Fixed Net
The fixed net segment comprises voice telephony and the increasingly important business areas of data and IT solutions, Internet access, value-added and wholesale services.
The product portfolio of the Fixed Net segment comprises voice telephony, broadband, data, TV and attractive ICT services and solutions for both residential and business customers. In the wholesale business the Fixed Net segment provides technological infrastructure to other operators of fixed net, mobile communications and Internet services both in Austria and abroad.
Due to the company’s position as the former monopolist, many of its business activities are still subject to regulation by the national regulatory authority, which also intervenes in pricing matters.
Developments 2009
- Decline of Fixed Net access lines decelerated to 1.0%
- Total subscriber numbers of aonTV rose from 63,800 to 101,300
- Revenues declined by 8.8% to EUR 1,860.1 million
Compared to other European operators the Fixed Net segment of the Telekom Austria Group has achieved considerable success in safeguarding fixed net access lines by introducing attractive
product bundles and customer retention measures. For the
first time in a decade the Fixed Net segment even reported net additions in the fourth quarter of 2009. The number of fixed net broadband lines rose by 15.5% to 1,022,600; the dynamic growth in the retail segment more than offset the decline in the wholesale segment. Total subscriber numbers of the broadband product aonTV rose from 63,800 to 101,300 in 2009.
Despite these operating successes, revenues declined by 8.8% to EUR 1,860.1 Total revenues from access lines, voice telephony and broadband fell by 10.0% to EUR 972.2 million, with most of this decline due to continued fixed-to-mobile substitution; the volume of fixed net voice minutes was 12.0% lower than in 2008. Average revenues per line decreased by 5.1% to EUR 35.0. An effect of EUR 36.4 million reflects the deconsolidation of three small foreign companies that were sold in February and November of the previous year.
The Fixed Net segment reported a total EBITDA of EUR 575.7 million in 2009. Adjusted for the changed reporting of currency translation differences, EBITDA in the previous year had been EUR -20.8 million due to the creation of the restructuring provision. The restrictive investment policy pursued in recent years led to a further reduction of depreciation, amortization and impairment charges by 9.8% to EUR 459.6 million. Following operating income of EUR -530.3 million (adjusted for foreign currency translation effects) in 2008, operating income in 2009 amounted to EUR 116.1 million.
Belarus
Austria
Liechtenstein
Slovenia
Croatia
Serbia
Bulgaria