which is the second largest CEE market with 11% of the region's total spending, is expected to stagnate or even slightly decline, owing to heavy competition in the mobile segment. Other key markets, including the Czech Republic, Hungary, and Romania, will all record slow yet positive growth dynamics during the five-year forecast period.
From a worldwide perspective, CEE is a minor region, contributing less than 4% of global telecom services spending and less than 20% of total European spending, in spite of having a population almost equal to that of Western Europe (WE). "Compared to Western Europe, the CEE market is underdeveloped and thus holds considerable growth potential. On the other hand, single-digit growth rates show that the CEE market has matured, and expanding the subscriber base has become very challenging," notes Alic. In this situation, vendors are under pressure to create innovative approaches and attractive offers for customers.
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