This report covers the market developments in FY 2013 and the data available as of October 2014.

The Polish telecom market shrank y/y for the second consecutive year, driven downwards by the poor performance of the fixed-line and telephony segments. The internet segment was the only one that recorded positive annual performance in 2013, namely 3.7% y/y growth.

The decline of the Polish telecom market in 2013 was the result of a cumulus of factors, among which regulatory measures (such as MTR cuts), the high level of saturation with services, which added to the tight competition between market players.

The Polish telecom market is regarded as a mature one and most segments are saturated. Accordingly, the players increased their focus on new services, combining energy and telecommunications services, and started to cooperate with banks in their product offers. Considering that the worst of tariff cuts is already behind, the revenues in the sector will likely slow down decline in 2014 and gradually pick up in the coming years.

Key points:
• Telecom market shrinks y/y for second consecutive year, driven downwards by poor performance of fixed-line, mobile segments
• Revenues from TV services marginally up y/y in 2013
• Regulator UKE announces LTE auction, awaits bids until Nov 24
• UKE deregulates broadband infrastructure access in 76 municipalities
• Mobile market penetration in Poland remains above EU average
• EBRD sells 33% of its shares in Cyfrowy Polsat
• Vectra cancels tender offer for 33% of listed telecom operator Netia