Internet market slows down in H1 2010

2010-08-18

Q2 2010 brought an increase in the number of fixed internet users by 91,000, while H1 2010 brought 224,000 new users, as shown by the TP SA data. At the same time, the development of the internet market is losing momentum. In the analogous quarter of 2009, the number of fixed internet users grew by around 100,000 new subscribers, while H1 2009 brought around 257,000 new users.
In the second half of 2010 the market is expected to grow again mainly thanks to the price reduction announced by TP SA, as the latter foresees.
In turn, Netia, the largest alternative fixed-line telephony and internet provider, expects the internet market to increase at the similar rate as in 2009, when it went up by 0.5m new users. The company has signed up 20,100 users for internet access service in Q2 2010. At the end of June 2010, the operator had 624,000 subscribers, which translates into a market share of around 10%. At the same time, TP SA provided the Internet to around 2 million customers, though its share went down by 3 p.p. to 36% when compared to June 2009.
The third-largest player on the Internet market is UPC, which had 485,000 subscribers, i.e., 7.7% of that market, in June 2010.