Price pressure punishes T-Mobile Austria

Written by on May 5, 2015 in News with 0 Comments

Location Austria. Blue pin on the map.VIENNA (Reuters) – The chief executive of Deutsche Telekom unit T-Mobile Austria sees price pressure increasing from so-called Mobile Virtual Network Operators’ (MVNOs) piggy-backing on bigger providers’ infrastructure, he said on Tuesday.

“It’s a question of intensified competition which increased in Austria in the last few weeks… from all sides,” CEO Andreas Bierwirth told reporters. “Prices continue to fall.”

T-Mobile Austria aims to focus on higher-price segments rather than market share, he said.

Hutchison Whampoa unit Drei Austria has to offer wholesale access to its network to up to 16 MVNOs as a condition for buying Orange Austria as a remedy to stimulate competition and keep consumer prices low.

Telekom Austria, a unit of America Movil, is the market leader in Austria. T-Mobile Austria, which had 2014 revenues of 815 million euros (598 million pounds), is number two with a market share of around 30 percent.

“Our target is to stabilise revenues in Austria in the medium term,” Bierwirth told Reuters.

“We see ourselves well on the way to this target, but next year we have to factor in a slight fall in revenues (as) it’s questionable whether we can compensate (falling) roaming (prices).”

EU member states and members of the European Parliament are in the final stage of negotiations on a package aimed at slashing mobile roaming fees.

Deutsche Telekom reports results on May 13.

(Reporting By Shadia Nasralla; Editing by Michael Shields)

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