The latest data delivered by Eurostat for 2005 indicate that for local calls, the market share of the incumbent operators in the former EU 25 averages 72%. It has reached its peak in small countries, such as Cyprus and Slovenia, where the incumbents control 100% of the national markets. Meanwhile, Austria and Germany recorded the lowest shares for former state-owned operators, who manage 53% and 56% of the national phone calls respectively.
The same pattern emerges for long-distance calls, for which incumbent operators have 66% of the EU market share (the minimum, in Finland, is 45%). Moreover, former state-owned companies manage 56% of international calls (39% in Germany, again the minimum).
On the other hand, the dominance of incumbents does not prevent price decreases. In August 2006, the average charge for a 10-minute call on a weekday morning in the EU 25 was €0.36 for a local connection, €0.74 for a national connection and €1.79 for an international call to the USA (VAT included). The same calls in August 2004 had respectively an average cost of €0.4, €0.9 and €2.1.
In the mobile sector, incumbents' market shares are less remarkable, with an average of 39% registered in 2006 in the EU 25. Incumbents provide less than half of the subscriptions in the vast majority of member states. In the UK, they control 26% of the market, in Denmark 32% and in Poland 34%. On the other hand, in Cyprus, the former state-owned company controls 90% of the mobile market, and in Slovenia 71%.
In terms of prices, EU regulatory intervention has focused on roaming charges, capped at EU level since summer 2007. The use of mobile phones abroad now has a maximum charge of €0.30 per minute. In addition, the European Commission launched a wide-ranging review of the whole telecoms sector in November 2007, following the liberalisation wave of the last two decades (see EurActiv 09/01/2008).
According to the latest Eurostat data for 2004, the EU telecommunications sector is made up of around 24,000 enterprises, with a turnover of €398.6 billion and added value amounting to €187.2 billion. Turnover in the EU 27 grew without interruption between 2001 and 2006, with an average increase of 4.5%. In 2006, the pace of growth slowed substantially to 1.1%.
