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Lithuania - Telecoms, Mobile, Broadband and Forecasts

  • Publication Date:June 2010
  • Publisher:BuddeComm
  • Product Type: Report
  • Pages:55
Lithuania - Telecoms, Mobile, Broadband and Forecasts

Lithuania - Telecoms, Mobile, Broadband and Forecasts

Since independence Lithuania embraced market reform and joined the European Union overseeing rapid economic growth characterised by large real wage increases driven by declining unemployment and emigration, EU sourced development funds and extremely rapid credit growth. Like its Baltic neighbours to the north the global financial turmoil brought a sudden end to Lithuania's boom, with eight years of consistent annual growth giving way to 14.8% real GDP contraction in 2009, with EU estimates of a further 0.6% contraction for 2010.

Lithuania's telecoms market did not escape the effects of the economic downturn, contracting by 7.7% during 2009, smaller compared with the overall economy due to the utility nature of telecoms and communications services. Not all sectors of the communications market were affected equally; falls in revenue from fixed and mobile telephony were offset by increases from broadband, data transmission, leased line services and wholesale fibre access.

A number of alternative operators offer services in the liberalised fixed-telephony market although incumbent TEO is still the dominant operator. Fixed-line subscriber numbers are expected to continue trending downwards in 2010, attributed to fixed-to-mobile substitution, although fixed-line broadband services provides an incentive for consumers to hold onto fixed lines, which forms the basis of the incumbent's future growth strategy.

Broadband accounts for 99% of all fixed Internet connections. Infrastructure-based competition has led FTTx to overtake ADSL to become the most popular fixed broadband access platform. Fibre is expected to represent a growing proportion of total fixed broadband subscriptions in 2010 due to the continued focus on fibre by both the private and public sector. With Internet access now commoditised, service providers have shifted focus to Internet-based convergence services such as broadband TV (IPTV) or bundled separate services to increase average revenue per user levels.

Widespread Internet usage has fostered Lithuania's Internet society, the application of ICT to improve social and economic development, with various e-commerce, e-government, e-education and e-health initiatives underway and services available. A burgeoning digital TV market is evident due to the transition to digital-only broadcasting, with the telecoms incumbent well positioned for digital TV subscriber growth in 2010 due to its involvement in both IPTV and digital terrestrial TV.

Most Lithuanians possess a mobile phone and multiple SIM card ownership has pushed penetration levels beyond 100%. Services are offered by three mobile network operators and a number of mobile virtual network operators. Mobile broadband represents the next growth opportunity, building on past investments in 3G and HSDPA networks.

Market highlights:Fibre is the most popular fixed broadband access platform. Unlike the ADSL market competition is much stronger as the incumbent only represents a quarter of total FTTx subscriptions. Growth prospects for fibre are strong due to ongoing deployments by both the private and the public sector. The latter approved in late 2009 the second phase of the publicly funded rural fibre backbone network, Rural Area Information Technology Broadband Network.Widespread business usage of e-government services is evident, with an estimated 90% uptake in 2010 as businesses take advantage of the ability obtain information, forms and return forms online. Private uptake of e-government lags but is expected to grow on the back of increased awareness and recognition of its benefits. Similar initiatives extend to the health and education sectors, with the scope of such initiatives expected to broaden due to EU commitments to online services.Digital TV is expected to represent the majority of pay TV subscriptions in 2010. Telecoms incumbent TEO is well positioned to take advantage of the growing interest and uptake of digital TV services, given that it offers both IPTV and DTTV services.Mobile broadband is the focus for mobile network operators, with take up of HSDPA-based mobile broadband penetration at an estimated 8%. The future growth path of mobile broadband take up is expected to emulate that of the mobile voice market over the coming years as the cost of access and capable handsets decrease and end user awareness and ease of use increases, in turn leading to some cannibalisation of broadband subscribers between the fixed and mobile markets.

  • 1. Key Statistics
  • 2. Telecommunications Market
    • 2.1 Overview of Lithuania's telecom market
  • 3. Regulatory Environment
    • 3.1 Background
    • 3.2 Regulatory authority
      • 3.2.1 Communications Regulatory Authority (RRT)
    • 3.3 Telecom sector liberalisation in Lithuania
      • 3.3.1 Overview
      • 3.3.2 Privatisation
      • 3.3.3 Interconnect
      • 3.3.4 Access
      • 3.3.5 Carrier selection and Carrier PreSelection (CPS)
      • 3.3.6 Number portability
  • 4. Fixed Network Market
    • 4.1 Market overview
    • 4.2 Lietuvos Telekomas (TEO)
  • 5. Telecommunications Infrastructure
    • 5.1 National telecom network
      • 5.1.1 TEO
      • 5.1.2 Alternative operators
    • 5.2 International infrastructure
    • 5.3 Telecoms & IT
  • 6. Wholesaling
    • 6.1 Overview
  • 7. Internet Market
    • 7.1 Overview
      • 7.1.1 Internet statistics
  • 8. Broadband Market
    • 8.1 Overview
      • 8.1.1 Fixed broadband statistics
    • 8.2 Cable modems
    • 8.3 Asymmetric Digital Subscriber Line (ADSL)
    • 8.4 Fibre-to-the-Home (FttH) networks
    • 8.5 Wireless broadband
      • 8.5.1 Market overview
      • 8.5.2 WiFi
      • 8.5.3 WiMAX
    • 8.6 Forecast broadband subscribers - 2010 - 2013; 2019
      • 8.6.1 Scenario 1 - higher broadband subscriber growth
      • 8.6.2 Scenario 2 - lower broadband subscriber growth
  • 9. Digital Media
    • 9.1 Overview of media convergence
    • 9.2 Overview of broadcasting market
    • 9.3 Digital TV
      • 9.3.1 Broadband TV (IPTV)
      • 9.3.2 Cable TV (CATV)
      • 9.3.3 Satellite-based digital pay TV developments
      • 9.3.4 Digital Terrestrial TV (DTTV)
  • 10. Digital Economy
    • 10.1 Lithuania's emerging Internet society
    • 10.2 E-government
      • 10.2.1 Overview
      • 10.2.2 Infrastructure
    • 10.3 E-health
  • 11. Mobile Communications
    • 11.1 Overview of Lithuania's mobile market
      • 11.1.1 Mobile statistics
    • 11.2 Regulatory issues
      • 11.2.1 GSM licences
      • 11.2.2 Mobile Number Portability (MNP)
      • 11.2.3 Third GSM licence awarded
      • 11.2.4 Significant Market Power (SMP)
      • 11.2.5 Mobile Termination Rates (MTR)
    • 11.3 Mobile technologies
      • 11.3.1 Third Generation (3G)
    • 11.4 Major mobile operators
      • 11.4.1 Overview of operators
      • 11.4.2 Omnitel
      • 11.4.3 Bite
      • 11.4.4 Tele2
    • 11.5 Mobile voice services
      • 11.5.1 Prepaid cards
    • 11.6 Mobile messaging
      • 11.6.1 Short Message Service (SMS)
      • 11.6.2 Multimedia Messaging Service (MMS)
    • 11.7 Mobile data services
      • 11.7.1 Overview
      • 11.7.2 General Packet Radio Services (GPRS)
      • 11.7.3 Enhanced Data for GSM Evolution (EDGE)
      • 11.7.4 BlackBerry
    • 11.8 Mobile broadband (access)
      • 11.8.1 Market overview
      • 11.8.2 Market statistics
    • 11.9 Mobile content and applications
      • 11.9.1 Portals
      • 11.9.2 Mobile TV
  • 12. Glossary of Abbreviations
  • Tables and Figures
    • Table 1 - Country statistics Lithuania - 2009
    • Table 2 - Telecom revenue and investment statistics - 2009
    • Table 3 - Telephone network statistics - 2010
    • Table 4 - Internet user statistics - 2010
    • Table 5 - Internet subscriber statistics - 2010
    • Table 6 - Fixed broadband statistics - 2010
    • Table 7 - Mobile statistics - 2010
    • Table 8 - National telecommunications authority
    • Table 9 - Telecom revenue by service - 2008 - 2009
    • Table 10 - Market share of fixed-line alternative operators - 2003 - 2010
    • Table 11 - TEO financial data - 2006 - 2009
    • Table 12 - Fixed lines in service and teledensity - 1995 - 2010
    • Table 13 - TEO - fixed-line subscribers & outgoing call minutes - 2005 - 2010
    • Table 14 - Total international Internet bandwidth - 2000 - 2010
    • Table 15 - Workplace network usage by network type - 2006 - 2010
    • Table 16 - Internet users, subscribers and penetration rates - 1999 - 2010
    • Table 17 - Internet subscribers by access type - January 2010
    • Table 18 - ISP market share by subscribers - January 2010
    • Table 19 - Internet access market revenue - 2006 - 2009
    • Table 20 - Fixed broadband subscribers and penetration rate - 2001 - 2010
    • Table 21 - TEO fixed broadband subscribers and ARPU - 2005 - 2009
    • Table 22 - TEO ADSL subscribers - 2004 - 2010
    • Table 23 - TEO FTTx subscribers - 2006 - 2010
    • Table 24 - TEO WiFi subscribers - 2007 - 2010
    • Table 25 - Forecast fixed broadband subscribers - higher growth scenario - 2010 - 2013; 2019
    • Table 26 - Forecast fixed broadband subscribers - lower growth scenario - 2010 - 2013; 2019
    • Table 27 - Pay TV subscribers - 2008 - 2010
    • Table 28 - Digital TV subscribers by access method - January 2010
    • Table 29 - Digital TV market share by subscribers - January 2010
    • Table 30 - TEO IPTV subscribers - 2006 - 2010
    • Table 31 - Cable TV and MMDS subscribers - 1997 - 2010
    • Table 32 - Market share of cable TV and MMDS service providers - 2009
    • Table 33 - Viasat subscribers - 2005 - 2009
    • Table 34 - E-education usage by individuals - 2007 - 2010
    • Table 35 - E-education usage by businesses - 2008 - 2010
    • Table 36 - Proportion of population making online purchases - 2005 - 2010
    • Table 37 - Electronic sales as percentage of total non-VAT turnover for non-financial sector businesses with 10 or more employees - 2009
    • Table 38 - Take up of e-government services by businesses - 2004 - 2010
    • Table 39 - Take up of e-government services by individuals - 2004 - 2010
    • Table 40 - Mobile subscribers and penetration rate - 1998 - 2010
    • Table 41 - Mobile market revenue by service - September - December 2009
    • Table 42 - Market share per operator by revenue - September - December 2009
    • Table 43 - 3G subscriber market share per operator - September - December 2009
    • Table 44 - Pre and postpaid subscriber market share per operator by sector - January 2010
    • Table 45 - Omnitel subscribers - 2007 - 2010
    • Table 46 - Omnitel ARPU - 2005 - 2010
    • Table 47 - Omnitel MOU and churn - 2005 - 2010
    • Table 48 - Tele2 financial data - 2007 - 2009
    • Table 49 - Tele2 subscribers - 2007 - 2010
    • Table 50 - Ratio of prepaid to postpaid subscribers - 2002 - 2010
    • Table 51 - Omnitel prepaid subscribers - 2007 - 2010
    • Table 52 - Total SMS and MMS messages sent - 2004 - 2010
    • Table 53 - GPRS, EDGE and UMTS subscribers - 2004 - 2010
    • Table 54 - Mobile data subscriber market share per operator - January 2010
    • Table 55 - Mobile broadband subscribers and penetration rate - 2006 - 2010
    • Exhibit 1 - The EU regulatory framework for communications
    • Exhibit 2 - Access, the local loop and unbundling - an overview
    • Exhibit 3 - The Economist Intelligence Unit (EIU) annual E-readiness criteria
    • Exhibit 4 - 2G spectrum awarded
    • Exhibit 5 - BlackBerry services defined
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