Austria Telecom - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Austria Telecom Market size is estimated at USD 9.82 billion in 2024, and is expected to reach USD 11.62 billion by 2029, growing at a CAGR of 3.42% during the forecast period (2024-2029).

Key Highlights

• Austria boasts a sophisticated telecommunications landscape, featuring advanced internet and telephone networks alongside a diverse array of radio and television broadcast stations. Austria's telecom market, led by Telekom Austria, Magenta Telekom (a merger of T-Mobile Austria and UPC Austria), and 3 Austria, is a mature market. The mobile sector is witnessing a surge in MVNOs. Notably, these major players, alongside other telcos, have been actively engaging in network access agreements, particularly focusing on fiber-based infrastructure. Consequently, the telecom regulator has lifted market regulations concerning Telekom Austria's wholesale broadband services.
• Aligned with regional trends, Austria's telcos, in collaboration with the government and regulators, prioritize enhanced telecom infrastructure. The government has set a target to achieve a national gigabit service by 2030, with private enterprises leading the charge, albeit with some state backing. This initiative heavily relies on fiber networks, complemented by 5G technology. The MNOs, after successful auctions in March 2019 and September 2020, are now poised to extend the coverage of their 5G services. Furthermore, a strategic plan has been outlined up to 2026, aiming to allocate additional spectrum across various bands. This move is designed to bolster network capacity and elevate service quality.
• The trend of home entertainment received a significant boost during the COVID-19 pandemic, leading to a surge in the adoption of OTT streaming services and PayTV in the country. For instance, in February 2024, Drei broadened its television services with the introduction of Drei TV Basic. Priced at EUR 5.90 (USD 6.43) per month, subscribers gain access to over 40 high-definition channels and live TV sans the need for a box or cable. Drei TV boasts a contemporary interface with convenient features like recordings and a user-friendly start page. The platform categorizes programs by genre and highlights, enhancing the viewing experience.

Austria Telecom Market Trends

Rising Demand for 5G

• As Austria is a developed economy with a significant need for high-speed connectivity, the demand for 5G is projected to grow at a rapid pace during the forecast period of the study. Several players in the market are collaborating to launch 5G in the country.
• In Q1 2023, Austria's 5G availability surged past 15%, up from 10% a year earlier. Despite stringent coverage mandates from the Federal Ministry for Digital and Economic Affairs (BMDW) since November 2019, as a condition for operators' 5G licenses, Austria's 5G adoption lags behind other nations. For instance, Drei Austria was mandated to cover 15% of the population in all provincial cities with over 50,000 residents by the end of 2020, escalating to 40% by the end of 2023.
• Drei aimed to extend its 5G reach to 75% of all households and businesses by 2023. Leveraging additional frequencies in the 700 and 1500 MHz bands, Drei plans to bring mobile broadband to 222 underserved communities. In a significant move in September 2022, Drei Austria rolled out 5G SA, branded as 5G+, reaching 1.3 million homes and businesses. The company also introduced a pioneering residential bandwidth guarantee for its mobile internet services. In March 2023, Drei unveiled an ambitious 5G investment plan for Austria, committing a staggering EUR 1.2 billion (USD 1.31 billion), extending its financial commitment beyond 2025.
• For instance, in February 2024, Nokia, in collaboration with Austrian telco A1 and Microsoft, achieved a milestone by successfully conducting a 5G Edge cloud network slicing trial. This trial, dubbed an industry first by the trio, was executed on A1's operational network in Vienna, Austria. Nokia's 5G Edge slicing solution was paired with Microsoft's Azure-managed Edge computing for the deployment. During the trial, A1, under América Móvil's ownership, showcased the capabilities of the network by enabling real-time HD video streaming. This was demonstrated by transmitting live camera feeds from multiple mobile devices, leveraging Multicasting.io's streaming mobile platform, which was hosted on Azure's Edge infrastructure.

Data and Messaging Analyzed to Grow Significantly During the Forecast Period

• In 2022, Austria’s average data speed was expected to be 63.05 Mbps. 3 (Drei) Austria began rolling out its 4G LTE network in 2014, and 4G availability reached 74.3% with a 27.84 Mbps download speed by 2017. By the end of 2020, 5G was launched in all provincial capitals. Since the launch of both of the services, 4G reached 89.6 Mbps in 2022, and 5G reached 162.4 Mbps by 2022. Major players like 3 (Drei), A1 Telekom, and Magenta are expected to shut down 3G by 2024. 2G is expected to outlive 3G and is expected to be shut down by 2030.
• The “5G strategy for Austria” document was approved in April 2018, and the service was expected to reach main traffic roads by the end of 2023, followed by nationwide coverage in two years. The increased average speed and the overall connection are paving the way for end-users, such as e-commerce, media and entertainment, and online banking, to utilize them efficiently. For instance, the banking industry is mostly driven by the digital transformation of organizations. The country's growing mobile phone and high-speed internet markets influenced the early adoption of digital banking, and it is expanding steadily with the introduction of mobile banking and apps. Digital payments make up approximately EUR 10.00 billion (USD 10.89 billion) per year, and mobile payments are estimated at around EUR 2.19 billion (USD 2.38 billion) per year.
• According to Ookla, Austria saw a significant surge in its median mobile internet speed, jumping by 15.54 Mbps, marking a 25.4% increase in the year leading up to 2024.
• In February 2023, the EU Commission granted Alpen Glasfaser GmbH, a joint venture between Magenta Telekom and French partner Meridiam, of any competition concerns. This clearance came with no attached conditions. The partnership between Magenta and Meridiam was first announced in August 2022, setting the stage for Austria's most extensive private fiber deployment. With the EU's green light, Alpen Glasfaser GmbH is set to start its fiber rollout across multiple Austrian regions. The ambitious plan aims to see over 650,000 new high-speed internet connections (FTTH) installed in Austrian homes and businesses by 2030, backed by a joint investment of EUR 1 billion (USD 1.09 billion) from the two companies. While Alpen Glasfaser focuses on network construction, Magenta Telekom will take charge of product and service marketing. Additionally, plans to open these networks to other collaborative partners eventually exist.

Austria Telecom Industry Overview

The Austrian telecom market is consolidated, with few players holding the majority of the market share. In order to sustain themselves in the competitive market, the players acquire and collaborate, thereby contributing to the market's growth.

April 2024: A1 Austria is poised to acquire NTT Austria GmbH, an IT services provider. The telecommunications company announced its intent to secure full ownership after regulatory approval. NTT Austria GmbH, a subsidiary of NTT Data Group, specializes in offering cloud-based solutions, infrastructure, and security services. This move comes from A1 Austria's previous acquisition of NTT's Alcatel-Lucent telephony business in 2021.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.