Macedonia - Telecoms, IP Networks, Digital Media and Forecasts

Executive summary

The former Yugoslav Republic of Macedonia (Macedonia) has been a European Union (EU) candidacy country since 2005. As part of the EU pre-accession process, the country has built closer economic ties with the Union: the EU accounts for 60% of Macedonia’s exports and about half of its imports. Closer regulatory and administrative ties with European Commission (EC) institutions have done much to develop the telecom sector and prepare the market for the competitive environment encouraged in the EU.

As part of EU integration legislation has implemented the principles of the EU’s regulatory framework for communications, established an independent regulator and set out a number of provisions to provide for a competitive telecom market, including wholesale access to the incumbent’s fixed-line network. Although the fixed telephony market has been liberalised, the incumbent continues to dominate the sector. Broadband services are widely available, with effective competition between DSL and cable platforms complemented by wireless broadband and a nascent FttX sector.

Broadband services are available via DSL, fibre, cable and wireless and the incumbent has launched IPTV services in competition with well-established cable TV operators.

Macedonia’s mobile market is served by a triopoly of mobile network operators, two of which benefit from the know-how and clout of parent companies Deutsche Telekom and Telekom Austria. Mobile data services are also available and this market is also expected to become increasingly important as new subscriber additions fade in the maturing mobile voice market. With WCDMA/HSPA networks in place, the focus for mobile data has shifted to mobile broadband offerings.

Key telecom parameters – 2010; 2012

Sector	2010	2012 (e)
Subscribers to telecoms services (thousand):
Fixed-broadband	257	325
Fixed-line telephony	413	370
Mobile telephony	2,153	2,400
Subscriber penetration rate:
Fixed-broadband	11%	15%
Fixed-line telephony	20%	19%
Mobile SIM	105%	117%

(Source: BuddeComm)

Market highlights:

Competitors are making inroads into the fixed telephony market, with alternative operators representing almost a fifth of fixed lines. Market prospects for competitors have improved as a result of recent regulatory measures.
Broadband uptake growth is expected to maintain momentum during the next few years, with the incumbent placing greater emphasis in FttX networks.
Digital TV is widely available via satellite, digital terrestrial TV and broadband TV. The incumbent’s IPTV subscriber base has grown steadily in the wake of upgraded network capabilities, which has contributed to fewer customers to satellite services.
Competition is intensifying in the mobile market. Mobile number portability has grown rapidly following a reduction in fees. Mobile voice penetration is on a par with the EU average, while high-end mobile data services represent a considerable growth area for MNOs in coming years.

Henry Lancaster

November 2011

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

This report provides a comprehensive overview of trends and developments in Macedonia’s telecommunications market. The report analyses the mobile, broadband, digital TV and converging media sectors. Subjects include:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Infrastructure;
Major players, revenues, subscribers, ARPU, MoU;
Internet, VoIP, IPTV;
Mobile voice and data markets;
Broadband (FttH, DSL, cable TV, wireless);
Convergence and digital media;
Broadband market forecasts for selective years to 2020.

Key developments:

Telekom Slovenije merges Macedonian subsidiaries into ONE; market for fixed-line telephony falls 24% in 2010 to MKD1.997 billion; regulator prepares for 4G licence auction in 800MHz band; telecoms market accounting for 7% of GDP, well above the EU average; regulator market data for Q1 2011 and market updates to October 2011; operator data to September 2011.

Companies covered in this report include:

Makedonski Telekom, ONE, VIP, CabelTel, Telecom Slovenia.

1. Executive summary
2. Key statistics
3. Telecommunications market
- 3.1 Overview of Macedonia’s telecom market
  - 3.1.1 EU candidacy
4. Regulatory environment
- 4.1 History
- 4.2 Regulatory authority
  - 4.2.1 Agency for Electronic Communications (AEC)
- 4.3 Telecom sector liberalisation in Macedonia
  - 4.3.1 Privatisation
  - 4.3.2 Interconnect
  - 4.3.3 Access
  - 4.3.4 Carrier selection (CS) and Carrier PreSelection (CPS)
  - 4.3.5 Number portability (NP)
5. Fixed network operators in Macedonia
- 5.1 Overview of operators
- 5.2 Makedonski Telekom
- 5.3 ONE
6. Telecommunications infrastructure
7. Internet market
- 7.1 Overview
- 7.2 Internet statistics
- 7.3 Macedonia’s emerging internet society
8. Fixed broadband market
- 8.1 Overview
  - 8.1.1 Broadband statistics
- 8.2 Asymmetrical Digital Subscriber Line (ADSL)
- 8.3 Cable broadband
- 8.4 Fixed wireless broadband
- 8.5 Wireless broadband
  - 8.5.1 WiFi
  - 8.5.2 WiMAX
9. Digital media
- 9.1 Overview of broadcasting market
- 9.2 Digital TV
  - 9.2.1 Digital Terrestrial TV (DTTV)
  - 9.2.2 Broadband TV (IPTV)
  - 9.2.3 Cable TV (CATV)
  - 9.2.4 Satellite-based digital pay TV developments
10. Mobile communications
- 10.1 Overview of Macedonia’s mobile market
  - 10.1.1 Mobile statistics
- 10.2 Regulatory issues
  - 10.2.1 Third GSM licence
  - 10.2.2 3G licence
  - 10.2.3 4G licence
  - 10.2.4 Mobile Number Portability (MNP)
- 10.3 Mobile technologies
- 10.4 Mobile operators
  - 10.4.1 Overview of operators
  - 10.4.2 T-Mobile
  - 10.4.3 ONE
  - 10.4.4 VIP
  - 10.4.5 Mobile Virtual Network Operators (MVNOs)
- 10.5 Mobile voice services
  - 10.5.1 Prepaid
- 10.6 Mobile data services
  - 10.6.1 Short Message Service (SMS)/Multimedia Messaging Service (MMS)
  - 10.6.2 Enhanced Data for GSM Evolution (EDGE)
  - 10.6.3 High-Speed Packet Access (HSPA)
  - 10.6.4 Mobile broadband
- 10.7 Mobile content and applications
11. Forecasts – fixed broadband subscribers – 2010 - 2013; 2020
- 11.1 Scenario 1 – higher broadband subscriber growth
- 11.2 Scenario 2 – lower broadband subscriber growth
- 11.3 Notes on scenario forecasts
12. Related reports

Table 1 – Country statistics Macedonia – 2011 (e)
Table 2 – Telephone network statistics – 2011 (e)
Table 3 – Internet user statistics – 2011 (e)
Table 4 – Broadband subscribers – 2011 (e)
Table 5 – Mobile statistics – 2011 (e)
Table 6 – National telecommunications authority
Table 7 – Telecom market revenue by sector – 2008 - 2012
Table 8 – Share of telecom market revenue by sector – 2008 - 2010
Table 10 – Call termination on Makedonski Telekom’s fixed network – 2009
Table 11 – Cost of LLU and shared access lines – 2010
Table 12 – Access lines by type – 2010 - 2011
Table 13 – CS and CPS lines –2010 - 2011
Table 14 – Fixed-lines ported –2008 - 2011
Table 15 – Fixed-line market share by operator –2009 - 2011
Table 16 – Makedonski Telekom financial data (HUF) – 2009 - 2011
Table 17 – Makedonski Telekom financial data (MKD) – 2009 - 2011
Table 18 – Makedonski Telekom fixed-voice lines in service – 2010 - 2011
Table 19 – ONE revenue breakdown – 2009
Table 20 – ONE subscribers – 2009 - 2010
Table 21 – Telephony-lines by type –2009 - 2011
Table 22 – Fixed lines in service and teledensity – 1995 - 2012
Table 23 – Internet market revenue – 2008 - 2011
Table 24 – Internet users, subscribers and penetration rates – 1999 - 2011
Table 25 – Online purchases by individuals – 2006 - 2011
Table 26 – Uptake of e-government services by individuals – 2008 - 2011
Table 27 – E-education usage by individuals – 2008 - 2010
Table 28 – Broadband market share of subscribers by platform – 2010 - 2011
Table 29 – Household penetration of internet by technology: urban/rural – Sep 2011
Table 30 – Household penetration of broadband services by type – Sep 2011
Table 31 – Proportion of households with computer/internet use – 2010 - 2011
Table 32 – Fixed broadband subscribers and penetration rate – 2005 - 2012
Table 33 – Internet subscribers by access type: dial-up, mobile, other – 2009 - 2012
Table 34 – Makedonski Telekom retail and wholesale DSL subscribers – 2008 - 2011
Table 35 – ADSL broadband subscribers – 2008 - 2012
Table 36 – Cable broadband subscribers – 2008 - 2012
Table 37 – WiMAX voice lines – 2009 - 2011
Table 38 – Market share of TV subscribers by platform – 2007 - 2011
Table 39 – Market share of TV subscribers by operator – 2010 - 2011
Table 41 – DVB-T subscribers – 2010 - 2011
Table 42 – Makedonski Telekom IPTV subscribers – 2008 - 2010
Table 43 –IPTV subscribers – 2010 - 2011
Table 44 – Cable TV revenue – 2008 - 2011
Table 45 – Cable TV subscribers – 2005; 2009 – 2012; 2015
Table 46 – Satellite TV subscribers – 2009 - 2011
Table 47 – Mobile subscribers and penetration rate – 2000 - 2012
Table 48 – Mobile network operator market share by subscribers – 2007 - 2011
Table 49 – Mobile termination rates – 2009
Table 50 – Mobile market revenue – 2008 – 2012
Table 51 – Mobile traffic – 2009 - 2012
Table 52 – Mobile-lines ported –2008 - 2011
Table 53 – T-Mobile subscribers – 2004 - 2011
Table 54 – T-Mobile MOU and ARPU – 2004 - 2011
Table 55 – ONE mobile subscribers – 2009 - 2010
Table 56 – VIP financial data – 2007 - 2011
Table 57 – VIP Mobile subscribers – 2007 - 2011
Table 58 – Ratio of prepaid to contract subscribers – 2005 - 2012
Table 59 – T-Mobile prepaid subscribers– 2004 - 2011
Table 60 – SMS messages sent – 2005 - 2012
Table 61 – MMS messages sent – 2009 - 2012
Table 62 – Total mobile broadband capable subscribers – 2008 - 2012
Table 63 – Household penetration of mobile broadband services by type – Sep 2011
Table 64 – Forecast broadband subscribers – higher growth scenario – 2010 - 2013; 2020
Table 65 – Forecast broadband subscribers – lower growth scenario – 2010 - 2013; 2020