Expensive broadband hampers penetration
Last week, Deputy Infrastructure Minister Wojciech Halka said that he would like broadband Internet users to number 1.6 million in 2006, up from the current 461,000 with telecom and cable companies both expected to spearhead this growth.
"This number is possible, but I think that telecoms have to cut their prices first," says Michał Marczak, analyst at BRE Bank.
At present, telecom operators are offering the DSL, or high-speed Internet access over existing copper cables, for between zł.150 and zł.99 per month, depending on speeds, Marczak said.
Svetlana Issaeva, a senior analyst at London-based research firm Pyramid Research, said that much of the future of the broadband market depends on TP SA and the stance the Postal and Telecommunications Regulatory Office (URTiP) takes on competition issues.
Analysts explained that URTiP must push TP SA to open up the local loop to competitors, to allow companies such as Netia and Telefonia Dialog to spread their market penetration.
Issaeva said that Netia's recent acquisition of El-Net could be a first step towards spurring competition on the market. She explained that given its now larger network, Netia will be in a better position to offer services different to those of TP SA. And, as Netia executives have said, the greater part of the company's future strategy targets data transmission, rather than traditional voice services. That alone could improve the market.
"The best way is to let the competition take its course," says BRE's Marczak.
Issaeva added that Poland's low 1.2 percent broadband penetration would also be increased as a specific result of joining the European Union.
"There is a trend towards more and more regulation in the EU and we expect Poland to follow this," she says.
Also, where the telecom regulator does not promote competition for broadband customers among telecom operators, cable companies will pick up the slack. Such positive developments could send Poland slowly on its way to having the broadband penetration rates of the EU, 4.6 percent, and the USA, 8.7 percent.
"This number is possible, but I think that telecoms have to cut their prices first," says Michał Marczak, analyst at BRE Bank.
At present, telecom operators are offering the DSL, or high-speed Internet access over existing copper cables, for between zł.150 and zł.99 per month, depending on speeds, Marczak said.
Svetlana Issaeva, a senior analyst at London-based research firm Pyramid Research, said that much of the future of the broadband market depends on TP SA and the stance the Postal and Telecommunications Regulatory Office (URTiP) takes on competition issues.
Analysts explained that URTiP must push TP SA to open up the local loop to competitors, to allow companies such as Netia and Telefonia Dialog to spread their market penetration.
Issaeva said that Netia's recent acquisition of El-Net could be a first step towards spurring competition on the market. She explained that given its now larger network, Netia will be in a better position to offer services different to those of TP SA. And, as Netia executives have said, the greater part of the company's future strategy targets data transmission, rather than traditional voice services. That alone could improve the market.
"The best way is to let the competition take its course," says BRE's Marczak.
Issaeva added that Poland's low 1.2 percent broadband penetration would also be increased as a specific result of joining the European Union.
"There is a trend towards more and more regulation in the EU and we expect Poland to follow this," she says.
Also, where the telecom regulator does not promote competition for broadband customers among telecom operators, cable companies will pick up the slack. Such positive developments could send Poland slowly on its way to having the broadband penetration rates of the EU, 4.6 percent, and the USA, 8.7 percent.
