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Landline telephone continues to get unpopular in Sweden

Wednesday, 10 July 2013
Landline telephone continues to shrink rapidly pushing telecom companies out of profitability.
To compensate for the loss, telecoms companies are doing more to take more paid for mobile data. The use of tablets and smart phones are deemed will ensure profitability.

Overall, the slowdown of the fixed telephone subscriptions continues in the a digitalised Swedish scene. Only in 2012 the number decreased by 7 percent to 4.2 million in total, according to the Swedish National Post and Telecom Agency (PTS) in its latest report on the Swedish telecommunications market.

Biggest drop recorded is for subscriptions on the traditional telephone network. At the end of 2012 there were fewer than two million such subscriptions to nearly 4 million in 2006. Other types of subscriptions that IP telephony has taken a larger share of the market but can not prevent the collapse of fixed subscriptions.

One reason has been attributed to demographics - the younger generation are blamed for not taking up fixed telephony today. The absolute oldest have left it, but between generations there is the migration from fixed to mobile solutions. The fixed telephone market is going down like a slide by 10-15 percent year on year.

The effect is that telecom revenue will slide. Fixed call services revenues have plummeted by more than 11 percent: from Skr13 billion for 2011 to Skr11.5 billion 2012. The operator who has the most to lose in fixed subscriptions decline is Telia which has over 60 percent of the market.

Therefore, there is a lot of money to be made for the operators in terms of data traffic. The pricing model is also about to change as well as the contracting system. Instead of a package such as "Surf all you want for Skr 100... a month for example," it will now be a deals that limits how much one can surf for a given amount.

There will be a much tighter cap on the amount of data one can use within the confines of a fixed price. Then there is a chance to buy additional packets of data.
by Scancomark.com Team