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Fixed line loss expected to continue in Eastern Europe

Quarterly Line Loss Monitoring
Published: 2012-09-27

Incumbents in the following countries: Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia all showed fixed line erosion this quarter. In 2Q12, the aforementioned incumbents in the region posted around 14.7m fixed lines from 16.1m from last year (9% YoY). TPSA (Poland) continued to decline in fixed line connections at around 16% YoY with 4.5m lines this quarter. On the other hand, Eesti (Estonia) posted a minimal decline of 2.2% with around 356 000 lines.

Declines in fixed lines are attributed to migration of consumers to mobile devices. Ultimately, it leads to cancellation of fixed services most notably fixed telephony. However, incumbents are mitigating the line losses by bundling and promotions. In fact, rate of line loss on a YoY basis is declining slowly with a record high of 9.3% in 2009 to approximately 8% range in 2010 and 2011. It is expected that on the average, 2012 will post a slower line loss rate.

Published: 2012-09-27

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