• A market worth 270 billion EUR, up 5.6% in 2003 and 4.4% in 2004
• An accentuated downturn in fixed telephony: a fall in the number of lines and increased competition also in the local sector
• Sustained impetus in the mobile segment: regular growth in subscriber bases, steady ARPU levels
• Boom in broadband: 23 broadband subscribers per 100 inhabitants in mid-2004, compared with 3 in mid-2002
• Much higher growth in the countries of Central and Eastern Europe (expanding mobile markets, emerging Internet market) and more limited rates in Northern Europe (because of more mature markets and keen competition)
A changing market

• Implementation of the new European regulatory framework: impact on regulation is still uncertain
• Rollout of 3G services
• Expansion of the broadband market and development of new services: Triple Play, Wi-Fi, VoIP, etc.

What to expect by 2008: a continuing slowdown in growth

• A check on growth in the medium term due to price pressure and saturated mobile subscriber bases
• A key role for broadband and 3G services
• Operator strategies will be bound up with the challenge from VoIP, customer loyalty, the development of new services, restructuring and consolidation
• A gradual slowdown in growth but better prospects in the EU accession countries.