This report covers the Czech Republic, Hungary, Poland, Slovakia and Slovenia - all of which are small countries by European standards, yet leaders in technology use. Trends and developments in telecommunications, mobile, Internet and broadband. Subjects include:

Market and industry analyses, trends and developments
Facts, figures and statistics
Industry issues and regulatory
Research, Marketing, Benchmarking
Major Players, Revenues, Subscribers, Prepaid
Network Operators, Wholesalers and Retailers, Utilities Projects

The five countries the comprise the Central European region are moving into a new era of competition as the effects of recent regulatory change propagate through the evolving industry and increase the competitiveness of the market, particularly in the fixed-line voice and broadband sectors. The dynamic mobile sector reflects the various stages of market development for each country, each with their associated opportunities and challenges in terms of penetration, ARPU levels and mobile content. Faced with the prospect of intensifying competition in their traditional markets, the incumbents have turned to broadband to exploit the opportunity presented by their extensive untapped customer bases thereby fuelling the market.

The impact of regulatory developments is being felt now as incumbents with previously little or no competition are forced to allow competition; Slovenia’s first interconnection agreement between the incumbent and an alternative operator was signed shortly after the telecommunications law transposing the European Union (EU) regulatory framework came into force. The full benefits of liberalisation are still to come as most of the incumbents charge fees above the EU average, despite lower GDP per capitas.
Slovenia, the most economically developed of the five is also the only one with a fixed-line incumbent that is majority owned by the government after the Czech Republic sold a 51.1% stake of Cesky Telecom to Telefonica in April 2005. Renewed privatisation efforts are underway as the government announced plans to sell a quarter of its 62.5% stake in August 2005.
Faced with the threat of intensifying competition, the fixed-line operators have shifted their focus to broadband to maintain revenue and increase the value of their offerings. Broadband offerings are becoming increasingly attractive to consumers as the operators either drop prices or increase download speeds. As a result broadband penetration experienced rapid growth in 2004 in all five countries with the highest growth rate attributed to the Czech Republic, where the number of Asymmetrical Digital Subscriber Line (ADSL) connections increased sixfold in 2004 to 101,000. However broadband penetration in each of the countries remains below the EU average of 9.6%.
Triple play services have been launched by the cable operators in Hungary and Poland and an ISP belonging to the incumbent in Slovenia, which was also the first to launch IPTV in the region.
Convergence offerings are in the nascent stages of development and are showing much potential; Digital terrestrial TV developments are underway in all five countries. Poland is the most advanced in terms of developments with trials launched and others to be launched soon. Broadband TV is still in its infancy due to low penetration rates although Poland has a large user base. Public broadcaster TVP launched an interactive TV pilot in May 2005 offering TV content online. Slovenia was the first to launch IPTV services in September 2003.
Mobile penetration in the region varies significantly. Both Slovenia and the Czech Republic have penetration rates comparable to those of Western European countries with the Czech Republic recording penetration levels in excess of 100%. Poland has the lowest penetration of the five countries but experienced the most growth in 2004, with penetration levels increasing by 32%.
Third generation mobile services have been launched in Slovenia and Hungary but the launch of services have been delayed in Poland and the Czech Republic numerous times by the operators. All five countries also offer Enhanced Data Rates for GSM Evolution (EDGE).
The mobile content and application market is growing as increasing mobile penetration forces the operators to seek additional sources of revenue. More attractive multimedia mobile content is possible due to the introduction of 3G and the operators have been launching such services; T-Mobile in Hungary launched mobile TV and mobile commerce services in late-2005.

1. EXECUTIVE SUMMARY
1.1 Key highlights
2. CZECH REPUBLIC
2.1 Key statistics
2.2 Telecommunications market
2.2.1 Overview of the Czech Republic’s telecom market
2.3 Regulatory environment
2.3.1 Background
2.3.2 Regulatory authority
2.3.3 Privatisation
2.3.4 Telecom sector liberalisation in the Czech Republic
2.4 Fixed network operators in the Czech Republic
2.4.1 Overview of operators
2.4.2 Cesky Telecom
2.4.3 Broadnet
2.4.4 Ceske Radiokomunikace (CRa)
2.4.5 Contactel
2.4.6 CD-Telekomunikace AS
2.4.7 Czech On Line
2.4.8 ETel
2.4.9 GTS novera
2.4.10 Pragonet / T-Systems
2.4.11 Nextra
2.5 Telecommunications infrastructure
2.5.1 National telecom network
2.5.2 Infrastructure developments
2.6 Telecoms and IT
2.6.1 Regulatory issues
2.7 Internet market
2.7.1 Overview of the Internet in the Czech Republic
2.7.2 ISP market
2.8 Broadband market
2.8.1 Overview
2.8.2 Integrated Services Digital Network
2.8.3 Asymmetric Digital Subscriber Line (ADSL)
2.8.4 Cable modems
2.8.5 Wireless broadband
2.9 Convergence
2.9.1 Cable TV
2.9.2 Interactive TV (iTV)
2.9.3 Digital TV
2.10 Mobile communications
2.10.1 Overview of the Czech Republic’s mobile market
2.10.2 Regulatory issues
2.10.3 Mobile technologies
2.10.4 Major mobile operators
2.10.5 Mobile voice services
2.10.6 Mobile data services
3. HUNGARY
3.1 Key statistics
3.2 Telecommunications market
3.2.1 Overview of Hungary’s telecom market
3.3 Regulatory environment
3.3.1 Background
3.3.2 Regulatory authority
3.3.3 Privatisation
3.3.4 Telecom sector liberalisation in Hungary
3.3.5 Interconnection
3.3.6 Access
3.3.7 Number portability
3.3.8 Carrier Selection
3.3.9 Universal service
3.4 Fixed network operators in Hungary
3.4.1 Maygar Telekom (Matáv)
3.4.2 Invitel (formerly Vivendi Telecom Hungary)
3.4.3 Hungarotel Co
3.4.4 Tele2
3.4.5 Monortel
3.4.6 Antenna Hungária
3.5 Telecommunications infrastructure
3.5.1 National telecom network
3.5.2 International infrastructure
3.5.3 Infrastructure developments
3.6 Data market
3.6.1 Market overview
3.6.2 Integrated Services Digital Network (ISDN)
3.6.3 Very Small Aperture Terminal (VSAT) networks
3.7 Internet market
3.7.1 Overview of the Internet in Hungary
3.7.2 ISP market
3.8 Broadband market
3.8.1 Market overview
3.8.2 Cable modems
3.8.3 Asymmetrical Digital Subscriber Line (ADSL)
3.8.4 Wireless broadband
3.9 Convergence
3.9.1 Triple play models
3.9.2 Digital terrestrial TV
3.10 Mobile communications
3.10.1 Overview of Hungary’s mobile market
3.10.2 Regulatory issues
3.10.3 Mobile technologies
3.10.4 Major mobile operators
3.10.5 Mobile voice services
3.10.6 Mobile data services
3.10.7 Mobile content and applications
4. POLAND
4.1 Key statistics
4.2 Telecommunications market
4.2.1 Overview of Poland’s telecom market
4.3 Regulatory environment
4.3.1 History
4.3.2 Regulatory authority
4.3.3 Privatisation
4.3.4 Telecom sector liberalisation in Poland
4.3.5 New regulatory developments
4.4 Fixed network operators in Poland
4.4.1 Overview of operators
4.4.2 Telekomunikacja Polska (TPSA)
4.4.3 Netia
4.4.4 Telefonia Dialog
4.4.5 GTS Polska
4.4.6 Energis Polska
4.4.7 Tele2 Polska
4.4.8 Elektrim Telekomunikacja
4.4.9 Niezalezny Operator Miedzystrefowy (NOM)
4.4.10 Exatel
4.5 Telecommunications infrastructure
4.5.1 National telecom network
4.5.2 International infrastructure
4.5.3 Infrastructure developments
4.6 Fixed voice market
4.7 Internet market
4.7.1 Overview of the Internet in Poland
4.7.2 Internet access locations
4.7.3 Business market
4.7.4 ISP market
4.8 Broadband market
4.8.1 Overview
4.8.2 Cable modems
4.8.3 Asymmetrical Digital Subscriber Line (ADSL)
4.8.4 Broadband Powerline (BPL)
4.8.5 Wireless broadband
4.9 Convergence of new media and telecommunications
4.9.1 Triple Play
4.9.2 Broadband TV
4.9.3 Cable TV
4.9.4 Satellite-based digital pay TV developments
4.9.5 Digital terrestrial TV
4.10 Mobile communications
4.10.1 Overview of Poland’s mobile market
4.10.2 Regulatory issues
4.10.3 Mobile technologies
4.10.4 Major mobile operators
4.10.5 Mobile voice services
4.10.6 Mobile data services
4.10.7 Mobile content and applications
5. SLOVAKIA
5.1 Key statistics
5.2 Telecommunications market
5.2.1 Overview of Slovakia’s telecom market
5.3 Regulatory environment
5.3.1 Background
5.3.2 Regulatory authority
5.3.3 Privatisation
5.3.4 Telecom sector liberalisation in Slovakia
5.3.5 Interconnection
5.3.6 Access
5.3.7 Number Portability
5.3.8 Regulatory developments
5.4 Fixed network operators in Slovakia
5.4.1 Slovak Telecom
5.5 Telecommunications infrastructure
5.5.1 National telecom network
5.6 Internet market
5.6.1 Overview of the Internet in Slovakia
5.6.2 ISP market
5.7 Broadband market
5.7.1 Asymmetrical Digital Subscriber Link (ADSL)
5.7.2 Cable modems
5.7.3 Wireless broadband
5.8 Convergence
5.8.1 Broadband TV
5.8.2 Cable TV
5.8.3 Digital TV
5.9 Mobile communications
5.9.1 Overview of Slovakia’s mobile market
5.9.2 Regulatory issues
5.9.3 Mobile technologies
5.9.4 Major mobile operators
5.9.5 Mobile voice services
5.9.6 Mobile data services
6. SLOVENIA
6.1 Key statistics
6.2 Telecommunications market
6.2.1 Overview of Slovenia’s telecom market
6.3 Regulatory environment
6.3.1 Background
6.3.2 Regulatory authority
6.3.3 Privatisation
6.3.4 Telecom sector liberalisation in Slovenia
6.4 Fixed network operators in Slovenia
6.4.1 Overview of operators
6.4.2 Telekom Slovenije
6.5 Telecommunications infrastructure
6.5.1 National telecom network
6.5.2 International infrastructure
6.6 Internet market
6.6.1 Overview of the Internet in Slovenia
6.6.2 ISP market
6.7 Broadband market
6.7.1 Overview
6.7.2 Asymmetrical Digital Subscriber Line (ADSL)
6.7.3 Cable modems
6.7.4 Wireless
6.8 Convergence
6.9 Mobile communications
6.9.1 Overview of Slovenia’s mobile market
6.9.2 Regulatory issues
6.9.3 Mobile technologies
6.9.4 Major mobile operators
6.9.5 Mobile data services
6.9.6 Mobile content and applications
7. GLOSSARY OF ABBREVIATIONS




Table 1 – Mobile penetration – 2001 - 2006
Table 2 – Country statistics Czech Republic – 2004
Table 3 – Telecom revenue and investment statistics – 2002
Table 4 – Telephone network statistics – 2004
Table 5 – Internet provider statistics – 2003
Table 6 – Internet user statistics – 2004
Table 7 – Broadband statistics –2004
Table 8 – Mobile statistics – March 2005
Table 9 – National telecommunications authority
Table 10 – Fixed lines in service and teledensity – 1995 - 2004
Table 11 – Number of fixed lines in service by usage type – 2004
Table 12 – Internet user growth and penetration – 1998 - 2004
Table 13 – Internet host computer growth – 1994 - 2003
Table 14 – Cesky Telecom ISDN subscribers and annual growth – 1998 - 2004
Table 15 – Cesky Telecom ADSL subscribers – 2003 - 2004
Table 16 – Retail and wholesale customers for Cesky Telecom’s ADSL service – 2004
Table 17 – Mobile subscribers by operator – March 2005
Table 18 – Mobile subscriber growth and penetration – 1995 - 2005
Table 19 – Prepaid users by operator - 2003
Table 20 – Country statistics Hungary – 2004
Table 21 – Telephone network statistics – 2004
Table 22 – Internet provider statistics – 2003
Table 23 – Internet user statistics – July 2005
Table 24 – Broadband statistics – December 2004
Table 25 – Mobile statistics – March 2005
Table 26 – National telecommunications authorities
Table 27 – Fixed lines in service and teledensity – 1995 - 2004
Table 28 – ISDN subscriber growth – 1995 - 2002
Table 29 – Internet user growth and penetration – 1995 - 2005
Table 30 – Dial-up Internet subscribers – 2001 - 2005
Table 31 – Internet host computer growth – 1994 - 2003
Table 32 – T-Online Internet subscriber growth – 2000 - 2004
Table 33 – Broadband subscriber growth – 2001 - 2004
Table 34 – Cable modem subscribers – 2001 - 2005
Table 35 – xDSL subscribers – 2001 - 2005
Table 36 – WiFi subscribers – 2001 - 2005
Table 37 – Mobile subscribers by operator – March 2005
Table 38 – Mobile subscriber growth and penetration – 1990; 1995 - 2005
Table 39 – Prepaid users by operator - December 2004
Table 40 – Country statistics Poland – 2004
Table 41 – Telephone network statistics – 2003
Table 42 – Internet provider statistics – 2003
Table 43 – Internet user statistics – July 2005
Table 44 – Broadband statistics – 2004
Table 45 – Mobile statistics – March 2005
Table 46 – National telecommunications authorities
Table 47 – Fixed lines in service and teledensity – 1995 - 2003
Table 48 – Internet users and penetration – 1996 - 2005
Table 49 – Internet host computers – 1994 - 2003
Table 50 – Cable modem subscribers per operator – June-2005
Table 51 – Mobile subscribers by operator – March 2005
Table 52 – Mobile subscribers and penetration – 1995 - 2005
Table 53 – Country statistics Slovakia – 2004
Table 54 – Telephone network statistics – 2003
Table 55 – Internet provider statistics – 2003
Table 56 – Internet user statistics – March 2005
Table 57 – Broadband statistics – March 2005
Table 58 – Mobile statistics – March 2005
Table 59 – National telecommunications authorities
Table 60 – Fixed lines in service and teledensity – 1995 - 2003
Table 61 – Internet users and penetration – 1995 - 2005
Table 62 – Internet host computers – 1994 - 2003
Table 63 – Mobile subscribers by operator – March 2005
Table 64 – Mobile subscribers and penetration – 1995 - 2005
Table 65 – EuroTel Bratislava GSM subscriber growth – 1998 - 2005
Table 66 – Orange subscriber growth - 1998 - 2005
Table 67 – Prepaid subscribers per operator - 2004
Table 68 – Country statistics Slovenia – 2004
Table 69 – Telephone network statistics – 2003
Table 70 – Internet provider statistics – 2004
Table 71 – Internet user statistics – March 2005
Table 72 – Broadband statistics – March 2005
Table 73 – Mobile statistics – March 2005
Table 74 – National telecommunications authorities
Table 75 – Fixed lines in service and teledensity – 1995 - 2003
Table 76 – Internet users and penetration – 1998 - 2005
Table 77 – Internet host computers – 1994 - 2004
Table 78 – Telekom Slovenije ADSL subscribers – 2001 - 2004
Table 79 - Mobile subscribers by operator – March 2005
Table 80 – Mobile subscribers and penetration – 1995 - 2005