Growth in Slovakia's telecommunications market over the next five years will be driven by a more rapid uptake of mobile data, fixed broadband Internet, and voice over IP (VoIP) services, while revenues from mobile voice services will begin to decline, according to the latest report from Pyramid Research.

The telecom market in Slovakia generated $2.4 billion in service revenues in 2008 (excluding pay-TV), an increase of about 14 percent over 2007 revenues. Pyramid expects the overall market to contract slightly in 2009, with recovery beginning in 2010. Pyramid estimates that Slovakia's telecom services sector will be worth $2.7 billion in 2013, representing a compound annual growth rate (CAGR) of about 1.8 percent over the next five years. Broadband and mobile data's revenue will more than double in the forecast period and in 2013 will account for 10.1 percent and 22.0 percent of total revenues, respectively.

"Fixed broadband, VoIP, and mobile data services will become the major sources of growth in the Slovakian telecom market over the next five years," notes Sylwia Boguszewska, analyst at Pyramid Research and author of the report. "Broadband and mobile data's revenue will more than double in the forecast period and in 2013 will account for 10.1 percent and 22.0 percent of total revenue, respectively."

Deployment of 3G mobile services will enable network operators to build mobile data service revenues over the next five years, Boguszewska notes: "Right now, less than 13 percent of Slovakia's mobile users subscribe to 3G services. By 2013, nearly 60 percent of mobile users will be on 3G networks." Competitive operators Orange and Telefonica are aggressively rolling out 3G services in Slovakia, she adds.