PLN 41bn – this is the value of the Polish telecom market today, showing a further upward trend
The telecommunications market in Poland, despite its very high saturation, continues to attract users and build its value.
Three factors have been key to the market’s business climate in recent months:
the operators’ more-for-more strategy aimed at ensuring higher-margin services (in mobile and ISP segments),
demand for high-bandwidth fixed lines, which is triggered by the COVID-19 pandemic,
market consolidation and convergence of telecom services.
RGU in the telecommunications market in Poland
According to PMR data, the Polish telecommunications market records approx. 80 million RGUs (revenue generating units, i.e. individual, active services that generate a recurring retail revenue), including M2M cards and pre-paid SIM cards. However, the subscription services segment accounts for the vast majority of them. Mobile telephony is responsible for the largest number of total RGUs, followed by the pay TV and ISP markets. In the next few years (2021-2026), the biggest growth prospects in volume terms will continue to be seen in the mobile telephony market.
Main factors and trends conducive to the telecom market growth
The growth in the telecommunications market is mainly a result of the operators’ focus on building value and increasing revenue and profitability as part of the more-for-more strategy. In addition, the quality of provided services is important, including high parametrisation of mobile and fixed-line access services. The development of 5G networks and the sale of 5G tariffs also play a insignificant role.
The telecommunications market in Poland is mature and highly saturated, which is why its value has been on a sideways trend for a long time, yet with an upward tendency in the coming years.
In 2020, the market value – defined as the total of telecom operators’ revenues, including from pay TV services – experienced a rebound and amounted to PLN 41.1bn. This is a 1.3% higher result than in 2019. The positive market climate is the outcome of results generated by operators in the segments of mobile telephony, ISP and pay TV.
In the short term (2021-2022), the telecommunications market will face slight declines. On the other hand, in the medium and long term (2023-2026), the market will again be supported by positive growth rates. Overall, the market will grow at a compound annual rate of 0.4% throughout the forecast period.
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ICT Business Unit Director