Swedes making more mobile telephone calls; lower prices putting a damper on turnover

28/11/2006

The number of minutes called in mobile networks rose sharply, by 26 per cent during the first six months of 2006 compared to the same period in 2005, according to the National Post and Telecom Agency's (PTS) report, 'The Swedish Telecommunications Market', for the first half year of 2006.

Traffic in 3 G networks doubled during the period and now amounts to more than 10 per cent of all mobile telephone traffic. In addition to this, data traffic in mobile networks quadrupled and a mobile data user used an average of 2.5 MB of data per month.

Turnover from mobile call services rose only marginally from SEK 8.1bn to SEK 8.2bn, despite the sharp increase in traffic. This is because it has recently become less expensive to make mobile telephone calls.

314 000 IP-based subscriptions
IP-based telephony continues to attract fixed telephony customers. By the end of June, the number of IP-based subscriptions amounted to 314 000, an increase of 151 per cent compared with the same point in time in 2005, when the number of subscriptions was 129 000.

Turnover for the overall market for fixed call services, traditional telephony in particular, dropped by 9 per cent during the period and amounted to SEK 10.2bn during the first six months of 2006. However, the reduced revenue from traditional telephony in the fixed telecommunications network is offset by the increased revenue generated by broadband services via the fixed network using DSL technology.

44 per cent of households have broadband
The number of broadband subscriptions is continuing to rise. More than 1.9 million residential customers had some kind of fixed connection at the end of June, corresponding to around 44 per cent of households. The proportion of households with a fixed connection in the previous year was 33 per cent. More than 50 per cent of residential customers with broadband have access to services at a capacity exceeding 2 MB per second, enabling high quality multimedia services.

Total turnover for Internet access, including dial-up Internet, amounted to SEK 4.64bn during the first six months – an increase in turnover amounting to 28 per cent compared to the first half of 2005.

For more information:
Fredrik Öst, marknadsanalytiker, telephone: +46 (0)8 678 57 80