Austrias fixed-line and mobile broadband segments have seen significant activity in 2009
. The local loop unbundling prices were down almost 32% following the settlement of Telekom Austria's dispute with an alternative operator. To further broadband growth, the Austrian government has also initiated plans to expand broadband networks to the rural regions of the country in collaboration with the regulator (Rundfunk und Telekom Regulierungs-GmbH). While currently in the assessment stage, the planned deployment of a fibre-optic network is expected to be a key growth driver for bundled and converged services in the country going forward.
In addition to fixed broadband, the regulator is also focusing on enhancing wireless broadband services. To this effect, it has allocated frequencies in 3.5GHz range for broadband wireless access services in August 2009. It also initiated a consultation process for the allocation of frequencies in the 2.6GHz range and the auction is expected to be held in the first quarter of 2010. Access to new spectrum will likely enhance the speed and capacity of wireless broadband services, driving its future growth.
Interconnect has remained a strong focus area over the past year. In March 2009, the regulator initiated a consultation process to set future fixed wholesale charges using a capacity-based charging system as an alternative to the current time-based charging. In mobile, the regulator has outlined a glidepath to reduce mobile termination charges by approximately 55% during the period 200911.. Reductions in termination costs as well as changes in wholesale charging methodology are expected to improve pricing flexibility for fixed operators, and result in reduced prices for consumers.