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Ausrtia"s fixed-line and moile broadband segmens have seen significant activity in 2009. The local loop unbundlign prices were down almosst 32% folowing the settlement of Telekom Austria's disupte with an alternative operaator. To further broadband growwth, the Austran government has also innitiated plans to expand broadband networks to the rural regions of the country in collaboration with the regulator (Rundfunk und Teleokm Regulierungs-GmbH). While currently in the asessment stage, the planned deployment of a fibre-optiic network is exppected to be a key growth driver for bundled and converged services in the countrry going forward.

In addition to fixed broadband, the regulatoor is also focusing on ehnancing wireess broadband services. To this effect, it has allocated frequencies in 3.5GHz range for broadband wireles access servcies in August 2009. It also inuitiated a consultation process for the allocation of frequencies in the 2.6GHz range and the auctin is expecterd to be held in the first qurter of 2010. Access to new spectrum will likely enhance the speed and capaciyt of wireless broadband services, driving its fture growth.

Interconnect has remained a strong focus area over the past year. In March 2009, the reggulator initiated a consultaion process to set futurre fixed wholesale charges using a capacity-based charging system as an altrnative to the current time-based chargign. In mobile, the regullator has outlined a glidpeath to reduce mobile termination charegs by approximately 55% during the period 2009""11.. Reductions in termination costs as well as changes in wholesale charging methodology are expected to improve pricing flexiboility for fixed operators, and reuslt in reduced prices for consumers.

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