Broadband market review – Poland 2008


As you may know, we often work with financial institutions and private equity firms with interests in the telecom sector, both in the wireless and fixed businesses. One of our clients was interested in analyzing the Polish mobile market with a specific focus on the fixed and broadband market.  I will use this post to not only give you some insights of the broadband market in Poland but also to show how do we face this type of engagements.

Being Poland a non-mature market, broadband penetration has still room for improvement. Polish broadband penetration rate has reached 13% in 1Q 2008, with a 2007 annual increase of more than 20%, but it is expected to reach nearly a 50% in 2010.

As there are strong levels of competition, it is essential to carefully assess both the possibilities and the potential risks existing in the market, and from that analysis let the private equity firm to devise an entry strategy that best adjusts to such conditions. Some relevant figures of the polish market can be show in the next video-slide:

Taking these circumstances into consideration, we were requested to support for defining a detailed market research to identify potential opportunities in the Polish residential broadband Internet and fixed telephony businesses to allow our client’s investments to maximize any investment opportunity in the Polish market.  This includes both helping to understand the potential of the businesses in the Polish market, as well as providing advise in the decision-making process that will eventually allow our client to set up an investment under optimal conditions, considering both the potential of the Polish market and of the intended strategy to be followed in Poland.

Having helped several fixed and broadband operators in Europe as well as having conducted different projects in the Polish market, mmC is in a position to understand the best way to seize the opportunities and risks offered by the Polish market according to the characteristics of the market and the expectations of a private equity firm. Some of you have sent me some questions on how do we face a market research work. No rocket science behind. This is how we do it.

We normally suggest an assessment separated in two differentiated areas: market current situation and competitive environment. We base most of our market estimations, hypothesis and forecasts in a detailed business case where we project the market’s forecasts and evolution based in current situation at the same time we analyze in detail the competitive landscape in terms of penetration, subscribers, revenues and market shares. We crosscheck this analytics with broker reports with which we feel confident and we deliver the assessment.  Please find an example of this for the polish case.

Hope it helps.  Best regards.
CVA. Flying from Frankfurt to Madrid.


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