Broadband-Based Services Are Lead Actors in Bulgaria’s Telecom Growth Story

August 20, 2010

Shaking off the effects of the global economic crisis, Bulgaria will experience double-digit growth in broadband-based services —VoIP, IPTV, mobile data and fixed broadband — through 2015. This is based on data from our forecasts:

• Eastern Europe Fixed Communications Forecast
• Eastern Europe Mobile Data Forecast

Like many of its neighbors, Bulgaria has been severely impacted by the global economic crisis through declining demand and high unemployment. Telcom services did not escape the general downturn and the total market revenue contracted by 5.3% in dollar terms (0.1% in local currency) in 2009. However, going forward, the market is expected to grow at CAGR of 4.8% (3.1% in local currency terms) over the next five years.

As explained in our Bulgaria Country Intelligence Report, expansion in broadband adoption will be fostered by:

• Government-led initiatives, particularly in a framework of the National Broadband Strategy for 2010-2013
• Operators’ network upgrades
• Proliferation of smartphones and computing devices

Mobile data is one area in particular where operators will actively look to increase their engagement. In addition to operators’ focus on top-line growth, the mobile data segment provides them an opportunity to differentiate their offerings and align themselves with consumer Internet usage patterns that vary depending on consumers’ age, income and profession. A wide array of data plans, attractive content, and branding of end-user devices are customer acquisition and retention strategies that operators will continue to deploy in order to gain and maintain significant market share.

— Ewa Romaniuk-Calkowska, Analyst

Related resources:

Bulgaria: Fixed and Mobile Broadband Prospects Start to Rise
Country Intelligence Report published August 2010
The Bulgarian telecom market generated $2.2bn in service revenue in 2009. Going forward, the market will grow at CAGR of 4.8% over the next five years, to reach $2.8bn in 2015. We expect broadband Internet and mobile data services to be the most dynamic segments of the market. Accompanying broadband adoption growth, IPTV and VoIP will grow at a double-digit CAGR of 46.4% and 38.7%, respectively, between 2010 and 2015. As the effect of MTR-focused EU regulation takes hold, operators will focus more on the mobile data segment, which we expect to grow at a CAGR of 20.8%.

Eastern Europe Fixed Communications Forecast
Forecasts published quarterly
The Fixed Communications Forecast quantifies fixed voice, Internet and IPTV adoption and service revenues trends, at the residential, corporate and total market level. It tracks demand and projects future growth for Eastern European markets and is available at the country and regional levels.

Eastern Europe Mobile Data Forecast
Forecasts published quarterly
A premium version of the Mobile Demand Forecast, it tracks current and future demand for mobile data services in Eastern Europe, within the context of overall mobile demand. This forecast includes all the same tracking as the standard Mobile Demand Forecast but breaks down mobile data ARPS, revenues and subscriptions at the service level.