Eastern Europe telecom service market to reach €42bn in 2005, a 14% growth (CAAGR) from 2001.

Stuttgart, Germany -- 29th October, 2002 -- The Eastern Europe telecom service market is expected to reach €42bn in 2005, a 14% compounded average annual growth rate (CAAGR) from 2001.

Internet services will be the most dynamic market segment and are expected to grow at a CAAGR of 29% between 2001 and 2005, accounting for 8% of the total market in 2005. Another key driver will be mobile telephony, growing at 17.5% CAAGR and overtaking fixed telephony as the largest segment already in 2003. In 2005 mobile telephony will account for 44% of the total market against 41% for fixed telephony. Cable TV and datacom services will also contribute to the growth. Fixed telephony will grow slower than the average of the total market but nonetheless at a CAAGR of 9%.

Eastern Europe is regarded as offering good prospects because of its now stabilised and democratic political situation, because of its geographical proximity and shared heritage with Western Europe and because several countries should join the EU soon. In addition liberalisation and more competition should spur growth, although a consequence could also be lower prices, lower ARPUs and thus lower revenues. Finally the population is by and large well educated, enabling both the sale of high-tech products and services to consumers as well as the relocation or outsourcing of certain business activities. Nonetheless wide country discrepancies will remain and it would be wrong to consider the region as a homogeneous whole.

This market outlook, among several others, comes from InfoCom's strategy journal TS&T (Telecom Strategies and Trends). TS&T is a highly analytical publication that provides in depth articles on a variety of topics covering companies, markets & trends on a bi-monthly basis. TS&T is based on the market intelligence solution TELESEEQ, fundamental market data for the multimedia and telecoms industry.

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InfoCom is the German subsidiary of the SagaTel Group, a market research and consultancy company with over 20 years experience providing strategic planning assistance to stakeholders in the telecommunications and multimedia industry. InfoComs independent and fact-based perspective on the telecommunications and multimedia environment contributes to decision makers understanding of market dynamics, trends, and opportunities in the key markets.