A1 Telekom Austria

Logo A1In the Austrian mobile market the start of 2013 was dominated by the takeover of Orange Austria by Hutchison 3G Austria. In the course of this transaction Telekom Austria AG acquired the mobile provider YESSS! in addition to frequencies, base stations and intellectual property rights from Orange Austria for around EUR 400 million after purchase price adjustments. The pricing environment in the Austrian mobile market was again characterised by intensive competition in 2013, which A1 Telekom Austria AG sought to address by means of tariff adjustments in the no-frills segment and a fundamental change in the tariff structure for the premium segment. By offering product bundles with different data packages, the company thus endeavoured to take account of the trend towards greater data usage more effectively. Furthermore, A1 Telekom Austria AG selectively addressed high-value customers in order to successfully defend its highest income segment. Convergent product packages were also a central element of the operational strategy in 2013, with the goal of counteracting the ongoing substitution of fixed-line voice telephony with mobile communications in 2013. Other external factors such as regulatory intervention in the area of roaming as well as termination rate cuts in July 2012 and November 2013 also had a negative effect on revenues.

In October 2013 A1 Telekom Austria AG was able to shore up its quality leadership in the Austrian mobile market for years to come by acquiring 2 x 70 MHz in mobile frequencies in the Austrian multiband auction, of which 2 x 20 MHz were bought in the key 800-MHz frequency band. The total expenses amounted to EUR 1.03 billion.

In 2013 the Austrian segment saw a 10.3% increase in mobile customers to around 5.7 million as a result of the acquisition of YESSS!. In line with this A1 Telekom Austria AG's market share increased by 4.7 percentage points to 42.6%.

Aided by growth of 5.9% in fixed-line broadband connections, fixed access lines increased by 1,600 lines to 2.3 million in 2013. A1 TV posted an increase of 7.7% to 235,700 customers.