WIFO Study Confirms Need for Further Broadband Rollout in Austria
Alpbach, September 2, 2009 - Broadband Rollout in Austria in Lower OECD Midfield – Telekom Austria Group to Invest 1.5 Billion EUR in the Coming Four Years in Network Expansion – CEO Hannes Ametsreiter Strives for Position in OECD Top 5 for "Broadband Austria" – Telekom Austria Group Assures 64,200 Jobs in Austria – Economic Gross Value Added of the Group at 7.1 Billion Euros
The current WIFO study presented today in Alpbach on the topic "Broadband in Austria" confirms the high economic importance of the Telekom Austria Group for the Austrian economy. Telekom Austria TA AG and mobilkom austria together create an annual gross value added (operating income plus personnel expenses plus depreciation and amortization) of EUR 7.1 billion. Tax revenues and social security benefits amount to EUR 1.8 per year. Altogether the Telekom Austria Group generates an employment effect of 64,200 jobs in Austria. Thus over 1.5 percent of all jobs (total number of those employed or self-employed) in Austria are assured directly or indirectly by Austria's largest communications company.
Digital Gap Still an Issue
ICT's (information and communication technologies) contribution to growth in Austria between 2000 and 2005 was 0.39 percent. Karl Aiginger, Head of WIFO, said: "The overall view shows that the ICT sector in Austria is only moderately developed as a growth driver." In comparison to our immediate neighbors Slovenia and the Czech Republic, for example, the contribution to growth in the comparable period was 0.51 or 0.49 percentage points, respectively. Denmark, the leading country, registered 0.61 percentage points.
Karl Aiginger sees potential in ICT infrastructure. In an OECD comparison in 2008 regarding broadband penetration, at 21.6% of the population Austria only ranked 19th. The leading countries were Denmark, the Netherlands and Norway. The Austrian growth rate between 2003 and 2008 was similarly flat. "The digital gap, in other words the discrimination of rural areas, is also still an issue in Austria: here at least we are 10th in Eurostat ranking," Karl Aiginger said.
Hannes Ametsreiter: Our Focus is on Rural Regions
With the technology edge fiber optics a stage of development is about to begin that will generate an important surge of innovation. Karl Aiginger: "With regard to the rapid innovation cycles of the ICT sector I would even speak of a 'historic chance' for Austria." Hannes Ametsreiter, CEO of the Telekom Austria Group, commented on this part of the study: "In the coming four years, we, Telekom Austria and mobilkom austria, are investing EUR 1.5 billion in broadband infrastructure in Austria. Here we are particularly considering rural regions, whose inhabitants will thus gain better access to the knowledge society. In this connection my appeal to alternative providers is: Let's realize the goal of further broadband rollout together. With a concerted effort, in four years Austria could catapult itself to within the top five OECD countries with regard to broadband usage."
Central Parameters for Optimum Broadband Rollout
The WIFO study proves – once again – the lack of an overall Austrian ICT strategy. According to Aiginger, Austria urgently needs a legal framework and a funding system that has a stimulating effect on investments and innovation. Along with the next technology leap there will be renewed need to act.
Hannes Ametsreiter: "We cannot take the next step in development alone, or without adequate conditions in terms of politics and regulation. What Austria now needs is an ICT strategy that sustainably strengthens Austria as a business location. Here, we quickly need political will and decision-making. Broadband subsidies should additionally be part of the package of measures." This primarily concerns rural regions, where valuable impetus can be made with the subsidy that is currently planned. New funding models such as tax breaks in the form of investment premiums or in the form of degressive depreciation are necessary for further broadband rollout. A third parameter is regulation in line with current conditions that creates a positive environment for investments and innovation, such as a regional adjustment of regulatory instruments.
Telekom Austria Group Invests in Broadband Technologies
"The data volume transported via the Internet is doubled every one to one-and-a- half years. Among other things, multimedia content and increased use of smartphones, with which customers send emails and surf the Web, also play a role," Hannes Ametsreiter said. Today the size of the "digital universe" is already an unimaginable 500 billion gigabytes (a figure with 21 zeros).
ICT and broadband are important drivers of economic growth. Each improvement to infrastructure, be it in the fixed net or in mobile communications, has a positive impact on Austria as a business location. For this reason the Telekom Austria Group will further increase its network capacity in the coming months.
Thus, Austria's largest communications company will invest a total of 1.5 billion euros between 2010 and 2013 for ultra-fast data networks within the scope of its investment program. Next Generation Network in the fixed net sector is Austria's largest technology project in the 21st century. Within the frame of fiber optics pilot projects in Villach, Klagenfurt and Vienna, Telekom Austria will provide over 150,000 households with ultra-fast data lines with up to 100 Mbit/s. In rural regions approximately 750,000 households and businesses will gain access to fast Internet with up to 30 Mbit/s. In mobile communications, mobilkom austria continues to focus on mobile data services. The HSPA+ network in operation since March 2009 will be rolled out further.
Contact:
Elisabeth Mattes
Telekom Austria Group’s Spokeswoman
Tel: +43 664 331 2730
E-mail: elisabeth.mattes@telekom.at
