RTR Internet Monitor Annual Review 2017

Contents Table of contents RTR Internet Monitor 2017 Annual Report 1 Preface Broadband in Austria Fixed and mobile broadband connections Broadband penetration Fixed and mobile data volume – retail market Fixed and mobile data volume per connection Broadband revenues Activities in the internet Broadband index Tables 2 Fixed broadband Retail ﬁxed broadband by infrastructure Retail ﬁxed broadband by customer category Retail broadband connections by bandwidth category – ﬁxed network Retail broadband connections by bundle category – ﬁxed network Revenues from retail broadband connections – ﬁxed network Wholesale broadband products offered by A1 Telekom Austria AG Tables 3 Mobile broadband Active mobile broadband connections – retail Active mobile broadband connections by customer category Retail data volumes in mobile networks Roaming data usage Tables 4 Monitoring internet access quality Download and upload speeds (all technologies) Download speed by bandwidth category Download speed by technology Upload speed by technology Number of tests for each technology Download speed – peak and off-peak 4 7 8 9 10 11 12 13 14 15 19 20 21 22 23 24 25 26 29 30 31 32 33 34 37 39 40 41 42 43 44 RTR Internet Monitor 2017 Annual Report

Contents Download and upload speeds by time of day in 2017 Download speed by province Download speed by district in 2017 Ping time (latency) Tables 5 International comparison 6 Percentage of households with broadband internet access at home (ﬁxed or mobile) Enterprises with broadband internet access (ﬁxed or mobile) Percentage of ﬁxed broadband internet connections ≥30 Mbps Percentage of ﬁxed broadband internet connections ≥100 Mbps Average ﬁxed network download speed Internet access via smartphone Mobile broadband penetration Mobile data volume per SIM card Mobile data usage and data-only penetration Explanatory notes and Glossary Details on data sources Glossary Publishing information 45 46 47 48 49 55 56 57 58 59 60 61 62 63 64 67 68 69 72 RTR Internet Monitor 2017 Annual Report

Preface Preface Dear readers, in presenting this first issue of the Internet Monitor, RTR is responding to a trend that has been gaining momentum in recent years: internet access is becoming the basis for an ever-growing number of telecommunications and media services. Whereas past interest was focused on voice calls, text messaging or other telecoms services, these types of service are nowadays being provided in increasing numbers ‘over the top’ via the internet, that is, by OTT providers and platform operators. Taking the place of subscriptions for various telecoms services, internet access is becoming an all-purpose technology, a universal gateway to access many diverse possibilities. The significance of the internet is not limited to its impact on telecommunications and media, but is much wider in scope, modifying and even disrupting business models pursued in a wide range of sectors. Examples illustrating this include Amazon for the retail sector, Uber for transport and AirBnB for accommodation. This development, centred on the internet as its focal point, is in effect resulting in increased substitution of retail telecommunications services, but not without impact on the wholesale market. For example, wholesale voice services such as origination and carrier (pre-)selection, which supported competition in the early stages of liberalisation, have since been exempted from regulation. In contrast, other wholesale offerings associated with the provision of internet access services are gaining in importance, with virtual unbundling particularly important here. In previous publications, RTR responded to this trend by making subtle changes to the quarterly Telekom Monitor. As more and more internet-related information was included, other apparently less relevant data were aggregated or omitted, to limit the size of the publication. In view of the vast array of topics, as well as the growing public relevance of core telecoms issues and the unbroken interest in them, RTR decided in 2017 to introduce a new product: the Internet Monitor. Appearing on a quarterly basis, it is intended as a supplement to and not a substitute for the Telekom Monitor. The Telekom Monitor will remain substantially the same in the foreseeable future. The Internet Monitor, meanwhile, is conceived as a special product that delves more deeply into all issues surrounding the internet. RTR is additionally planning an annual report entitled ‘Austria Connected’, to feature selected topics accompanied by a brief analysis as well as geographic information. In publishing these new periodicals with empirical data, RTR is convinced that we will be able to provide first-hand information on current developments in Austria, so as to meet the public’s growing need for information and to give appropriate priority to the internet.

Preface What are the main topics featured in this issue of the Internet Monitor? The first section provides a market overview, including details on items such as penetration rates as well as internet usage and price changes. This is followed by sections focused on the two access technologies – fixed network and mobile network – with subscribers, volumes and revenues presented for each. Due to an amendment to the Communications Survey Ordinance, certain kinds of data such as fixed network download volumes are now available for the first time, as of Q4 2017. In some cases, figures can vary from previous quarters as a result of revised definitions. Section 4 features numerous evaluations based on the RTR-NetTest, including download and upload speeds depending on the technology, time of day or province of Austria, for example. That section also presents selected items related to geography. Like the current Telekom Monitor, this issue is an annual report. The final section correspondingly presents several international comparisons that relate primarily to key data from the previous sections and reveal Austria’s standing compared with other countries. Hopefully you will find this report relevant and informative and will wish to read it on a quarterly basis in future. We are always open and happy to receive suggestions and critique. My wish is that this product will get off to a good start, proving thought- provoking and a source of new information for you, our dear readers. Johannes Gungl Managing Director Telecommunications and Postal Services Division RTR RTR Internet Monitor 2017 Annual Report

01 Broadband in Austria 1 Broadband in Austria Fixed and mobile broadband connections Broadband penetration Fixed and mobile data volume – retail market Fixed and mobile data volume per connection Broadband revenues Activities in the internet Broadband index Tables 7 8 9 10 11 12 13 14 15

Section 1 Broadband in Austria Fixed and mobile broadband connections Already over 10 million broadband connections in total 3.554 3.618 3.783 3.829 4.223 4.282 4.339 4.661 4.780 4.819 4.909 5.478 2.147 2.132 2.157 2.203 2.417 2.462 2.404 2.464 2.452 2.453 2.462 2.220 2.383 2.399 2.420 2.456 2.479 2.488 2.494 2.524 2.528 2.516 2.506 2.511 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 • Fixed and mobile broadband connections totalled 10.2 million at The chart above shows the total number of the end of 2017. This is 5.8% more than at the end of 2016. ﬁxed and mobile broadband connections. With mobile broadband, a distinction is • Fixed broadband connections decreased year-on-year, but only made between mobile data subscriptions slightly, by 0.5% (to 2.5 million connections). • As a result of a change in query definition, the number of active mobile broadband connections declined sharply. From Q4 2017, mobile broadband connections are now counted only if used for internet access at least once in the quarter. These totalled 2.2 million at the end of 2017. • In contrast, the number of smartphone subscriptions rose sharply. This can also perhaps be attributed to changes in category assignments on the part of operators. The 5.5 million subscriptions in total are 17.3% more than at the end of 2016. (with or without data volumes included) and smartphone subscriptions. ‘Broadband connections’ is deﬁned in the Glossary at the end of the report. 8 RTR Internet Monitor 2017 Annual Report 02.0004.0006.0008.00010.00012.000Fixed broadbandMobile data subscriptionsSmartphone subscriptionsin millions

Section 1 Broadband in Austria Broadband penetration 1.4 Smartphone subscriptions per household 97.9% 62.8% 56.3% 118.2% 64.0% 62.5% 138.1% 63.3% 56.0% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Source for number of households: Statistics Austria • The penetration rates clearly reflect the result of changing the definitions of mobile broadband categories, as described above on the previous page. • The household penetration rate for fixed broadband languished at about 63% (last figure 63.3%), while mobile broadband dropped somewhat. This is because mobile broadband connections are now only counted when used to access the internet at least once in a quarter. • The rate for smartphone subscriptions added substantially to an already high figure, with 138.1% of households having such plans at the end of 2017. As stated, this figure may be a result of changes to provider categories in the amended query. Broadband penetration refers to the ratio of ﬁxed and mobile broadband connections to the total number of households in Austria. The penetration rate also takes into account broadband connections used by businesses. RTR Internet Monitor 2017 Annual Report 9 Fixed broadbandMobile data subscriptionsSmartphone subscriptions0%20%40%60%80%100%120%140%160%

Section 1 Broadband in Austria Fixed and mobile data volume – retail market Fixed network data volume was double the mobile network volume in Q4 59,100 64,800 76,200 99,200 109,900 124,500 142,900 194,200 223,100 235,200 266,800 3 1 0 4 0 0 , 6 4 8 7 0 0 , Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 • A familiar pattern is seen for mobile data volume – it is consistently increasing. Whereas users consumed roughly 571,000 terabytes in 2016, the figure rose to 1,035,000 terabytes in 2017 (+81%). • About 649,000 terabytes were uploaded or downloaded in fixed networks just in Q4 2017, while roughly 310,000 terabytes or less than half was handled via mobile networks in that period. The chart above shows the data volume in terabytes that was uploaded and downloaded in the retail ﬁxed and mobile markets (1 terabyte = 1,024 gigabytes = 1,048,576 megabytes). The data volume for retail ﬁxed networks is only available from Q4 2017. 10 RTR Internet Monitor 2017 Annual Report 0100,000200,000300,000400,000500,000600,000700,000Mobile broadband data volumeUpload/download data volume in terabytesFixed broadband data volume

Section 1 Broadband in Austria Fixed and mobile data volume per connection An average of 88 gigabytes per month over ﬁxed broadband connections 88 47 Fixed network Mobile data subscriptions with set monthly rate (no minutes or messages included) Mobile smartphone bundles and data subscriptions without set monthly rate 4 • If the average data volume consumed is calculated per connection and per month, this results in some 88 gigabytes upload/download for fixed broadband connections, while mobile data subscriptions (cubes, dongles and other dedicated data subscriptions without inclusive minutes and texts) handle some 47 gigabytes per month and per active mobile broadband connection. • With other mobile data subscriptions (smartphone bundles with data included and plans without a free data volume), consumption is considerably lower: the average figure here per month and connection for upload/download volume is only around 4 gigabytes. The chart shows the average volume of data uploaded/downloaded in the retail ﬁxed and mobile markets in gigabytes per connection and month. The ﬁgures are derived by dividing the data volume by the number of connections that customers have used to access the internet at least once in the particular quarter. RTR Internet Monitor 2017 Annual Report 11 0102030405070608090100Data volume in GB per connection and month

Section 1 Broadband in Austria Broadband revenues EUR 1.3 billion in annual broadband revenues 3 74 4 79 3 3 4 4 7 88 81 84 82 86 7 85 7 83 8 86 8 89 8 152 199 202 204 207 210 212 212 213 217 221 224 228 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 • Broadband generated a total of EUR 1.332 billion in revenues in 2017, EUR 891 million of which were achieved through retail fixed connections, EUR 410 million through mobile broadband and EUR 31 million through wholesale connections (fixed and mobile). • In the case of mobile broadband, only limited comparisons are possible with previous years or quarters due to the revised definitions introduced in Q4 2017; the modified query logic results in a significant jump in revenues for that segment. The chart shows revenues from broadband connections, broken down by ﬁxed broadband revenues (including bundle revenues), revenues from mobile broadband and wholesale revenues (bitstream and resale). Up to and including Q3 2017, ‘mobile broadband’ represents the category of ‘fees for data and value-added data services’, and as of Q4 2017 ‘data-only subscriptions’. 12 RTR Internet Monitor 2017 Annual Report 050100150200450250300350400Fixed broadband (incl. bundled packages)Mobile broadbandWholesale revenuesin EUR millions

Section 1 Broadband in Austria Activities in the internet Four out of ﬁve Austrians send and receive email 75 77 78 62 70 63 57 56 63 60 51 53 57 54 56 54 45 49 51 Email Information News Television/videos Banking Health Social networks 41 Music 44 40 43 26 27 37 24 21 18 29 15 14 17 10 11 13 Travel Voice calling Games Websites Learning Sales Source: Statistics Austria/Eurostat • The majority of Austrian residents (78% in 2017) use the internet to send and receive email and, to a lesser extent, to search for information on goods and services (63%). The usage data presented here are derived from surveys taken by Statistics Austria on the subject of information and communication • Considerably more than half the population use the internet to The resulting responses given by Austrian technologies (ICTs). read news, newspapers or magazines online (63%). • The internet is less commonly used to upload original content to a website accessible for others (29%), to access online learning materials (17%) or to sell goods or services online (13%). residents are given here as percentages. The section entitled ‘International comparison’ provides additional charts based on the survey. RTR Internet Monitor 2017 Annual Report 13 20152016201700101020203030404050506060707090908080Percentage of the population

Section 1 Broadband in Austria Broadband index Slight drop in all categories 03/15 06/15 09/15 12/15 03/16 06/16 09/16 12/16 03/17 06/17 09/17 12/17 03/18 • There was little change in the hedonic broadband index between The broadband index is a hedonic price index Q4 2017 and Q1 2018. for ﬁxed and mobile broadband products. Hedonic means that both price changes and • There was a rise in the index both for fixed and mobile services, by changes in product features (in particular about 0.2 and 0.3 points respectively. download rate and download volume) are taken into account. The reference base is • Hardly any changes were seen in prices or products features, with 2010. Refer to the Glossary for details on the exception of A1’s hike in service charges and set-up charges. methodology. Data are available up to March 2018 and are included in the chart. 14 RTR Internet Monitor 2017 Annual Report 0.020.040.060.080.0100.0120.0FixedMobileFixed and mobileIndex points (basis = 2010)

Section 1 Broadband in Austria TABLE 01: FIXED AND MOBILE BROADBAND CONNECTIONS (IN MILLIONS) SEE PAGE 8 Fixed broadband Mobile data subscriptions Smartphone subscriptions Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 2.383 2.399 2.420 2.456 2.479 2.488 2.494 2.524 2.528 2.516 2.506 2.511 2.147 2.132 2.157 2.203 2.417 2.462 2.404 2.464 2.452 2.453 2.462 2.220 3.554 3.618 3.783 3.829 4.223 4.282 4.339 4.661 4.780 4.819 4.909 5.478 TABLE 02: BROADBAND PENETRATION (PERCENTAGE OF HOUSEHOLDS) SEE PAGE 9 Fixed broadband Mobile data subscriptions Smartphone subscriptions Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 61.9% 62.2% 62.4% 62.8% 63.2% 63.3% 63.3% 64.0% 64.0% 63.6% 63.3% 63.3% 55.7% 55.2% 55.6% 56.3% 61.6% 62.7% 61.0% 62.5% 62.1% 62.1% 62.1% 56.0% 92.3% 93.7% 97.6% 97.9% 107.7% 109.0% 110.2% 118.2% 121.1% 121.9% 123.9% 138.1% TABLE 03: FIXED AND MOBILE DATA VOLUME – RETAIL MARKET (IN TERABYTES) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 SEE PAGE 10 Mobile broadband data volume Fixed broadband data volume 59,100 64,800 76,200 99,200 109,900 124,500 142,900 194,200 223,100 235,200 266,800 310,400 648,700 RTR Internet Monitor 2017 Annual Report 15

Section 1 Broadband in Austria TABLE 04: BROADBAND REVENUES (IN EUR MILLIONS) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 SEE PAGE 11 Fixed broadband (incl. bundled packages) Mobile broadband Wholesale revenues 199 202 204 207 210 212 212 213 217 221 224 228 74 79 88 81 84 82 86 85 83 86 89 152 3 4 3 3 4 4 7 7 7 8 8 8 TABLE 05: FIXED AND MOBILE DATA VOLUME PER CONNECTION SEE PAGE 12 Data volume in GB per connection and month Fixed network Mobile data subscriptions with Mobile smartphone bundles set monthly rate (no minutes or messages included) and data subscriptions without set monthly rate 88 47 4 TABLE 06: ACTIVITIES IN THE INTERNET (PERCENTAGE OF THE POPULATION) SEE PAGE 13 2015 2016 2017 Email Information News Television/videos Banking Health Social networks Music Travel Voice calling Games Websites Learning Sales 75 62 57 51 54 45 44 26 21 15 10 77 70 56 60 53 56 49 41 40 27 24 18 14 11 78 63 63 57 54 51 43 37 29 17 13 16 RTR Internet Monitor 2017 Annual Report

Section 1 Broadband in Austria TABLE 07: BROADBAND PRICE INDEX (INDEX POINTS) (BASE = 2010) SEE PAGE 14 March 15 June 15 Sept. 15 Dec. 15 March 16 June 16 Sept. 16 Dec. 16 March 17 June 17 Sept. 17 Dec. 17 March 18 Fixed 87.4 92.7 99.7 91.7 94.4 92.8 91.3 89.9 95.1 92.0 92.6 91.7 91.9 Mobile 95.1 104.9 103.3 89.3 94.4 90.4 81.9 63.0 61.8 65.5 65.1 60.2 60.6 Fixed and mobile 89.6 95.7 101.7 92.1 94.8 93.4 90.7 86.1 90.2 88.2 88.9 87.2 87.0 RTR Internet Monitor 2017 Annual Report 17

02 Fixed broadband 2 Fixed broadband Retail fixed broadband by infrastructure Retail fixed broadband by customer category Retail broadband connections by bandwidth category – fixed network Retail broadband connections by bundle category – fixed network Revenues from retail broadband connections – fixed network Wholesale broadband products offered by A1 Telekom Austria AG Tables 19 20 21 22 23 24 25 26

Section 2 Fixed broadband Retail ﬁxed broadband by infrastructure FTTH gains 27% 1,574 1,578 1,589 1,608 1,623 1,622 1,615 1,635 1,630 1,612 1,592 1,586 755 766 775 788 794 803 810 820 826 831 839 845 35 36 37 40 33 34 38 41 43 44 46 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 52 Q4 2017 • At the end of 2017, Austria had around 1.5 million DSL connections (including unbundled connections), 845,000 cable connections and 52,000 FTTH connections. The chart shows the number of ﬁxed broadband connections, broken down by infrastructure. Hybrid products represent a relatively novel technology. With such • There were in addition roughly 28,000 retail FWA connections (not products, data trafﬁc is normally via a shown in the chart). ﬁxed connection (usually based on DSL) and additionally via a mobile network • Comparing Q4 year-on-year, the number of DSL connections dropped by 3%, while cable connections increased by 3.1%. FTTH showed the strongest growth rate of all at 27.1%. when required. As they are based on ﬁxed broadband, hybrid products are included in the chart under DSL connections. 20 RTR Internet Monitor 2017 Annual Report 02004006008001,0001,2001,4001,6001,800DSL incl. unbundlingCoaxial cableFTTHNo. of connections (thousands)

Section 2 Fixed broadband Retail ﬁxed broadband by customer category About 2.3 million private customers and 215,000 business customers 6 5 1 , 2 2 7 1 , 2 3 9 1 , 2 6 2 2 , 2 4 4 2 , 2 3 5 2 , 2 8 5 2 , 2 9 8 2 , 2 7 9 2 , 2 7 8 2 , 2 4 7 2 , 2 4 7 2 , 2 2 1 2 3 1 2 4 1 2 5 1 2 7 1 2 7 1 2 7 1 2 6 1 2 2 1 2 0 1 2 3 1 2 5 1 2 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 • Fixed broadband connections numbered about 2.5 million by the end of 2017, comprising roughly 2.3 million products for private customers and 215,000 business products. The chart shows the number of ﬁxed broadband connections, broken down by customer category. The categories are • Compared with Q4 2016, hardly any changes were seen, with connection numbers decreasing minimally by less than one per cent in either segment (-0.7% for private customers and -0.6% for business customers). differentiated based on the product or type of connection. When sold as a product for private customers, a connection is classiﬁed under the private customer segment, even if purchased by a business customer. Refer to the Glossary for the precise deﬁnition. RTR Internet Monitor 2017 Annual Report 21 Private customersin thousandsBusiness customers05001,0001,5002,0002,500

Section 2 Fixed broadband Retail broadband connections by bandwidth category – ﬁxed network Number of 100 Mbps+ connections doubles within one year 72 73 75 81 87 93 97 104 146 163 194 209 345 354 365 384 423 454 463 482 466 469 501 525 724 749 773 812 811 799 805 799 776 752 712 695 1,178 1,159 1,143 1,114 1,091 1,076 1,062 1,071 1,072 1,065 1,031 1,015 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 • Broadband connections supporting <10 Mbps represent the largest The chart depicts the number of ﬁxed bandwidth category at 41.5%. • Connections offering between 10 and <30 Mbps make up the second biggest group. This category shrank by 13% in the course of the past year. • Just under one fifth of connections falls into the category of 30 to <100 Mbps, which grew considerably at a rate of 8.9% in 2017. • Still the smallest category overall at 8.5%, connections supporting 100 Mbps or more increased at the fastest rate by far in 2017, with the number more than doubling from 104,000 to 209,000. broadband connections based on provider- owned infrastructure or unbundled lines, broken down by bandwidth category. All connections supporting low bandwidths of <10 Mbps are subsumed under one chart category. 22 RTR Internet Monitor 2017 Annual Report 05001,0001,5002,0002,5003,000in thousands<10 Mbps10 Mbps bis <30 Mbps30 Mbps bis <100 Mbps≥100 Mbps

Section 2 Fixed broadband Retail broadband connections by bundle category – ﬁxed network Broadband connections still often combined with ﬁxed network telephony 34 151 33 156 31 159 31 165 30 169 28 172 26 175 21 181 20 186 19 187 19 192 36 194 16 535 540 544 556 559 561 563 563 563 561 557 541 1,063 1,068 1,079 1,083 1,087 1,093 1,104 1,108 1,108 1,103 1,092 1,081 560 562 566 580 584 583 590 608 608 601 600 609 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 • Broadband plus fixed network is the most common broadband bundle (43.7%), followed by standalone broadband (24.6%), and broadband plus fixed network and TV (21.8%). • From Q4 2017, data is now also collected on bundles not combined with fixed broadband but instead offered with other telecoms services (e.g. TV and mobile services or fixed network voice telephony and TV). There were some 16,000 such bundles at the end of 2017. The chart shows the number of broadband products sold to retail customers, where the products are based on the provider’s own infrastructure or an unbundled line and not on additionally purchased infrastructure. Broadband products may be ﬁxed broadband products sold without any other product (standalone) or can be a combination of ﬁxed broadband with one or more other products (bundled product). From Q4 2017, ﬁgures for bundled products without ﬁxed network broadband are also presented. RTR Internet Monitor 2017 Annual Report 23 05001,0001,5002,0002,5003,000in thousandsStandalone broadband (not in bundle)Broadband + fixed phone + TVOther bundles incl. broadbandOther bundles w/o fixed broadband (from Q4/17)Broadband + fixed phoneBroadband + TV

Section 2 Fixed broadband Revenues from retail broadband connections – ﬁxed network Revenues of EUR 893 million from broadband and bundles 2 14 51 2 15 52 2 16 52 2 16 53 2 16 54 1 17 54 1 17 54 1 17 54 1 19 54 1 21 55 1 22 54 1 5 24 61 77 78 78 79 81 82 83 83 85 86 88 82 54 55 56 57 57 58 57 58 58 59 59 56 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 • In 2017 broadband bundled products generated EUR 660 million, while revenue from standalone broadband reached EUR 232 million. Overall, this marks a rise of 5.4% compared with 2016. • The biggest gains were made by the broadband plus TV category (+28.8%), while revenues for standalone products showed year-on- year growth of just 1.2%. The chart shows the revenues from broadband access sold to retail customers, for connections based on provider-owned infrastructure or an unbundled line. This includes both broadband standalone products and bundled products, the latter referring to broadband offered in combination with another product (voice telephony and/or TV and/or other products). 24 RTR Internet Monitor 2017 Annual Report 050100150200250in EUR millionsStandalone broadband (not in bundle)Broadband + fixed phone + TVOther bundles incl. broadbandOther bundles w/o fixed broadband (from Q4/17)Broadband + fixed phoneBroadband + TV

Section 2 Fixed broadband Wholesale broadband products offered by A1 Telekom Austria AG 193,000 unbundled lines – 37,000 bitstream connections 6 3 2 9 4 1 8 3 3 3 2 6 4 1 8 3 0 3 2 2 4 1 8 3 7 2 2 9 3 1 8 3 4 2 2 2 4 1 8 3 8 1 2 8 3 1 8 3 4 1 2 7 3 1 7 3 0 1 2 4 3 1 7 3 6 0 2 0 3 1 7 3 2 0 2 8 2 1 7 3 8 9 1 6 2 1 7 3 3 9 1 9 2 1 7 3 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 • As of the end of 2017, A1 Telekom was providing roughly 193,000 unbundled lines, or 8.3% fewer than a year earlier, as well as 37,000 bitstream connections. The chart compares the total number of unbundled lines provided by A1 with the demand-side broadband lines unbundled • About two thirds of the unbundled lines supported broadband the two categories is accounted for by the by other providers. The difference between access, that is, roughly 129,000 or 4.1% fewer than in 2016. unbundled lines that are used only for voice services or as leased lines, thus not falling under broadband. The chart also depicts the total numbers of bitstream connections provided by A1 at wholesale level (see Glossary). RTR Internet Monitor 2017 Annual Report 25 050100150200250Unbundled lines according to A1in thousandsOf those, unbundled broadband lines in acc. with KEVBitstream connections

Section 2 Fixed broadband TABLE 08: RETAIL FIXED BROADBAND BY INFRASTRUCTURE (IN THOUSANDS) SEE PAGE 20 DSL incl. unbundling Coaxial cable FTTH FWA Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 1,574 1,578 1,589 1,608 1,623 1,622 1,615 1,635 1,630 1,612 1,592 1,586 755 766 775 788 794 803 810 820 826 831 839 845 35 36 37 40 33 34 38 41 43 44 46 52 16 16 17 17 29 29 29 29 29 29 29 28 TABLE 09: RETAIL FIXED BROADBAND BY CUSTOMER CATEGORY (IN THOUSANDS) SEE PAGE 21 Private customers Business customers Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 2,156 2,172 2,193 2,226 2,244 2,253 2,258 2,289 2,297 2,287 2,274 2,274 212 213 214 215 217 217 217 216 212 210 213 215 TABLE 10: RETAIL BROADBAND CONNECTIONS BY BANDWIDTH CATEGORY – FIXED NETWORK (IN THOUSANDS) SEE PAGE 22 <10 Mbps 10 Mbps to <30 Mbps 30 Mbps to <100 Mbps ≥100 Mbps Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 1,178 1,159 1,143 1,114 1,091 1,076 1,062 1,071 1,072 1,065 1,031 1,015 724 749 773 812 811 799 805 799 776 752 712 695 345 354 365 384 423 454 463 482 466 469 501 525 72 73 75 81 87 93 97 104 146 163 194 209 26 RTR Internet Monitor 2017 Annual Report

Section 2 Fixed broadband TABLE 11: RETAIL BROADBAND CONNECTIONS BY BUNDLE CATEGORY – FIXED NETWORK (IN THOUSANDS) SEE PAGE 23 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Standalone broadband (not bundle) 560 562 566 580 584 583 590 608 608 601 600 609 Broadband + ﬁxed phone Broadband + ﬁxed phone Broadband + TV Other bundles incl. broadband Other bundles w/o ﬁxed + TV 535 540 544 556 559 561 563 563 563 561 557 541 1,063 1,068 1,079 1,083 1,087 1,093 1,104 1,108 1,108 1,103 1,092 1,081 151 156 159 165 169 172 175 181 186 187 192 194 34 33 31 31 30 28 26 21 20 19 19 36 broadband (from Q4/17) 16 TABLE 12: REVENUES FROM RETAIL BROADBAND CONNECTIONS – FIXED NETWORK (IN EUR MILLIONS) Broadband + ﬁxed phone Broadband + ﬁxed phone Broadband + TV Other bundles incl. broadband Other bundles w/o ﬁxed broad- band (from Q4/17) SEE PAGE 24 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Standalone broadband (not bundle) 54 55 56 57 57 58 57 58 58 59 59 56 77 78 78 79 81 82 83 83 85 86 88 82 + TV 51 52 52 53 54 54 54 54 54 55 54 61 14 15 16 16 16 17 17 17 19 21 22 24 2 2 2 2 2 1 1 1 1 1 1 5 1 TABLE 13: WHOLESALE BROADBAND PRODUCTS (IN THOUSANDS) SEE PAGE 25 Unbundled lines according Of those, unbundled broadband Bitstream connections to A1 lines in acc. with KEV Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 236 233 230 227 224 218 214 210 206 202 198 193 149 146 142 139 142 138 137 134 130 128 126 129 38 38 38 38 38 38 37 37 37 37 37 37 RTR Internet Monitor 2017 Annual Report 27

03 Mobile broadband 3 Mobile broadband Active mobile broadband connections – retail Active mobile broadband connections by customer category Retail data volumes in mobile networks Roaming data usage Tables 29 30 31 32 33 34

Section 3 Mobile broadband Active mobile broadband connections – retail Already over 7 million active mobile broadband connections 3,552 3,617 3,673 3,690 4,047 4,079 4,109 4,408 4,506 4,511 4,572 1,330 1,312 1,315 1,354 1,397 1,424 1,449 1481 1,496 1,506 1,535 814 814 821 824 993 1,001 909 931 902 893 871 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 5,478 1,726 494 Q4 2017 • As of the end of 2017 there were about 5.5 million smartphone subscriptions and 1.7 million mobile data subscriptions with a set monthly fee. The smallest category, at about 494,000, is made up of subscriptions that do not include any data in the monthly fee but were used for internet access. The chart shows the number of active mobile broadband connections (excluding M2M), distinguished according to data subscriptions with a set monthly fee, data subscriptions without a set monthly fee and smartphone subscriptions. These categories have been revised in detail, initially when data were supplied for Q1 2016, and later as of Q4 2017 after the amendment to the KEV. The deﬁnitions are explained in detail in the Glossary at the end of the report. 30 RTR Internet Monitor 2017 Annual Report 01,0002,0003,0004,0005,0006,000Data subscriptions with set monthly rateData subscriptions without set monthly rateVoice subscriptions incl. data volumein thousands

Section 3 Mobile broadband Active mobile broadband connections by customer category Three quarters of mobile broadband connections are private subscriptions 7 9 9 2 8 9 3 9 9 2 8 9 1 0 0 1 , 2 2 0 1 , 9 3 0 1 , 1 7 0 1 , 9 8 0 1 , 8 8 0 1 , 6 1 1 1 , 7 9 3 1 , 5 3 3 2 3 3 8 3 3 3 9 3 0 2 4 7 2 4 8 3 4 0 4 4 7 3 4 9 4 4 9 4 4 9 2 3 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 • At the end of 2017, there were 1.7 million mobile data subscriptions with a set monthly fee. Around 1.4 million of them or 81% belonged to private customers. The chart shows the number of active mobile broadband connections (excluding M2M), broken down by customer category. With ﬁxed broadband, private and business customers • Business customers accounted for the remaining roughly 330,000 are distinguished based on the type of product connections. purchased. Here, in contrast, the customer type determines the category, so that even a product for private customers can fall under the business customer category when purchased by a company (see Glossary). RTR Internet Monitor 2017 Annual Report 31 02004006008001,0001,2001,6001,400Private customersin thousandsBusiness customers

Section 3 Mobile broadband Retail data volumes in mobile networks Data trafﬁc reaches over 300,000 terabytes in Q4 2017 72,100 238,300 194,200 223,100 235,200 266,800 99,200 109,900 124,500 142,900 59,100 64,800 76,200 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 • Whereas users consumed only about 571,000 terabytes of mobile data in 2016, the volume rose sharply by 81.2% in 2017 to around 1 million terabytes. • From Q4 2017 onwards, a distinction is made between data traffic under data-only subscriptions (no voice/texts) and under all other plans. In Q4 providers ascribed 76.8% of the data volume used to data-only subscriptions. The chart above shows the data volume in terabytes that was uploaded and downloaded in the mobile retail market (1 terabyte = 1,024 gigabytes = 1,048,576 megabytes). The ﬁgures do not include text or multimedia messages. From Q4 2017, data volumes can be distinguished based on whether they originated from data-only subscriptions (plans not including voice or text services) or from another kind of subscription (smartphone bundles and other plans including voice and text services). 32 RTR Internet Monitor 2017 Annual Report 050,000100,000150,000200,000250,000350,000300,000Total data volumeData-only subscriptionsOther subscriptionsUpload/download data volume in terabytes

Roaming data usage Sharp increase in data usage after roaming fees eliminated Section 3 Mobile broadband 1,942 1,295 174 230 164 159 238 565 398 291 293 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 123 Q1 2015 • The changes in roaming data usage clearly reflect the impact of the new Roaming Regulation: data usage has climbed steeply since the Regulation took effect. • Roaming data usage has climbed continuously over the entire period, with a seasonal peak each year in the third quarter. While usage was still only about 398 terabytes in Q3 2016, it jumped to almost 2,000 terabytes in Q3 2017, equal to a 387.5% increase. The chart depicts changes in the data volume used by Austrian mobile customers while in other EU and EEA countries. On 15 June 2017, roaming fees in the EU and EEA became a thing of the past. Since the Roaming Regulation took effect, consumers in the EU have been able to use their mobile phones as they would in their home countries, at no additional charge (‘roam like at home’ • A comparison of the fourth quarters of 2016 and 2017 similarly or RLAH). reveals a striking increase of 369.6%. • Refer to the following press release (in German) for more details: www.rtr.at/de/pr/PI07022018TK. RTR Internet Monitor 2017 Annual Report 33 05001,0001,5002,0002,500Data volumein terabytes

Section 3 Mobile broadband TABLE 14: ACTIVE MOBILE BROADBAND CONNECTIONS – RETAIL (IN THOUSANDS) SEE PAGE 30 Data subscriptions with set Data subscriptions without set Voice subscriptions incl. monthly rate monthly rate data volume Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 1,330 1,312 1,315 1,354 1,397 1,424 1,449 1,481 1,496 1,506 1,535 1,726 814 814 821 824 993 1,001 909 931 902 893 871 494 3,552 3,617 3,673 3,690 4,047 4,079 4,109 4,408 4,506 4,511 4,572 5,478 TABLE 15: ACTIVE MOBILE BROADBAND CONNECTIONS BY CUSTOMER CATEGORY (IN THOUSANDS) SEE PAGE 31 Private customers Business customers Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 997 982 993 982 1,001 1,022 1,039 1,071 1,089 1,088 1,116 1,397 335 332 338 393 420 427 438 440 437 449 449 329 TABLE 16: RETAIL DATA VOLUMES IN MOBILE NETWORKS (IN TERABYTES) SEE PAGE 32 Total data volume Data-only subscriptions Other subscriptions Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 59,100 64,800 76,200 99,200 109,900 124,500 142,900 194,200 223,100 235,200 266,800 238,300 72,100 34 RTR Internet Monitor 2017 Annual Report

04 Monitoring internet access quality 4 Monitoring internet access quality Download and upload speeds (all technologies) Download speed by bandwidth category Download speed by technology Upload speed by technology Number of tests for each technology Download speed – peak and off-peak Download and upload speeds by time of day in 2017 Download speed by province Download speed by district in 2017 Ping time (latency) Tables 37 39 40 41 42 43 44 45 46 47 48 49

Section 4 Monitoring internet access quality RTR-NetTest The RTR-NetTest allows users to check the speed and quality of an internet connection, reliably and independently of the provider. The RTR-NetTest is available as a mobile app for Android and iOS as well as a browser test, at www.netztest.at. The RTR-NetTest measures a number of parameters of the internet connection. These include: • Download speed • Upload speed • Ping time (latency) • Signal strength (depending on the terminal device) The results displayed by the RTR-NetTest include: • Network type, that is, mobile network (2G, 3G or 4G), WLAN or browser • Location where measurements were taken • Provider of fixed or mobile internet access All of the results described in this section are based on RTR-NetTest Open Data (see section 6). The following measurements are not used: • Measurements taken outside of Austrian territory • Measurements for which the location can only be determined to within 2 or more km, or without any location details • Repeated or implausible tests The results shown are based on actual measurements, which depend on factors such as the available technology or network coverage at the particular location, the user’s tariff plan, network traffic level, and the test environment (including device performance and operating system). The method behind RTR- NetTest is based on crowd sourcing, meaning that the test environment is not consistent over time, nor are conditions controlled or the sample representative. Due to subsequent modification, results can differ from those previously published. 38 RTR Internet Monitor 2017 Annual Report

Section 4 Monitoring internet access quality Download and upload speeds (all technologies) Slight rise in the ﬁrst quarter of 2018 31% 29% 28% 30% 32% 32% 32% 26% 24% 24% 37% 38% 34% 1 1 3 4 1 3 5 1 4 7 1 5 5 1 4 7 1 5 8 1 5 9 1 6 7 1 6 8 1 6 8 1 6 7 1 6 8 1 7 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 • The median download speed rose in Q1 2018 from the previous Expressed in megabits per second (Mbps), quarter, from about 17 to 18 Mbps. internet access speed represents the amount of data transferred in one second. • There was also a rise in the median upload speed, from just over 6 Downloading refers to data transfers from to around 7 Mbps. • No overall clear trend was seen for the median download speed in the past year, while the median upload speed displayed a slight upward trend. • There is also a continued tendency towards an improving ratio of upload to download speed. The median upload speed was about 38% of the median download speed in Q1 2018. the internet to a user. Uploading refers to data transfers from a user to the internet. The speeds shown are the rates actually measured (and not potential maximum or advertised speeds). The median is the value at the exact midpoint of a list sorted according to magnitude. RTR Internet Monitor 2017 Annual Report 39 00%25%410%615%820%1025%1230%1435%1640%1820DownloadMedian in MbpsUploadUpload to download ratio

Section 4 Monitoring internet access quality Download speed by bandwidth category Almost 40% of measurements between 10 and 30 Mbps % 7 % 7 % 7 % 7 % 7 % 5 2 % 4 2 % 4 2 % 5 2 % 4 2 % 9 3 % 9 3 % 9 3 % 9 3 % 0 4 % 5 1 % 6 1 % 6 1 % 5 1 % 6 1 % 1 1 % 1 1 % 0 1 % 0 1 % 0 1 ≤2 Mbps >2 Mbps to 10 Mbps >10 Mbps to 30 Mbps >30 Mbps to 50 Mbps >50 Mbps to 100 Mbps >100 Mbps % 3 % 3 % 3 % 3 % 3 • In Q1 2018 the majority (around 64%) of the download speeds measured by RTR-NetTest fell into the categories of <2 to 10 Mbps and >10 to 30 Mbps. The chart above displays the percentage of measurements falling under each of the bandwidth categories. The bandwidth • Relatively little variation was seen in the proportion of categories in section 2. While section 2 lists nominal categories correspond largely to those listed to one another in the past year. (advertised) bandwidths, here the actual bandwidths that were measured for ﬁxed and mobile connections are shown. 40 RTR Internet Monitor 2017 Annual Report 0%5%10%15%20%30%25%35%40%45%Percentage of tests with download speeds in a given categoryQ1 2017Q1 2018Q4 2017Q3 2017Q2 2017

Section 4 Monitoring internet access quality Download speed by technology 4G tests show further drop in median speed 0 1 6 3 4 1 1 7 1 4 2 1 8 3 4 2 1 8 1 4 3 1 9 4 4 5 1 9 0 4 5 1 9 0 4 5 1 9 7 3 5 1 9 2 3 6 1 0 1 2 3 6 1 8 0 3 5 1 9 9 2 6 1 9 8 2 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 • In 4G tests, the median download speed dropped in Q1 2018 from the previous quarter, from 29 to 28 Mbps. Internet access speed depends on factors including the technology implemented. Distinctions are made between 2G (GPRS, • Thus, the decline in 4G median download speed registered in 2016 EDGE), 3G (UMTS, HSPA) and 4G (LTE) as continued in the past year. • In Q1 2018, tests of (W)LAN connections showed an increase from 15 to 16 Mbps, while the median speed of 3G networks stayed relatively constant at 9 Mbps. well as on the basis of measurements of various ﬁxed and network technologies. The measurements were taken with the aid of a browser or app (for WLAN) and have been aggregated here under the heading of (W)LAN. The chart shows the median, that is, • The median of (W)LAN tests was somewhat higher in 2017 than in the previous year. For the 3G median, tests in recent years reveal no clear trend. the empirical value at the exact midpoint of all measurements, for each technology and quarter. Due to the low data rates achieved with 2G, no median values are shown for such connections. RTR Internet Monitor 2017 Annual Report 41 05101520253035404550(W)LANMedian in Mbps3G4G

Section 4 Monitoring internet access quality Upload speed by technology 4G tests show slight decline in median upload speed 3 2 9 1 3 2 8 1 3 2 0 2 4 2 9 1 5 2 8 1 5 2 3 1 5 2 3 1 6 2 3 1 5 2 1 1 6 2 1 1 6 2 0 1 6 2 0 1 6 2 0 1 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 • In 4G tests, the median upload speed was only slightly lower in Q1 2018 than in the previous quarter. Uploading refers to data transfers from a user to the internet. Rarely the subject of advertising, the upload data rate is usually • Thus, the downwards trend seen for median upload speeds in signiﬁcantly lower than the download rate. recent years, while continuing in 2017, lost some momentum. Yet, because communication in the internet is a two-way street, the upload rate is just • The median obtained for (W)LAN measurements was slightly as important for fast internet access. The higher in Q1 2018. upload data rate is particularly important when sharing photos or ﬁles or for video calling. • The median of (W)LAN tests was somewhat higher in 2017 than in 2016, while tests in recent years reveal no clear trend for the 3G median. 42 RTR Internet Monitor 2017 Annual Report 02468101214161820(W)LANMedian in Mbps3G4G

Section 4 Monitoring internet access quality Number of tests for each technology Strong increase in (W)LAN and 4G tests 0 0 6 , 5 1 0 0 4 , 2 1 0 0 5 , 0 1 0 0 6 , 9 0 0 6 , 9 0 0 8 , 7 0 0 0 , 8 0 0 9 , 6 0 0 6 , 7 0 0 6 , 7 7 0 0 5 , 6 2 0 0 1 , 9 5 0 0 0 , 6 2 0 0 0 , 3 7 0 0 0 , 5 3 0 0 1 , 6 0 1 0 0 3 , 8 4 0 0 7 , 2 4 1 0 0 4 , 2 5 0 0 8 , 7 1 1 0 0 8 , 3 4 0 0 8 , 3 2 1 0 0 7 , 3 4 0 0 1 , 6 5 1 0 0 9 , 5 4 0 0 1 , 6 6 1 0 0 3 , 2 5 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 • The number of tests performed using RTR-NetTest continued to rise in the first quarter of 2018. A total of 227,500 tests equates to an 8% increase from the Q4 2017 figure. All tests done in Austria (or by Austrians roaming abroad) are included in the number of tests, when the location can be determined to within 2 km. Repeated or implausible tests are • Around three quarters of all tests involved (W)LAN, while only not taken into account. about 3% involved 3G. RTR Internet Monitor 2017 Annual Report 43 020,00040,00060,00080,000100,000120,000140,000160,000180,000(W)LANNo. of tests3G4G

Section 4 Monitoring internet access quality Download speed – peak and off-peak Slightly higher peak to off-peak ratio 85% 81% 77% 86% 82% 77% 73% 72% 72% 75% 70% 71% 69% 1 1 1 1 0 1 4 1 4 1 2 1 7 1 5 1 3 1 9 1 7 1 3 1 6 1 5 1 4 1 8 1 7 1 5 1 0 2 8 1 5 1 0 2 9 1 5 1 9 1 7 1 4 1 0 2 8 1 5 1 9 1 8 1 5 1 9 1 7 1 3 1 0 2 8 1 4 1 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 • The median off-peak download speed was about 20 Mbps in Q1 Internet access speeds can also depend on 2018, while the median during peak hours was about 14 Mbps. the time of day when the internet is used. Because available resources have to be • At 71%, the peak to off-peak ratio was somewhat higher than in divided up among users, speeds can drop the previous quarter. when numerous users access the internet at the same time, during peak hours. For the • Last year the peak to off-peak ratio was considerably lower than in purpose of evaluation, peak hours are deﬁned 2016. as 6 pm to 11 pm, the evening period of heavy internet use. Other times during the day are regarded as off-peak hours. No distinction is made between working days, weekends and holidays. 44 RTR Internet Monitor 2017 Annual Report 0510152025Off-peak downloadMedian in MbpsDownload (total)Peak downloadPeak to off-peak ratio0%5%10%15%20%25%30%35%40%

Section 4 Monitoring internet access quality Download and upload speeds by time of day in 2017 Peak hours mean much reduced download speeds but upload speeds less affected 7 2 5 2 8 2 7 2 6 2 3 2 0 2 3 2 1 2 0 2 0 2 9 1 9 1 9 1 8 1 8 1 7 1 6 1 8 1 5 1 5 1 5 1 3 1 3 1 8 8 8 8 9 7 7 7 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 1 2 0 Hour of the day 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 . 2 3 1 2 . 6 5 3 . 9 2 . 5 4 . 9 8 . 1 0 2 Hour of the day 3 4 5 4 . 1 2 6 5 . 7 2 7 2 . 5 3 8 0 . 1 4 9 9 . 2 4 10 1 . 2 4 11 7 . 0 4 12 9 . 0 4 9 . 1 4 3 . 2 4 2 . 4 4 8 . 7 4 13 14 15 16 17 7 . 9 4 18 7 . 1 5 19 1 . 2 5 9 . 6 4 3 . 6 3 0 . 2 2 20 21 22 23 • The median download and upload speeds are the highest during night hours, when relatively few people are accessing the internet. The peak speed during that period is around 28 Mbps. • The median download speed continually drops as the day progresses, reaching the lowest level of 13 Mbps between 9 pm and 10 pm. • Yet the median upload speed is relatively constant during the day, at about 6 Mbps. The number of network test runs varies considerably over the course of the day. With the number of tests performed during night hours being low, the median obtained for this period ﬂuctuates more. The evaluation is based on the results of all tests performed in 2017. RTR Internet Monitor 2017 Annual Report 45 0510202530DownloadMedian in Mbps0204060No. of tests (thousands)Peak HourUpload

Section 4 Monitoring internet access quality Download speed by province Higher speeds in almost all Austrian provinces 6 1 6 1 9 1 9 1 9 1 8 1 9 1 7 1 7 1 7 1 6 1 7 1 7 1 7 1 8 1 5 1 6 1 5 1 5 1 5 1 7 1 8 1 7 1 6 1 6 1 8 1 8 1 7 1 7 1 9 1 7 1 8 1 6 1 6 1 7 1 5 1 5 1 7 1 7 1 8 1 3 2 4 2 4 2 2 2 3 2 Burgenland Carinthia Lower Austria Upper Austria Salzburg Styria Tyrol Vorarlberg Vienna • In every Austrian province except Carinthia, the median download speed was up in Q1 2018. RTR-NetTest can identify the location where the test is being run. This allows a median download speed to be determined for every • The highest values were recorded for Vienna, at about 23 Mbps. Austrian province. The median as calculated here includes all network technologies. • Measurement results in the other provinces were somewhat lower, ranging from roughly 15 Mbps for Upper Austria to 19 Mbps for Burgenland. 46 RTR Internet Monitor 2017 Annual Report 2505101520Median in MbpsQ1 2017Q1 2018Q4 2017Q3 2017Q2 2017

Section 4 Monitoring internet access quality Download speed by district in 2017 Median speeds usually high in urban areas Source for district boundaries: Austrian Federal Office of Metrology and Surveying • In 2017 high median download speeds were mostly measured in urban areas, especially in the provincial capitals of Klagenfurt, Vienna, St. Pölten, Eisenstadt and Innsbruck, as well as in Wels. The median for those districts, in each case comprising the town or city of the same name, ranged from 20 to 24 Mbps. The number of tests performed in 2017 varied from 155 in Rust (Stadt) to about 175,500 in Vienna (viewed here as one district). Total tests numbered more than 1,000 in every district except two, Rust (Stadt) and Waidhofen an der Ybbs (Stadt). • The highest median value of 24 Mbps was seen for the district The median values shown on the map are no referred to as Krems an der Donau (Stadt). • At the opposite end of the scale were five districts in Upper Austria with medians ranging between 11 and 13.5 Mbps: Rohrbach, Steyr- Land, Urfahr-Umgebung, Perg and Eferding. indication of how complete coverage is in that particular district, either in general or with speciﬁc bandwidths. RTR Internet Monitor 2017 Annual Report 47 11.0 - 13.5>16.0 - 18.513.5 - 16.0>18.5 - 21.0>21.0 - 24.0Median in Mbps

Section 4 Monitoring internet access quality Ping time (latency) Comparable median ping times for (W)LAN and 4G – 3G takes much longer 0 3 8 4 0 3 9 2 4 4 0 3 9 2 3 4 0 3 8 2 5 4 8 2 7 2 1 4 7 2 6 2 1 4 8 2 6 2 1 4 7 2 6 2 1 4 7 2 6 2 1 4 7 2 6 2 1 4 7 2 5 2 0 5 7 2 5 2 8 4 7 2 4 2 9 4 7 2 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 • The median ping time for 4G tests in Q1 2018 was 27 ms, the same ‘Ping time’ – or ‘latency’ as it is more correctly as in the previous quarter. • A slight drop from 25 to 24 ms was seen for (W)LAN tests. termed – is the time needed by a small data packet to make its way from a user device (such as a mobile or laptop) to an online server and back. The ping time is measured • The median values obtained for 3G tests, while much higher in milliseconds (ms). The ping time is a key throughout the entire period, varied somewhat in 2017. indicator for online games, but the ping time can also have a signiﬁcant impact on the ‘sluggishness’ of access when surﬁng in the internet. The delay can be markedly inﬂuenced both by the technology applied to access the internet and its level of utilisation. 48 RTR Internet Monitor 2017 Annual Report 0102030405060(W)LANping in ms3G4G

Section 4 Monitoring internet access quality TABLE 18: MEDIAN DOWNLOAD AND UPLOAD SPEEDS (ALL TECHNOLOGIES) (IN MBPS) SEE PAGE 39 Download Upload Upload to download ratio Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 11 14 15 17 15 17 18 19 17 18 18 17 18 3 3 4 5 4 5 5 6 6 6 6 6 7 26% 24% 24% 31% 29% 28% 30% 32% 32% 32% 34% 37% 38% TABLE 19: DOWNLOAD SPEED BY BANDWIDTH CATEGORY (IN MBPS) SEE PAGE 40 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 ≤2 7% 7% 7% 7% 7% >2 bis 10 >10 bis 30 >30 bis 50 >50 bis 100 >100 25% 24% 24% 25% 24% 39% 39% 39% 39% 40% 15% 16% 16% 15% 16% 11% 11% 10% 10% 10% 3% 3% 3% 3% 3% TABLE 20: MEDIAN DOWNLOAD SPEED BY TECHNOLOGY (IN MBPS) SEE PAGE 41 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 (W)LAN 10 11 12 12 13 15 15 15 15 16 16 15 16 3G 6 7 8 8 9 9 9 9 9 10 8 9 9 4G 43 41 43 41 44 40 40 37 32 32 30 29 28 RTR Internet Monitor 2017 Annual Report 49

Section 4 Monitoring internet access quality TABLE 21: MEDIAN DOWNLOAD AND UPLOAD SPEED BY TECHNOLOGY (IN MBPS) SEE PAGE 42 (W)LAN 3G Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 3 3 3 4 5 5 5 6 5 6 6 6 6 TABLE 22: NUMBER OF TESTS FOR EACH TECHNOLOGY SEE PAGE 43 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 (W)LAN 77,600 59,100 73,000 106,100 142,700 117,800 123,800 156,100 166,100 2 2 2 2 2 2 2 2 2 2 2 2 2 3G 15,600 12,400 10,500 9,600 9,600 7,800 8,000 6,900 7,600 4G 19 18 20 19 18 13 13 13 11 11 10 10 10 4G 26,500 26,000 35,000 48,300 52,400 43,800 43,700 45,900 52,300 TABLE 23: MEDIAN DOWNLOAD SPEED – OFF-PEAK AND PEAK (IN MBPS) SEE PAGE 44 Off-peak download Download (total) Peak download Peak to off-peak Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 11 14 17 19 16 18 20 20 19 20 19 19 20 11 14 15 17 15 17 18 19 17 18 18 17 18 10 12 13 13 14 15 15 15 14 15 15 13 14 ratio 85% 81% 77% 69% 86% 82% 77% 73% 72% 72% 75% 70% 71% 50 RTR Internet Monitor 2017 Annual Report

Section 4 Monitoring internet access quality TABLE 24: MEDIAN DOWNLOAD AND UPLOAD SPEEDS BY TIME OF DAY IN 2017 (IN MBPS) SEE PAGE 45 Download Upload No. of tests 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 20 23 25 27 28 26 27 23 21 20 20 19 19 19 18 18 17 16 15 15 13 13 15 18 7 7 8 8 8 8 9 7 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 13,200 6,200 3,500 2,900 4,500 8,900 21,400 27,500 35,200 41,000 42,900 42,100 40,700 40,900 41,900 42,300 44,200 47,800 49,700 51,700 52,100 46,900 36,300 22,000 TABLE 25: MEDIAN DOWNLOAD SPEED BY PROVINCE (IN MBPS) SEE PAGE 46 Burgenland Carinthia Lower Austria Upper Austria Salzburg Styria Tyrol Vorarlberg Vienna Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 16 16 19 19 19 18 19 17 17 17 16 17 17 17 18 15 16 15 15 15 17 18 17 16 16 18 18 17 17 19 17 18 16 16 17 15 15 17 17 18 23 24 24 22 23 RTR Internet Monitor 2017 Annual Report 51

Section 4 Monitoring internet access quality TABLE 26: MEDIAN DOWNLOAD SPEED (DL) BY DISTRICT IN 2017 (IN MBPS) SEE PAGE 47 District Prov DL Bezirk Prov Styria Graz-Umgebung Waidhofen an der Thaya Lower Austria Leibnitz Zwettl Klagenfurt (Land) Wolfsberg Neusiedl am See Mistelbach Gmunden Salzburg (Stadt) Spittal an der Drau Styria Lower Austria Carinthia Carinthia Burgenland Lower Austria Upper Austria Salzburg Carinthia Waidhofen an der Ybbs (Stadt) Lower Austria Villach (Land) Zell am See Hartberg-Fürstenfeld Carinthia Salzburg Styria DL 17 16 16 16 16 16 16 16 16 16 16 16 16 16 16 Krems an der Donau (Stadt) Lower Austria Klagenfurt (Stadt) Vienna Sankt Pölten (Stadt) Eisenstadt (Stadt) Wels (Stadt) Innsbruck-Stadt Mödling Murau Hollabrunn Güssing Linz (Stadt) Steyr (Stadt) Carinthia Vienna Lower Austria Burgenland Upper Austria Tyrol Lower Austria Styria Lower Austria Burgenland Upper Austria Upper Austria Eisenstadt-Umgebung Burgenland Murtal Sankt Veit an der Glan Tamsweg Korneuburg Graz (Stadt) Bruck-Mürzzuschlag Bruck an der Leitha Oberpullendorf Lienz Hallein Landeck Kufstein Kitzbühel Liezen Mattersburg Hermagor Voitsberg Salzburg-Umgebung Horn Villach (Stadt) Leoben Völkermarkt Feldkirchen Gmünd Styria Carinthia Salzburg Lower Austria Styria Styria Lower Austria Burgenland Tyrol Salzburg Tyrol Tyrol Tyrol Styria Burgenland Carinthia Styria Salzburg Lower Austria Carinthia Styria Carinthia Carinthia Lower Austria Wiener Neustadt (Stadt) Lower Austria Ried im Innkreis Sankt Pölten (Stadt) Weiz Tulln Bregenz Oberwart Upper Austria Lower Austria Styria Lower Austria Vorarlberg Burgenland Sankt Johann im Pongau Salzburg Neunkirchen Lower Austria 24 24 23 21 21 21 21 21 20 20 20 20 20 19 19 19 19 19 19 19 19 19 19 19 18 18 18 18 18 18 18 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 Kirchdorf an der Krems Upper Austria 16 Lilienfeld Feldkirch Bludenz Dornbirn Baden Linz-Land Grieskirchen Krems (Land) Lower Austria Vorarlberg Vorarlberg Vorarlberg Lower Austria Upper Austria Upper Austria Lower Austria Innsbruck-Land Tyrol Wiener Neustadt (Land) Lower Austria Gänserndorf Rust (Stadt) Scheibbs Wels-Land Vöcklabruck Melk Imst Schärding Reutte Amstetten Schwaz Freistadt Südoststeiermark Deutschlandsberg Jennersdorf Braunau am Inn Rohrbach Steyr-Land Urfahr-Umgebung Perg Eferding Lower Austria Burgenland Lower Austria Upper Austria Upper Austria Lower Austria Tyrol Upper Austria Tyrol Lower Austria Tyrol Upper Austria Styria Styria Burgenland Upper Austria Upper Austria Upper Austria Upper Austria Upper Austria Upper Austria 16 16 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 14 14 14 14 14 14 13 13 13 12 11 52 RTR Internet Monitor 2017 Annual Report

05 International comparison 5 International comparison Percentage of households with broadband internet access at home (fixed or mobile) Enterprises with broadband internet access (fixed or mobile) Percentage of fixed broadband internet connections ≥30 Mbps Percentage of fixed broadband internet connections ≥100 Mbps Average fixed network download speed Internet access via smartphone Mobile broadband penetration Mobile data volume per SIM card Mobile data usage and data-only penetration 55 56 57 58 59 60 61 62 63 64

Section 5 International comparison Percentage of households with broadband internet access at home (ﬁxed or mobile) Austria ranks within the top third EU-wide 8 9 7 9 3 9 3 9 3 9 2 9 2 9 8 8 8 8 7 8 5 8 4 8 3 8 3 8 2 8 8 7 0 8 1 8 2 8 2 8 5 8 5 8 6 8 0 9 2 9 2 9 9 8 1 9 7 9 5 9 8 7 2 8 9 7 9 7 7 7 9 7 9 7 9 7 4 7 8 7 6 7 8 7 6 7 6 7 5 7 7 7 6 7 5 7 4 7 1 7 8 6 3 6 7 6 0 7 1 7 3 7 d n a n F l i s d n a l r e h t e N g r u o b m e x u L k r a m n e D y n a m r e G d n a e r I l a i r t s u A i a n o t s E a t l a M n e d e w S i m o d g n K d e t i n U i m u g e B l i n a p S c i l b u p e R h c e z C i a n e v o S l y r a g n u H l y a t I e c n a r F i a k a v o S l s s e r p y C d n a o P l a i t a o r C i a v t a L l a g u t r o P i a n a u h t i L i a n a m o R e c e e r G a i r a g u B l Source: Eurostat • With a broadband penetration rate of 88% of all households, The data shown in the chart are taken from a Austria ranked ninth EU-wide in 2017. • The rate for Austria rose by 3% compared with 2016. Eurostat survey (digital economy and society statistics). By virtue of a Regulation, EU Member States are required to survey data using a standard questionnaire, allowing EU- wide comparisons of survey results. The data on Austria are collected by Statistics Austria and are based on a survey of some 3,500 households. The households were asked about the extent to which they were equipped with ﬁxed or mobile broadband access. 56 RTR Internet Monitor 2017 Annual Report 0%10%20%30%40%50%100%60%70%80%90%20162017Percentage of households with broadband internet access at home

Section 5 International comparison Enterprises with broadband internet access (ﬁxed or mobile) 98% of enterprises have broadband access 0 0 1 9 9 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 9 9 6 9 9 9 7 9 9 9 9 9 8 9 7 9 8 9 8 9 7 9 8 9 8 9 8 9 8 9 6 9 7 9 7 9 7 9 7 9 6 9 8 9 6 9 4 9 6 9 6 9 5 9 5 9 5 9 5 9 5 9 0 9 5 9 5 9 3 9 5 9 5 9 2 9 5 9 4 9 1 9 9 8 8 7 2 9 5 8 5 8 2 8 0 8 i a n e v o S l i m u g e B l i n a p S a i r t s u A l a g u t r o P g r u o b m e x u L c i l b u p e R h c e z C n e d e w S l y a t I d n a e r I l s s e r p y C y n a m r e G i a n o t s E a i t a o r C a t l a M d n a o P l i a k a v o S l i m o d g n K d e t i n U y r a g n u H a i r a g u B l e c e e r G i a n a m o R d n a n F l i e c n a r F i a v t a L k r a m n e D i a n a u h t i L s d n a l r e h t e N Source: Eurostat • At 98% Austria shares eighth place within the EU with Belgium, The data shown in the chart are taken from an the Czech Republic, Portugal and Spain. • The results for Austria did not change from 2016. Eurostat survey (digital economy and society statistics) and are based on a population consisting of all enterprises with ten or more employees, excluding the banking sector. The data on Austria are collected by Statistics Austria. About 2,950 enterprises were surveyed. RTR Internet Monitor 2017 Annual Report 57 70%80%90%0%10%20%30%40%50%100%60%20162017Enterprises with broadband access (fixed or mobile)

Section 5 International comparison Percentage of ﬁxed broadband internet connections ≥30 Mbps Austria only ranks in bottom third for fast access 4 . 3 8 8 . 0 8 8 . 8 7 0 . 5 7 3 . 4 7 8 . 9 6 2 . 3 7 8 . 7 6 3 . 0 7 8 . 6 6 0 . 0 7 8 . 2 6 5 . 8 6 5 . 4 6 4 . 6 6 0 . 8 5 9 . 5 6 2 . 3 6 4 . 9 5 7 . 3 6 8 . 8 5 2 . 3 6 9 . 6 5 0 . 1 6 6 . 8 5 6 . 4 5 8 . 5 5 8 . 3 5 1 . 2 5 2 . 7 4 8 . 8 4 3 . 5 4 0 . 4 4 5 . 2 4 2 . 2 4 0 . 8 3 4 . 1 4 3 . 8 3 4 . 0 4 7 . 5 3 1 . 4 3 9 . 7 3 3 . 8 2 5 . 1 3 3 . 5 2 2 . 7 2 5 . 2 2 1 . 0 2 5 . 1 2 7 . 5 1 1 . 2 1 6 . 0 2 8 . 1 1 6 . 9 9 9 . 3 . 8 i m u g e B l i a n a m o R s d n a l r e h t e N n e d e w S l a g u t r o P i a n a u h t i L d n a e r I l a i r a g u B l i a v t a L a t l a M y r a g n u H k r a m n e D i n a p S d n a o P l g r u o b m e x u L i m o d g n K d e t i n U c i l b u p e R h c e z C i a k a v o S l d n a n F i l y n a m r e G i a n o t s E i a n e v o S l a i r t s u A e c n a r F l y a t I a i t a o r C s s e r p y C e c e e r G Source: European Commission, Digital Agenda Scoreboard • With 27% of fixed internet connections having a download speed rating of 30 Mbps or more, Austria is ranked only twenty-third among EU countries. The chart data are based on ﬁgures from the Digital Agenda Scoreboard, which is published by the European Commission and includes various digital economy statistics. The chart • Similarly, the 2% improvement seen between the second half of shows the percentage of ﬁxed broadband 2016 and the first half of 2017 was below average. connections having a download speed rating of ≥30 Mbps. The data for Austria are derived from RTR surveys and are based on queries authorised under the Communications Survey Ordinance (KEV). 58 RTR Internet Monitor 2017 Annual Report 70%80%90%0%10%20%30%40%50%60%2nd half 20161st half 2017in percent

Section 5 International comparison Percentage of ﬁxed broadband internet connections ≥100 Mbps Austria in fourth to last place 5 . 5 6 . 3 6 5 8 . 0 6 . 2 9 5 9 . 4 5 . 2 9 4 7 . 1 5 . 5 7 4 1 . 9 4 . 0 3 4 0 . 2 4 . 8 6 2 3 . 8 3 . 4 3 3 9 . 2 3 . 3 2 3 9 . 9 2 . 3 8 2 0 . 4 2 . 3 4 2 9 . 3 2 . 0 9 1 6 . 3 2 . 9 1 2 6 . 1 2 . 0 7 1 6 . 1 2 . 6 7 1 6 . 1 2 . 5 0 2 6 . 7 1 . 3 5 1 6 . 6 1 . 6 3 1 5 . 4 1 . 7 2 1 8 . 3 1 . 7 2 1 6 . 3 1 7 . 2 1 . 0 1 1 5 . 1 1 1 . 1 1 4 . 9 . 5 1 1 2 6 . 5 . 8 0 . 7 0 . 2 3 . 0 0 . 0 9 . 2 5 . 4 4 . 1 2 . 0 0 . 0 i a n a m o R n e d e w S i a v t a L i m u g e B l l a g u t r o P i a n a u h t i L y r a g n u H s d n a l r e h t e N d n a n F i l i n a p S g r u o b m e x u L d n a e r I l k r a m n e D d n a o P l c i l b u p e R h c e z C i a n e v o S l i m o d g n K d e t i n U e c n a r F i a k a v o S l a t l a M y n a m r e G i a n o t s E a i r a g u B l l y a t I a i r t s u A a i t a o r C s s e r p y C e c e e r G Source: European Commission, Digital Agenda Scoreboard • With 7% of fixed internet connections having a download speed rating of 100 Mbps or more, Austria ranks twenty-fifth among EU countries. The chart data are based on ﬁgures from the Digital Agenda Scoreboard published by the European Commission. The chart shows the • A gain of 3% was recorded between the second half of 2016 and the first half of 2017. percentage of ﬁxed broadband connections having a download speed rating of ≥100 Mbps. RTR Internet Monitor 2017 Annual Report 59 70%0%10%20%30%40%50%60%2nd half 20161st half 2017in percent

Section 5 International comparison Average ﬁxed network download speed Austria ranks in the bottom half 6 . 3 2 5 . 3 2 8 . 2 2 5 . 2 2 2 . 1 2 7 . 1 2 6 . 0 2 5 . 0 2 7 . 0 2 1 . 0 2 6 . 7 1 4 . 7 1 3 . 7 1 9 . 6 1 3 . 6 1 9 . 6 1 2 . 7 1 6 . 6 1 9 . 5 1 3 . 6 1 3 . 5 1 6 . 5 1 4 . 5 1 5 . 5 1 6 . 4 1 3 . 5 1 3 . 4 1 8 . 4 1 6 . 4 1 6 . 4 1 9 . 3 1 1 . 4 1 4 1 7 . 3 1 3 1 3 1 6 . 2 1 9 . 2 1 4 . 2 1 6 . 2 1 4 . 1 1 6 . 1 1 0 1 8 . 0 1 7 8 . 2 9 . 2 8 . 6 8 . 5 7 . 9 7 . y a w r o N n e d e w S d n a l r e z t i w S d n a n F i l k r a m n e D s d n a l r e h t e N c i l b u p e R h c e z C i m o d g n K d e t i n U i a v t a L i m u g e B l d n a e r I l i n a p S y n a m r e G y r a g n u H i a n a u h t i L a i r t s u A i a n e v o S l i a k a v o S l l a g u t r o P d n a o P l i a n o t s E e c n a r F l y a t I a i t a o r C e c e e r G Source: Akamai State of the Internet report • For fixed networks in Austria, Akamai reports an average download The chart shows the average download speed speed of 14.1 Mbps in Q1 2017. for each country. The data are taken from the quarterly Akamai State of the Internet (SOTI) • This puts Austria in sixteenth place among the 25 European Report. Akamai is a leading global corporation countries analysed in the report. specialising in content delivery networks (CDNs). A CDN is used to distribute and deliver internet content. 60 RTR Internet Monitor 2017 Annual Report 0510152025Q4 2016Q1 2017in Mbps

Section 5 International comparison Internet access via smartphone Austria places in the upper half 0 . 4 8 0 . 6 7 0 . 4 8 0 . 6 7 0 . 0 8 0 . 8 7 0 . 9 7 0 . 7 7 0 . 7 7 0 . 1 7 0 . 6 7 0 . 1 7 0 . 5 7 0 . 1 7 0 . 3 7 0 . 4 6 0 . 2 7 0 . 2 6 0 . 1 7 0 . 4 6 0 . 8 6 0 . 4 6 0 . 8 6 0 . 0 6 0 . 7 6 0 . 9 5 0 . 4 6 0 . 7 5 0 . 4 6 0 . 4 5 0 . 1 6 0 . 1 5 0 . 0 6 0 . 3 5 0 . 8 5 0 . 5 5 0 . 6 5 0 . 8 4 0 . 5 5 0 . 3 5 0 . 2 4 0 . 3 5 0 . 2 4 0 . 2 5 0 . 4 4 0 . 1 5 0 . 1 5 0 . 0 5 0 . 2 4 0 . 8 4 0 . 1 4 0 . 9 3 0 . 1 3 0 . 1 3 0 . 9 2 i m u g e B l s s e r p y C a t l a M i a n o t s E e c n a r F d n a n F i l y n a m r e G a i r t s u A d n a e r I l i n a p S g r u o b m e x u L i m o d g n K d e t i n U n e d e w S k r a m n e D s d n a l r e h t e N Source: Eurostat i a n e v o S l i a k a v o S l y r a g n u H l a g u t r o P c i l b u p e R h c e z C a i r a g u B l i a n a u h t i L i a v t a L a i t a o r C i a n a m o R e c e e r G d n a o P l l y a t I • In 2017 Austria ranked ninth within the EU in terms of smartphone penetration rate, which at 72% of the entire population was 10% more than in 2016. The data shown in the chart are taken from a Eurostat survey (digital economy and society statistics). The chart shows the percentage of those surveyed who use a smartphone for internet access. The data on Austria are collected by Statistics Austria. RTR Internet Monitor 2017 Annual Report 61 70%80%90%0%10%20%30%40%50%60%2nd half 20161st half 2017in percent

Section 5 International comparison Mobile broadband penetration Austria aiming for 100% 8 . 5 4 1 3 . 6 4 1 4 . 3 2 1 9 . 3 4 1 7 . 3 2 1 5 . 9 2 1 3 . 6 1 1 9 . 5 2 1 3 . 1 2 1 6 . 4 2 1 2 . 3 2 1 3 . 3 2 1 8 . 0 0 1 7 . 3 0 1 9 . 6 9 6 . 0 0 1 2 . 7 8 2 . 5 9 1 . 5 7 2 . 3 9 0 . 9 8 8 . 1 9 4 . 6 7 8 . 0 9 8 . 9 8 8 . 9 8 3 . 7 8 4 . 8 8 5 . 5 8 8 . 6 8 1 . 7 8 6 . 6 8 4 . 3 8 6 . 5 8 0 . 9 7 7 . 3 8 0 . 1 8 7 . 1 8 7 . 0 8 9 . 0 8 8 . 0 8 8 . 0 8 8 . 6 7 9 . 8 7 4 . 9 7 4 . 8 7 3 . 6 6 6 . 2 7 2 . 2 6 9 . 5 6 6 . 2 6 0 . 5 6 9 . 2 5 1 . 9 5 7 . 4 4 1 . 9 4 d n a n F l i d n a o P l k r a m n e D g r u o b m e x u L i a n o t s E n e d e w S d n a e r I l s s e r p y C a i r t s u A a t l a M i n a p S i a v t a L e c n a r F a i r a g u B l l y a t I s d n a l r e h t e N i m o d g n K d e t i n U i a k a v o S l i a n a m o R a i t a o r C y n a m r e G i a n a u h t i L c i l b u p e R h c e z C i m u g e B l i a n e v o S l l a g u t r o P e c e e r G y r a g n u H Source: European Commission, Digital Agenda Scoreboard • In terms of mobile broadband penetration, Austria takes ninth place among EU countries, with a rate of 95%. The data are taken from the Digital Agenda Scoreboard of the European Commission. The ﬁgures here take into account mobile data-only • This represents a gain of 8 percentage points compared with 2016. subscriptions as well as smartphone bundled products (including call minutes, text messages and data) that allow mobile broadband use. 62 RTR Internet Monitor 2017 Annual Report 140%160%0%20%40%60%80%100%120%2nd half 20161st half 2017in percent

Section 5 International comparison Mobile data volume per SIM card Austria among the leaders in mobile data usage 3 . 1 1 3 8 . 8 6 . 7 9 . 6 3 . 5 5 . 5 3 . 5 4 . 6 3 . 4 4 . 6 3 . 3 4 . 0 3 . 8 3 . 5 2 . 5 3 . 3 1 . 1 3 . 5 2 . 0 3 . 9 1 . 6 2 . 8 1 . 3 2 . 1 1 . 8 1 . 0 1 . 8 1 . 4 1 . 7 1 . 2 1 . 7 1 . 5 1 . 3 1 . 4 1 . 0 9 . 2 1 . 1 1 . 0 6 . 0 9 . 0 5 . 2 3 . 0 3 . 9 1 . 0 6 . 0 6 . 0 5 . 0 5 . d n a n F l i n a w a T i a i r t s u A k r a m n e D a e r o K n e d e w S d n a e c I l d n a e r I l i a n a u h t i L n a p a J a i l a r t s u A y a w r o N y e k r u T e c n a r F e r o p a g n S i y r a g n u H g n o K g n o H i n a p S i a n a m o R l a g u t r o P i a v t a L i a n o t s E A S U d n a o P l y n a m r e G s d n a l r e h t e N i m o d g n K d e t i n U i m u g e B l c i l b u p e R h c e z C Source: tefficient • With an average of 5.5 gigabytes of data used by each SIM card, Austria ranked third in the first half of 2017 among the countries shown. The chart provides an international comparison of mobile data usage in gigabytes, per SIM card and month. The data are taken from the public industry analysis, a semi-annual survey • The comparison takes into account European countries as well as of mobile broadband use published by business the US, Australia and certain Asian countries. consultant tefﬁcient. Figures are provided by the operators or authorities in each case. RTR Internet Monitor 2017 Annual Report 63 02468101220161st half 2017GB per SIM per month

Section 5 International comparison Mobile data usage and data-only penetration Austria had highest data-only penetration in ﬁrst half of 2017 FI R2 = 0,5143 AT 1) LV 1) SE DK US PL 2) AU IE LT IS EE NO TR FR 5) ES NL GR BE CH 4) UK CA CZ RO PT Source: tefficient • In the first half of 2017, among all countries surveyed by tefficient Austria had the highest data-only penetration rate at 23.7% (the percentage of data-only SIM cards). Here mobile data usage in gigabytes per SIM and month is plotted against the data-only penetration rate (that is, the number of data-only mobile broadband subscriptions • The chart shows the positive correlation between mobile data per 100 residents). The chart was originally usage per SIM card and the data-only penetration rate. published by business consultant tefﬁcient (see Explanatory notes and Glossary). 64 RTR Internet Monitor 2017 Annual Report 00%5%10%15%20%25%24681012FY 20161) Excl M2m2) Q2 20174) Data usage for June 20175) Q1 20171H 2017

06 Explanatory notes and Glossary 6 Explanatory notes and Glossary Details on data sources Glossary Publishing information 67 68 69 72

Section 6 Explanatory notes and Glossary Details on data sources Communications Survey Ordinance Where not otherwise mentioned, the charts published in the Internet Monitor are based on data collected in accordance with the Communications Survey Ordinance (KEV), FLG II 365/2004, which became effective as of 1 October 2004. Under the KEV, RTR is obliged to carry out quarterly surveys of communications markets and to compile and publish the statistics. The most recent amendment of the KEV entered into force on 1 October 2017, which means that data was collected accordingly for the first time in Q4 2017. The data collected under the KEV can be viewed as Open Data in the formats XLSX, CSV, XML and JSON at https://www.rtr.at/de/inf/odKEV (in German). RTR-NetTest Data collected through the RTR-NetTest are available as Open Data under the Creative Commons Attribution 3.0 Austria (CC BY 3.0 AT) licence; seehttps://www.netztest.at/de/Opendata. Data sources for international comparisons The European Commission publishes the Digital Agenda Scoreboard, consisting of statistics on the European information society: https://ec.europa.eu/digital-single-market/en/create-graphs Eurostat statistics on the digital economy and society are collected in a database accessible at: http://ec.europa.eu/eurostat/web/digital-economy-and-society/data/database. Data on Austria are additionally available (in German) on the Statistics Austria website: http://www.statistik.at/web_de/ statistiken/energie_umwelt_innovation_mobilitaet/informationsgesellschaft/index.html. Several of the charts have been taken from the quarterly Akamai State of the Internet (SOTI) report. Akamai is a leading global corporation specialising in content delivery networks (CDNs). The most recent issue of the SOTI report can be downloaded by following this link: https://www.akamai.com/uk/en/about/our-thinking/state-of-the-internet-report/. Some of the data presented in this report were originally collected and disclosed by business consultant tefficient, who publish a semi-annual ‘public industry analysis’ including a variety of internet-related data; follow this link to view the data: https://tefficient.com/analysis/public-industry-analysis/ One of the charts used in this report originally appeared in the tefficient report entitled: ‘More for less’ tips the balance, Mobile data – first half 2017, Industry analysis #3 2017 (https://tefficient.com/more-for-less-tips-the-balance/). 68 RTR Internet Monitor 2017 Annual Report

Section 6 Explanatory notes and Glossary Glossary Bitstream and resale Bitstream and resale access are wholesale products at different levels of the value chain, on the basis of which internet connections can be provided to end users. For bitstream access, data traffic is transferred at predefined (regional or national) handover points, with the wholesale customer directly providing internet connectivity. By comparison, in the case of resale access, internet connectivity is provided by the wholesale supplier, with the wholesale customer acting merely as reseller. Broadband Broadband internet access or a broadband internet connection refers to an internet connection (technology neutral) with a download speed higher than 144 Kbps. The internet connection can also be provided as part of a bundle with other services. The connection can be established by the following means: • Proprietary line (a copper wire pair in the A1 Telekom Austria AG network) • Unbundled line (see unbundling) • Virtual unbundling (see virtual unbundling) • Coaxial cable (cable modem) • Fixed wireless access, e.g. WLAN, WiFi or WLL (‘fixed’ access but not via a hotspot) • Other infrastructure, including powerline (PWL) broadband via the power grid and satellite (SAT) broadband access Unbundling In telecommunications, unbundling refers to the separate provision of specific services which were previously available only in conjunction with other services. The unbundling of subscriber lines from fixed network access as offered by the incumbent operator, for example, gives alternative service providers direct access to customers without requiring the latter to install the ‘last mile’ themselves, as they can lease (naked) subscriber lines from the incumbent at a regulated price. Unbundled network elements are made available where as a result of a market analysis procedure the regulatory authority has identified one company having significant market power and has imposed on that operator the obligation to grant access to its telecommunications network and the corresponding unbundled elements. Hybrid products With hybrid products, data traffic is normally via a fixed connection (usually based on DSL) and additionally via a mobile network when required. RTR Internet Monitor 2017 Annual Report 69

Section 6 Explanatory notes and Glossary Median The median is the value at the exact midpoint of a sorted list of empirical values. The median is an actual, observed value, unlike the mean, which is a parameter calculated using statistical techniques. The mean of the values 1, 2, 4, 8 and 16 is 6.2. The median, in contrast, is 4, with two other empirical values each above and below that value. Mobile broadband With mobile broadband, a distinction is made between data-only subscriptions with a fixed monthly fee, data subscriptions without a fixed monthly fee and smartphone subscriptions. Up to Q4 2015, data-only subscriptions (which cover data but not voice calls or text messages) were restricted to those that included at least 250 megabytes in the monthly rate. This restriction was lifted as of Q1 2016. From Q4 2017 onwards, an activity criterion has also been introduced for this category: SIM cards are counted only if they have been used for internet access at least once in the corresponding quarter. Products not based on a fixed monthly charge include products that are used by customers to access the internet at least once each quarter, even where such products do not include free data as part of the monthly charge. Smartphone subscriptions are all contracts for voice and text messaging services that also include data and are used by customers to access the internet at least once each quarter. Up to Q4 2015, such subscriptions were additionally restricted to those that included at least 250 megabytes in the monthly rate. This restriction was lifted as of Q1 2016. Broadband price index (hedonic) The broadband index is a hedonic price index for fixed and mobile broadband products. Hedonic means that both price changes and changes in product features (in particular download rate and download volume) are taken into account. To arrive at the index, a regressive analysis of prices is performed in relation to product features and time variables. For the calculation, tariffs and product features are surveyed quarterly for the broadband products supplied by the major providers (currently A1, HoT, Hutchison, Kabelplus, LIWEST, Russmedia IT, Salzburg AG, Tele2, T-Mobile and UPC). All subscriptions available to new customers at that particular time are collected. Both standalone broadband products and products bundled with fixed line telephony or TV are surveyed. In the case of mobile broadband, prepaid rates are not included. In addition to monthly charges, one-off charges and annual charges as well as special offers are taken into account. The most expensive 10% of subscriptions (currently plans costing more than EUR 65) are not included in the calculation, as they can be assumed to be in low demand by customers. The remaining tariff plans are weighted in proportion to the operators’ market shares in the respective quarter. In calculation, all tariff plans offered by one operator are weighted by the same amount in one quarter. The reference base is 2010. The indexes are calculated by means of a regressive analysis, first of only fixed network tariff plans (fixed index), then of only mobile subscriptions (mobile index) and finally of all plans (fixed and mobile index). 70 RTR Internet Monitor 2017 Annual Report

Section 6 Explanatory notes and Glossary Private customers – business customers Separate differentiators apply to fixed network and mobile in the private and business customer segments. While the fixed network distinguishes by product (private vs. business customer product), mobile networks distinguish by customer. The following applies to fixed connections (DSL, cable, wireless and fibre optics): ‘business customer products’ are all broadband products or product bundles with broadband that are geared towards business customers. These products are either discernible by their name (‘business’, ‘office’, etc.) or include certain features that are not typically offered to private customers, such as one or more fixed IP addresses, a larger number of mailboxes, more webspace, a domain name, a security package (antivirus, firewall or similar), business SLAs or lower average overselling on the backbone. SDSL products are also viewed as business customer products. ‘Private customer products’ are therefore any products not to be categorised as business customer products. The following applies to mobile connections: Business customers are all legal persons and corporations under public or private law, partnerships, registered companies and partnerships under the Civil Code, as well as natural and legal persons who are entrepreneurs within the meaning of Art. 1 of the Austrian Consumer Protection Act, FLG 140/1979 as amended (including start-up activities within the meaning of Art. 1 Par. 3 leg. cit). In this context, a business means any organisation that is intended to be permanent and is for the purpose of independent commercial activity, even though it may be a non-profit enterprise. Private customers are all customers not falling under the definition above. Virtual unbundling According to an official TKK decision, A1 Telekom Austria AG is obliged to offer virtual unbundling in areas where it is rolling out fibre optic cable (Next Generation Access – NGA). Virtual unbundling is a wholesale service that enables alternative providers to offer their own (broadband) products to end users, in a manner similar to physical unbundling. Wholesale market The market in which telecoms companies offer services to one another, thereby enabling services to be provided to end users. The wholesale broadband market, for example, includes all broadband connections made available by one company to other communications service providers for the purpose of allowing end users to access the network. A1 Telekom makes bitstream and unbundling available as regulated wholesale products. RTR Internet Monitor 2017 Annual Report 71

Publishing information Publishing information Owner and publisher Austrian Regulatory Authority for Broadcasting and Telecommunications (Rundfunk und Telekom Regulierungs-GmbH) Mariahilfer Strasse 77–79, 1060 Vienna, Austria Tel.: +43 (0)1 58058-0; fax: +43 (0)1 58058-9191; e-mail: rtr@rtr.at; web: www.rtr.at Responsible for content Mag. Johannes Gungl (Telecommunications and Postal Services Division) Austrian Regulatory Authority for Broadcasting and Telecommunications (RTR) Conceptual design and text Austrian Regulatory Authority for Broadcasting and Telecommunications (RTR) Graphic design and layout Westgrat - Agentur für Kommunikation cibus Kreativagentur All parts of this publication are protected by copyright. All rights reserved under copyright, especially rights to distribution, reprinting, translations, presentations, the use of illustrations and tables, broadcasting, microfilms or reproduction of this document in photocopies or any other form, as well as storage in computer systems, even in cases where excerpts are used. The contributions to the RTR Internet Monitor were reviewed with the utmost care. Nonetheless, errors cannot be ruled out. No guarantee of accuracy can consequently be provided for the content. Copyright Rundfunk und Telekom Regulierungs-GmbH 2018 72 RTR Internet Monitor 2017 Annual Report