Initial estimates reveal that in 2016 the value of the mobile telephony market as measured with the operators’ revenue reached over PLN 25bn (a 1% year-on-year increase). A fifth of that value was contributed by the telecoms’ proceeds generated in the segment of mobile internet services. This share has been constantly growing as opposed to the segment of mobile value-added services (VAS) where no particular change in this regard has been noticeable in recent years.
According to PMR’s latest report “Mobile internet and value-added services (VAS) market in Poland 2017. Market analysis and development forecasts for 2017-2022”, the estimated value of the Polish mobile internet and mobile value-added services (VAS) market amounted to about PLN 6.6bn in 2016, 14% up on the preceding year. Given the decline in the mobile operators’ revenue generated by traditional services (voice and SMS) this means a radically different environment for the development of the existing solutions and for the introduction of new ones.
PMR believes that in 2016 the operators’ revenue generated by the provision of mobile internet and mobile value-added services accounted for more than a third of the total value of the mobile telephony market in Poland (estimated at over PLN 25bn), with the share contributed by mobile value-added services (20%) being clearly higher than the figure for the VAS segment (6%). The divergent shares demonstrate where the operators have been focusing their efforts and seeking to improve their performance.
The value of the mobile data-transmission market is influenced by two clear consumer trends. The growth in demand for higher bandwidth has been accompanied by increasing data consumption per user. This is a consequence of the use of audio and video streaming and the greater consumption of other multimedia content, applications, online games or cloud services. Demand translates into higher revenue. It also forces the operators to improve the quality of the services they offer and of their investments, especially as this is one of the key tools for enhancing customer loyalty. Mobile internet access prices in Poland are among the lowest ones in Europe and the operators are not pressed to continue lowering them. With stabilising prices, there has been a rise in the number of users inclined to spend a certain amount of money on the service in order to get a bigger data bundle and higher bandwidth.
Last year the value of the mobile data transmission market was driven equally by the operators’ revenue generated in the segment of mobile telephones and by their dedicated offers (access via computers and other devices using a modem/mobile data transmission card). In terms of volume, in turn, the number of customers taking advantage of internet access on their telephones is almost twice higher. This is first of all the result of the high smartphone penetration on the Polish market but also of the operators distributing data transmission services bundled with voice solutions.
In recent years the value of the VAS segment in the Polish mobile networks has been expanding at a relatively steady rate. SMS payment services remain the biggest market segment in terms of value which, despite its continued growth driven by payments for games and applications, has been gradually losing its share, primarily to SMS marketing solutions.
The outlook for the coming years on the mobile internet and value-added services market in Poland remains optimistic. The market value will be expanding continuously, although its growth rate will have to decrease owing to the high base effect. The rise both in the number of users and in the generated revenue plays its role. Nevertheless, in nominal terms the discussed market may grow in value by at least PLN 700m. PMR estimates that despite the organic growth in the revenue contributed by mobile internet access and other value-added services, in the next six years voice solutions and wholesale services will continue to predominate in mobile networks.
