TELECOMS MARKET

The prevalent telecom operator in Austria is the incumbent Telekom Austria and the cableco UPC Austria, though there is increasing competition in the fixed-line broadband and mobile sectors. As in other European countries, Austria operators are expanding their offer of bundled services in order to attract and retain customers. The Austrian fixed-line broadband market is dominated by the DSL sector, while a third of all connections belong to the cable broadband sector. The fibre sector, although it initially developed slowly, in recent years the operators have upgraded their infrastructure and promoted bundled services. The Federal Competition Authority (BWB, short for Bundeswettbewerbsbehörde) is the national watchdog institution for fair competition.

BUSINESS ENVIRONMENT

Austria has a well-developed market economy, skilled labor force, and high standard of living. Its economy is closely tied to other EU members, particularly to Germany. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector.

Austrian economic growth strengthened in 2017, with a 2.9% increase in GDP. Austrian exports, accounting for around 60% of the GDP, were up 8.2% in 2017. Austria’s unemployment rate fell by 0.3% to 5.5%, which is low by European standards, but still at its second highest rate since the end of World War II, driven by an increased number of refugees and EU migrants entering the labor market. Austria’s fiscal position compares favorably with other euro-zone countries. Several external risks, such as Austrian banks’ exposure to Central and Eastern Europe, the refugee crisis, and continued unrest in Russia/Ukraine, eased in 2017, but are still a factor for the Austrian economy.

RELEVANT INTERNET EXCHANGE POINTS

• AAIX – Alpes Adria Internet eXchange (Klagenfurt)
• SAIX – Salzburg Internet eXchange
• VIX – Vienna Internet eXchange