2014 Estonia - Telecoms, IP Networks, Digital Media and Forecasts

Network operators providing national LTE coverage

Estonia’s telecom market continues to benefit from a range of regulatory measures which encourage competition, enabling alternative operators to chip away at the fixed-line market share of the incumbent Eesti Telekom. Fixed-line infrastructure has been upgraded and is geared towards offering broadband services and bundled offerings, with ADSL2+ and FttP networks deployed in urban areas and wireless technologies such as WiMAX used to deploy either competing infrastructure or access into rural areas. The government has also promoted a public-private partnership to build a national fibre-based next-generation network providing 100Mb/s to all premises.

The mobile market is among the more mature in Eastern Europe, with mobile penetration particularly high for the region. Services are offered by EMT, Elisa and Tele2 as well as by one MVNO. WCDMA-based (3G) and HSPA networks serve as the basis for the growing mobile broadband sector, supporting a range of mobile content and applications, while an aggressive LTE deployment, already providing national coverage, continues. These developments are expected to underpin future revenue growth in the sector.

Estonia has the highest broadband penetration rate of all the Eastern European countries. Broadband access is available via ADSL2+, FttP, cable, WiFi, WiMAX and mobile networks. The telecoms incumbent Elion is the dominant provider of DSL services, with cable broadband the main competing platform. Widespread broadband usage has underpinned Estonia’s emerging internet economy, with various e-commerce, e-government, e-education and e-health services available and widely used. The cable TV market is well developed and hence cable TV operators have been well-positioned to offer bundled play services. IPTV has been launched by Elion, with considerable success.

Key developments:

EMT reports 50% of new subscribers take up a service based on its LTE network; regulator awards EMT and Elisa spectrum in the 800MHz band; LTE networks providing national coverage; Tele2 buys the telco Televörgu; number portability procedures updated; ICT revenue broaches €3 billion; analogue cable services end; EstWin NGN opens in several counties; Technical Surveillance Authority report for 2013; operator data to Q1 2014; Statistics Estonia data to 2013; regulator’s 2012 market data and annual reports; market developments to May 2014.

Companies and subsidiaries covered in this report include:

Elisa, Elion, Tele2, EMT, Starman, STV, Viasat, Levira, Baltic Broadband.

Data in this report is the latest available at the time of preparation and may not be for the current year