4 Oct 2011Austria Broadband Overview

Austria had relatively high fixed broadband penetration compared to other European countries in 2006. This was mainly due to the good performance and coverage of its cable and copper networks. As well as this performance, consumers had also benefited from low Internet access prices. However, during H1 2007 there was a lapse in momentum, resulting in Austria occupying a solid, but somewhat disappointing mid-field position in the European broadband penetration rankings ever since.

This is partly due to A1 Telekom Austria’s overpowering dominance in the broadband and fixed telephony markets despite early attempts at market liberalisation. The dominant position of A1 Telekom Austria still limits the entry of new competitors in the Austrian telecommunications market. The Austrian mobile market is by far more competitive and here is where Austria leads Europe since late 2008.

Following EU guidelines, competition was introduced into the Austrian fixed telecommunications market in January 1998. The incumbent, A1 Telekom Austria, has remained dominant in the voice telephony and broadband market. Telekom Austria took further steps to consolidate this position with the merger of its wireless and fixed line operations by registering a new subsidiary, A1 Telekom Austria in July 2010. The merger is expected to promote product synergy, prevent the decline in landline subscribers and reduce operational costs.