Poland Internet Usage and
Broadband
There are approximately 350 licensed
Internet Service Providers (ISPs) in Poland, and the number is
increasing every month. The top 15-20 ISPs operate nationally,
and some even operate their own links. ISPs usually lease links
from large networking companies. Most ISPs are active locally and
provide other services, such as maintaining www services,
training services or ensuring security of the Internet systems.
Internet access is being also offered by the two academic Wide
Area Networks (NASK and POL) and all the 22 Metropolitan Area
Networks. Telekomunikacja Polska S.A. and NASK control more than
half of the Internet market. NASK is the main Internet operator,
controlls Internet domains in Poland, and is the oldest Internet
provider in Poland. NASK is a member of CENTR, the European
Association of Domain Name Registrars. Other major operators
include ATOM (250% growth in 1997; uses Tel-Energo
infrastructure, ATM standard), Optimus Net and Internet
Technologies. Since 1997, TPSA has been offering access to
Internet through local telephone connections, although without
the possibility of installing a mailbox or web site.
Various means are being employed to provide
Internet access, including fixed wire line, wireless local loop,
and mobile. Broadband services are still in their early stages,
but since the draft Telecommunications Law provides for local
loop unbundling for the provision of Internet Services, there
will be a proliferation of solutions such as ASDL, offered by
competitive operators and ISPs, with the new Law coming into
force on 1 January 2001 at the latest.
So far four licences for provision of
Internet over TV cable networks have been granted. The cable TV
network penetration exceeds 10% (about 4 million subscribers),
which is about double the PC household penetration. A planned
ordinance will eliminate the need to obtain a licence for the
provision of Internet services over switched networks; the same
is also being considered in the case of Internet provision over
cable TV networks.
The Internet in Poland is well developed in
the business sector and has penetrated the consumer and household
sector. The low level of Internet use by households, typical of
e-commerce development in much of Central and Eastern Europe and
in other emerging economies, is due partly to the poor quality of
existing fixed-line telephone networks and the high costs of
accessing the Internet. However, the business community and the
government are committed to removing the bottlenecks to further
growth of e-commerce. At present there is an estimated 6 million
computers in Polish homes.
Moreover, certain market structure and
cultural barriers to consumer development of the Internet still
exist. In Warsaw, one does not see the Internet cafes or price
competition for telephone access that can be seen in European
cities such as London, where telecommunications has been
liberalized. Many people in Poland lack confidence that credit
card information can be protected on the Internet. As yet there
is no high-speed Internet access, such as digital subscriber
lines (DSL) for consumers. And at a cost of $500 to $1,000,
computers are still expensive for many individual
households.
However, the development of the Internet is
not necessarily blocked by the relatively small number of
computers in homes. The days when the Internet was inseparably
tied to the computer are over. In many countries, users have had
access to the Internet for years on television sets equipped with
a special device. Recently several cable networks have offered
the same opportunity to Poles. Only about three percent of
Poland's Internet users do so via cable TV at present, but this
method will certainly become more popular with time. The cellular
phone is another piece of equipment that can replace the
computer. The Wireless Application Protocol (WAP) technology
enabling a connection with the Internet via a cell phone was
unveiled last year, and Polish Internauts can already use it. In
early February 2000, Polkomtel SA, the Plus GSM network operator,
offered its subscribers WAP access to the Internet. Other
operators plan to introduce similar services in the coming
months.
The development of the Polish mobile
Internet has certain limitations due to the small number of WAP
servers and the shortage of telephones compatible with this
technology. At the moment, only one model of WAP-compatible
telephone is available on the Polish market (Nokia 7110) and it
is difficult to come by. Still, there is every indication that
the future will belong to mobile data communication terminals.
Forecasts by Western analysts indicate that by 2003 the number of
people accessing the Internet via mobile terminals, based on
technology such as WAP and GPRS, will be comparable with the
number of Internauts using PCs.
Internet Usage
Industry sources estimate that there were
1.5 million Internet users in Poland in 1999 -- including 4.1
percent of all households -- out of Poland's 38 million
population. By the end of 2000, about 7 percent of Poland's
households owned computers, and 5 percent had access to the
Internet. These sources estimate 10 million Internet users in
2005.
There are 10,000 commercial Web sites, and
80 percent of businesses in Poland use the Internet on a daily
basis. Fifty-seven percent of companies have their own Web sites,
and 320 companies are selling through the Internet. Companies
such as Microsoft, IBM, Intel, and Cisco conduct nearly all of
their large and fast-growing businesses over the
Internet.
Use of the Internet by different levels of
government also is growing, although the information available to
users is sometimes limited. Municipal government Web sites often
show documents used for municipal government and samples of
standard letters to request services. There are sometimes
opportunities for Internet users to give "feedback" to the
government through comments on pending budget and planning
decisions.
Data Transmission and Internet
Services
Computer services are considered to be the
most dynamic and promising segment of the Polish information
technology market. The total information technology market is
estimated to total $2.3 billion. The services market stands at
about $575 million, 20-25% of the total information technology
market.
Computer services are expected to maintain
their current 30% annual growth rate during the next year. This
rate of growth is much higher than the entire computer sector in
Poland. The rapid development of computer services continues as
the market moves toward technology applications and services in
place of just technology itself.
The range of computer services offered in
Poland include integration services, computer educational
training, consulting, hardware maintenance and servies, and data
processing. Integration services are the fastest developing
segment of the services market. Among equipment maintenance and
services, third party maintenance (TPM) represents a growth
market, the market for manufacturing services remains level, and
services offered by distribution companies is
declining.
The first application service provider
(ASP) projects were signed in 1999 and early in 2000, opening new
opportunities for computer services. These kinds of projects are
predicted to become more popular in the near future and maintain
a substantial growth rate.
Poland - Telecoms Market
Overview & Statistics Report
This Paul Budde report provides a
concise overview of telecommunications in Poland. Regulatory
developments as part of Poland’s accession to the EU are
covered. The introduction of competition has yet to make much
impression on incumbent TPSA’s majority market share in the
fixed-line voice and Internet access markets. Mobile penetration
has experienced significant growth and the market is entering a
new market phase as 3G services are launched. Broadband
penetration has also experienced significant growth with ADSL
growing significantly. The cable TV companies, which possess a
significant national presence, have launched triple play services
and have the potential to provide serious competition to the
incumbent’s dominance. See contents
table.