27 Jun 2018

Spending on Telecom Services and Pay TV in Central and Eastern Europe Continues to Grow Slowly, According to IDC

FOR IMMEDIATE RELEASE, Prague – Spending on telecom services and pay TV services in Central and Eastern Europe (CEE) reached $65.45 billion in 2017, representing an increase of 1.9% year on year, according to the Worldwide Telecom Services Database published by International Data Corporation (IDC). IDC believes that the growth rate will drop slightly to 1.6% in 2018, bringing the CEE telecom and pay TV services market value to $66.56 billion. The market is forecast to continue growing until the end of the five-year forecast period (2018-2022), to post a compound annual growth rate (CAGR) of 1.0%.

The CEE telecom services market is expected to record trends similar to the global one: Voice services will continue declining, while data services will keep on pulling the growth rates up. "CEE customers are clearly changing their habits, and voice communication is becoming less and less important," says Kresimir Alic, senior program manager with Telecoms and Networking and Worldwide Telecom Services at IDC CEMA. "Instead, they watch videos and access other content services using their high-speed cable and FTTX Internet connections and interact on social media using their smartphones."

Russia remains the largest telecom services market in Central and Eastern Europe, generating more than one third of total CEE spending. As that market recovered in 2017, and IDC's forecast includes a CAGR of 1.4% between 2018 and 2022, prospects are looking up for the entire region. Poland, which is the second largest CEE market with 11% of the region's total spending, is expected to stagnate or even slightly decline, owing to heavy competition in the mobile segment. Other key markets, including the Czech Republic, Hungary, and Romania, will all record slow yet positive growth dynamics during the five-year forecast period.

From a worldwide perspective, CEE is a minor region, contributing less than 4% of global telecom services spending and less than 20% of total European spending, in spite of having a population almost equal to that of Western Europe (WE). "Compared to Western Europe, the CEE market is underdeveloped and thus holds considerable growth potential. On the other hand, single-digit growth rates show that the CEE market has matured, and expanding the subscriber base has become very challenging," notes Alic. In this situation, vendors are under pressure to create innovative approaches and attractive offers for customers.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

For more information about IDC's Worldwide Semiannual Services Tracker, please contact Kathy Nagamine at knagamine@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. You can also follow IDC on LinkedIn and Twitter at @IDC.


Lisa Nagamine



Wilvin Chee



Michael Shirer