Analysys Mason: Operators in CEE need to be alert to the OTT threat

The mobile market in Central and Eastern Europe (CEE) is evolving more quickly than expected and operators need to be alert to the over-the-top (OTT) threat, said Analysys Mason in a new report. The research and analysis company said it is now taking a more aggressive view of the prospects for the OTT market in Europe generally, including in CEE, and has therefore downgraded its forecast of mobile messaging revenue for the region, and increased the handset data forecast. Total mobile service revenue in CEE grew 0.6 per cent year-on-year in the first half of 2013, to reach €22.5 billion. This was much lower than the 6.9 per cent growth recorded in the second half of 2012, but in line with the analyst company's expectations. Growth was strong in the large eastern markets of Russia, Ukraine and particularly Turkey, which performed best with growth of 10.7 per cent year-on-year. Hungary, Latvia and Romania also recorded growth, but elsewhere there were declines, notably in Estonia where a large drop in the termination rate has caused a big reduction in termination revenue, as well as stimulating competition in the retail market. Report

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