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Date Submitted: 12/28/2015 06:42 AM
Researchmoz added Most up-to-date research on "Czech Republic: Market to Return to Revenue Growth in 2018 as LTE Service Adoption Drives Up Mobile Revenue" to its huge collection of research reports.
In 2015, the Czech Republic will be the fourth-largest telecom services market in Central and Eastern Europe after Russia, Poland and Romania, with estimated revenue of $3.5bn (Kc85.7bn), or 1.9% of nominal GDP, a 2.3% decrease in local currency compared with the previous year. This revenue decline is mostly driven by the mobile market as price competition among mobile network operators and between MNOs and MVNOs intensifies and as voice services increasingly become a commodity.
Pyramid Research forecasts negative service revenue CAGR of -0.1% between 2015 and 2020 in local currency (3.5% CAGR in US dollars due to some currency appreciation compared to the dollar through to 2020 after the strong depreciation occurred in 2015). Telecom service revenue in local currency will decline until 2017 and will increase slightly afterward to Kc85.5bn ($4.2bn) in 2020. The major growth contribution will come from mobile data, pay-TV and fixed broadband thanks to customers switching to fiber, VDSL and LTE networks and purchasing IPTV services within multiplay bundles.
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Key Findings
Fixed circuit-switched revenue will fall at a CAGR of -12.7% in local currency in 2015-2020, due to ongoing migration mostly to mobile but also to packet-switched services. Mobile revenue will remain predominant in the Czech Republic, thanks to an increase in mobile data revenue and low adoption of fixed telephony.
Adoption of 3G technologies is at 59% of the mobile subscription base in 2015; Pyramid Research projects this will decline in the forecast period to 40.7%, due to a gradual switch to 4G. LTE subscriptions will reach 6.3m by year-end 2020, 40.5% of total mobile subscriptions in...