Annual report 2012

Inter-operator segment (wholesale)

Competition on the inter-operator services market is tightening, primarily due to the economic crisis. The result is considerable pressure on sales prices and thus margins. In the voice segment, this means the shift of traffic to internet protocol and less expensive solutions, without regard to quality. In the data segment, this means a sharp reduction in the prices of international connections, smaller and larger capacities and the internet. Despite years of expectations, the real consolidation of the market on which Telekom Slovenije operates has not yet begun. Despite the fact that difficulties have been seen, in particular with smaller operators, new operators are entering the market, thus increasing competition and pressure on prices as a result.

Growth in the international telephony market is slowing. The key trends are declining sales and falling regulated prices, which has an adverse effect on revenues and margins. Among growth trends that represent a business opportunity are growth in internet traffic on the markets of South-Eastern Europe, Asia and the Middle East, and growth in mobile data traffic.