Wholesale revenues from telecommunications operations fell significantly more than retail revenues in 2015Published 15.08.2016
Turnover from telecommunications may be divided into fixed and mobile network operations, and further into retail and wholesale services. Retail services include telecommunications services sold to consumer, corporate and organisation customers, such as call and broadband services. Wholesale services are business-to-business services that are then used to provide retail services. Last year, retail services contributed about 81 per cent of revenues in the fixed network and about 84 per cent of revenue in the mobile network.
The combined turnover of retail services in the fixed and mobile network decreased last year by almost 2% (-1.6%) and amounted to approximately EUR 2.5 billion. Revenues from retail services in the mobile network grew by roughly 2% and amounted to EUR 1.55 billion. Revenues from retail services in the fixed network fell by roughly 7% and amounted to approximately EUR 960 million. Mobile network services constituted about 62% of the turnover of retail services (60% on 2014) and fixed network services about 38% (40% in 2014). Save the graph data as a CSV file
Figure: Division of revenues from the fixed network. Save the graph data as a CSV file
Figure: Division of revenues from the mobile network.
In the fixed network, data transfer services made the largest share of retail revenues, around 63%. Voice services accounted for one quarter of the turnover in the fixed network. In the mobile network, the share of voice and messaging services continued to decrease, and for the first time, their share of retail revenues in the mobile network was less than 50%. This trend is largely caused by the growth of data transfer services. In 2012, voice and messaging services accounted for around 69% of retail revenues in the mobile network, and in 2014 the figure was still around 54%, whereas in 2015 it fell to 49%. Correspondingly, the importance of data transfer services in the mobile network has grown and the revenues from monthly-charged data transfer subscriptions reached 40% of total retail revenues in 2015, growing from 35% in 2014. As late as in 2012, monthly-charged data transfer subscriptions accounted only for 26% of all retail revenues in the mobile network.
Turnover of wholesale services has fallen steadily in recent years. In 2015, wholesale revenues decreased by 13%. Wholesale revenues from the fixed network fell approximately by 8% (-8.1%) and from the mobile network by more than 16% (-16.1%). It should be noted that the mobile network turnover decreased only by 1% compared to 2014 even though wholesale revenues fell sharply. This is explained by the growing retail revenues in the mobile network which result from the more diversified use of mobile communications services on one hand and increasing number of subscriptions on the other hand.
Figure: Development of revenues from telecommunications operations.
Retail revenues from the fixed and mobile networks can be further divided into revenues from residential and business customers. It is not possible to divide all revenues into such categories but it can be estimated roughly that the services provided to residential customers constitute approximately 60% of the turnover from retail services in telecommunications.
In the mobile network, residential customers accounted for 71% of the turnover from retail services in 2015 whereas in the fixed network, the corresponding figure was only 40%.
Residential customers’ share of the retail revenues in the mobile network has remained unchanged during the past couple of years, but in the fixed network their share has decreased by about 3 percentage points compared to 2013. Since 2013, residential customers’ share of revenues from the retail services in the fixed network has decreased especially in terms of data transfer services (-5 percentage points). In terms of retail revenues from residential customers in the fixed network, a part of the revenues from TV operations is included in IPTV which means that the actual share of residential customers of the fixed network turnover is larger.
The biggest change in retail services in the mobile network in terms of residential and business customers has been noted in text and multimedia messages where the residential customers’ share has decreased sharply during the past couple of years. In 2012, 76% of text message related revenues came from residential customers whereas in 2015, their share was only 65%. In terms of multimedia messages, the residential customers’ share has decreased from 71% to 64% during the above-mentioned period, but in voice services, the residential customers’ share has grown from 71% to 74% during the same period.
Figure: Revenues from retail services divided into residential and business customers.
*To be able to compare the changes in percentages between 2014 and 2015, this article only includes such operators that have provided data on both years. The EUR figures of 2015 include all telecom operators that have reported figures for 2015.
More information about the statistics is available in this article.