Report on the state of the telecommunications market in Poland in 2018
Warsaw, June 2019 CONTENTS
TELECOMMUNICATIONS MARKET
1. INTERNET ACCESS 5
2. MOBILE TELEPHONY 17
3. BUNDLED SERVICES 32
4. FIXED-LINE TELEPHONY 39
5. VOIP TELEPHONY 47
TELECOMMUNICATIONS INFRASTRUCTURE
1. STATISTICS OF DATA COLLECTED DURING THE INVENTORY 50
2. NODES OF TELECOMMUNICATIONS NETWORKS 54
3. TELECOMMUNICATIONS NETWORK COVERAGE 64
4. WIRED NETWORK ROUTES 74 INTRODUCTION
We are pleased to provide you with the Report In this segment, the number of active SIM cards is on the telecommunications market in 2018. Like last systematically falling. In 2018, a total of 51.6 million of them year, the publication covers two issues. The first was recorded, i.e. 3% less than in 2017. The penetration concerns the market itself, the second concerns of mobile telephony services also dropped, reaching 134%. the telecommunications infrastructure. However, the trend of increasing the number of M2M cards has been maintained. Last year, 3.3 million M2M cards were It is worth noting the changes in the annual reporting used, an increase by 15%, compared to 2017. of telecommunications undertakings that entered into force on 12 December 2018. In the light of the new regulations, As a consequence of the Roam Like at Home principle each telecommunications entrepreneur was obliged introduced in 2017, there was a 32% increase in the duration to submit reports on telecommunications activities using of voice calls made by Poles staying abroad. a dedicated Electronic Services Platform. The conclusions presented to you in the report have been prepared on In the area of bundled services, a further upward trend can the basis of current data as of 31 December 2018. be observed. The number of users in comparison with 2017 increased by 35%. The value of the bundled services market Last year was a huge challenge for the Polish telecommunications alone amounted to PLN 7.38 billion. Users have opened up market. In terms of business, there was a growing convergence and even to the market of this type of services and started to use the stronger competition, both cross-sectoral and global. The expectations available packages more fully. and needs of our clients also increased. Jerzy Straszewski, President of PIKE However, the value of the market and the number of users of fixed-line telephony are decreasing year by year. In 2018, In 2018, the value of the telecommunications market revenues of operators fell below PLN 2 billion, and the amounted to PLN 39.2 billion. This is a slight decrease number of subscribers amounted to approx. 4.1 million. in relation to 2017 (by PLN 0.3 billion). The value Moreover, the costs of using fixed-line telephony services of expenditure on telecommunications investments are lower, and the prices of the services in Poland are among amounted to PLN 7.9 billion. the lowest in the European Union countries.
Penetration of households with broadband internet services The number of VoIP telephony users was 2.49 million last was at the level of 105%, which meant a slight increase year. This is a record result, taking into account the past compared to 2017. The very value of the internet access 4 years. Thus, the volume of traffic of this service increased services market has increased, compared to 2017, by around by 28%. 15% (PLN 5.4 billion). Invariably for several years, there has been an upward trend for the number of lines with Despite these challenges facing the industry, we believe that regulatory the highest capacities – the share of lines equal to or above policy will be conducted according to clearly defined, long-term 100 Mb/s reaches about 43%. goals and adequate measures used to implement them. To make it happen, constant dialogue and continuation of cooperation between A large increase in the number of entities providing mobile the market and the regulator are necessary, as well as predictability telephony services (85 telecommunications undertakings) and transparency of new regulations, favouring the development results from the appearance of companies on the market of gigabit infrastructure, which is the foundation of the innovative that have an agreement with a mobile operator (MNO) economy in Poland. and resell services to other small operators. Jerzy Straszewski, President of PIKE
In 2018, there was also a decline in revenues from mobile The second part of the Report presents information on telephony services. Total revenues of operators amounted country coverage with telecommunications infrastructure to PLN 13.8 billion and were by 8% lower than a year providing broadband internet access. The section presents earlier. Despite the decline in the value of this segment the state of the infrastructure based on data collected of the market, it still constituted a very important area on 31 December 2018. of telecommunications activities. This market generated over 35% of revenues in the entire telecommunications market in Poland.
Report on the state of the telecommunications market in Poland in 2018 3 We would also like to remind you that in connection with the The use of the existing pole foundation is extremely important for the 2016 amendment to the Act on supporting the development development of the network: Hopes for infrastructure development of services and telecommunications networks that were in 2018 also associated with conducted analyses regarding the establishes a catalogue of information that is not subject use by telecommunications operators of the pole foundation belonging to reservation due to business secrets (Article 29 (6b)), to national grid operators. There is a high demand for the use of pole most of the data provided during the inventory is public, foundation on the telecommunications market and access to poles therefore, as in the previous year, detailed data does not has a direct impact on both the development of telecommunications constitute attachments to the report, but is available in the networks and the information society as well as the prices form of API on the Open Data portal: https://dane.gov. pl/ of telecommunications services. dataset/588 and in the form of a search engine on the UKE Jarosław Tworóg, President of KIGEiT website: https://wyszukiwarka.uke.gov.pl/. The report shows the possibility of accessing fixed-line One of the indicators for the development internet with the minimum speed of 30 Mb/s for approx. of telecommunications infrastructure is the increase in the 43.1% of buildings. Access to the services of the highest number of telecommunications network nodes installed, speeds, at least 100 Mb/s, is currently provided for people the number of which increased by over 30,000 in 2018 residing in every fourth residential building in Poland compared to 2017. – in 2017, 10% of buildings had such access.
Nowadays, the development of telecommunications Poland has also come closer to achieving the objectives networks is mainly achieved by increasing the share of the of the European Digital Agenda (EDA). In order to assess fibre length. In 2018, the share of this medium was over the degree of implementation of the goal of providing 90%. Compared to the previous inventory for 2017, there are internet access with the capacity of at least 30 Mb/s until approx. 28,000 fibre nodes more in Poland, which means the end of 2020, a household penetration rate was used, an increase by 13% and with an increase in the number understood as the ratio of the number of residential of fibre nodes by 5,000 km the length of fibre nodes has apartments in buildings within the coverage of a network increased in Poland. providing at least 30 Mb/s to the total number of residential apartments. Average penetration of residential apartments The increase in investments in fibre networks, including in poorly with fixed-line internet coverage of at least 30 Mb/s is 71.7%, urbanized areas was an important trend in 2018. It was possible thanks and it has increased by almost 5 pp. in comparison to the use of EU funds and thanks to the entrepreneurs’ own investments. to the previous year. In 2018, the implementation of the OSE project (Ogólnopolska Sieć Edukacyjna – Nationwide Educational Network), very important from Another objective of EDA is to achieve the use of internet the point of view of social goals, began. This trend will contribute access services with the capacity of at least 100 Mb/s by 50% to the dynamic development of services, and thus the entire market. of households by the end of 2020; at the end of 2018 The development of fibre infrastructure is extremely important for the level was 19.3%, which was an increase by 6.5 pp. the Polish economy and contributes to its digital transformation, and operators have a significant share in that. Achieving the goals of the Digital Agenda seems possible with Andrzej Dulka, President of PIIT the greatest possible cooperation between companies, but also with the clear support from the government for creating conditions The report also presents the analysis of the share for network development. of overhead and underground routes in the existing Jarosław Tworóg, President of KIGEiT networks. The underground route prevails strongly, while the networks using the overhead route assume, The investments already initiated under the Operational depending on the region, the value from 5 to 35 percent. Programme Digital Poland are of great importance in achieving There is a regional pattern here – voivodships located in the these goals. Implementation of investments related to south of Poland are characterized by a higher share of the measure 1.1 of the OPDP should cause, according to the overhead network, which results from natural conditions. information provided in the applications of the beneficiaries, increase in the penetration of apartments with fixed-line internet coverage of at least 30 Mb/s – up to almost 82%.
2018 also brought significant progress in the implementation of the OPDP. A large part of the projects from the first call were completed, the beneficiaries of which were small operators (2016). Projects launched under the second call (2017) reached the stage of full implementation, and the third call for proposals was also completed. Karol Skupień, President of KIKE
Report on the state of the telecommunications market in Poland in 2018 4 1. INTERNET ACCESS 1.1. GENERAL INFORMATION
At the end of 2018, the penetration of broadband internet 1 Wired and wireless fixed-line internet and dedicated devices for 2G/3G/4G services1 in Poland per household amounted to 105%. mobile access (modems, cards, keys) This is an increase compared to the first half of 2017, by 2 p.p. 2 In 2017, the basis for calculating the rate was changed. Until 2016, the basis for calculating the penetration was the number of households amounting to The penetration, compared to the number of inhabitants, 13.5 million. However, in 2017-2018, the 2016 Central Statistical Office forecast increased by 2017 by 0.8 pp. and amounted to 38.5%. was used to determine the rate. On that basis the number of households was set at around 14.1 million. The change had an impact on the lower value of the penetration rate in 2017.
2018 is the time of on-line acceleration. This applies in particular to mobile internet. However, you can also see the first effects of investments borne by telecommunications undertakings, although it must be emphasized that in this case investment commitment of telecommunications undertakings is connected with regulatory activities of the President of UKE, as well as creating conditions for broadband roll-out. Also, long-term state solutions are important, for instance in terms of investment, legal and financial stability of operations. With average internet access prices being one of the lowest in Europe, this is an extremely important issue. Stefan Kamiński, President of KIGEiT
CHART 1. BROADBAND INTERNET SERVICES PENETRATION RATE2
105.5% 106.2% 105.0% 101.3% 102.6% 103.0%
37.1% 37.3% 37.1% 37.6% 37.8% 38.5%
I half II half I half II half I half II half
2016 2017 2018
per household per 100 inhabitants
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 6 1.2. REVENUES
In 2018, telecommunications undertakings reported The revenue structure changed slightly compared to the a market value of internet access services which was by 15% previous year. Operators continued to gain the most revenue higher than in 2017. It was at the level of PLN 5.4 billion. from internet access services using dedicated mobile devices (30.7%), however, this share decreased by 4.4 percentage There was also a slight increase in the average monthly points. The xDSL technology still had another significant revenue per user, which amounted to PLN 28.5 in 2018. share (24.6%), although its number of users decreased every year. The cable TV modem remained at third position, just like in 2017. Among all technologies, the highest increase in revenue (over 88%) was recorded in relation to FTTH. At the same time, the share of FTTH in the revenue structure PLN 5.4 billion increased by almost 5 pp. up to 12.3%. value of the Polish internet access market in 2018
CHART 2. VALUE OF THE INTERNET ACCESS CHART 3. REVENUE STRUCTURE MARKET (PLN BILLION) AND AVERAGE MONTHLY IN TERMS OF TECHNOLOGY USED REVENUE PER USER (ARPU IN PLN)
1.9% 1.3% 28.2 28.5 27.2 7.5% 12.3% 6.6% 5.4 7.6% 7.0% 4.9 5.9% 4.7 35.1% 30.7%
19.9% 17.6%
24.6% 2016 2017 2018 21.9%
Market value ARPU
Source: UKE 2017 2018
xDSL Cable TV 2G/3G/4G modem
LAN-Ethernet WLAN FTTH
Other
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 7 1.3. USERS
At the end of 2018, there were 15.8 million users Similarly to the previous year, the largest number of users of internet access services in Poland, of which 8.1 million used the service using dedicated devices for 2G/3G/4G were made up of fixed-line internet users. There was mobile access – modems, cards or keys. The second most an increase in the number of users by over 9.2%, popular category was cable technology (17.8%), followed compared to 2017. by xDSL (13%). A significant increase in terms of shares was recorded for fibre lines, in particular FTTH. The share of them in the structure of lines amounted to 8%, i.e. almost 3 pp. more than a year earlier. 15.8 million internet access users in 2018
CHART 5. STRUCTURE OF SUBSCRIBERS IN TERMS OF ACCESS TECHNOLOGY USED CHART 4. NUMBER OF FIXED-LINE AND MOBILE SUBSCRIBERS (MILLION) 0.6% 3.4% 2.6% 2.7% 8.1 4.8% 7.7 7.1% 7.4 7.4 5.2% 7.1 7.1 8.0% 16.0%
13.0%
18.9% 17.8%
51.2% 48.7%
Fixed-line internet Mobile internet
2016 2017 2018
Source: UKE
In 2018, there was a significant increase in the quality of internet access services. A large number of new fibre 2017 2018 networks have resulted in a significant increase in network capacity. 2G/3G/4G modem Cable TV xDSL Karol Skupień, President of KIKE FTTH WLAN LAN-Ethernet
Other
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 8 1.4. MARKET STRUCTURE
In 2018, as in previous years, Orange Polska had the largest drop and with a share of 8.1% in 2018. The next position number of internet access users. Its share in the internet in the ranking was taken by T-Mobile with a 7.9% share. access market in terms of the number of users amounted From among significant internet market operators in Poland, to 29.6%, which means a decrease of 1.5 pp., compared to only T-Mobile, Netia and, to a very small extent, Multimedia 2017. Polkomtel was at the second position, also with a slight increased their shares in the user market.
CHART 6. OPERATORS’ SHARES IN TERMS OF THE NUMBER OF INTERNET USERS
Orange 31.1% 29.6%
Polkomtel 9.0% 8.1%
T-Mobile 7.2% 7.9%
UPC 7.9% 7.5%
P4 7.0% 6.2%
Aero 2 5.0% 4.6%
Cyfrowy Polsat 4.6% 4.1%
Netia 3.3% 4.0%
Vectra 4.0% 3.9%
Mutimedia 3.0% 3.1%
Inea 1.4% 1.4%
Others 16.5% 19.4%
2017 2018
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 9 1.5. INTERNET ACCESS TECHNOLOGIES
Mobile devices (modems, cards, keys) Cable TV modem
The market share of operators using mobile devices did As in previous years, UPC had the largest number of internet not change significantly compared to 2017. The leader was access users via a cable TV modem. Its share in the access still Orange Polska with one third of the market. The share market in this technology increased slightly to 41.9%. of Polkomtel, at 16.6% of users, fell slightly. Slightly less Vectra’s share (20.7%) was half of that, also without major (16%) was held by T-Mobile. The value of the internet access changes compared to 2017. Multimedia Polska was at the services market using mobile devices reached the level third position, providing internet for 14.2% of users. of PLN 1.7 billion in 2018. The value of the internet access market via cable modems was almost PLN 1 billion.
CHART 7. OPERATORS’ SHARES IN THE TOTAL NUMBER OF USERS USING MODEMS CHART 8. OPERATORS’ SHARES IN THE TOTAL NUMBER OF USERS USING THE INTERNET ACCESS SERVICE VIA CABLE TV MODEMS
20.2% 20.1%
16.7% 15.8%
13.7% 12.7% 3.6% 3.4% 4.0% 4.0% 14.2% 14.1% 16.0% 13.6%
20.8% 20.7% 17.4% 16.6%
34.6% 34.6% 41.4% 41.9%
2017 2018
Orange Polkomtel T-Mobile 2017 2018
P4 Others UPC Vectra Mutimedia
Source: UKE Toya Inea Others
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 10 xDSL CHART 10. OPERATORS’ SHARES IN THE NUMBER OF USERS USING FTTH-BASED In 2018, the value of the internet access services market INTERNET ACCESS SERVICES using xDSL technology amounted to PLN 1.3 billion. The main provider of services in this technology was still Orange Polska, whose share amounted to over 80%. 5.4% 3.2% The second position was taken by Netia, with a share Netia Multimedia of 17%. Other undertakings, of which none had more than a 1% share, in total provided this type of service to 2.7% 7.2% Inea of users. The number of users of xDSL technology decreased by almost 11% compared to 2017.
CHART 9. OPERATORS’ SHARES IN THE TOTAL 26.7% Orange NUMBER OF USERS USING XDSL-BASED INTERNET ACCESS SERVICES
2.7% 57.5% Others Others Source: UKE
17.0% Netia WLAN and LAN-Ethernet
The internet access markets using WLAN and LAN Ethernet technologies were very fragmented. Internet services in these technologies were provided by entrepreneurs whose share in a given market usually did not exceed 1%. Among the companies that provided services via WLAN, only five had a share between 1% and 2%. Shares of other companies were below 1%. In the case of LAN Ethernet, 80.3% the shares of the largest 14 companies ranged from 1% to 5%. Orange Source: UKE In total, approximately 1.3 million people used the services provided by the two technologies in 2018. The value of the WLAN access market in 2018 was PLN 0.4 billion, while in Ethernet technology – PLN 0.3 billion. FTTH
Undertakings providing internet access services in FTTH technology obtained revenues in the amount of PLN 0.7 billion in 2018. Orange Polska, Inea, Netia and Multimedia were significant operators in this market segment, holding together approximately a 43% share in terms of users. Among them, Orange Polska enjoyed the largest number of users. The remaining part of the market was very fragmented. Over 57% of shares belonged to companies that provided services to less than 1.5% of users of this technology.
Report on the state of the telecommunications market in Poland in 2018 11 1.6. CAPACITY
2018, thanks to investments of private operators, was a year of significant acceleration in internet access offers – with 1 Gb/s offers in the market and the first 5G tests allowing to achieve similar speeds. Andrzej Dulka, President of PIIT
In 2018 a significant increase in the number of lines The percentage of lines with the lowest capacity decreases with the highest capacities, i.e. minimum 100 Mb/s, each year. In 2018, they constituted only 0.8% of total lines. was recorded. Their share in the total number of lines The percentage of lines with the lowest data rates is getting increased to almost 43%. In 2018, there were 60% more smaller every year. of them than the year before. 43% lines of minimum capacity of 100 Mb/s
CHART 11. SHARES OF LINES BY SPEED
42.9%
30.3% 29.2% 29.1% 27.1%
24.1% 21.6% 21.9%
19.2% 18.7% 17.2% 15.3%
1.7% 1.1% 0.8%
<144 kb/s, 2 Mb/s) <2 Mb/s, 10 Mb/s) <10 Mb/s, 30 Mb/s) <30 Mb/s, 100 Mb/s) >100 Mb/s
2016 2017 2018
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 12 1.7. COMPARISON WITH EUROPEAN UNION COUNTRIES
The highest penetration of fixed-line internet access services In the case of mobile internet access services, Poland in 2018 was recorded in Denmark, where it amounted to 44% was able to boast in 2018 of the highest penetration rate and was higher than the EU average by almost 10 pp. of almost 163% among European countries. Our result In this ranking Poland was at the last position, with was better by almost 69 pp. than the EU average, which penetration of fixed-line internet services in our country amounted to 96%. at the level of less than 19%.
CHART 12. PENETRATION OF FIXED-LINE BROADBAND IN THE EU
EU average: 34.1% 44.0% 43.5% 42.9% 40.8% 40.8% 39.7% 39.0% 38.9% 37.5% 36.1% 35.7% 35.6% 33.0% 32.1% 32.2% 31.0% 30.6% 30.4% 29.9% 28.5% 27.9% 27.8% 27.1% 26.7% 26.6% 26.0% 24.1% 18.6%
DK NL FR MT DE UK SE BE LU EL PT CY EE SI ES FI HU CZ IE AT LT IT SK HR LV BG RO PL
Source: Digital Agenda Scoreboard, June 2018.
CHART 13. PENETRATION OF MOBILE INTERNET SERVICES IN THE EU 162.6%
155.9% EU average: 96.0% 144.3% 138.8% 131.5% 122.7% 123.0% 111.6% 97.3% 98.9% 97.2% 102.1% 96.5% 94.3% 90.5% 89.4% 88.9% 88.2% 85.1% 86.8% 84.1% 82.4% 81.2% 75.6% 74.4% 74.5% 69.7% 59.2%
PL FI EE LU DK LV SE CY IE UK BG MT ES NL FR LT IT SK AT RO HR CZ DE BE EL SI PT HU
Source: Digital Agenda Scoreboard, June 2018.
Report on the state of the telecommunications market in Poland in 2018 13 1.8. PRICES OF FIXED-LINE INTERNET ACCESS SERVICES
Prices of fixed-line internet access services in European • OECD Medium basket: 120 GB/>100 Mb/s countries were compared using Fixed Price Broadband3 (possibility of using 120 GB of data, database, valid for December 2018. internet speed over 100 Mb/s).
Two speed ranges were used for benchmarks: from Considering the OECD Medium basket: 30 GB/>=10 Mb/s 30.7 Mb/s to 102.4 Mb/s and above 102.4 Mb/s. and internet capacity range from 30.72 Mb/s to 102.4 Mb/s, the most expensive access to fixed-line internet was offered The cheapest offers were considered in each of the ranges. by Cyprus. The service was paid for in the amount of around The prices of services were compared on the basis of three EUR 50, while the European average was at the level of EUR price baskets: 27.4. The price of the service in our country was lower than the European average by 4.5 pp. and amounted to EUR 22.9.
• OECD Medium basket: 30 GB/>=10 Mb/s (possibility of using 30 GB of data, minimum internet speed 10 Mb/s), 3 The database developed by the analytic company Strategy Analytics • OECD Medium basket: 60 GB/>=25 Mb/s (possibility of using 60 GB of data, minimum internet speed 25 Mb/s),
CHART 14. AVERAGE MONTHLY SERVICE COST IN THE EU FOR THE OECD MEDIUM BASKET: 30 GB/>=10 Mb/s FOR SPEEDS FROM 30.7 Mb/s TO 102.4 Mbit/s 49.6 44.7 44.3 38.5 37.8
EU average: EUR 27.4 incl. VAT 36.8 33.2 31.1 29.9 28.3 27.9 27.8 26.4 25.9 24.6 24.2 23.2 22.9 21.9 18.7 18.7 18.1 17.6 17.5 16.6 16.4 14.6
HU RO AT FI BG LT SK LV IT PL DE FR EE CZ SE DK EL BE NL GB PT SI MT LU IE ES CY
Source: UKE based on Fixed Broadband Price Benchmarking, Strategy Analytics Note: tariffs for residential and business customers purchasing only internet access (bundles were excluded from the analysis). For Poland, the UPC Biznes internet Smart 10 (24M) offer was selected. Cost of the service as of December 2018.
Report on the state of the telecommunications market in Poland in 2018 14 The European average for the OECD Medium basket: 30 GB/>=10 Mb/s for services with data speeds above 102.4 Mb/s amounted to EUR 27.6, i.e. only by 0.2 pp. more than in the case of speeds from 30.7 Mb/s to 102.4 Mbit/s. The EU average was raised by the price of the basket in Italy, the only country where the price of the service was dependent on the internet capacity and in the range above 102.4 Mb/s it was by about EUR 5.7 higher than in the range with lower speeds.
CHART 15. AVERAGE MONTHLY SERVICE COST IN THE EU FOR THE OECD MEDIUM BASKET: 30 GB/>=10 Mb/s FOR SPEEDS HIGHER THAN 102.4 Mbit/s 49.6 47.7 44.3 38.5 37.8 36.8 EU average: EUR 27.6 incl. VAT 33.2 31.1 29.9 28.3 27.9 27.8 27.6 26.4 25.9 24.6 24.2 23.2 22.9 18.7 18.7 18.1 17.6 17.5 16.6 16.4 14.6
HU RO AT FI BG LT SK LV PL DE FR EE CZ SE IT DK EL BE NL GB PT SI MT LU IE ES CY
Source: UKE based on Fixed Broadband Price Benchmarking, Strategy Analytics Note: tariffs for residential and business customers purchasing only internet access (bundles were excluded from the analysis). For Poland, the UPC Biznes internet Smart 10 (24M) offer was selected. Cost of the service as of December 2018.
Report on the state of the telecommunications market in Poland in 2018 15 In the case of price baskets with more intense use the EU average was EUR 31.1 (the price in Poland is lower of services, the difference between speed ranges is blurred by EUR 4.1) and in the second case EUR 40.6 (the price in several countries. In both analysed ranges, prices in Poland is lower by EUR 13.6). The EU average was of services for OECD baskets Medium 60 GB/>=25 Mb/s raised significantly by the price of the basket in Cyprus. and OECD Medium: 120 GB/>100 Mb/s were the same The price difference between the two baskets was more in 8 countries, including Poland. In the first case, than EUR 100 for Cyprus.
CHART 16. AVERAGE MONTHLY SERVICE COST IN THE EU FOR THE OECD MEDIUM BASKET: 60 GB/>=25 Mb/s 62.0 50.0
EU average: EUR 31.1 incl. VAT 47.7 44.3 40.5 38.5 37.8 36.8 35.7 34.1 33.2 31.9 31.5 29.3 29.0 28.6 27.4 27.0 26.4 25.9 18.1 18.7 18.7 17.6 17.5 16.4 14.6
HU RO FI BG LT SK LV CZ SE PL DE AT DK EE IT BE PT FR NL SI MT LU GB IE ES EL CY
Source: UKE based on Fixed Broadband Price Benchmarking, Strategy Analytics Note: tariffs for residential and business customers purchasing only internet access (bundles were excluded from the analysis). For Poland, the UPC Fibre Power 150 Mb/s (24M) offer was selected. Cost of the service as of December 2018.
CHART 17. AVERAGE MONTHLY SERVICE COST IN THE EU FOR THE OECD MEDIUM BASKET: 120 GB/>100 Mb/s 163.2
EU average: EUR 40.6 incl. VAT 81.3 57.4 54.6 17.5 16.4 14.6 46.1 46.0 44.3 41.6 39.1 37.9 40.3 38.5 38.0 33.1 34.1 34.8 32.8 31.5 30.0 27.9 27.0 22.1 24.0 21.6
HU RO FI LT BG LV PL SK SE IT DE CZ FR PT DK NL LU EE AT MT IE SI GB ES BE EL CY
Source: UKE based on Fixed Broadband Price Benchmarking, Strategy Analytics Note: tariffs for residential and business customers purchasing only internet access (bundles were excluded from the analysis). For Poland, the UPC Fibre Power 150 Mb/s (24M) offer was selected. Cost of the service as of December 2018.
Report on the state of the telecommunications market in Poland in 2018 16 2. MOBILE TELEPHONY 2.1. MARKET CHARACTERISTICS
It is worth noting that in the mobile telephony service a lot of small operators concluded agreements with mobile operators for MVNO services, thanks to which they expanded their retail offer. Karol Skupień, President of KIKE
At the end of 2018, 85 telecommunications undertakings Out of all operators operating in the mobile telephony operated in the Polish mobile telephony market, more than market, five had their own infrastructure (MNO operators), twice as many compared to the previous year, when 31 while 80 used a network of a selected technology partner entities declared this type of activity. (MVNO operators). In Poland in 2018, the following entities were operating as MNOs: Aero 2 Sp. z o.o., Orange Polska S.A., Such a large increase in the number of operators providing Polkomtel Sp. z o.o., P4 Sp. z o.o. and T-Mobile Polska S.A. mobile telephony services results from the emergence of companies in the market that have a contract with In the past few years there has been a systematic drop a mobile operator (MNO) and resell their services to other in the number of mobile telephony users. At the end of 2018, small operators. As a result of such cooperation, small a total of 51.6 million active SIM cards were recorded. MVNOs provide mobile telephony services based on the This means a decrease of 3% compared to 2017. At the same contract they have with an intermediary, and not directly time, the penetration of mobile telephony services was lower with the mobile operator. and amounted to over 134% (a decrease by 3 pp. compared to 2017). However, the number of M2M cards increased by more than 15% and reached the level of 3.3 million. The cards accounted for 6.4% of all SIM cards, compared 51.6 mln to 5.3% in 2017. SIM cards
CHART 18. NUMBER OF USERS (SIM CARDS IN MILLIONS) AND PENETRATION OF THE MOBILE TELEPHONY MARKET IN POLAND
150.2% 148.0% 147.2% 144.2% 140.0% 138.6% 131.6% 134.3% 123.2% 115.2% 117.4% 108.6% 57.8 57.0 56.6 55.5 96.3% 53.9 53.3 50.1 51.6 47.0 43.9 44.8 41.4 36.7
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
SIM cards penetration
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 18 CHART 19. SHARE OF PRE-PAID AND POST-PAID 134% CUSTOMERS IN THE TOTAL NUMBER OF SUBSCRIBERS mobile telephony services penetration
In connection with the introduction of the obligation to register pre-paid cards in 2016, there is a significant decrease 51.2% 52.6% 35.3% 43.2% 50.6% 54.2% 54.2% 28.0% in the number of pre-paid users in favour of subscribers. 54.8% At the end of 2018, the number of pre-paid SIM cards decreased by almost 24%, compared to 2017 – to the level of 13.5 million. Pre-paid users accounted for only 28%
of all mobile telephony users. 72.0% 64.7%
4 According to Analysys Mason , the average penetration 56.8% 49.4% 48.8% of mobile telephony services in the European Union is 131.1% 47.3% 45.8% 45.8% and it is by 1.2 pp. higher than last year. This rate for Poland 45.2% is above the EU average and amounts to 135%. Among the EU countries, the highest penetration rates are observed in Finland (175.9%), Portugal (168.4%) and Austria (158.5%). 2010 2011 2012 2013 2014 2015 2016 2017 2018
post-paid pre-paid 4 An analytical company specializing in the telecommunications market. Source: UKE
CHART 20. MOBILE TELEPHONY MARKET PENETRATION IN SELECTED EUROPEAN COUNTRIES IN 2018
175.9% EU average: 131.1% 168.4% 158.5% 148.5% 144.2% 142.4% 140.7% 140.6% 136.0% 135.0% 134.2% 132.2% 129.7% 129.3% 125.3% 122.8% 119.2% 117.7% 118.9% 114.8% 113.0% 111.9% 111.5% 108.1% 97.8%
FI PT AT LT BG CZ EE SE DK PL IT SK LV RO UK DE NL ES SI HR EL HU IE FR BE
penetration 2018 EU average 2018
Source: UKE based on the Telecom Market Matrix database, Analysys Mason
Report on the state of the telecommunications market in Poland in 2018 19 2.2. REVENUES
In 2018 a declining trend in revenues from mobile telephony MMS service generated a decrease of more than 27%. services was maintained. Total receipts of operators A slight decrease in revenues from data transmission (2%) amounted to PLN 13.8 billion and were by 8% lower than and outbound roaming (by 1.5%) was also demonstrated. a year earlier. Higher revenues than a year earlier were obtained from inbound roaming (increase by 21%). A decrease in revenues was recorded for almost all types of mobile telephony services. Receipts from subscription Despite the decline in the value of the mobile telephony fees fell by 12%, while revenues from voice calls decreased market by approximately PLN 1.2 billion, in 2018 it was by 13%. This is a slightly smaller decrease in revenues still a very important area of telecommunications activity. from voice calls than the one that was recorded in the This market generated over 35% of revenues in the entire previous reporting period (decrease by 17%). In turn, in the telecommunications market in Poland. case of SMS revenues were lower by almost 9%, and the
35% share of mobile telephony in revenues of the telecommunications market
CHART 21. REVENUES FROM MOBILE TELEPHONY SERVICES (PLN BILLION) AND DYNAMICS OF CHANGE
0.6%
-0.9% -1.5%
19.1 -2.8% -2.7% 19.0 18.9 18.6 17.7 17.2 -4.8% 16.7 15.0 13.8
-8.0%
-10.5%
2010 2011 2012 2013 2014 2015 2016 2017 2018
revenues dynamics of change
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 20 2.3. SHARES OF OPERATORS
As in 2017, the leading position in terms of the number Compared to 2017, both in the case of Polkomtel and Orange, of mobile telephony users was held by P4 with a share there was a significant decrease in the obtained revenues. of 29%. The second position was taken by Orange Polska It was 16.3% and 15.1%, respectively. A slight decrease with 27% of users. It’s the same result as last year. The third in revenues was also attributable to T-Mobile and amounted position belonged to Polkomtel, which was the only one to 1.3%. Revenue increase of 2.5% was recorded by P4. of the 4 largest companies to gain market share. At the end The remaining entrepreneurs, apart from the four largest of 2018, its users accounted for 21% of all mobile telephony ones mentioned above, gained revenues higher by 6.3%. users. T-Mobile took the fourth position with a share of 18.6%. In 2018, the largest percentage of revenues from SMS sent on mobile networks was held by T-Mobile. This share accounted The positions of the four largest companies in terms for 28.5% of this market, by 5.6 percentage points more than of market share in relation to 2017 did not change. Only in 2017. This company was the only one to record an increase Polkomtel recorded an increase in the number of users by in revenues from this service. Polkomtel took the second 7.8%. The number of SIM cards operated by Polkomtel at the position with 26.6% of shares (decrease by 0.3 pp.), followed end of 2018 was over 10 million. The remaining three largest by Orange Polska (22.8%) and P4 (21.4%). Orange’s revenues companies recorded a decline of 4.4% for Orange Polska, from the SMS sent fell by 4.6 pp., while in the case of P4 6.9% for T-Mobile and 7.9% for P4. In comparison to 2017, – by 1 pp. Other operators had only a 0.7% share in revenues the market share of other operators increased by 7.8%. in this category of services. Compared to the previous year, they obtained revenues higher by 0.3 pp. The first position in terms of revenues in 2018 was taken by P4 with a share of 26.1%. This is an advancement from In terms of revenues from domestic data transmission in the third position in 2017. The second position was taken mobile networks, the dominant position in 2018 was retained by last year’s leader in this ranking, namely Polkomtel by Orange Polska – with over 40% of shares. Subsequent (25.1%). Orange Polska obtained 24.5% of total revenues positions were taken by T-Mobile (26.2%) and P4 (26%). from mobile telephony, and T-Mobile came fourth with Polkomtel had a 7% market share in this type of services. 21.1% of the market share. Other entrepreneurs obtained only 0.4% of revenues from data transmission. Compared to 2017 there were slight changes in terms of market shares (from 2.3 pp increase for T-Mobile to 1.7 pp decrease for Polkomtel).
CHART 22. SHARES OF OPERATORS IN TERMS CHART 23. SHARES OF OPERATORS IN TERMS OF THE NUMBER OF USERS IN 2018 OF REVENUES GENERATED IN 2018
4.8% 3.2% Others Others
28.8% 26.1% 18.6% P4 21.1% P4 T-Mobile T-Mobile
20.8% 25.1% Polkomtel Polkomtel
27.0% 24.5% Orange Orange Source: UKE Source: UKE
Report on the state of the telecommunications market in Poland in 2018 21 2.4. VOLUMES OF SERVICES PROVIDED
In 2018, the duration of outgoing calls in mobile telephony Considering the average duration of voice calls per one increased by 1.8%. Same as in the previous three years, active user in a month in 2018 Poland was slightly above the growth dynamics turned out to be significantly smaller than value for the European Union. The Polish mobile subscriber in 2011-2015. Customers of mobile telephony made calls talked for about 168 minutes in a month, or 6 minutes longer with a total duration of 103.8 billion minutes. Statistically, than the average for the EU. These values are similar for every inhabitant of Poland this was 2,702 minutes in to those for 2017. a year, which turned out to be 50 minutes more than in 2017. The average duration of calls was 2 minutes and 20 seconds and was longer by 2 seconds, compared to 2017. 2,702 minutes average length of calls during the year
CHART 24. TOTAL DURATION OF OUTGOING VOICE CALLS (BILLION MINUTES) AND THE DYNAMICS OF CHANGE
10.5%
9.6% 9.8% 101.9 103.8 97.3 8.2% 91.8
83.1 75.7 6.0% 69.0 63.8 4.7%
1.8%
2011 2012 2013 2014 2015 2016 2017 2018
total duration of outgoing voice calls dynamics of change
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 22 CHART 25. AVERAGE DURATION OF VOICE CALLS PER ACTIVE USER PER MONTH IN 2018 IN SELECTED EU COUNTRIES (MINUTES) 242 207 205 203 202
198 EU average: 162 192 181 176 174 168 168 162 161 153 150 142 133 133 123 121 120 119 115 101
RO FR LV SE IT BG IE EL HU SI LT PL HR UK PT EE ES AT DK CZ NL FI SK BE DE
per month EU average
Source: Office of Electronic Communications, based on the Telecom Market Matrix database, Analysys Mason
In turn, the number of SMS sent in 2018 decreased MMS messages are also popular among users. In 2018, compared to 2017 by 5.5%. The downward trend had been 1.8 billion of such messages were sent. This was over 20% continuing since 2012. In 2018, 46.5 billion SMS were sent more than the year before. Statistically, there were 46 MMSs in total, or 2.7 billion less than a year earlier. This means sent per capita, i.e. by 8 messages more than in 2017. that statistically in 2018 each Pole sent more than 100 text messages per month. The obtained data indicates that traditional SMS is replaced with messages sent via other messengers or websites.
Report on the state of the telecommunications market in Poland in 2018 23 CHART 26. NUMBER OF SMS MESSAGES SENT (BILLION) AND DYNAMICS OF CHANGE
2.1%
0.4% 53 52 52 52 51 52 0.0% -0.6% 50 -0.9% 49
-2.0% 47 -3.3% -5.5%
2010 2011 2012 2013 2014 2015 2016 2017 2018
number of SMS sent dynamics of change
Source: UKE
CHART 27. NUMBER OF MMS SENT (MILLION) AND DYNAMICS OF CHANGE
40.2% 40.6% 38.8%
1,765
1,443
20.7% 19.9% 19.0% 18.4% 1,039 22.4% 13.8% 739
527 445 391 274 326
2010 2011 2012 2013 2014 2015 2016 2017 2018
number of MMS sent dynamics of change
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 24 When comparing data on the number of SMS/MMS Data transmission in mobile networks has been the most messages sent per one active user, it should be noted dynamically developing service for several years, and a total that Poland with the result of 82 messages is well above of 3,098 PB of data was sent via mobile networks. This is the EU average, which is 53 SMS/MMS. In comparison a result by almost 47% better than the year before, though with 2017, one active mobile user in Poland sent on average since 2017 we have observed that the increases are falling 5 SMS/MMS more per month. By contrast, the EU average year on year. In statistical terms, there was an average fell by 6 messages. of 84.6 GB per one Pole in 2018. This means a growth by 57.8% compared to 2017.
47% increase in the amount of data transferred
CHART 28. AVERAGE NUMBER OF SMS/MMS SENT IN A MONTH PER ONE ACTIVE USER IN SELECTED EU COUNTRIES IN 2018 209 152 94 82 80 79 EU average: 53 76 67 67 55 48 46 45 44 38 37 32 3 2 17 15 15 14 12 7
FR BE SI PL PT LT UK LV IE DK SE RO CZ HU SK HR EE FI EL IT AT NL DE BG ES
Source: UKE based on the Telecom Market Matrix database, Analysys Mason
Report on the state of the telecommunications market in Poland in 2018 25 CHART 29. VOLUME OF DATA TRANSMISSION (PB) AND DYNAMICS OF CHANGE
3,098
132.2%
114.7% 103.8% 102.8% 97.3% 2,110
62.5%
1,299 37.2% 27.2% 46.8%
559 94 128 37 74 260
2010 2011 2012 2013 2014 2015 2016 2017 2018
data transmission dynamics of change
Source: UKE
The mobile services market is steadily growing, although the growth rate is decreasing, which is the result of high penetration of mobile services in Poland. However, there are new provisioning ways and types of services, such as those based on increasingly digitalised relations with the client, which will stimulate further market growth. The changes are possible thanks to the “update” of the law, which tries to keep up with the habits or new needs and comfort of consumers, but also thanks to new technological and service opportunities. The changes are also important for the market not to be left behind other sectors or public administration which is becoming more and more digital in its relation to the client/citizen. Andrzej Dulka, President of PIIT
Report on the state of the telecommunications market in Poland in 2018 26 2.5. 3G AND 4G/LTE NETWORK COVERAGE
The rates of coverage of the territory of Poland by the The highest 3G network coverage indicators are declared mobile network are gaining increasingly higher values. by two MNOs. The lowest coverage ratio for this type According to operators’ reports, 98.8% of our country of network in 2018 was 93%. Considering the percentage is covered by 3G network and 98% by 4G/LTE networks. of population in the range of the two networks it should be noted that the coverage of 3G and 4G/LTE networks is 100% of the population of our country. The lowest declared percentage of population in the range of 3G networks is 98% (increase by 3.3 pp. compared to 2017), while for 4G/LTE networks it is 90% (increase by 0.1 pp.).
Mobile operators were preparing for 5G by conducting first tests and educational activities. In practice, the operators experienced limitations resulting from the lack of harmonization of EMF standards in Poland with European standards, which may significantly limit development of infrastructure in the future. Stefan Kamiński, President of KIGEiT
TABLE 1. PERCENTAGE OF POPULATION TABLE 2. PERCENTAGE OF POPULATION WITHIN 3G COVERAGE IN 2018 WITHIN 4G/LTE COVERAGE IN 2018
% of population within % of population within Operator Operator 3G coverage 4G/LTE coverage
Operator 1 100.0% Operator 1 100.0%
Operator 2 100.0% Operator 2 99.7%
Operator 3 99.8% Operator 3 99.7%
Operator 4 99.8% Operator 4 96.7%
Operator 5 98.0% Operator 5 90.0%
Source: UKE Source: UKE Comment: Operators appear in descending order Comment: Operators appear in descending order The order in Table 1 does not have to be equivalent to the order in Table 2 The order in Table 1 does not have to be equivalent to the order in Table 2
Report on the state of the telecommunications market in Poland in 2018 27 2.6. COST OF USING MOBILE TELEPHONY SERVICES
The comparison of the costs of using mobile telephony The analysis shows that in Poland, the value of the basket services in Poland and other European Union countries of mobile telephony services is one of the lowest in Europe. was carried out on the basis of data from the OECD Mobile This is especially visible for moderate and intensive use Voice Price Benchmarking price database5. The applied of services. methodology is authorized by OECD and provides the basis for official statistics of this organization on the prices In the case of occasional use of mobile telephony, of services. the customer of the Polish network bears the monthly cost of EUR 3.9. This means that the offer is cheaper than The benchmark takes into account monthly cost of the EU average of EUR 8.6. The analysis includes a service services provided to individual users, characterized by low, consisting of 30 minutes of calls and not containing moderate and high use of mobile telephony services. a data package. The cheapest offer was chosen for each basket and country as of November 2018. 5 The database developed by the analytic company Strategy Analytics
CHART 30. AVERAGE MONTHLY COST OF USING MOBILE SERVICES WITH LOW USAGE OF SERVICES IN 2018 (EUR WITH VAT) 21.7 18.8 13.4
EU average: EUR 8.6 incl. VAT 11.6 9.7 9.6 10.0 9.5 9.2 9.1 8.3 7.8 7.7 7.6 6.4 6.3 5.6 5.1 5.1 4.3 4.2 3.9 2.9
LT PL SI FI EE FR UK SK NL PT BE LV DK EL SE DE HU LU AT CZ IT ES IE
cost EU average
Source: UKE based on OECD Mobile Voice Price Benchmarking
Report on the state of the telecommunications market in Poland in 2018 28 If we consider the average use of mobile telephony services, In the case of very active users in Poland, we bear the lowest in 2018 the cost of such services in Poland was EUR 5.8. costs of mobile telephony services. Intensive use of this However, according to data for selected European countries, type of services was associated with a fee of EUR 6.9, more an average of EUR 24.3 was paid. A service consisting than five times less than the European average. The analysis of unlimited calls and a 5 GB data package was selected for took into account the services consisting of unlimited calls the analysis. and a data package of at least 20 GB.
CHART 31. AVERAGE MONTHLY COST OF USING MOBILE SERVICES WITH MODERATE USAGE OF SERVICES (EUR WITH VAT)
EU average: EUR 24.3 incl. VAT 35.9 34.3 34.0 32.7 31.1 30.0 29.0 26.4 24.0 20.3 17.3 17.0 16.9 15.3 14.1 14.1 10.1 10.8 5.8
PL EE AT LT SE FR UK LV SI DK FI BE ES IE DE CZ NL SK IT
cost EU average
Source: UKE based on OECD Mobile Voice Price Benchmarking
CHART 32. AVERAGE MONTHLY COST OF USING MOBILE SERVICES WITH HIGH USAGE OF SERVICES (EUR WITH VAT) 97.7 81.1
EU average: EUR 38.8 incl. VAT 75.0 65.4 65.3 49.0 15.8 40.0 38.3 35.9 6.9 27.2 25.1 24.7 24.0 22.1 23.8 22.0 20.1 17.3
PL AT SI FR LV LT SE FI UK EE DK IT BE NL ES SK CZ IE DE HU
cost EU average
Source: UKE based on OECD Mobile Voice Price Benchmarking
Report on the state of the telecommunications market in Poland in 2018 29 2.7. ROAMING
In 2018, as in the previous year, we observed a large impact of the introduction of the “Roam Like At Home” principle 32% on the use of mobile telephony services by Poles. The use increase in the duration of voice calls in roaming of the same rates for voice calls, text messages and data transmission in Poland and other EU countries meant that Poles abroad used their mobile phones more often. Also, the number of SMS messages sent by Poles abroad The total duration of voice calls made (originated) by Poles in roaming increased in 2018 compared to 2017. The increase outside the country as part of roaming in 2018 amounted was 24% and was smaller than in the previous reporting to 4.3 billion minutes. In comparison to the previous year, period (increase by 64%). Subscribers of Polish mobile this is an increase by almost 32%. networks sent over 1.3 billion roaming SMS.
24% increase in the number of SMS sent in roaming
CHART 33. TOTAL DURATION OF OUTGOING VOICE CALLS IN OUTBOUND ROAMING (MILLION MINUTES)
129.1%
4,251
3,228 64.6% 52.1% 45.4%
42.2% 31.7% 0.2% -23.9% 1,409
991 791 543 544 357 602
2010 2011 2012 2013 2014 2015 2016 2017 2018
duration of calls in outbound roaming dynamics of change
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 30 CHART 34. TOTAL NUMBER OF SMS SENT IN OUTBOUND ROAMING (MILLION)
64.7%
1,303
1,052 6.5% 23.9% 5.8% 5.3% 9.8% 7.4% 12.6% 600 639 539 570 457 502 406
2010 2011 2012 2013 2014 2015 2016 2017 2018
number of SMS sent dynamics of change
Source: UKE
The largest dynamics of change in outbound roaming services was recorded in the field of data transmission. 4.6-fold This transmission was more than 4.6 times greater than increase in data roaming a year earlier.
CHART 35. TOTAL DATA TRANSMISSION VOLUME IN OUTBOUND ROAMING (MILLION MB)
979.6%
49,401
363.7%
298.6% 255.6% 78.5%
50.0% 73.3% 150.0% 987
6 9 16 39 139 553 10,653
2010 2011 2012 2013 2014 2015 2016 2017 2018
data transmission dynamics of change
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 31 3. BUNDLED SERVICES 3.1. GENERAL INFORMATION
Bundled services are still one of the most dynamically Converged services continued to grow. Noteworthy is the range developing segments of the telecommunications market. of services offered in 2018, as a result of the acquisition of Netia The average increase in the number of users over the past 5 by Cyfrowy Polsat. It includes television, fixed-line internet, mobile years reached the level of 39%. telephony, but also services from outside the telecommunications market, such as energy, banking services, insurance, media and other services from the FMCG area. Stefan Kamiński, President of KIGEiT
CHART 36. NUMBER OF USERS OF BUNDLED SERVICES (MILLION)
13.73
10.15
7.86
5.87
3.75
2014 2015 2016 2017 2018
Source: UKE
The popularity of convergent services among telecommunications undertakings is constantly growing, which is not only a consequence of their striving to stand out in the market, but also a response to the expectations of customers who want to receive a package of services from one supplier. The portfolio includes not only fixed-line services (mainly access to the internet) and mobile services, but also banking and energy services. The fact that telecommunications undertakings perceive the potential in bundled services is confirmed by their strategic decisions, such as the takeover of Netia by the Cyfrowy Polsat Group, the decision of T-Mobile to provide broadband services or UPC on the provision of mobile services in the virtual operator model. Andrzej Dulka, President of PIIT
Report on the state of the telecommunications market in Poland in 2018 33 In 2018, the most popular service bundles were the and 1.8 pp. On the other hand, customers’ interest in the “Mobile telephony + mobile internet” (51.3%) and “Fixed- service bundles of “Mobile telephony + mobile internet + TV” line internet + Television” (9.3%). In both cases there was (7.5%) and “Mobile telephony + Television” (6.7%) increased. a decrease compared to 2017, respectively by 8.8 pp.
CHART 37. MOST POPULAR BUNDLES
Mobile telephony + 51.3% mobile internet 60.1%
Fixed-line internet + 9.3% Television 11.1%
Mobile telephony + 7.5% mobile internet + Television 0.1%
Mobile telephony + 6.7% Television 0.5%
Fixed-line telephony + 5.2% Fixed-line internet + TV 7.2%
Mobile telephony + 4.9% Fixed-line internet + Television + VoIP telephony 3.6%
Other 15.1% 17.6%
2017 2018
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 34 3.2. REVENUES
The value of the bundled services market in comparison to 2017 increased by 56% and amounted to PLN 7.38 billion. PLN 7.38 billion The average monthly revenue per user in 2018 was around value of the bundled services market PLN 45, which is just over PLN 6 more than in 2017.
CHART 38. VALUE OF THE MARKET (PLN BILLION) AND AVERAGE MONTHLY REVENUE PER USER (ARPU IN PLN)
44.79
41.02 41.73 39.38 38.76 7.38
4.72
3.71
2.94
2.08
2014 2015 2016 2017 2018
market value ARPU
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 35 3.3. SUBSCRIBERS
Over 77% of bundled services users chose Double Play CHART 39. SHARES OF BUNDLES IN TERMS packages. Compared to the data collected in 2017, you OF NUMBER OF USERS can see that users were switching to Triple Play (17.5%) and Quadruple Play packages (5.1%). 5.1% 0.02% Quadruple Play Quintuple Play
17.5% 77.4% Triple Play users choose Double Play bundles
Among bundles composed of two services, the vast majority of users chose the “Mobile telephony + mobile internet” package (66.3%). The second most frequently chosen bundle was “Fixed-line internet + Television” (12%). The third position among the Double Play services was 77.4% taken by the “Mobile telephony + Television” (8.6%) bundle. Double Play Source: UKE
CHART 40. SHARE OF INDIVIDUAL DOUBLE PLAY BUNDLES IN TERMS OF NUMBER OF USERS
Mobile telephony + Mobile internet 66.3%
Fixed-line internet + Television 12.0%
Mobile telephony + Television 8.6%
Mobile internet + Television 3.8%
Mobile internet + VoIP telephony 3.0%
Other 6.2%
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 36 Among the Triple Play services, the shares of individual In the case of the number of users of bundles consisting bundles are more evenly distributed than in the case of four services, the “Mobile telephony + Fixed-line internet of other bundled services. The first position, with the result + Television + VoIP telephony” bundle definitely dominates. of 43%, was taken by the “Mobile telephony + Fixed-line About 95% of users of Quadruple Play opted for it. internet + Television” bundle. The second position, The second position was taken by the “Fixed-line telephony with the share of 30%, was taken by the “Fixed-line + Fixed-line internet + Mobile internet + Television” service telephony + Fixed-line internet + Television” bundle. with the result of 3%.
98% of the market of bundled services consisting of five elements is the “Fixed-line telephony + Mobile telephony + Fixed-line internet + Mobile internet + Television” service.
CHART 41. SHARES OF INDIVIDUAL TRIPLE PLAY BUNDLES IN TERMS OF NUMBER OF USERS
Mobile telephony + 43.0% Fixed-line internet + Television
Fixed-line telephony + 30.0% Fixed-line internet + Television
Mobile telephony + fixed-line 13.7% internet + Mobile internet
Other 13.2%
Source: UKE
CHART 42. SHARES OF INDIVIDUAL QUADRUPLE PLAY BUNDLES IN TERMS OF NUMBER OF USERS
Mobile telephony + Fixed-line internet + 94.9% Television + VoIP telephony
Fixed-line telephony + Fixed-line internet + 3.0% Mobile internet + Television
Fixed-line telephony + Mobile telephony + 1.3% Fixed-line internet + Television
Other 0.8%
Source: UKE
CHART 43. SHARES OF INDIVIDUAL QUINTUPLE PLAY BUNDLES IN TERMS OF NUMBER OF USERS
Fixed-line telephony + Mobile telephony + 98.1% Fixed-line internet + Mobile internet + Television
Fixed-line telephony + Mobile telephony + 1.5% Fixed-line internet + Mobile internet + VoIP telephony
Other 0.4%
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 37 3.4. MARKET STRUCTURE
Invariably for several years, the operator attracting the largest group of bundled services clients (around 46%) is P4. In comparison to 2017, it is a 6.5 pp decrease. Orange managed to gather more than 13% of users of bundled services. Polkomtel recorded an increase in users of bundled services by 5.2 pp.
CHART 44. SHARES OF OPERATORS IN TERMS OF NUMBER OF BUNDLED SERVICES USERS
P4 45.9% 52.4%
Orange 13.3% 12.0%
Polkomtel 10.3% 5.1%
Cyfrowy Polsat 8.6% 4.6%
UPC 7.5% 9.1%
Vectra 3.9% 5.0%
Netia 2.2% 2.8%
Premium Mobile 1.6%
Inea 1.0% 1.3%
Lycamobile 1.0% 1.3%
T-Mobile 0.5% 1.8%
Others 4.2% 4.6%
2017 2018
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 38 4. FIXED-LINE TELEPHONY 4.1. GENERAL INFORMATION
In 2018, almost 4.1 million users used fixed-line telephony services in Poland. The value of the fixed-line telephony 1.9 billion market amounted to PLN 1.9 billion. In comparison to last value of the fixed-line telephony market in Poland year, the value decreased by almost 16%.
CHART 46. PERCENTAGE SHARE OF TYPES OF LINES IN THE TOTAL SHARE OF SUBSCRIBER LINES 4.1 million 2.8% 0.2% FTTx 4.9% users of fixed-line telephony in Poland xDSL inne
48.8% POTS The largest number of proprietary subscriber lines, almost 18.8% half (48.8%) of all fixed lines, were POTS lines. Clear growth, TVK in relation to the previous period, was recorded in relation to cable TV connections which became the second technology used by fixed-line telephony operators in terms of number of lines (18.8%) in Poland. In the third place 12.3% (12.3%), there was WLR followed by ISDN (12.2%). The latter, WLR along with development of NGA, are losing their current position among the most popular technologies. 12.2% Source: UKE ISDN
CHART 45. VALUE OF THE FIXED-LINE TELEPHONY MARKET (PLN BILLION) AND DYNAMICS OF CHANGE
20.7%
15.7%
13.0% 12.7% 12.3%
4.8%
4.3 3.8 3.3 2.6 2.3 1.9
2013 2014 2015 2016 2017 2018
market value dynamics of change
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 40 4.2. REVENUES
The value of the fixed-line telephony market in Poland has The main source of revenues for operators providing fixed- been declining for 5 years. In 2018, the revenues of fixed-line line telephony services was the revenues from subscribers telephony operators amounted to PLN 1.9 billion. connected to the operator’s own network. Only about 13% In comparison to the previous year, there was a decrease constituted the revenues from WLR subscribers. by approx. 16%.
16% decrease in revenues from fixed-line telephony
CHART 47. STRUCTURE OF REVENUES IN TERMS OF THE TYPE OF SUBSCRIBER LINES USED
12.9% WLR subscribers
87.1% Subscribers connected to the operator’s own network Source: UKE
Report on the state of the telecommunications market in Poland in 2018 41 4.3. SUBSCRIBERS
Since 2013, the number of subscribers to the fixed-line CHART 49. DYNAMICS OF ARPU CHANGES (PLN) telephony service has been steadily decreasing. Compared to 2017, this number fell by over 14%. 52.7
50.3
14% 47.7 decrease in the number of fixed-line telephony subscribers
41.2
The downward trend in the fixed-line telephony market 39.7 39.0 also translated into a drop in the average revenues of telecommunications operators per user (ARPU). This indicator was at the level of PLN 39. 2013 2014 2015 2016 2017 2018
Source: UKE
CHART 48. NUMBER OF SUBSCRIBERS (MILLION) AND DYNAMICS OF CHANGE
14.6%
6.8 8.8% 6.2 5.7 5.2 7.6% 4.8 8.4% 8.4% 8.2% 4.1
2013 2014 2015 2016 2017 2018
number of subscribes dynamics of change
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 42 4.4. MARKET STRUCTURE
In 2018, Orange Polska (51.8%) still had more than half of the market share in the fixed-line telephony market in terms of number of users. UPC took the second place (16.4%), followed by Netia (9.7%), Multimedia Polska (4.2%), Vectra (3.3%) and T-Mobile (3.2%), respectively. The share of other operators in the market decreased by more than 5 pp.
CHART 50. SHARES OF OPERATORS IN TERMS OF NUMBER OF SUBSCRIBERS
Orange 52.0% 51.8%
UPC 13.3% 16.4%
Netia 8.8% 9.7%
Multimedia Polska 3.0% 4.2%
Vectra 3.4% 3.3%
T-Mobile 2.9% 3.2%
Others 16.7% 11.5%
2017 2018
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 43 4.5. TRAFFIC VOLUME
The fixed-line telephony market has been recording a systematic decrease in the volume of traffic over the last 6 years. Total duration of fixed-line calls was 5.4 billion minutes in 2018. With reduced duration of calls, the number of minutes per one subscriber also decreased. In 2018, it amounted to 111 minutes. The volume of calls consisted primarily of domestic calls (92.5%). Only 7.5% of the traffic was the result of international calls.
CHART 51. TRAFFIC VOLUME (BILLION MINUTES) AND AVERAGE MONTHLY NUMBER OF MINUTES PER SUBSCRIBER
141 145 135 126 118 111
11.5 10.4 9.2 8.0 6.7 5.4
2013 2014 2015 2016 2017 2018
total duration of fixed-line calls average monthly number of minutes per subscriber
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 44 4.6. WHOLESALE LINE RENTAL (WLR)
Revenues from Wholesale Line Rental amounted to PLN In 2018, the total of WLR subscriber lines amounted to 0.242 billion in 2018. In comparison to the previous year, 0.58 million. Compared to the previous year, this number the value decreased by PLN 0.043 billion. decreased by 5%.
Among the operators operating in the WLR market, Netia had the largest share in revenues (62.7%). Novum (10.2%) and Telestrada (6.7%) reported significantly lower revenues.
CHART 52. SHARES IN REVENUES FROM THE PROVISION OF WLR SERVICES
Netia 50.2% 62.7%
Novum 13.2% 10.2%
Telestrada 7.2% 6.7%
Voice Net 1.8% 3.9%
Telepolska 4.3% 3.5%
T-Mobile 2.2% 3.3%
Others 21.0% 9.7%
2017 2018
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 45 4.7. PRICES OF FIXED-LINE TELEPHONY SERVICES
The price analysis was made on the basis of the OECD Fixed At the end of 2018, the average price of fixed-line telephony Voice Price Benchmarking database. As part of the database, services in selected EU countries was EUR 33.32. the price lists of the largest telecommunications operators The lowest costs were paid by users from the Czech in selected European and world countries were collected. Republic (EUR 12.80), and the highest by the inhabitants For the purpose of this study, the medium usage basket of Austria (EUR 60.47). The costs that a fixed-line telephone was used. user had to incur in Poland amounted to EUR 14.08 and were lower by more than EUR 19 than the average price of selected countries in the ranking. Among the countries included in the list, prices in Poland were the second cheapest right after the Czech Republic.
CHART 53. MONTHLY BASKET VALUES FOR A MODERATELY ACTIVE USER IN SELECTED EU COUNTRIES (EUR WITH VAT) 60.46 51.77 50.91 49.93 49.76 48.39 43.69 EU average: EUR 33.32 incl. VAT 43.11 42.98 39.61 37.21 34.18 33.68 31.11 29.04 23.02 20.57 18.94 18.44 16.40 14.08 12.80
CZ PL LV EE HU SI SK FI DK SE DE EL FR LU IT NL BE ES UK PT IE AT
Source: OECD Fixed Voice Price Benchmarking
Report on the state of the telecommunications market in Poland in 2018 46 5. VOIP TELEPHONY 5.1. NUMBER OF USERS AND TRAFFIC VOLUME
In 2018, an increased interest of users in VoIP telephony services could be noticed (about 59% of increase 59% compared to 2017). The increase in the number increase in the number of VoIP users of subscribers resulted in longer duration of outgoing calls by 28%. 28% increase in VoIP traffic
CHART 54. NUMBER OF USERS AND TRAFFIC VOLUMES FOR VOIP SERVICES
2.49 2.32 2.33 2.18
1.82
1.53 1.57 1.46
2015 2016 2017 2018
number of users (in millions) volume of traffic (billion minutes)
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 48 5.2. MARKET STRUCTURE
The operator with almost 60% of users of VoIP telephony In the case of entities providing VoIP telephony services services, excluding services provided with the use using pre-paid scratch cards, we are dealing with of pre-paid scratch cards, was Orange Polska. Netia a completely different structure. Galena, the operator located in the second place with almost 15% of users. of the “Telegrosik” service, was the leader with almost 53% The third position was taken by Multimedia Polska S.A. of shares. Voxnet (46.5%) has approx. by 6.3% fewer users with the share of approx. 6.5% of subscribers. in their customer base.
CHART 55. SHARES OF OPERATORS IN TERMS OF CHART 56. SHARES OF OPERATORS IN TERMS OF NUMBER OF USERS OF VOIP TELEPHONE SERVICES, NUMBER OF USERS OF VOIP TELEPHONE SERVICES EXCLUDING SERVICES PROVIDED WITH THE USE OF PROVIDED USING THE PRE-PAID SCRATCH CARDS PRE-PAID SCRATCH CARDS
1.8% 0.5% 0.3% Aiton Easycall.pl S.A. Others Caldwell S.A. 16.0% Others 2.0% Polkomtel Sp. z o.o.
6.4% Multimedia Polska S.A. 46.5% Voxnet Sp. z o.o. 14.7% Netia S.A. 52.8% Galena Sp. z o.o.
59.0% Source: UKE Orange Polska S.A. Source: UKE
Report on the state of the telecommunications market in Poland in 2018 49 1. STATISTICS OF DATA COLLECTED DURING THE INVENTORY In the Information System on Broadband Infrastructure CHART 1. PERCENTAGE DISTRIBUTION (SIIS), used to provide data as part of the annual inventory OF ENTITIES IN SIIS IN 2018 of telecommunications infrastructure and services, a total of 8,956 entities were included (by 404 fewer than in the previous year). The difference in the number of entities that 8% were included in the SIIS in the previous inventory results, Public utility enterprises among others, from: 31% • removing 129 enterprises from the Register Local of Telecommunications Undertakings following government their deletion from the CEIDG and 58 entities following units their deletion from the National Court Register,
• making entries and deletions from the Register at the request of telecommunications undertakings.
61% Telecommunications undertakings Source: UKE
CHART 2. NUMBER OF ENTITIES IN SIIS DURING THE INVENTORY FOR 2016-2018
9,536 9,360 8,956
6,029 5,857 5,453
2,808 2,808 2,808
699 695 695
Telecommunications Local Public utility In total undertakings government units enterprises
2016 2017 2018
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 51 Data for 2018 was submitted to the SIIS system by 3,480 entities. The increase in the number of entities whose data was entered in the system as part of the inventory for 2018 was recorded in all categories of entities. This is probably related to the administrative proceedings conducted in 2018 by UKE to impose a fine on entities which did not fulfil their obligation to provide information as part of the annual inventory of telecommunications infrastructure and services in 2014-2018.
CHART 3. NUMBER OF ENTITIES THAT PROVIDED DATA AS PART OF THE INVENTORY FOR 2016-2018
3,498 3,480
3,154 2,912 2,901 2,698
499 500 400
87 56 79
Telecommunications Local Public utility In total undertakings government units enterprises
2016 2017 2018
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 52 With the increase in the number of contributors, there was The number of network termination points transferred during an overall increase in the number of data loaded to the SIIS, this year’s inventory amounted to 44.6 million in 2019 (most from several percent to 18% for the number of lines and 25% of which are mobile network termination points). A large for the number of cable connectors. number of buildings within the network coverage – several times exceeding the number of buildings in Poland – results from the fact that each mobile operator declared most buildings to be within its mobile network coverage.
CHART 4. NUMBER OF INFRASTRUCTURE ELEMENTS (IN THOUSANDS) ENTERED INTO SIIS
Connections 348 233 240
Co-locations 11 10 16
Cable 274 connectors 372 496
Interconnection 7 points 9 12
Wired 440 or wireless lines 542 665
Own or shared 350 nodes 375 409
2016 2017 2018
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 53 2. NODES OF TELECOMMUNICATIONS NETWORKS 2.1. OWN NODES
As part of this year’s inventory, entities reported 391,960 is also characterized by high density of the nodes own nodes (excluding virtual nodes), which is an increase (more than 3 nodes per km2). In the area of the two of over 30,000 compared to the 2017 data. regions there are almost 30% of all nodes in the country. An average density of nodes is characteristic Map 1 shows the density and number of own nodes of the following regions: Lower Silesia, Opole, Masovia, in individual regions. As always, the Silesian region stands Subcarpathia, Pomerania and Greater Poland. At the other out, where the largest number of nodes are located within end of the list you can find Warmia-Masuria and Lubusz a relatively small area – this situation is the result of a high in which there is one telecommunications node per 3 km2. level of urbanization of this area. The Lesser Poland region
MAP 1. OWN NODES IN REGIONS
21,032 8,854 18,690
20,155 14,749
53,181 7,020 30,852
15,975
31,376 20,649
14,509 9,283 56,534 21,171 47,930
Density of own nodes (number/km2)
0.36 – 0.50 0.51 – 1.00 1.01 – 1.50 1.51 – 3.50 3.51 – 4.58
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 55 TABLE 1. NUMBER OF NODES IN LOCALITIES OF DIFFERENT SIZE CATEGORIES
Percentage of the number of nodes Size of a locality Number of nodes in the total number of nodes
more than 100,000 164,674 42.01
50,001 – 100,000 31,516 8.04
20,001 – 50,000 42,717 10.90
5,001 – 20,000 41,706 10.64
1,001 – 5,000 45,180 11.53
501 – 1,000 25,559 6.52
101 – 500 34,266 8.74
up to 100 residents 6,342 1.62
Source: UKE
As shown in Table 1, more than half of the nodes are CHART 5. NUMBER OF OWN NODES located in cities with population of over 50,000. In turn, 27% of nodes are located in rural areas (Chart 5). 69,161 Largest cities 170,174 Municipalities
104,849 Rural areas
47,776 Cities in urban-rural municipalities Source: UKE
Report on the state of the telecommunications market in Poland in 2018 56 2.2. ACCESS NODES
332,061 access nodes were reported in the last inventory. The similarity with respect to analogous data for operators’ The density and number of such nodes are shown on Map 2. own nodes is also noticeable when comparing the As in the past year and as in the case of own nodes, percentage of access nodes in localities of different size the highest density of access nodes is characteristic categories – more than half of the nodes are located in cities of the Silesia and Lesser Poland regions. with population of more than 50,000 (Table 2).
MAP 2. ACCESS NODES IN REGIONS
16,393 6,655 16,529
17,489 11,888
44,721 5,814 21,210
13,230
27,803 17,430
13,442 7,668 49,678 18,096 44,015
Density of access nodes (number/km2)
0.27 – 0.50 0.51 – 1.00 1.01 – 1.50 1.51 – 3.50 3.51 – 4.02
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 57 TABLE 2. NUMBER OF ACCESS NODES IN LOCALITIES OF DIFFERENT SIZE CATEGORIES
Percentage of the number of nodes Size of a locality Number of nodes in the total number of nodes
more than 100,000 141,649 42.66
50,001 – 100,000 27,037 8.14
20,001 – 50,000 35,227 10.61
5,001 – 20,000 33,887 10.21
1,001 – 5,000 38,499 11.59
501 – 1,000 22,232 6.70
101 – 500 28,204 8.49
up to 100 residents 5,326 1.60
Source: UKE
Chart 6 presents the distribution pattern of access nodes CHART 6. NUMBER OF ACCESS NODES in relation to the degree of urbanization in various areas. Comparison with the values in Chart 6 Number of access nodes allows us to conclude that 85% of own nodes located 58,744 in rural areas are access nodes. Largest cities 145,367 Municipalities
89,209 Rural areas
38,741 Cities in urban-rural municipalities Source: UKE
Report on the state of the telecommunications market in Poland in 2018 58 Table 3 and corresponding Chart 7 present the number Most cities without access nodes are located in the of localities (regardless of their type and size) in which Podlaskie (75%) and Warmia-Masuria (71%) regions. entities declared the presence of their own access nodes Comparing the data from 2017 and 2018, it should be (all technologies). Relatively fewest localities without access noted that as a result of the telecommunications market nodes are located in Lesser Poland and Subcarpathian development and efficient investments supported from regions (less than 25%). These regions, as well as the public funds, the number of localities without their own Silesia region, are also characterized by the largest number access nodes decreased in almost all regions. of localities with three or more operators (over 30%).
TABLE 3. NUMBER OF LOCALITIES BY REGIONS IN WHICH ENTITIES DECLARED THE EXISTENCE OF THEIR OWN TELECOMMUNICATIONS NETWORK ACCESS NODES
Number 10 or Region of localities in total 0 TU 1 TU 2 TUs 3-9 TUs more TUs
Lower Silesia 2,618 970 845 386 387 30
Kuyavia-Pomerania 3,632 2,056 888 345 317 26
Lublin 4,087 2,026 983 554 503 21
Lubusz 1,336 645 340 159 182 10
Łódź 5,049 3,318 1,066 335 304 26
Lesser Poland 2,013 424 377 407 770 35
Masovia 8,617 5,942 1,629 504 501 41
Opole 1,203 504 368 164 158 9
Subcarpathia 1,721 413 376 279 630 23
Podlaskie 3,800 2,831 632 167 162 8
Pomerania 2,919 1,768 537 256 338 20
Silesia 1,365 417 233 208 445 62
Świętokrzyskie 2,519 1,500 522 248 238 11
Warmia-Masuria 3,924 2,793 657 245 218 11
Greater Poland 5,572 3,225 1,205 468 636 38
West Pomerania 3,081 1,964 586 273 249 9
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 59 CHART 7. SHARE OF LOCALITIES BY REGIONS IN WHICH THE ENTITIES DECLARED THE EXISTENCE OF OWN TELECOMMUNICATIONS NETWORK ACCESS NODES
Lower Silesia
Kuyavia-Pomerania
Lublin
Lubusz
Łódź
Lesser Poland
Masovia
Opole
Subcarpathia
Podlaskie
Pomerania
Silesia
Świętokrzyskie
Warmia-Masuria
Greater Poland
West Pomerania
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0 TU 1 TU 2 TUs 3-9 TUs 10 and more TUs
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 60 The analysis of data on the number of localities by size In all medium and large cities (with at least 50,000 category of localities in which the entities declared the inhabitants), there are nodes of at least 10 entities. presence of their own access nodes (Table 4, Chart 8) allows The largest number of localities without access nodes us to conclude that nodes of at least 3 entities are located are small and very small localities with up to 500 residents. in all localities with population of at least 5,000.
TABLE 4. NUMBER OF LOCALITIES BY SIZE CATEGORY OF LOCALITIES IN WHICH THE ENTITIES DECLARED THE EXISTENCE OF OWN TELECOMMUNICATIONS NETWORK ACCESS NODES
Size Total number 10 or of a locality of localities 0 TU 1 TU 2 TUs 3-9 TUs more TUs
more than 100,000 2,618 970 845 386 387 30
50,001 – 100,000 3,632 2,056 888 345 317 26
20,001 – 50,000 4,087 2,026 983 554 503 21
5,001 – 20,000 1,336 645 340 159 182 10
1,001 – 5,000 5,049 3,318 1,066 335 304 26
501 – 1,000 2,013 424 377 407 770 35
101 – 500 8,617 5,942 1,629 504 501 41
up to 100 residents 1,203 504 368 164 158 9
Source: UKE
CHART 8. NUMBER OF LOCALITIES BY SIZE CATEGORY OF LOCALITIES IN WHICH THE ENTITIES DECLARED THE EXISTENCE OF OWN TELECOMMUNICATIONS NETWORK ACCESS NODES
more than 100,000
50,001 – 100,000
20,001 – 50,000
5,001 – 20,000
1,001 – 5,000
501 – 1,000
101 – 500
up to 100
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0 TU 1 TU 2 TUs 3-9 TUs 10 and more TUs
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 61 2.3. FIBRE NODES
Data inventory for 2018 reported 216,599 fibre nodes. with fibre interfaces. On average, every second node in Poland The number of such nodes increased by 28,000 compared is equipped with fibre interfaces (Table 5). The largest share to 2017 and almost four times compared to 2013 (Chart 9). of fibre nodes is characteristic of localities with population The largest share of nodes with fibre interfaces of more than 20,000 up to 50,000. On average, the lowest is characteristic of the Podlaskie region – as many as 76% numbers of such nodes are recorded in very small localities of nodes in this region have interfaces of this type. On the – up to 100 residents (Table 6). other hand, only 30% of nodes in the Opole region are nodes
TABLE 5. NUMBER OF NODES IN INDIVIDUAL REGIONS BY TECHNOLOGY
Number Number Number Number Region of nodes of fibre nodes of wired nodes of radio nodes
Lower Silesia 31,376 16,464 21,454 7,333
Kuyavia-Pomerania 14,749 7,070 10,114 4,573
Lublin 20,649 12,419 7,541 6,873
Lubusz 7,020 3,260 4,550 2,291
Łódź 15,975 8,631 9,024 5,198
Lesser Poland 47,930 27,968 21,643 10,905
Masovia 53,181 35,983 30,897 8,948
Opole 14,509 4,312 12,080 2,111
Subcarpathia 21,171 10,468 8,330 8,573
Podlaskie 20,155 15,385 9,128 2,760
Pomerania 21,032 11,831 12,795 5,611
Silesia 56,534 29,056 35,799 10,041
Świętokrzyskie 9,283 5,488 3,949 3,041
Warmia-Masuria 8,854 4,448 5,530 3,177
Greater Poland 30,852 15,853 16,702 8,318
West Pomerania 18,690 7,963 13,539 4,424
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 62 CHART 9. NUMBER OF FIBRE NODES IN INDIVIDUAL YEARS
216,599
188,390
154,665
108,533
89,894
59,516
2013 2014 2015 2016 2017 2018
Source: UKE
TABLE 6. NUMBER OF NODES IN LOCALITIES OF DIFFERENT SIZE CATEGORIES
Size Number Number Number Number of a locality of nodes of fibre nodes of wired nodes of radio nodes
more than 100,000 164,674 93,534 112,789 18,095
50,001 – 100,000 31,516 18,521 19,971 4,263
20,001 – 50,000 42,717 25,686 23,530 7,931
5,001 – 20,000 41,706 23,970 22,572 10,822
1,001 – 5,000 45,180 24,711 18,297 17,764
501 – 1,000 25,559 14,803 8,565 10,423
101 – 500 34,266 13,262 14,688 20,636
up to 100 residents 6,342 2,112 2,663 4,243
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 63 3. TELECOMMUNICATIONS NETWORK COVERAGE 3.1. BUILDING PENETRATION OF WIRED CONNECTIONS OR WIRELESS TERMINALS
In order to assess network availability, a building (more than 80%): Silesia (approx. 90%), Opole, Lower Silesia penetration indicator was used, understood as the ratio and West Pomerania; the lowest penetration (less than 70%) of the number of buildings within the network reach is recorded in the following regions: Świętokrzyskie (they are buildings where operators declare the possibility (approx. 64%) and Masovia. Map 3 presents the distribution of providing services) to the number of all buildings pattern of access to fixed-line internet access in buildings in the analysed area. in the areas of individual municipalities. The share of buildings with access to fixed-line internet in individual The average building penetration with fixed-line internet municipalities is spatially differentiated – it is higher in the coverage at the end of 2018 was 77.3%. The following western part of the country and within highly urbanized regions are characterized by the highest penetration areas, and smaller in the central and eastern parts.
MAP 3. TOTAL BUILDING PENETRATION WITH FIXED-LINE INTERNET COVERAGE
80.1% – 100.0% [932]
60.1% – 80.0% [976]
40.1% – 60.0% [464]
20.1% – 40.0% [98]
5.1% – 20.0% [8]
0% – 5% [0]
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 65 Average building penetration with access to fixed-line The northern part of Podlaskie region and single internet services of at least 30 Mb/s for the entire country municipalities in the regions of the central and eastern currently amounts to approx. 43.1%, compared to 33% parts of the country are areas with extremely low in 2017. The highest penetration was recorded in the Silesia penetration, i.e. less than 5% – the number of such region (almost 68%) and in the Opole region (almost 52%), municipalities decreased, however, compared to the and the lowest – in the Świętokrzyskie region (about 25%). previous year. The lowest penetration, where only two Among the municipalities, the highest building penetration buildings within the range of fixed-line internet of at least of this type (97.5%) is characteristic of the city of Olsztyn 30 Mb/s were reported, were recorded in the rural in the Warmia-Masuria region. commune of Przasnysz and in the commune of Wieniawa – in the Mazovia region.
MAP 4. BUILDING PENETRATION WITH FIXED-LINE INTERNET COVERAGE OF AT LEAST 30 Mb/s
80.1% – 100.0% [131]
60.1% – 80.0% [287]
40.1% – 60.0% [540]
20.1% – 40.0% [865]
5.1% – 20.0% [611]
0% – 5% [44]
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 66 The implementation of investment projects from the second will be characterized by the highest percentage of buildings and two rounds of the third call for proposals under within the coverage of services of at least 30 Mb/s after the the Operational Programme Digital Poland will allow implementation of projects co-financed from EU funds due to increase the average building penetration with fixed-line to the already high percentage of such buildings in this area. internet coverage of at least 30 Mb/s up to 59%. In relation to the previous year, the prospects of the Opole The best results of the investment implementation should region have significantly improved, where previously no be expected in the Lublin and Świętokrzyskie regions investment projects were made under the OPDP. At present, (increase by 28 pp and almost 25 pp, respectively), while in the Opole region one should expect the increase the worst in the Silesia and Pomerania regions, where the in the penetration of buildings with coverage of at least penetration will increase by less than 8 pp. Despite small 30 Mb/s at the level of 19 pp (Chart 10). scope of investments under the OPDP, the Silesia region
CHART 10. BUILDING PENETRATION WITH FIXED-LINE INTERNET COVERAGE OF AT LEAST 30 Mb/s AFTER THE IMPLEMENTATION OF INVESTMENT PROJECTS WITHIN OPDP
Lower Silesia Lower Silesia 47% 15% 62%
Kuyavia-Pomerania Kuyavia-Pomerania 38% 13% 51%
Lublin Lublin 37% 28% 65%
Lubusz Lubusz 43% 16% 59%
Łódź Łódź 39% 16% 55%
Lesser Poland Lesser Poland 47% 13% 59%
Masovia Masovia 29% 15% 45%
Opole Opole 52% 19% 71%
Subcarpathia Subcarpathia 49% 22% 71%
Podlaskie Podlaskie 35% 15% 50%
Pomerania Pomerania 44% 8% 52%
Silesia Silesia 68% 7% 75%
Świętokrzyskie Świętokrzyskie 25% 25% 50%
Warmia-Masuria Warmia-Masuria 34% 14% 48%
Greater Poland Greater Poland 48% 14% 62%
West Pomerania West Pomerania 43% 16% 60%
Poland Poland 43% 15% 59%
Building penetration of 30 Mb/s Increase in building penetration of 30 Mb/s after completion of the OPDP competitions
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 67 Access to services of the highest speeds, at least 100 Mb/s, are Silesia (over 48%) and Subcarpathia (approx. 37%), while is provided for every fourth residential building in Poland the situation is least favourable in the Masovia region, where – in 2017, 10% of buildings had such access. The regions access to fixed-line internet of at least 100 Mb/s is possible characterized by the highest percentage of buildings within only in every eighth residential building (12.5%). the reach of the internet with capacity of at least 100 Mb/s
MAP 5. BUILDING PENETRATION WITH FIXED-LINE INTERNET COVERAGE OF AT LEAST 100 Mb/s
80.1% – 100.0% [63]
60.1% – 80.0% [128]
40.1% – 60.0% [248]
20.1% – 40.0% [434]
5.1% – 20.0% [530]
0% – 5% [1075]
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 68 3.2. HOUSEHOLD PENETRATION
An important objective of the European Digital Agenda total number of residential apartments in the analysed area. (EDA) is to ensure that by 2020 all Europeans have access The average household penetration with fixed-line internet to the internet of at least 30 Mb/s. In order to assess coverage of at least 30 Mb/s amounts to 71.7% and in the implementation of those objectives, a household relation to the previous year it increased by almost 5 pp. penetration rate was used, understood as the ratio The highest penetration is invariably characteristic of the number of residential apartments within the reach of the Silesia region (almost 87%), while the lowest of a network of at least 30 Mb/s (building in which operators of the Świętokrzyskie region (about 50%). declare the possibility of providing particular services) to the
MAP 6. HOUSEHOLD PENETRATION WITH FIXED-LINE INTERNET OF AT LEAST 30 Mb/s
80.1% – 100.0% [365]
60.1% – 80.0% [424]
40.1% – 60.0% [570]
20.1% – 40.0% [657]
5.1% – 20.0% [429]
0% – 5% [33]
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 69 The implementation of investment projects related to Measure 1.1 of the Operational Programme Digital Poland should result in an increase in household penetration to nearly 82%. The best results should be expected in the Lublin and Świętokrzyskie regions – an increase by 23 pp and 20 pp respectively (Chart 11).
CHART 11. HOUSEHOLD PENETRATION WITH FIXED-LINE INTERNET OF AT LEAST 30 Mb/s AFTER THE IMPLEMENTATION OF INVESTMENT PROJECTS WITHIN OPDP
Lower Silesia Lower Silesia 76% 9% 85%
Kuyavia-Pomerania Kuyavia-Pomerania 69% 9% 78%
Lublin Lublin 60% 23% 83%
Lubusz Lubusz 69% 10% 79%
Łódź Łódź 71% 11% 82%
Lesser Poland Lesser Poland 71% 9% 80%
Masovia Masovia 69% 9% 78%
Opole Opole 71% 15% 86%
Subcarpathia Subcarpathia 66% 18% 84%
Podlaskie Podlaskie 65% 10% 75%
Pomerania Pomerania 78% 5% 83%
Silesia Silesia 87% 4% 91%
Świętokrzyskie Świętokrzyskie 50% 20% 70%
Warmia-Masuria Warmia-Masuria 66% 11% 77%
Greater Poland Greater Poland 72% 11% 83%
West Pomerania West Pomerania 74% 11% 85%
Poland Poland 72% 10% 82%
Building penetration of 30 Mb/s Increase in building penetration of 30 Mb/s after completion of the OPDP competitions
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 70 Access to services with the highest speeds, at least 100 Mb/s, of the Silesia region (76%) are in the best situation. is available for almost 58.7% of all households (residential The situation is the least satisfactory in the Świętokrzyskie apartments). Increasingly, they are located not only in large region (less than 40%). cities, but also in rural areas. In this respect, the inhabitants
MAP 7. HOUSEHOLD PENETRATION WITH FIXED-LINE INTERNET OF AT LEAST 100 Mb/s
80.1% – 100.0% [197]
60.1% – 80.0% [262]
40.1% – 60.0% [347]
20.1% – 40.0% [374]
5.1% – 20.0% [413]
0% – 5% [885]
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 71 Another objective of EDA is to achieve the use of internet doubled with a relatively small increase in the total volume access services with capacity of at least 100 Mb/s by 50% of fixed-line internet access, which indicates that consumers of households by the end of 2020. At the end of 2018, such give up low-speed services in favour of those with better services were used by 38% of households out of those parameters. The level of usage for services with speeds which used fixed-line internet access (Chart 12). Over the exceeding 100 Mb/s in the total number of households past two years, the volume of such services has more than in 2018 amounted to 19.3%.
CHART 12. SHARE OF INDIVIDUAL SPEED CATEGORIES OF FIXED-LINE INTERNET ACCESS SERVICES IN THE TOTAL NUMBER OF SUCH SERVICES
2016 2% 2016 35% 2016 16%2016 30% 2016 16%
2017 2% 2017 29% 15%2017 2017 30% 2017 25%
2018 1% 2018 24% 13% 2018 2018 23% 2018 38%
Below 2 Mb/s From 2 to less than 10 Mb/s From 10 to less than 30 Mb/s From 30 to less than 100 Mb/s 100 Mb/s and more
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 72 3.3. MOBILE NETWORK COVERAGE
Contrary to the coverage of fixed-line networks, mobile CHART 13. SHARE OF INDIVIDUAL TECHNOLOGIES internet coverage is reported by spatial indication IN MOBILE INTERNET COVERAGE of address points located in the technological range of base stations. The reports by operators for 2018 indicate 0.9% that the LTE technology is steadily leading among mobile Other technologies, the share of which increased by approx. 1 pp. in relation to 2017 and amounted to over 85% in 2018 13.8% CDMA (Chart 13).
The reported data shows that about 10% of buildings in Poland are deprived of LTE internet access. It should be noted, however, that the buildings are located 85.3% in localities that are very small settlements with several LTE or a dozen or so buildings. Source: UKE
MAP 8. PERCENTAGE OF BUILDINGS WITH LTE TECHNOLOGY COVERAGE
90.3% 88.7% 91.4%
89.2% 87.8%
89.6% 93.0% 91.5%
86.9%
92.4% 87.5%
94.5% 85.6% 94.5% 86.6% 88.5%
85.6 – 87.5% 87.6 – 88.7% 88.8 – 89.7% 89.8 – 91.5% 91.6 – 94.5%
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 73 4. WIRED NETWORK ROUTES The length of wired telecommunications lines, estimated CHART 14. SHARE OF MEDIA on the basis of information provided by the entities IN LINE INFRASTRUCTURE obliged to report, equals 452,000 km as at the end of 2018. This is an increase compared to the previous year by approx. 16,000 km. 9.85% 0.14% Copper pair Coaxial copper Chart 14 presents the share of individual media in line infrastructure. The values are close to those of 2017, and fibre is by far the predominant one.
Chart 15 shows the change in the total length of fibre networks in individual years. In 2018 an increase in the length of fibre networks was recorded by 5,000 km. It is worth recalling that the decrease in the length of fibre networks between 2016 and 2017 resulted from more accurate submission of data to the SIIS by stakeholders. For example, in the case of only one entity, there was a decrease of approx. 72,000 km – from 76,724 km to 4,513 km.
90.01% Fibre Source: UKE
CHART 15. LENGTHS OF FIBRE NETWORKS IN 2015 – 2018 (THOUSAND KM)
429
370 368 373
2015 2016 2017 2018
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 75 Map 9 presents the routes of fibre lines in Poland (straight interconnection of network nodes). Clearly increased density of fibre lines is associated with highly urbanized areas (the conurbations of Silesia, Tri-City, Warsaw, Poznan, Wroclaw, etc.) and connections between the main urban centres along inter-regional communication routes.
MAP 9. FIBRE NETWORK ROUTES IN POLAND
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 76 The pie charts for individual regions on Map 10 show, A similar relationship is observed in Eastern Poland, which on the other hand, shares of operators’ own underground is probably a consequence of lesser urbanization of these and overhead fibre network routes in the total length of fibre areas and the resulting lower profitability of investments networks. The share of the overhead route, depending on in ducts. the region, is 5 to 35 percent. The illustration shows a spatial relationship – regions located in the south of Poland are As in previous years, there is a continuing relationship characterized by a higher share of the overhead network, between the ratio of overhead infrastructure to which can result from natural conditions (including underground infrastructure and the level of urbanization. topography).
MAP 10. SHARE OF ROUTES: UNDERGROUND AND OVERHEAD IN THE TOTAL LENGTH OF FIBRE NETWORKS
Source: UKE
Report on the state of the telecommunications market in Poland in 2018 77 Office of Electronic Communications Strategy and Analysis Department Phone: +48 22 534 9335 fax: +48 22 534 9322 e-mail: [email protected]
www.uke.gov.pl