RTR INTERNET MONITOR 2018 Annual Report

www.rtr.at 2018 Austrian Regulatory Authority for Broadcasting and Telecommunications (Rundfunk und Telekom Regulierungs-GmbH) Mariahilfer Strasse 77–79, 1060 Vienna, Austria Tel.: +43 (0)1 58058-0; fax: +43 (0)1 58058-9191; e-mail: [email protected] web: www.rtr.at RTR INTERNET MONITOR 2018 Annual Report

2018 Contents

Contents RTR Internet Monitor 2018 Annual Report

Preface 5

1 Broadband in Austria 7 Fixed and mobile broadband connections 8 Broadband penetration 9 Fixed and mobile data volume – retail market 10 Fixed and mobile data volume per connection 11 Broadband revenues 12 Tables 13

2 Fixed broadband 17 Retail fixed broadband by infrastructure 18 Retail fixed broadband by customer category 19 Retail broadband connections by bandwidth category – fixed network 20 Retail broadband connections by bundle category – fixed network 21 Revenues from retail broadband connections – fixed network 22 Wholesale broadband products offered by A1 Telekom Austria AG 23 Tables 24

3 Mobile broadband 27 Active mobile broadband connections – retail 28 Active mobile broadband connections by customer category 29 Retail data volumes in mobile networks 30 Tables 31

4 Broatband prices 33 Hedonic price index for broadband 34 Price baskets for fixed broadband – with and without TV 35 Price baskets for mobile broadband – limited data volumes 36 Price baskets for mobile broadband – unlimited data volumes 37 Price baskets: fixed vs. mobile broadband 38 Tables 39

RTR Internet Monitor 2018 Annual Report Contents

5 Monitoring internet access quality 43 RTR-NetTest 44 Download and upload speeds (all technologies) 45 Download speed by bandwidth category 46 Download speed by technology 47 Upload speed by technology 48 Number of tests for each technology 49 Median download speed – off-peak and peak 50 Download and upload speeds by time of day 51 Download speed by region 52 Ping time (latency) 53 Tables 54

6 Explanatory notes and Glossary 59 Explanatory notes on data sources 60 Glossary 61

Publishing information 64

RTR Internet Monitor 2018 Annual Report RTR Internet Monitor 2018 Annual Report Preface

Preface

Dear readers,

the internet is a fact of life: we wonder how we ever managed without it. Internet users worldwide numbered almost four billion in 2018, according to various statistics. Smartphones are nowadays seen as the main devices for quickly and easily accessing the internet, whether for business or personal reasons, on the go or at home.

While at the end of 2018 smartphone plans used to access the internet totalled roughly 5.7 million, outnumbering fixed broadband lines by more than double, demand for high- speed broadband connections continued to climb nonetheless, with lines supporting ≥100 Mbps representing more than 11% of total fixed broadband connections. Data usage is gathering momentum from quarter to quarter, both in the mobile and fixed network segments. A total of 433,550 terabytes were consumed via mobile networks in Q4 2018, 17.3% more than in Q3 2018, and 855,575 terabytes via fixed networks, which is an increase of 8.5% from the previous quarter.

In Austria, the need for increasingly faster internet access to serve the economy and society is clearly growing. To reliably meet this need, in the long run there is no alternative to stepping up the rollout of fixed and mobile fibre networks. As a regulatory authority, we will gladly do everything in our power to support the public sector in moving Austria forward towards a position at the forefront of the information society.

The RTR Internet Monitor series, founded last year, is our way of recognising the tremendous significance of the internet and the general public’s interest in this phenomenon. In this publication, we provide a summary of the Austrian broadband market as well as details of the fixed network and mobile access technologies, while pointing out trends based on the indexes we have calculated. The final section presents evaluations based on the RTR-NetTest, our tool for testing internet speed and quality.

As is fitting for the medium of the internet, we make the RTR Internet Monitor available in PDF and e-paper form, while the data can be viewed in the Open Data zone or as interactive charts.

We hope this report makes interesting reading for you.

Johannes Gungl Managing Director Vienna Telecommunications and Postal Services Division June 2019 RTR

RTR Internet Monitor 2018 Annual Report www.rtr.at 01

Broadband in Austria

1 Broadband in Austria 7

Fixed and mobile broadband connections 8

Broadband penetration 9

Fixed and mobile data volume – retail market 10

Fixed and mobile data volume per connection 11

Broadband revenues 12

Tables 13 Section 1 Broadband in Austria

Fixed and mobile broadband connections

Smartphone subscriptions increase by roughly 3% in Q4 2018

Fixed broadband Mobile data subscriptions Smartphone subscriptions

in thousands

12,000

10,000

8,000

6,000 4,223 4,282 4,339 4,661 4,780 4,819 4,909 5,478 5,492 5,472 5,486 5,658

4,000 2,417 2,462 2,404 2,464 2,451 2,453 2,462 2,220 2,156 2,140 2,153 2,162

2,000

2,479 2,488 2,494 2,524 2,528 2,516 2,506 2,511 2,512 2,523 2,514 2,521 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2019

• At the end of 2018, there were around 10.3 million broadband The chart above shows the total number of connections in Austria, which was somewhat more than in the fixed and mobile broadband connections. previous quarter (+1.8%). Fixed broadband connections include both those based on provider-owned infrastructure • Fixed broadband connections rose slightly in number by 0.3% to a and unbundled lines, as well as those total of 2.52 million. purchased in the wholesale market. Within mobile broadband, a distinction is • Mobile data subscriptions totalled 2.16 million after a marginal made between mobile data subscriptions increase of 0.4%. (with or without data volumes included) and smartphone subscriptions. M2M SIM cards are • Smartphone subscriptions showed the most substantial growth. not shown in the chart. These totalled roughly 5.66 million at the end of 2018, which The term ‘broadband connections’ is defined in represents a 3.1% jump from the previous quarter and is 3.3% the Glossary at the end of the report. more than at the end of 2017. Such tariff plans accounted for over half of the broadband connections shown here (54.7%).

8 RTR Internet Monitor 2018 Annual Report Section 1 Broadband in Austria

Broadband penetration

More smartphones but no change in fixed and mobile broadband connections compared year-on-year

Fixed broadband Mobile data subscriptions Smartphone subscriptions

Percentage of households

200%

150% 141.9%

100%

63.2% 54.2% 50%

0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

Source for number of households: Statistics Austria

• The fixed broadband penetration rate showed a marginal increase Broadband penetration refers to the ratio of of 1.1 percentage points in the fourth quarter of 2018. This meant fixed and mobile broadband connections to that 63.2% of households had fixed lines. the total number of households in Austria. The penetration rate also takes into account • As previously, smartphone subscriptions showed the highest broadband connections used by businesses. penetration rate, equating to 141.9% of households after climbing steeply by 4.3 percentage points.

• This contrasts with mobile data subscriptions, which increased slightly as in the previous quarter, gaining 0.2 percentage points to finally account for 54.2% of households.

RTR Internet Monitor 2018 Annual Report 9 Section 1 Broadband in Austria

Fixed and mobile data volume – retail market

Consistently higher volumes of fixed and mobile data used

Mobile broadband data volume Fixed broadband data volume (from Q4 2017)

Upload/download data volume in terabytes

1,000,000

800,000

600,000

400,000

200,000

109,876 124,488 142,937 194,174 223,084 235,177 266,823 310,423 713,868 346,185 788,382 344,283 738,608 369,727 788,471 433,550 855,575 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

• Both among mobile and fixed network users, data usage increased The chart above shows the data volume in in Q4 2018. Compared year-on-year with the fourth quarter of 2017, terabytes that was uploaded and downloaded mobile traffic increased by 39.7% and fixed volumes by 19.9%. in the retail fixed and mobile markets (1 terabyte = 1,024 gigabytes = 1,048,576 • A total of 433,550 terabytes were consumed via mobile networks megabytes). The data volume for retail fixed in Q4 2018, which is a substantial 17.3% rise from the previous networks is only available from Q4 2017 quarter. onwards.

• The data volume used via fixed networks amounted to 855,575 terabytes in the reference quarter, 8.5% more than in the preceding quarter.

• The ratio of fixed to mobile data volumes continued to be roughly 2:1.

10 RTR Internet Monitor 2018 Annual Report Section 1 Broadband in Austria

Fixed and mobile data volume per connection

Unbroken strong growth in volume used under data subscriptions with set monthly rate

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Data volume in GB per connection an month

120

100

97.0 107.1 99.9 107.1 115.8 47.1 53.2 51.0 53.7 65.2 4.1 4.6 5.1 5.6 5.9

0 Fixed data volume per Mobile data volume per active mobile Mobile data volume per other mobile fixed broadband line data subscription with set monthly rate subscription (smartphone subscriptions and tariff plans without a set monthly rate)

• Based on the same quarter in the previous year, the strongest The chart shows the volume of data uploaded data usage growth rate in Q4 2018 was recorded for smartphone and downloaded in the fixed network and subscriptions and tariff plans without a set monthly rate (43.3%), mobile retail markets in gigabytes per with the rate for mobile data subscriptions including a set monthly connection and month. The figures are rate also increasing strongly (38.3%). This contrasts with the data obtained by dividing the quarterly data volume volume used via fixed subscriptions, which rose only 18.3% from by the number of connections that customers the previous year. used to access the internet at least once in the particular quarter (and then dividing by three to • In that quarter, the average fixed broadband user consumed 115.8 obtain a monthly value). gigabytes of data. This equates to an increase of 5.7% in Q4 2018 compared with the quarter before.

• Average mobile data use under data-only subscriptions with a set monthly rate climbed sharply in Q4 2018, by 21.5%. In total, 65.2 GB were used on average per connection and month in Q4 2018.

• Despite the growing number of active connections under smartphone subscriptions and tariff plans without any set monthly rate, there was a renewed rise in the average data volume consumed under such plans in Q4 2018, climbing by 4.8% from the previous quarter to a total average of 5.9 GB per month.

RTR Internet Monitor 2018 Annual Report 11 Section 1 Broadband in Austria

Broadband revenues

Total revenues of EUR 1.6 billion in 2018

Fixed broadband (incl. bundled packages) Mobile broadband Wholesale revenues

in EUR millions

500

11 10 10 400 8 8

8 8 7 7 4 4 7 300 152 145 145 147 144 84 82 86 85 83 86 89

200

210 212 212 213 217 221 224 230 233 237 239 238

100

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

• The total of roughly EUR 390.9 million in Q4 2018 represents a The chart shows revenues from broadband minor drop of 1.1% in broadband revenues compared with the connections, broken down by fixed broadband previous quarter. Even so, a rise of 0.3% can be seen in comparison revenues (including bundle revenues), revenues with Q4 2017. from mobile broadband and wholesale revenues (bitstream and resale). Up to and • Revenues from fixed broadband, including bundled packages, including Q3 2017, `mobile broadband’ also continue to account for the largest share by far (60.8%). Mobile comprises `fees for data and value-added broadband products generated 36.7% of revenues. Wholesale data services’, and as of Q4 2017 `data-only revenues from bitstream and resale products made up 2.5%, with subscriptions’. a significant drop of 8.4% from the previous quarter recorded here.

12 RTR Internet Monitor 2018 Annual Report Section 1 Broadband in Austria

TABLE 01: FIXED AND MOBILE BROADBAND CONNECTIONS (IN THOUSANDS) SEE PAGE 8

Fixed broadband Mobile data subscriptions Smartphone subscriptions Q1 2016 2,479 2,417 4,223 Q2 2016 2,488 2,462 4,282 Q3 2016 2,494 2,404 4,339 Q4 2016 2,524 2,464 4,661 Q1 2017 2,528 2,451 4,780 Q2 2017 2,516 2,453 4,819 Q3 2017 2,506 2,462 4,909 Q4 2017 2,511 2,220 5,478 Q1 2018 2,512 2,156 5,492 Q2 2018 2,523 2,140 5,472 Q3 2018 2,514 2,153 5,486 Q4 2018 2,521 2,162 5,658

TABLE 02: BROADBAND PENETRATION (PERCENTAGE OF HOUSEHOLDS) SEE PAGE 9

Fixed broadband Mobile data subscriptions Smartphone subscriptions Q1 2016 63.2% 61.6% 107.7% Q2 2016 63.3% 62.7% 109.0% Q3 2016 63.3% 61.0% 110.2% Q4 2016 64.0% 62.5% 118.2% Q1 2017 64.0% 62.0% 121.0% Q2 2017 63.6% 62.0% 121.8% Q3 2017 63.2% 62.1% 123.8% Q4 2017 63.3% 55.9% 138.0% Q1 2018 63.2% 54.3% 138.2% Q2 2018 62.9% 53.8% 137.6% Q3 2018 62.1% 54.0% 137.6% Q4 2018 63.2% 54.2% 141.9%

TABLE 03: DATA VOLUME (IN TERABYTES) SEE PAGE 10

Mobile broadband data volume Fixed broadband data volume

Q1 2016 109,876 Q2 2016 124,488 Q3 2016 142,937 Q4 2016 194,174 Q1 2017 223,084 Q2 2017 235,177 Q3 2017 266,823 Q4 2017 310,423 713,868 Q1 2018 346,185 788,382 Q2 2018 344,283 738,608 Q3 2018 369,727 788,471 Q4 2018 433,550 855,575

RTR Internet Monitor 2018 Annual Report 13 Section 1 Broadband in Austria

TABLE 04: DATA VOLUME PER CONNECTION AND MONTH (IN GB) SEE PAGE 11

Mobile data volume per other Fixed data volume per fixed Mobile data volume per active mobile subscription broadband line mobile data subscription with (smartphone subscriptions set monthly rate and tariff plans without a set monthly rate)

Q4 2017 97.0 47.1 4.1 Q1 2018 107.1 53.2 4.6 Q2 2018 99.9 51.0 5.1 Q3 2018 107.1 53.7 5.6 Q4 2018 115.8 65.2 5.9

TABLE 05: BROADBAND REVENUES (IN EUR MILLIONS) SEE PAGE 12

Fixed broadband Mobile broadband Wholesale revenues (incl. bundled packages) Q1 2016 210 84 4 Q2 2016 212 82 4 Q3 2016 212 86 7 Q4 2016 213 85 7 Q1 2017 217 83 7 Q2 2017 221 86 8 Q3 2017 224 89 8 Q4 2017 230 152 8 Q1 2018 233 145 8 Q2 2018 237 145 10 Q3 2018 239 147 11 Q4 2018 238 144 10

14 RTR Internet Monitor 2018 Annual Report www.rtr.at 02

Fixed broadband

2 Fixed broadband 17

Retail fixed broadband by infrastructure 18

Retail fixed broadband by customer category 19

Retail broadband connections by bandwidth category – fixed network 20

Retail broadband connections by bundle category – fixed network 21

Revenues from retail broadband connections – fixed network 22

Wholesale broadband products offered by A1 Telekom Austria AG 23

Tables 24 Section 2 Fixed broadband

Retail fixed broadband by infrastructure

Significant growth in FTTH broadband connections

DSL incl. unbundling Coaxial cable FTTH Private customers Business customers

No. of connections in thousands in thousands

2,000 250,000

200,000 1,559 1,500

150,000

1,000 2,244 2,253 2,258 2,289 2,297 2,287 2,274 2,274 2,277 2,290 2,284 2,295 871 100,000

500 50,000

63 217 217 217 216 212 210 213 215 214 211 210 206 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

• At the end of Q4 2018, Austria had roughly 1.56 million DSL The chart shows the number of fixed connections (including unbundled connections), 871,000 cable broadband connections, broken down by connections and 63,000 FTTH connections. infrastructure. With hybrid products, data traffic normally runs via a fixed connection • DSL connections finally increased again in number in Q4 2018, by (usually based on DSL) and additionally via roughly 38,000 connections or 2.5%, a phenomenon last seen in a mobile network when required. Because Q4 2016. they are based on fixed broadband, hybrid products are included in the chart under DSL • A marginal 0.3% increase was also recorded for cable connections connections. (+3000 lines).

• As in the previous quarter, the strongest growth in relative terms was seen with FTTH connections, increasing by 9.4%.

• Unchanged from the previous quarter, there were also roughly 28,000 retail FWA connections (not shown in the chart).

18 RTR Internet Monitor 2018 Annual Report Section 2 Fixed broadband

Retail fixed broadband by customer category

Marginal increase in private fixed broadband connections

Private customers Business customers

in thousands

250,000

200,000

150,000 2,244 2,253 2,258 2,289 2,297 2,287 2,274 2,274 2,277 2,290 2,284 2,295

100,000

50,000 217 217 217 216 212 210 213 215 214 211 210 206 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

• Private customers accounted for about 91.6% or 2.3 million of the The chart shows the number of fixed roughly 2.5 million fixed broadband connections in Q4 2018. broadband connections, broken down by customer category. Categories are • Overall growth of 0.6% was seen in the private customer segment differentiated according to product type. compared with the previous quarter. When sold as a private customer product, a connection is classified under the private • Business customer products, in contrast, declined by 1.4% to customer segment, even if purchased by a account for 206,000 lines. business customer. Refer to the Glossary for the precise definition.

RTR Internet Monitor 2018 Annual Report 19 Section 2 Fixed broadband

Retail broadband connections by bandwidth category – fixed network

Continued strong trend towards 100 Mbps and faster connections

<10 Mbps ≥10 Mbps to <30 Mbps ≥30 Mbps to <100 Mbps ≥100 Mbps in thousands

3,000

88 93 97 104 146 163 194 209 232 257 268 281 2,500

423 454 463 482 466 469 501 2,000 525 540 651 671 691

1,500 811 799 805 799 776 752 712 695 686 747 742 736 1,000

500

1,091 1,076 1,062 1,071 1,072 1,065 1,031 1,015 988 802 768 749

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

• Fixed broadband connections falling under the categories of The chart depicts the number of fixed <10 Mbps and ≥10 to <30 Mbps accounted for almost equal broadband connections grouped by bandwidth percentages of total fixed broadband connections (30.5% and 30%). category. The figures include connections The total number of connections within each of these categories based on provider-owned infrastructure or also dropped, by 2.5% and 0.7% respectively. unbundled lines but not on infrastructure purchased in the wholesale market. All • The demand for broadband connections supporting speeds of connections supporting low bandwidths of 100 Mbps and more is growing, with an additional 20,000 or so such <10 Mbps are subsumed under one chart connections being set up in the fourth quarter of 2018, making an category. increase of 4.9%. This category represented about 11.4% of all fixed broadband connections at the end of 2018.

• Connections supporting ≥30 Mbps and <100 Mbps were seen to increase by 3% during that quarter to finally account for 28.1% of the total number.

20 RTR Internet Monitor 2018 Annual Report Section 2 Fixed broadband

Retail broadband connections by bundle category – fixed network

Continued decline in sales of broadband products including fixed telephony

Standalone broadband (not in bundle) Broadband + fixed phone + TV Broadband + TV

<10 Mbps ≥10 Mbps to <30 Mbps ≥30 Mbps to <100 Mbps ≥100 Mbps Broadband + fixed phone Other bundles incl. broadband in thousands in thousands

3,000 3,000

88 93 97 104 146 163 194 209 232 257 268 281 20 19 19 42 2,500 2,500 30 28 26 21 36 39 41 42 181 186 169 172 175 187 192 194 196 201 202 205 423 454 463 482 466 469 501 2,000 525 2,000 540 651 671 691 559 561 563 563 563 561 557 541 534 538 546 548

1,500 1,500 811 799 805 799 776 752 712 695 686 747 742 736 1,087 1,093 1,104 1,108 1,107 1,103 1,092 1,081 1,071 1,129 1,117 1,132

1,000 1,000

500 500

1,091 1,076 1,062 1,071 1,072 1,065 1,031 1,015 988 802 768 749 583 583 590 608 608 601 600 609 625 567 562 567 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

• Products combining broadband with fixed telephony were still the The chart shows the number of broadband most popular broadband bundled products in Q4 2018, increasing products sold to retail customers, where the by 1.4% to account for 45.2% of total fixed broadband connections. products are based on the provider’s own infrastructure or an unbundled line and not • There was a renewed increase of 1% in the category of broadband on additionally purchased infrastructure. standalone products, which represented about 22.6% of total Broadband products may be fixed broadband connections at the end of December 2018. products sold without any other product (standalone), or a combination of fixed • As in the previous quarter, product bundles consisting of fixed broadband with one or more other products broadband, fixed telephony and TV increased by 0.3% to account (bundled product). for 21.9% of all the fixed broadband products at the end of Q4 2018.

• Compared with the same quarter in the previous year, broadband combined with other products showed the strongest gain (7.4%), while the number of broadband standalone connections declined by 7.2%.

• From Q4 2017, data are now also collected on bundled products combined not with fixed broadband but instead offered with other telecoms services (e.g. TV and mobile services or fixed network voice telephony and TV). Around 16,000 such products had been sold as of the end of September 2018 (not shown).

RTR Internet Monitor 2018 Annual Report 21 Section 2 Fixed broadband

Revenues from retail broadband connections – fixed network

EUR 941 million in revenues from retail fixed broadband connections in 2018

Standalone broadband (not in bundle) Broadband + fixed phone + TV Broadband + TV Physically unbundled lines according to A1 Broadband connections via physically unbundled lines

Broadband + fixed phone Other bundles incl. broadband Virtual unbundling Bitstream connections

in EUR millions in thousands

250 250 6 5 5 6 1 5 1 1 2 1 24 23 2 1 25 25 21 22 24 17 19 200 17 17 17 200

54 54 54 54 54 55 54 61 63 63 64 62 150 150 224 218 214 210 206 202 198 193 189 176 170 159

100 100

81 82 83 83 85 86 88 82 82 84 85 86 93 133 128 125 120 115 110 107 108 105 100 101

50 50

57 58 57 58 58 59 59 57 58 58 59 59 38 37 37 37 37 37 37 37 36 35 34 34 12 14 16 19 21 23 25 29 31 35 40 49 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

• In Q4 2018, revenues from broadband products, meaning The chart shows the revenues from standalone products and packages including fixed broadband, broadband access sold to retail customers, saw a 0.7% decline to total EUR 236.2 million. Total revenues in for connections based on provider-owned 2018 amounted to EUR 941 million. infrastructure or an unbundled line. This includes both broadband standalone products • Products combining fixed broadband with fixed telephony and bundled products, the latter referring to generated the largest share of revenues, with this category broadband offered in combination with another accounting for 36.4% of revenues, which represents a slight product (voice telephony and/or TV and/or increase of 1.8% from the previous quarter. other products).

• Broadband standalone products accounted for 24.8% of total revenues (a marginal 0.4% decrease).

• The largest declines were seen for products combining broadband with fixed telephony and television, which fell by 3.5%, and combinations of broadband and TV, which lost 3.6% (respectively accounting for 25.9% and 9.8% of total revenues).

22 RTR Internet Monitor 2018 Annual Report Section 2 Fixed broadband

Wholesale broadband products offered by A1 Telekom Austria AG

Virtual unbundling surpasses bitstream connections for the first time

Physically unbundled lines according to A1 Broadband connections via physically unbundled lines Virtual unbundling Bitstream connections

in thousands

250

200

150 224 218 214 210 206 202 198 193 189 176 170 159

100 93 133 128 125 120 115 110 107 108 105 100 101

50 38 37 37 37 37 37 37 37 36 35 34 34 12 14 16 19 21 23 25 29 31 35 40 49 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

• The number of virtually unbundled lines climbed sharply in The chart compares total unbundled lines with Q4 2018, totalling about 49,000. the number of broadband connections based on unbundled lines. The difference between • Meanwhile, bitstream connections dropped to roughly 34,000. the two figures is accounted for by the unbundled lines that are used only for voice • Both the number of physically unbundled lines and of broadband services or as leased lines, thus not falling connections provided on the basis of such lines declined, by 6% under broadband. In addition, in some cases and 8.2% respectively. multiple lines are used for one broadband connection (‘line bonding’). The chart also shows the total number of virtually unbundled connections and bitstream connections provided by A1 at wholesale level (see Glossary).

RTR Internet Monitor 2018 Annual Report 23 Section 2 Fixed broadband

TABLE 06: RETAIL FIXED BROADBAND BY INFRASTRUCTURE (IN THOUSANDS) SEE PAGE 18

DSL incl. Coaxial cable FTTH FWA unbundling Q1 2016 1,623 794 33 29 Q2 2016 1,622 803 34 29 Q3 2016 1,615 810 38 29 Q4 2016 1,635 820 41 29 Q1 2017 1,630 826 43 29 Q2 2017 1,612 831 44 29 Q3 2017 1,592 839 46 29 Q4 2017 1,586 845 52 28 Q1 2018 1,573 855 55 28 Q2 2018 1,576 862 57 28 Q3 2018 1,560 868 57 28 Q4 2018 1,559 871 63 28

TABLE 07: RETAIL FIXED BROADBAND BY CUSTOMER CATEGORY (IN THOUSANDS) SEE PAGE 19

Private customers Business customers

Q1 2016 2,244 217 Q2 2016 2,253 217 Q3 2016 2,258 217 Q4 2016 2,289 216 Q1 2017 2,297 212 Q2 2017 2,287 210 Q3 2017 2,274 213 Q4 2017 2,274 215 Q1 2018 2,277 214 Q2 2018 2,290 211 Q3 2018 2,284 210 Q4 2018 2,295 206

TABLE 08: RETAIL BROADBAND CONNECTIONS BY BANDWIDTH CATEGORY – FIXED NETWORK (IN THOUSANDS) SEE PAGE 20

<10 Mbps 10 Mbps 30 Mbps 100 Mbps ≥ ≥ ≥ to <30 Mbps to <100 Mbps Q1 2016 1,091 811 423 87 Q2 2016 1,076 799 454 93 Q3 2016 1,062 805 463 97 Q4 2016 1,071 799 482 104 Q1 2017 1,072 776 466 146 Q2 2017 1,065 752 469 163 Q3 2017 1,031 712 501 194 Q4 2017 1,015 695 525 209 Q1 2018 988 686 540 232 Q2 2018 802 747 651 257 Q3 2018 768 742 671 268 Q4 2018 749 736 691 281

24 RTR Internet Monitor 2018 Annual Report Section 2 Fixed broadband

TABLE 09: RETAIL BROADBAND CONNECTIONS BY BUNDLE CATEGORY – FIXED NETWORK (IN THOUSANDS) SEE PAGE 21

Standalone Broadband Broadband + Broadband + TV Other bundles Other bundles broadband (not + fixed phone fixed phone + TV incl. broadband w/o fixed in bundle) broadband Q1 2016 583 1,087 559 169 30 Q2 2016 583 1,093 561 172 28 Q3 2016 590 1,104 563 175 26 Q4 2016 608 1,108 563 181 21 Q1 2017 608 1,107 563 186 20 Q2 2017 601 1,103 561 187 19 Q3 2017 600 1,092 557 192 19 Q4 2017 609 1,081 541 194 36 16 Q1 2018 625 1,071 534 196 39 16 Q2 2018 567 1,129 538 201 41 16 Q3 2018 562 1,117 546 202 42 16 Q4 2018 567 1,132 548 205 42 16

TABLE 10: REVENUES FROM RETAIL BROADBAND CONNECTIONS – FIXED NETWORK (IN EUR MILLIONS) SEE PAGE 22

Standalone Broadband + Broadband + Broadband + TV Other bundles Other bundles broadband (not fixed phone fixed phone + TV incl. broadband w/o fixed in bundle) broadband Q1 2016 57 81 54 16 2 Q2 2016 58 82 54 17 2 Q3 2016 57 83 54 17 1 Q4 2016 58 83 54 17 1 Q1 2017 58 85 54 19 1 Q2 2017 59 86 55 21 1 Q3 2017 59 88 54 22 1 Q4 2017 57 82 61 24 5 1 Q1 2018 58 82 63 25 5 2 Q2 2018 58 84 63 25 5 2 Q3 2018 59 85 64 24 6 1 Q4 2018 59 86 62 23 6 1

TABLE 11: WHOLESALE BROADBAND PRODUCTS (IN THOUSANDS) SEE PAGE 23

Physically unbundled Broadband Virtual unbundling Bitstream lines according to A1 connections via physi- connections cally unbundled lines Q1 2016 224 133 12 38 Q2 2016 218 128 14 37 Q3 2016 214 125 16 37 Q4 2016 210 120 19 37 Q1 2017 206 115 21 37 Q2 2017 202 110 23 37 Q3 2017 198 107 25 37 Q4 2017 193 108 29 37 Q1 2018 189 105 31 36 Q2 2018 176 100 35 35 Q3 2018 170 101 40 34 Q4 2018 159 93 49 34

RTR Internet Monitor 2018 Annual Report 25 www.rtr.at 03

Mobile broadband

3 Mobile broadband 27

Active mobile broadband connections – retail 28

Active mobile broadband connections by customer category 29

Retail data volumes in mobile networks 30

Tables 31 Section 3 Mobile broadband

Active mobile broadband connections – retail

Roughly 7.8 million active mobile subscriptions (including smartphones) in Q4 2018

Data subscriptions with set monthly rate Data subscriptions without set monthly rate Voice subscriptions incl. data volume

in thousands

6,000 5,658

5,000

4,000

3,000

2,000 1,718

1,000

444

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

• The fourth quarter of 2018 saw a 5.3% increase in those data The chart shows the number of active mobile subscriptions without a set monthly rate that were used at broadband subscriptions (excluding M2M), least once to access the internet, with 22,000 new subscriptions broken down according to data subscriptions registered. At roughly 444,000 subscriptions, this category with a set monthly rate, data subscriptions accounted for 5.7% of all active tariff plans as of the end of without a set monthly rate and smartphone December 2018. tariff plans (voice call plans including data volumes).The categories have been revised • Smartphone subscriptions also increased by 3.1% to a total of in detail, initially when data were supplied 5.66 million. for Q1 2016, and later as of Q4 2017 after the amendment to the KEV. The definitions are • A slight decline was seen only for data subscriptions with a set explained in detail in the Glossary at the end monthly rate, which, despite a 0.8% drop, still accounted for about of the report. 1.72 million subscriptions, equating to 22% of total tariff plans.

• Mobile broadband subscriptions totalled about 7.8 million in Q4 2018, 2.4% more than in the quarter before.

• The amendment to the Communications Survey Ordinance (KEV) in relation to data collection became applicable as of Q4 2017, with mobile broadband categories appropriately redefined (see Glossary). This is reflected by the sudden jump in the time series chart shown here.

28 RTR Internet Monitor 2018 Annual Report Section 3 Mobile broadband

Active mobile broadband connections by customer category

85% of active mobile broadband connections purchased by private customers

Private customers Business customers

in thousands

2,500

2,000

1,500 1,996 2,035 1,966 2,024 2,014 2,004 2,013 1,891 1,840 1,818 1,834 1,846

1,000

500 420 427 438 440 437 449 449 329 316 322 319 315 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

• In Q4 2018, just under 2.2 million customers accessed the The chart shows the number of active mobile internet at least once via a mobile broadband connection (data broadband connections (both with and without subscriptions with or without a set monthly rate), representing a a set monthly rate), broken down by customer 0.4% rise from the previous quarter. category. Unlike with fixed broadband, subscriptions are classified as falling into • As in that quarter, there was marginal growth in numbers of the private customer or business customer private customer subscriptions, here by 0.7% to a total of roughly segment on the basis of the type of customer 1.84 million subscriptions. and not on the product. This means that a product intended for private customers can • This contrasts with the business customer segment, where mobile also fall under the business customer category broadband subscriptions again decreased in the surveyed quarter, when purchased by a company (see Glossary). by 0.8% to a total of 315,000.

RTR Internet Monitor 2018 Annual Report 29 Section 3 Mobile broadband

Retail data volumes in mobile networks

Data volumes consumed via data-only subscriptions climb sharply

Total data volume Data-only subscriptions Other subscriptions

Upload/download data volume in terabytes

500,000

400,000 105,594

97,564 79,209 88,073 300,000 72,138

200,000

100,000 109,876 124,488 142,937 194,174 223,084 235,177 266,823 238,286 266,976 256,210 272,163 327,956

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

• Q4 2018 saw a sharp jump in data volume usage, both by customers The chart shows the data volume in terabytes with data-only subscriptions and those having mixed tariff plans. that was uploaded and downloaded in the mobile retail market (1 terabyte = 1,024 • The data volume used as part of tariff plans not falling under gigabytes = 1,048,576 megabytes). The data-only subscriptions (such as smartphone bundles) grew again, figures do not include text or multimedia this time by 8.2%. The data used under such plans accounted for messages. From Q4 2017, data volumes can 24.4% of the total data volume used in Q4. be distinguished based on whether they originated from data-only subscriptions (plans • In that quarter approximately 55,000 terabytes more data were not including voice or text services) or another used via data-only subscriptions than in the previous quarter, kind of subscription (smartphone bundles and equating to a 20.5% increase. other plans including voice and text services).

• A year-on-year comparison with Q4 2017 reveals a 39.7% hike in total data volume usage.

30 RTR Internet Monitor 2018 Annual Report Section 3 Mobile broadband

TABLE 12: ACTIVE MOBILE BROADBAND CONNECTIONS – RETAIL (IN THOUSANDS) SEE PAGE 28

Data subscriptions with set Data subscriptions without Voice subscriptions monthly rate set monthly rate incl. data volume Q1 2016 1,421 996 4,223 Q2 2016 1,449 1,013 4,282 Q3 2016 1,477 927 4,339 Q4 2016 1,511 953 4,661 Q1 2017 1,527 925 4,780 Q2 2017 1,536 916 4,819 Q3 2017 1,565 896 4,909 Q4 2017 1,726 494 5,478 Q1 2018 1,714 442 5,492 Q2 2018 1,715 425 5,472 Q3 2018 1,731 422 5,486 Q4 2018 1,718 444 5,658

TABLE 13: ACTIVE MOBILE BROADBAND CONNECTIONS BY CUSTOMER CATEGORY (IN THOUSANDS) SEE PAGE 29

Private customer segment Business customer segment

Q1 2016 1,996 420 Q2 2016 2,035 427 Q3 2016 1,966 438 Q4 2016 2,024 440 Q1 2017 2,014 437 Q2 2017 2,004 449 Q3 2017 2,013 449 Q4 2017 1,891 329 Q1 2018 1,840 316 Q2 2018 1,818 322 Q3 2018 1,834 319 Q4 2018 1,846 315

TABLE 14: RETAIL DATA VOLUMES IN MOBILE NETWORKS (IN TERABYTES) SEE PAGE 30

Total data volume Data-only subscriptions Other subscriptions

Q1 2016 109,876 Q2 2016 124,488 Q3 2016 142,937 Q4 2016 194,174 Q1 2017 223,084 Q2 2017 235,177 Q3 2017 266,823 Q4 2017 238,286 72,138 Q1 2018 266,976 79,209 Q2 2018 256,210 88,073 Q3 2018 272,163 97,564 Q4 2018 327,956 105,594

RTR Internet Monitor 2018 Annual Report 31 www.rtr.at 04

Broadband prices

4 Broatband prices 33

Hedonic price index for broadband 34

Price baskets for fixed broadband – with and without TV 35

Price baskets for mobile broadband – limited data volumes 36

Price baskets for mobile broadband – unlimited data volumes 37

Price baskets: fixed vs. mobile broadband 38

Tables 39 Section 4 Broadband prices

Hedonic price index for broadband

Virtually no change from previous quarter

Fixed broadband Fixed and mobile Mobile broadband

Index points, basis = 2010

120

100 89.9 84.1 80

60 55.2

0 June 16 Sept. 16 Dec. 16 March 17 June 17 Sept. 17 Dec. 17 March 18 June 18 Sept. 18 Dec. 18 March 19

• Compared with the previous quarter, both the hedonic index for The broadband index is a hedonic price index fixed broadband and the overall index showed virtually no change for fixed and mobile broadband products. in Q1 2019. ‘Hedonic’ refers to the fact that both price changes and changes in product characteristics • A slight rise was seen, though, in the hedonic index for mobile (in particular download rate and download broadband, which climbed from 52.1 to 55.2 points between volume) are taken into account. The reference December 2018 and March 2019. base is 2010. Refer to the Glossary for details on methodology.

34 RTR Internet Monitor 2018 Annual Report Section 4 Broadband prices

Price baskets for fixed broadband – with and without TV

Bundled products offering the highest bandwidths still very costly

>100 Mbps >100 Mbps >30 to ≤100 Mbps >30 to ≤100 Mbps ≤30 Mbps ≤30 Mbps

With TV | EUR per month Without TV | EUR per month

70 70

60 60

53.2 50 50

41.4 40 40 37.4 35.0 31.8 30 30 26.6

20 20

10 10

0 0 Dec. 16 Dec. 17 Dec. 18 Dec. 16 Dec. 17 Dec. 18 June 16 June 16 June 17 June 18 June 17 June 18 Sept. 16 Sept. 17 Sept. 18 Sept. 16 Sept. 17 Sept. 18 March 17 March 18 March 19 March 17 March 18 March 19

• In the >100 Mbps bandwidth category, bundled products including Six fixed broadband price baskets are shown, TV increased in price during Q1 2019 by about EUR 2 to EUR 53.20 for each of the three bandwidth categories of in total. ≤30 Mbps, >30 to ≤100 Mbps and >100 Mbps, with each broken down in turn according to • Only marginal changes were seen for all other baskets. products including or not including TV. The basket value is based on the least expensive product from each operator that can be included in the respective basket. Operators are weighted according to the respective shares held in the fixed broadband connection market overall.

RTR Internet Monitor 2018 Annual Report 35 Section 4 Broadband prices

Price baskets for mobile broadband – limited data volumes

Virtually no change in price baskets for either category

≥10 GB >1 to <10 GB

EUR per month

15 15.1

11.4 10

0 June 16 Sept. 16 Dec. 16 March 17 June 17 Sept. 17 Dec. 17 March 18 June 18 Sept. 18 Dec. 18 March 19

• Relative to Q4 2018, the basket representing data volumes of The chart shows two price baskets for between >1 and <10 GB dropped by roughly EUR 0.50 to EUR 11.40. mobile broadband with limited data volumes, differentiated on the basis of the amount of • The basket of products with data volumes of ≥10 GB had increased data included. The first basket includes >1 to by roughly EUR 0.20 to EUR 15.10 by the end of Q1 2019. <10 GB and the second ≥10 GB. Each basket value is calculated on the basis of the price of the least expensive product relevant to that basket that each operator offers, including the user device (for example a data stick). Operators are weighted according to the respective shares held in the mobile broadband connection market overall (excluding smartphone subscriptions).

36 RTR Internet Monitor 2018 Annual Report Section 4 Broadband prices

Price baskets for mobile broadband – unlimited data volumes

Price baskets increased slightly in all categories

>100 Mbps >30 to ≤100 Mbps ≥30 Mbps

EUR per month

55.2

31.6 30

21.9 20

0 June 16 Sept. 16 Dec. 16 March 17 June 17 Sept. 17 Dec. 17 March 18 June 18 Sept. 18 Dec. 18 March 19

• All three price baskets representing mobile broadband products The price baskets for mobile broadband are with unlimited data volumes increased by roughly EUR 0.08 shown, with the categories distinguished in Q1 2019 compared with the previous quarter. Depending on according to bandwidth: ≤30 Mbps, between bandwidth, basket prices were about EUR 21.90, EUR 31.60 and >30 and ≤100 Mbps, and >100 Mbps. Each EUR 55.20. basket value is calculated on the basis of the price of the least expensive product relevant to that basket that each operator offers, including the user device (for example a WiFi modem/cube). Operators are weighted according to the respective shares held in the mobile broadband connection market overall (excluding smartphone subscriptions).

RTR Internet Monitor 2018 Annual Report 37 Section 4 Broadband prices

Price baskets: fixed vs. mobile broadband

Medium-speed data prices vary less

Mobile flat ≤30 Mbps Fixed ≤30 Mbps Mobile flat >30 to ≤ 100 Mbps Fixed >30 to ≤100 Mbps Mobile flat >100 Mbps Fixed >100 Mbps

EUR per month

55.2

41.4 40

31.8 30 31.6 26.6 21.9 20

0 June 16 Sept. 16 Dec. 16 March 17 June 17 Sept. 17 Dec. 17 March 18 June 18 Sept. 18 Dec. 18 March 19

• With high bandwidths (>100 Mbps), mobile connections were still The chart contrasts the three price baskets more costly than fixed access in Q1 2019. The opposite was true for fixed network broadband (each without for low-speed service (≤30 Mbps). TV) with the three price baskets for mobile broadband (with unlimited data volume). • Almost identical prices were seen in the >30 to ≤100 Mbps category In both cases, the broadband categories during early 2019. The prices for fixed broadband were about EUR differentiated are ≤30 Mbps, >30 to ≤100 31.80 and for mobile access about EUR 31.60. Mbps, and >100 Mbps. The basket value is based on the least expensive product from each operator that can be included in the respective basket.

38 RTR Internet Monitor 2018 Annual Report Section 4 Broadband prices

TABLE 15: HEDONIC PRICE INDEX FOR BROADBAND (INDEX POINTS, BASIS = 2010) SEE PAGE 34

Fixed Mobile Fixed and mobile

March 16 95.5 85.2 93.9 June 16 93.9 83.1 92.8 Sept. 16 92.4 74.4 89.9 Dec. 16 92.6 53.9 86.3 March 17 96.2 53.0 89.0 June 17 93.9 56.3 87.7 Sept. 17 93.7 58.1 88.0 Dec. 17 92.8 53.0 85.5 March 18 94.1 51.6 86.9 June 18 92.5 53.6 86.3 Sept. 18 90.5 51.0 83.7 Dec. 18 90.2 52.1 83.6 March 19 89.9 55.2 84.1

TABLE 16: PRICE BASKETS: FIXED BROADBAND WITHOUT TV (€ PER MONTH) SEE PAGE 35

≤30 Mbps >30 to ≤100 Mbps >100 Mbps March 16 20.4 32.5 47.2 June 16 20.3 31.7 45.6 Sept. 16 18.9 31.9 47.5 Dec. 16 18.8 31.9 47.6 March 17 24.0 33.0 49.3 June 17 23.7 32.5 47.0 Sept. 17 26.5 32.3 43.4 Dec. 17 25.8 31.2 43.6 March 18 26.2 31.8 42.3 June 18 26.4 32.1 41.0 Sept. 18 25.9 31.6 40.2 Dec. 18 26.6 31.7 41.4 March 19 26.6 31.8 41.4

RTR Internet Monitor 2018 Annual Report 39 Section 4 Broadband prices

TABLE 17: PRICE BASKETS: FIXED BROADBAND WITH TV (€ PER MONTH) SEE PAGE 35

≤30 Mbps >30 to ≤100 Mbps >100 Mbps March 16 31.5 49.3 53.4 June 16 31.4 41.9 53.5 Sept. 16 31.5 42.9 55.4 Dec. 16 30.6 47.6 55.6 March 17 34.0 42.5 62.5 June 17 34.1 41.3 63.3 Sept. 17 35.7 40.7 61.0 Dec. 17 35.6 40.7 61.2 March 18 34.9 41.4 52.7 June 18 34.9 42.8 50.5 Sept. 18 34.7 39.6 50.7 Dec. 18 34.8 37.1 51.2 March 19 35.0 37.4 53.2

TABLE 18: PRICE BASKETS: MOBILE BROADBAND (€ PER MONTH) SEE PAGE 36 AND PAGE 37

Limited data volumes Unlimited data volumes

>1 to <10 GB ≥10 GB ≤30 Mbps >30 to ≤100 >100 Mbps Mbps

March 16 13.7 19.4 26.0 39.4 51.3 June 16 13.4 19.5 26.0 39.4 51.3 Sept. 16 12.1 16.3 25.9 39.4 51.3 Dec. 16 12.4 16.3 23.7 33.5 52.1 March 17 12.1 15.9 23.5 32.4 50.1 June 17 12.3 15.9 23.5 33.5 51.5 Sept. 17 11.4 15.9 23.9 33.3 53.0 Dec. 17 11.5 15.5 23.9 32.3 51.8 March 18 11.5 15.7 23.6 32.6 49.7 June 18 11.4 15.7 24.4 33.4 51.0 Sept. 18 11.9 15.7 21.5 30.7 54.1 Dec. 18 11.9 14.9 21.1 30.8 54.3 March 19 11.4 15.1 21.9 31.6 55.2

40 RTR Internet Monitor 2018 Annual Report

www.rtr.at

42 RTR Internet Monitor 2018 Annual Report 05

Monitoring internet access quality

5 Monitoring internet access quality 43

RTR-NetTest 44

Download and upload speeds (all technologies) 45

Download speed by bandwidth category 46

Download speed by technology 47

Upload speed by technology 48

Number of tests for each technology 49

Median download speed – off-peak and peak 50

Download and upload speeds by time of day 51

Download speed by region 52

Ping time (latency) 53

Tables 54

RTR Internet Monitor 2018 Annual Report 43 Section 5 Monitoring internet access quality

RTR-NetTest

Developed by RTR, the NetTest allows users to check the speed and quality of an internet connection, reliably and independently of the provider. The RTR-NetTest is available as a mobile app for Android and iOS as well as a browser test, at www.netztest.at.

The RTR-NetTest measures a number of parameters of the internet connection. These include:

• Download speed • Upload speed • Ping time (latency) • Signal strength (depending on the user device)

The results displayed by the RTR-NetTest additionally include:

• Network type, that is, mobile network (2G, 3G or 4G), WiFi or browser • Location where measurements were taken • Provider of fixed or mobile internet access

All of the results described in this section are based on RTR-NetTest Open Data (see section 6). The following measurements are not used:

• Measurements taken outside of Austrian territory • Measurements for which the location can only be determined to within 2 or more km, or without any location details • Repeated or implausible tests

The results shown are based on actual measurements, which depend on factors such as the available technology or network coverage at the particular location, the user’s tariff plan, network traffic level, and the test environment (including device performance and operating system). The method behind RTR-NetTest is based on crowd sourcing, meaning that the test environment is not consistent over time, nor are conditions controlled or the sample representative.

Due to subsequent modification, results can differ from those previously published.

44 RTR Internet Monitor 2018 Annual Report Section 5 Monitoring internet access quality

Download and upload speeds (all technologies)

Continued record-level download and upload speeds

Download Upload Upload to download ratio

Median in Mbps

25 50%

40% 20 40%

15 30% 17 18 19 17 18 18 17 18 20 20 21 21

10 20%

5 10% 5 5 6 6 6 6 6 7 7 7 8 8

0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019

• In Q1 2019 the median download speed continued at the previous Expressed in megabits per second (Mbps), record level of 21 Mbps. internet access speed represents the amount of data transferred in one second. • The median upload speed was also still 8 Mbps. Downloading refers to data transfers from the internet to a user. Uploading refers to • Upload speeds were on average about 40% of the download rate data transfers from a user to the internet. The (see chart below). speeds shown are the rates actually measured (and not potential maximum or advertised speeds). The median is the value at the exact midpoint of a list sorted according to magnitude.

RTR Internet Monitor 2018 Annual Report 45 Section 5 Monitoring internet access quality

Download speed by bandwidth category

Most tests relate to the >10 Mbps to 30 Mbps category

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 (W)LAN 3G 4G

Percentage of tests with download speeds in a given category Median in Mbps

50% 50

40% 40

30% 30

20% 20

10% 10 7% 6% 6% 5% 5% 24% 22% 22% 21% 21% 40% 39% 39% 38% 39% 16% 17% 17% 17% 17% 10% 12% 12% 12% 13% 3% 5% 5% 6% 5% 15 9 40 15 9 40 15 9 37 15 9 32 16 10 32 16 8 30 15 9 29 16 9 28 18 9 29 19 9 30 19 9 31 19 8 31 0% 0 ≤2 Mbps >2 to 10 Mbps >10 to 30 Mbps >30 to 50 Mbps >50 to 100 Mbps >100 Mbps Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019

• The percentages of tests in the categories ≤2 Mbps, >2 to 10 Mbps The chart above displays the percentage and >30 Mbps to 50 Mbps remained more or less unchanged in Q1 of measurements falling under each of 2019. the bandwidth categories. The bandwidth categories correspond largely to those listed • In the >10 Mbps to 30 Mbps and >50 Mbps to 100 Mbps categories, in section 2. While section 2 lists nominal the percentages of tests increased marginally by roughly 1% in (advertised) bandwidths, here the actual each case. The percentage of tests relating to speeds of >100 Mbps bandwidths that were measured for fixed and fell back slightly to 5%. mobile connections are shown.

• As in the previous quarter, 35% of tests referred to bandwidths >30 Mbps.

• A download speed of more than 100 Mbps was recorded for about 5% of tests.

46 RTR Internet Monitor 2018 Annual Report Section 5 Monitoring internet access quality

Download speed by technology

3G download speeds drop slightly

(W)LAN 3G 4G

Median in Mbps

10 15 9 40 15 9 40 15 9 37 15 9 32 16 10 32 16 8 30 15 9 29 16 9 28 18 9 29 19 9 30 19 9 31 19 8 31 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019

• In Q1 2019 the median download speed for 4G tests remained Internet access speed depends on factors unchanged at about 31 Mbps. including the technology implemented. Distinctions are made between 2G (GPRS, • The median speed obtained from (W)LAN measurements stayed EDGE), 3G (UMTS, HSPA) and 4G (LTE) as constant at roughly 19 Mbps. well as on the basis of measurements of various fixed and network technologies. The • A slight drop was seen for the median 3G rate measured, which measurements were taken with the aid of fell back to about 8 Mbps, a level last seen in Q3 2017. a browser or app (for WiFi) and have been aggregated here under the heading of (W)LAN. The chart shows the median, that is, the empirical value at the exact midpoint of all measurements, for each technology and quarter. Because of the low data rates achieved with 2G, no median values are shown for such connections.

RTR Internet Monitor 2018 Annual Report 47 Section 5 Monitoring internet access quality

Upload speed by technology

Measured (W)LAN rates increase marginally

(W)LAN 3G 4G (W)LAN 3G 4G

Median in Mbps Number of tests in thousands

14 200

150 10

8 100

4 50

2 5 2 13 5 2 13 6 2 13 5 2 11 6 2 11 6 2 10 6 2 10 6 2 10 7 2 10 7 2 10 8 2 10 8 2 10 59 12 26 73 11 35 106 10 48 143 10 52 118 8 44 124 8 44 156 7 46 166 8 52 133 6 50 133 5 45 178 6 51 186 4 52 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019

• In tests of (W)LAN connections, the trend towards higher upload Uploading refers to data transfers from a speeds continued. Here the median rate was somewhat more than user to the internet. Rarely the subject of 8 Mbps in Q1 2019. advertising, the upload data rate is usually significantly lower than the download speed. • Measured 4G speeds remained relatively constant at 10 Mbps. Communication in the internet is a two-way street, though, and the upload rate is just as • As in previous quarters, the median value achieved with 3G important for fast internet access. The upload connections was about 2 Mbps. data rate is particularly important when sharing photos or files or for video chatting.

48 RTR Internet Monitor 2018 Annual Report Section 5 Monitoring internet access quality

Number of tests for each technology

Number of (W)LAN tests increases again

(W)LAN 3G 4G

Number of tests in thousands

200

150

100

50 59 12 26 73 11 35 106 10 48 143 10 52 118 8 44 124 8 44 156 7 46 166 8 52 133 6 50 133 5 45 178 6 51 186 4 52 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019

• There was a marked rise in the number of tests performed using All tests done in Austria (or by Austrians RTR-NetTest in Q1 2019, when a new record of about 242,000 tests roaming abroad) are included in the number of was set. tests, provided the location can be determined to within 2 km. Repeated or implausible tests • During that period, RTR-NetTest was used for (W)LAN testing in are not taken into account. about 186,000 cases. The majority of tests (76.1%) fell under that category, as in previous quarters.

• In contrast, tests involving 3G technology dropped by 22.9% to roughly 4000 test cases.

RTR Internet Monitor 2018 Annual Report 49 Section 5 Monitoring internet access quality

Median download speed – off-peak and peak

Off-peak download speeds increase marginally

Download (median) Q1 2019 Download (median) Q4 2018 Upload (median) Q1 2019 Upload (median) Q4 2018 Off-peak download Peak download Download (total) Peak to off-peak ratio Median in Mbps Peak Time Median in Mbps 35

25 100% 30

20 80% 25

72% 21 20 21 15 60%

10 40% 10 9 8

5 5 20%

0 18 15 17 20 15 18 20 15 19 19 14 17 20 15 18 20 15 18 19 13 17 20 14 18 21 16 20 22 17 20 23 17 21 23 17 21 0 0% No. of tests in thousands – Q1 2019 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 20

• The median off-peak download speed was slightly over 23 Mbps in Internet access speeds can also depend on the 10 Q1 2019, while the median during peak hours was about 17 Mbps. time of day when the internet is used. Because 6.1 available resources have to be divided up 5 • On the whole, median peak and off-peak download rates remained among users, speeds can drop when numerous practically constant. users access the internet at the same time, 0 during peak hours. For evaluation purposes, 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Hour of the day • Off-peak speeds continued to be about 72% of download rates (see peak hours are defined as 6 pm to 11 pm, the lower chart above). evening period of heavy internet use. The other hours of the day are regarded as off-peak hours. No distinction is made between working days, weekends and holidays.

50 RTR Internet Monitor 2018 Annual Report Section 5 Monitoring internet access quality

Download and upload speeds by time of day

Upload speeds higher at all times of the day than in previous quarter

Download (median) Q1 2019 Download (median) Q4 2018 Upload (median) Q1 2019 Upload (median) Q4 2018 Median in Mbps Peak Time 35

21 20 21

10 9 8

No. of tests in thousands – Q1 2019 20

6.1 5

0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Hour of the day

• The median upload speed was higher in Q1 2019 than in the The number of network test runs varies previous quarter. This was true for all times of the day except for considerably over the course of the day. Since a couple of off-peak hours. only few tests are performed during night hours, the median obtained for this period • The median download rate during night hours continued to be fluctuates more. The evaluation is based somewhat over 30 Mbps. The rate dropped consistently after on the results of all tests performed in the 7 am, reaching its lowest level at about 15 Mbps between 9 pm and specified quarter. 11 pm.

• The highest median upload speed (10 Mbps) was recorded at about 6 am, otherwise remaining relatively consistent at 7–9 Mbps during the day.

• Most tests, over 15,000 in number, were done between 6 pm and 8 pm, with the number dropping to about 900 by 3 am.

RTR Internet Monitor 2018 Annual Report 51 Section 5 Monitoring internet access quality

Download speed by region

Significantly higher speeds measured in Burgenland and Lower Austria

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 (W)LAN 3G 4G

Median in Mbps Ping in ms

30 60

25 50

20 40

15 30

10 20

5 10 19 19 18 20 22 17 20 19 20 21 18 19 19 19 21 15 17 17 17 18 16 19 20 21 19 17 19 20 20 20 17 20 22 21 21 18 22 20 21 20 23 24 26 26 26 26 41 28 26 41 27 26 41 27 26 41 27 26 42 27 25 50 27 25 48 27 24 49 27 23 45 27 23 41 27 23 40 27 23 40 27 0 0 Burgenland Carinthia Lower Austria Upper Austria Salzburg Styria Tyrol Vorarlberg Vienna Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019

• As in the previous quarter, the highest speeds in Q1 2019 were RTR-NetTest can identify the location where measured in Vienna, with a median rate of about 26 Mbps. the test is being run. This allows a median download speed to be determined for every • In Burgenland and Lower Austria the median rate rose in each region in Austria. The median calculated here case by about 2 Mbps. The tests revealed a rate of 22 Mbps for includes all network technologies. Burgenland – the second-highest measured anywhere – and 21 Mbps for Lower Austria.

• Salzburg dropped by 2 Mbps to an overall median of 19 Mbps. Though trailing in the ranking, Upper Austria moved up by 1 Mbps in terms of download speed to reach 18 Mbps in that quarter.

52 RTR Internet Monitor 2018 Annual Report Section 5 Monitoring internet access quality

Ping time (latency)

Ping times remain constant

(W)LAN 3G 4G

Ping in ms

10 26 41 28 26 41 27 26 41 27 26 41 27 26 42 27 25 50 27 25 48 27 24 49 27 23 45 27 23 41 27 23 40 27 23 40 27 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019

• The median ping time for 4G tests in Q1 2019 was about 27 ms, the ‘Ping time’ – or ‘latency’ as it is more correctly same as in the previous quarter. termed – is the time a small data packet needs to make its way from a user device (such as • At about 23 ms, no change was seen for the median rate measured a mobile or laptop) to an online server and during (W)LAN testing. back. Ping time is measured in milliseconds (ms). While ping time is a key indicator in • Ping times observed during 3G measurements also remained the relation to online gaming, latency can also same at 40 ms. have significant bearing on how ‘sluggishly’ an internet connection responds during normal surfing. Both the technology used to access the internet and the extent to which access is utilised significantly affect latency.

RTR Internet Monitor 2018 Annual Report 53 Section 5 Monitoring internet access quality

TABLE 19: MEDIAN DOWNLOAD AND UPLOAD SPEED (ALL TECHNOLOGIES) (IN MBPS) SEE PAGE 45

Download Upload Upload to download ratio

Q2 2016 17 5 28% Q3 2016 18 5 30% Q4 2016 19 6 32% Q1 2017 17 6 32% Q2 2017 18 6 32% Q3 2017 18 6 34% Q4 2017 17 6 37% Q1 2018 18 7 38% Q2 2018 20 7 36% Q3 2018 20 7 36% Q4 2018 21 8 38% Q1 2019 21 8 40%

TABLE 20: DOWNLOAD SPEED BY BANDWIDTH CATEGORY (IN MBPS) SEE PAGE 46

≤2 >2 to 10 >10 to 30 >30 to 50 >50 to 100 >100 Q1 2018 7% 24% 40% 16% 10% 3% Q2 2018 6% 22% 39% 17% 12% 5% Q3 2018 6% 22% 39% 17% 12% 5% Q4 2018 5% 21% 38% 17% 12% 6% Q1 2019 5% 21% 39% 17% 13% 5%

TABLE 21: MEDIAN DOWNLOAD SPEED BY TECHNOLOGY (IN MBPS) SEE PAGE 47

(W)LAN 3G 4G

Q2 2016 15 9 40 Q3 2016 15 9 40 Q4 2016 15 9 37 Q1 2017 15 9 32 Q2 2017 16 10 32 Q3 2017 16 8 30 Q4 2017 15 9 29 Q1 2018 16 9 28 Q2 2018 18 9 29 Q3 2018 19 9 30 Q4 2018 19 9 31 Q1 2019 19 8 31

54 RTR Internet Monitor 2018 Annual Report Section 5 Monitoring internet access quality

TABLE 22: MEDIAN DOWNLOAD AND UPLOAD SPEED BY TECHNOLOGY (IN MBPS) SEE PAGE 48

(W)LAN 3G 4G

Q2 2016 5 2 13 Q3 2016 5 2 13 Q4 2016 6 2 13 Q1 2017 5 2 11 Q2 2017 6 2 11 Q3 2017 6 2 10 Q4 2017 6 2 10 Q1 2018 6 2 10 Q2 2018 7 2 10 Q3 2018 7 2 10 Q4 2018 8 2 10 Q1 2019 8 2 10

TABLE 23: NUMBER OF TESTS FOR EACH TECHNOLOGY SEE PAGE 49

(W)LAN 3G 4G

Q1 2017 142,700 9,600 52,400 Q2 2017 117,800 7,800 43,800 Q3 2017 123,800 8,000 43,700 Q4 2017 156,100 6,900 45,900 Q1 2018 166,100 7,600 52,300 Q2 2018 133,400 6,400 49,900 Q3 2018 133,300 5,200 44,700 Q4 2018 178,000 5,700 51,000 Q1 2019 185,700 4,400 51,900

TABLE 24: MEDIAN DOWNLOAD SPEED – OFF-PEAK AND PEAK (IN MBPS) SEE PAGE 50

Off-peak download Download (total) Peak download Peak to off-peak ratio Q2 2016 18 17 15 82% Q3 2016 20 18 15 77% Q4 2016 20 19 15 73% Q1 2017 19 17 14 72% Q2 2017 20 18 15 72% Q3 2017 20 18 15 74% Q4 2017 19 17 13 70% Q1 2018 20 18 14 72% Q2 2018 21 20 16 75% Q3 2018 22 20 17 76% Q4 2018 23 21 17 72% Q1 2019 23 21 17 72%

RTR Internet Monitor 2018 Annual Report 55 Section 5 Monitoring internet access quality

TABLE 25: MEDIAN DOWNLOAD AND UPLOAD SPEED BY HOUR OF DAY (IN MBPS) SEE PAGE 51

Hour of the day Download Upload No. of tests Download Upload (median) No. of tests (median) (median) (median) in in previous previous quarter quarter 0 27 10 3,500 26 9 3,500 1 29 10 2,400 28 10 2,400 2 29 10 1,100 31 10 1,100 3 31 10 920 31 9 920 4 32 10 1,300 32 10 1,300 5 33 10 3,300 31 10 3,300 6 33 10 7,100 33 10 7,100 7 26 9 8,800 25 9 8,800 8 25 9 11,900 24 8 12,000 9 25 9 13,200 24 8 13,000 10 24 9 13,400 23 8 13,000 11 23 8 13,100 22 8 13,000 12 22 8 12,500 22 8 12,000 13 22 8 12,600 22 8 13,000 14 21 8 12,900 21 8 13,000 15 21 8 13,500 21 8 14,000 16 20 8 14,500 19 7 15,000 17 19 8 15,900 19 7 16,000 18 18 8 17,000 18 7 17,000 19 17 8 17,300 16 7 17,000 20 16 8 16,700 16 7 17,000 21 15 8 14,400 15 7 14,000 22 18 8 10,600 18 8 11,000 23 21 9 6,100 21 8 6,100

TABLE 26: MEDIAN DOWNLOAD SPEED BY REGION (IN MBPS) SEE PAGE 52

Lower Upper Burgenland Carinthia Austria Austria Salzburg Styria Tyrol Vorarlberg Vienna Q1 2018 19 17 18 15 16 17 17 18 23 Q2 2018 19 20 19 17 19 19 20 22 24 Q3 2018 18 19 19 17 20 20 22 20 26 Q4 2018 20 20 19 17 21 20 21 21 26 Q1 2019 22 21 21 18 19 20 21 20 26

56 RTR Internet Monitor 2018 Annual Report Section 5 Monitoring internet access quality

TABLE 27: MEDIAN PING TIME (IN MS) SEE PAGE 53

(W)LAN 3G 4G

Q2 2016 26 41 28 Q3 2016 26 41 27 Q4 2016 26 41 27 Q1 2017 26 41 27 Q2 2017 26 42 27 Q3 2017 25 50 27 Q4 2017 25 48 27 Q1 2018 24 49 27 Q2 2018 23 45 27 Q3 2018 23 41 27 Q4 2018 23 40 27 Q1 2019 23 40 27

RTR Internet Monitor 2018 Annual Report 57 www.rtr.at 06

Explanatory notes and Glossary

6 Explanatory notes and Glossary 59

Explanatory notes on data sources 60

Glossary 61

Publishing information 64 Section 6 Explanatory notes and Glossary

Explanatory notes on data sources

Communications Survey Ordinance

Unless stated otherwise, the charts published in the Internet Monitor are based on data collected in accordance with the Communications Survey Ordinance (KEV), FLG II 365/2004, which became effective as of 1 October 2004. Under the KEV, RTR is obliged to carry out quarterly surveys of communications markets and to compile and publish the statistics. The most recent amendment of the KEV entered into force on 1 October 2017, so that accordingly amended data was collected for the first time in Q4 2017.

The data collected under the KEV can be viewed as Open Data in the formats XLSX, CSV, XML and JSON at https://www.rtr.at/de/inf/odKEV (in German).

Broadband prices

RTR collects broadband price information directly from operators’ websites once every quarter, in March, June, September and December. In addition to one-off, yearly and monthly charges, information is collected on a variety of product features, such as bandwidth, included volume and whether or not bundled (i.e. with a fixed line or TV).

These operators and/or brands are currently considered when determining the hedonic index or the baskets: A1, T-Mobile, Hutchison (3), UPC, Tele2, LIWEST, Salzburg AG, Kabelplus, Russmedia IT and HOT (Hofer Telekom).

RTR-NetTest

Data collected through the RTR-NetTest are available as Open Data under the Creative Commons Attribution 4.0 (CC BY 4.0) licence; see https://www.netztest.at/en/Opendata.

60 RTR Internet Monitor 2018 Annual Report Section 6 Explanatory notes and Glossary

Glossary

Bitstream and resale

Bitstream and resale access are wholesale products sold at different levels of the value chain. These products allow internet connections to be provided to end users. With bitstream access, data traffic is transferred at predefined (regional or national) handover points at IP level, with the wholesale customer directly providing internet connectivity. By comparison, in the case of resale access, the wholesale supplier provides internet connectivity, with the wholesale customer acting merely as reseller.

Broadband

Broadband internet access or a broadband internet connection refers to a (technology neutral) internet connection with a download speed higher than 144 kbps. Internet access can also be provided as part of a bundle with other services. The connection can be established by the following means:

• Proprietary line (a copper wire pair in the A1 Telekom Austria AG network) • Unbundled line (see unbundling) • Virtual unbundling (see virtual unbundling) • Coaxial cable (cable modem) • Fixed wireless access, e.g. WLAN, WiFi or WLL (‘fixed’ access but not via a hotspot) • Other infrastructure, including powerline (PWL) broadband via the power grid and satellite (SAT) broadband access

Unbundling (physical)

In telecommunications, physical unbundling refers to the separate provision of specific services which were previously only available in conjunction with other services. The unbundling of subscriber lines from fixed network access as offered by the incumbent operator gives competing service providers direct access to customers without requiring those providers to install the ‘last mile’ themselves, as they can lease (naked) subscriber lines from the incumbent under regulated terms. Unbundled network elements are made available where, as a result of a market analysis procedure, the regulatory authority has identified one company having significant market power and has imposed on that operator the obligation to grant access to its telecommunications network and the corresponding unbundled elements.

Hybrid products

With hybrid products, data traffic is normally routed via a fixed connection (usually based on DSL) and additionally via a mobile network when required.

RTR Internet Monitor 2018 Annual Report 61 Section 6 Explanatory notes and Glossary

Median

The median is the value at the exact midpoint of a sorted list of empirical values. The median is an actual empirical value, unlike the mean, which is a parameter calculated using statistical techniques. For example, the mean of the values 1, 2, 4, 8 and 16 is 6.2. The median, in contrast, is 4, with two other empirical values each above and below that value.

Mobile broadband

With mobile broadband, a distinction is made between data-only subscriptions at a set monthly fee, data subscriptions without a set monthly fee and smartphone subscriptions.

Up to Q4 2015, data-only subscriptions (which support data but not voice calls or text messages) were restricted to those that included at least 250 megabytes in the monthly rate. This restriction was lifted as of Q1 2016. From Q4 2017 onwards, an activity criterion has also been introduced for this category: SIM cards are counted only if used to access the internet at least once in the corresponding quarter.

Falling within the category of products without a set monthly charge are products with a monthly charge that does not cover free data but are used by customers to access the internet at least once in the particular quarter.

Smartphone subscriptions are all contracts for voice and text messaging services that also include data and are used by customers to access the internet at least once in the specific quarter. Prior to Q4 2015, such subscriptions were additionally restricted to those that included at least 250 megabytes in the monthly rate. This restriction was lifted as of Q1 2016.

Broadband price index (hedonic)

The broadband index is a hedonic price index for fixed and mobile broadband products. ‘Hedonic’ refers to the fact that both price changes and changes in product characteristics (in particular download rate and download volume) are taken into account. To arrive at the index, a regressive analysis of prices is performed in relation to product characteristics and time variables.

For the calculation, tariffs and product characteristics are surveyed quarterly for the broadband products supplied by the major providers. All tariff plans available to new customers at that particular time are collected. Both standalone broadband products and products bundled with fixed line telephony or TV are surveyed. In the case of mobile broadband, prepaid rates are not included. In addition to monthly charges, one-off charges and annual charges as well as special offers are taken into account. The most expensive 10% of subscriptions (currently plans costing more than about EUR 65) are not included in the calculation, as they can be assumed to be in low demand by customers. The remaining tariff plans are weighted in proportion to the operators’ market shares in the respective quarter. All tariff plans offered by one operator are weighted by the same amount in one quarter. The reference base is 2010. The indexes are calculated by means of regressive analysis, first considering only fixed network tariff plans (fixed index), then only mobile subscriptions (mobile index) and finally all plans (fixed and mobile index).

62 RTR Internet Monitor 2018 Annual Report Section 6 Explanatory notes and Glossary

Private customers vs. business customers

Separate differentiators apply to fixed network and mobile in the private and business customer segments. While the fixed network distinguishes by product (private vs. business customer product), mobile networks distinguish by customer.

The following applies to fixed connections (DSL, cable, wireless and fibre): ‘business customer products’ are all broadband products or product bundles with broadband that are geared towards business customers. These products are either discernible by their name (‘business’, ‘office’, etc.) or include certain features that are not typically offered to private customers, such as one or more fixed IP addresses, a larger number of mailboxes, more webspace, a domain name, a security package (antivirus, firewall or similar), business SLAs or lower average overselling on the backbone. SDSL products are also to be viewed as business customer products. ‘Private customer products’ are any products not to be categorised as business customer products.

The following applies to mobile connections: ‘Business customers’ are all legal persons and corporations under public or private law, partnerships, registered companies and partnerships under the Civil Code, as well as natural and legal persons who are entrepreneurs within the meaning of Art. 1 of the Austrian Consumer Protection Act, FLG 140/1979 as amended (including start-up activities within the meaning of Art. 1 Par. 3 leg. cit). In this context, a business means any organisation intended as permanent and is for the purpose of independent commercial activity, even if not for profit. ‘Private customers’ are all customers not falling under the definition above.

Virtual unbundling

Under decisions by the TKK, A1 Telekom Austria AG is obliged to offer virtual unbundling, including transfer of traffic at local and regional levels. Virtual unbundling is a wholesale service that enables alternative providers to offer their own (broadband) products to end users, in a manner similar to physical unbundling.

Wholesale market

The market in which telecoms companies offer services to one another, thereby enabling services to be provided to end users. An example is the wholesale broadband market, which includes all broadband connections made available by one company to other communications service providers for the purpose of allowing end users to access the network. A1 Telekom makes bitstream and unbundling available as regulated wholesale products.

RTR Internet Monitor 2018 Annual Report 63 Publishing information

Publishing information

Owner and publisher Austrian Regulatory Authority for Broadcasting and Telecommunications (Rundfunk und Telekom Regulierungs-GmbH) Mariahilfer Strasse 77–79, 1060 Vienna, Austria Tel.: +43 (0)1 58058-0; fax: +43 (0)1 58058-9191; e-mail: [email protected]; web: www.rtr.at

Responsible for content Mag. Johannes Gungl (Telecommunications and Postal Services Division) Austrian Regulatory Authority for Broadcasting and Telecommunications (RTR)

Conceptual design and text Austrian Regulatory Authority for Broadcasting and Telecommunications (RTR)

Graphic design and layout Westgrat - Agentur für Kommunikation cibus Kreativagentur

All parts of this publication are protected by copyright. All rights reserved under copyright, especially rights to distribution, reprinting, translations, presentations, the use of illustrations and tables, broadcasting, microfilms or reproduction of this document in photocopies or any other form, as well as storage in computer systems, even in cases where excerpts are used.

The contributions to the RTR Internet Monitor were reviewed with the utmost care. Nonetheless, errors cannot be ruled out. No guarantee of accuracy can consequently be provided for the content.

64 RTR Internet Monitor 2018 Annual Report

Austrian Regulatory Authority for Broadcasting and Telecommunications (Rundfunk und Telekom Regulierungs-GmbH) Mariahilfer Strasse 77–79, 1060 Vienna, Austria Tel.: +43 (0)1 58058-0; fax: +43 (0)1 58058-9191; e-mail: [email protected] web: www.rtr.at