Sales and marketing

Highlights in 2015

  • We maintained the highest market share in all segments in Slovenia.
  • We increased customer satisfaction and improved the user experience.
  • We offered users many updated packages in the fixed and mobile segments. The most popular among users is the Modri package, which combines both segments.
  • We provided users TV, internet and fixed telephony services in the TopTrio Brezžični (TopTrio Wireless) package using LTE/4G technology. The aforementioned package is intended primarily for users at locations where fixed broadband access is not possible.
  • We renovated eight Telekom sales centres.

 

Number of connections in Slovenia

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Sources: Report on the development of the electronic communications market for the fourth quarter of 2015, AKOS, February 2016, SORS, March 2016

Number of connections in Slovenia

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Sources: Report on the development of the electronic communications market for the fourth quarter of 2015, AKOS, February 2016; internal Telekom Slovenije figures.

 

Fixed broadband access

The household fixed broadband penetration rate stood at 73.3%1 in Slovenia in the fourth quarter of 2015. There were a total of 574,652 broadband connections in Slovenian (compared with 555,838 during the same period the previous year), 86.4% of which were accounted for by residential broadband connections.2 Telekom Slovenije maintains the highest market share, followed by Telemach and T-2.

The increasing proportion of FTTH technology (fibre optic networks) and the range of high-speed internet services included in the packages of service providers are contributing to the trend of increasing speeds. At the end of the fourth quarter of 2015, the number of active fibre optic connections in Slovenia exceeded 137,000, accounting for 23.9% of all connections. The number of fibre optic connections rose by 13% in one year. Telekom Slovenije had more than 50,000 users on FTTH connections at the end of the fourth quarter of 2015.

Market shares of fixed broadband technologies in terms of the number of broadband internet connections

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Source: Report on the development of the electronic communications market for the fourth quarter of 2015, AKOS, February 2016.

 

Television market

The household penetration rate of fixed-line television connections stood at 72.4% at the end of the fourth quarter of 2015. At 48.2%, IPTV TV holds the highest market share, primarily on account of digital cable TV.

Telekom Slovenije maintained the highest share of the IPTV market at 52.2%, followed by T-2 and Amis.

Market shares of TV connections by technology

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Source: Report on the development of the electronic communications market for the fourth quarter of 2015, AKOS, February 2016.

 

Mobile telephony market

The number of active mobile telephony users was up by 27,000 in the fourth quarter of 2015 relative to the same period in 2014. The increase in the number of users is driven by the increased use dual SIM cards (SIM2). The increase in the number of the latter is driven, in turn, by growth in data services. The penetration rate has risen to 114%.

At 46.4% in the fourth quarter of 2015, Telekom Slovenije held the leading share of the mobile telephony market, followed by Si.mobil, which held a 30.1% market share.

Telekom Slovenije’s share of the mobile telephony market

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Source: Report on the development of the electronic communications market for the fourth quarter of 2015, AKOS, February 2016.

At 43.3% in the fourth quarter of 2015, Telekom Slovenije held the highest share of the mobile broadband internet access market. Data traffic is growing in the 3G network and in the most advanced networks (LTE/4G) in the mobile broadband access segment. That traffic was up 72.2% compared with the same period the previous year and by 17.9% relative to the third quarter. Telekom Slovenije’s share of mobile traffic was 41.3% in the fourth quarter of 2015.

Market shares of mobile broadband internet access operators

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Source: Report on the development of the electronic communications market for the fourth quarter of 2015, AKOS, February 2016.

 

Inter-operator segment (wholesale)

Telekom Slovenije is continuously strengthening its presence on international wholesale services markets in the region, which is already reflected in significant year-on-year growth in revenues. There is a distinct trend of falling prices in the areas of international voice telephony and roaming in the EU. The key strategic policy for the long-term development of international operations is thus a focus on voice services outside the EU and on data services, where prices and volumes continue to rise.

The regional fibre optic network represents the main potential for growth in the Group’s margin on the international wholesale market in the coming years. That network facilitates a wide range of services, including MPLS functionality.

The majority of inter-operator services are regulated on the Slovenian market. Thus the highest proportion of Telekom Slovenije’s revenues are from regulated services. We see opportunities for growth primarily in the following areas:

  • multimedia services and content,
  • the leasing of data connection capacities, and
  • the facilitation of access to open broadband networks and mobile virtual network operators (MVNO).

 

Markets of South-Eastern Europe

Ipko remains the leading provider of broadband connections in Kosovo and the second largest mobile telephony operator. According to the figures of the regulatory authority (ARKEP),34 there were 215,788 broadband connections in Kosovo at the end of 2015, meaning a household penetration rate of 73.1% and a population penetration rate of 11.9%. Ipko holds a market share of 46.7%, which is down slightly on the end of 2014 when it stood at 47.3%. There were nearly 1.8 million mobile telephony users in Kosovo during the same period, translating to a population penetration rate of 97.7%.

Ipko market share in this segment has been reaching the average of 35% for several years in a row, and was also able to maintain the revenues and raise the market share based on mobile revenues.

Changes in market shares of operators in the mobile telephony segment in Kosovo

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Source: Kosovo ARKEP regulatory authority, Q4 2015 report.

According to the figures of the regulatory authority (RAK),35 there were 624,686 broadband connections in Bosnia and Herzegovina in the third quarter of 2015, accompanied by a positive growth trend. Growth was also noted on the mobile telephony market, where the number of users has risen to more than 3.5 million or 92.2% of the population.36 The decline continues on the fixed telephony market, which comprises 717,273 users, translating to a population penetration rate of 18.7%. Blicnet’s assessed share of the broadband access market stood at 3.8%, while its estimated share of the pay TV market is 6.6% (compared with 6.5% in 2014).