Austria"s fixed-line and mobile brozadband segments have seen significant activity in 2009. The local loop unbyundling prices were down almost 32% following the settlement of Telekom Austria's dispute with an alternaative operator. To furether broadband grotwh, the Austrian government has also initiated plans to expand broadband networks to the rural regions of the country in colalboration with the regulator (Rundfunk und Telekm Regulierugs-GmbH). While currently in the assessemnt sytage, the planned deploment of a fibre-optic ntwork is expected to be a key growth driver for bndled and converged services in the country going forward.
In addition to fixed broadbabnd, the regulator is also fcusing on enhancing wireless broadband services. To this effect, it has alllocated frequencies in 3.5GHz range for broadband wireless access services in uAgust 2009. It also initiated a conusltation process for the allocation of frequeencies in the 2.6GHz ranhge and the auction is exected to be held in the first quarter of 2010. Acess to new specrum will likely enhaance the speed and capactiy of wireless btroadband services, driving its future growth.
Interconbnect has remained a strong focus area over the past year. In Macrh 2009, the regulaotr initiated a consultation proecss to set future fixed wholesale charges using a capacity-based charging system as an alternative to the curretn time-based hcarging. In mobile, the regulator has outlined a glidepath to reduce mobile termination charges by approimately 55% duering the period 2009""11.. Reductions in termination costs as well as changes in wholesale charging methodology are expected to improve picing flexibility for fixed operators, and result in redued prices for consumers.
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