Regulator RTR’s Telekom Monitor market data for Q1 2025 demonstrates Austrian consumers are looking for bargains
The market share of MVNOs and resellers in Austria grows to a total of 18.3 percent meaning around 2.5 million end customers are currently served by so-called MVNOs and resellers. The figure was revealed in the Austrian regulator’s latest market report.
“This market segment is essential for competition in the Austrian telecommunications market because it serves certain customer needs at a very good price/performance ratio and was therefore able to further expand its market share by 1.5 percentage points in the first quarter of 2025 compared to the first quarter of 2024,” commented RTR managing director for Telecommunications and Postal Services Dr Klaus M Steinmaurer.
He added: “It remains to be seen how developments will continue here. In any case, the market seems to be functioning well.”
Austrian telecommunications operators generated a total of €1,190 million in the first quarter of 2025. “This represents a slight increase of €12 million compared to the first quarter of 2024,” said Steinmaurer.
“Although the general conditions have naturally become significantly more difficult, such as a decline in call minutes and text messages, regulated roaming prices in Europe, and massive competition from messenger services, the figures demonstrate that Austrian operators can certainly operate profitably even in more challenging times,” he said.
Hyper-competition
While the regulator seems happy with the outcome, his comments about market difficulties have played out in recent operator results. For example, A1 (Telekom Austria Group) reported total revenue growth of 4.1 percent in Q2 2025, though service revenue growth in Austria was weaker. The operator described the market as “highly competitive” and while some lower-value mobile market segments are stabilising, pressure remains.
A1 is using a multi-brand strategy: targeting higher-value customers via its A1 brand– relying on bundles and loyalty – and addressing price-sensitive customers via its discount brands like bob, and YESSS!.
Magenta Telekom reported revenues of €736.7 million for the first half of 2025, up around 1.8% year-on-year. In May 2025, the operator deployed a cloud-native Ericsson Billing solution. Drei Austria and Ericsson also recently signed an agreement to modernise the operator’s core network with a cloud-native dual-mode 5G Core.
And the competition seems like it may only get more intense. For example, Austrian Post announced that it will launch its own mobile phone and internet offering under its own brand as an MVNO in Q2 next year (i.e. Q2 2026). Meanwhile discounter MVNO Hofer Telecom – which runs on Magenta’s network – recently said it aims to maintain competitive prices “at the usual Hofer price”, avoiding tariff increases due to inflation; instead increasing the data volume for customers when possible.
