2007 Europe - Telecoms, Mobile and Broadband in Baltic countries

Publication Overview

This report covers the Baltic countries of Estonia, Latvia and Lithuania, a small yet progressive regional telecom market. It details trends and developments in telecommunications, mobile, Internet, Internet economy, broadband, digital TV and converging media including broadband, triple play and IPTV. Subjects include:

  • Market and industry analyses, trends and developments
  • Facts, figures, statistics and broadband forecasts to 2017
  • Industry and regulatory issues
  • Research, Marketing, Benchmarking
  • Major Players, Revenues, Subscribers, Network deployments
  • Convergence & Broadband (VoIP, NGN, ADSL, ADSL2+, FttH, WiFi, WiMAX, IPTV, VoD, triple play, digital TV, DTTV)
  • Mobile voice, content & data (GSM, CDMA, GPRS, EDGE, 3G/UMTS/WCDMA, HSDPA/HSUPA/HSPA)

Executive Summary

BuddeComm’s Annual Publication 2007 Europe - Telecoms, Mobile and Broadband in the Baltic States profiles the three countries of Estonia, Latvia and Lithuania, which are characterised by relatively high broadband and mobile penetration. All three incumbents have managed to maintain or grow revenue despite losing market share to competing operators in traditional fixed-line voice markets. Growing ADSL and IPTV uptake has contributed to their success although they face increasing competition from the region’s widely accessible cable TV network operators. Advanced HSDPA services are available in all three countries, with competition leading to the introduction of affordable mobile broadband access for the mass market.

This report presents a concise overview of the telecom markets in a small but sophisticated corner of Eastern Europe, including an assessment of sector liberalisation and privatisation, together with the key regulatory measures which affect competition and investment. Emerging players in liberalised markets are introduced and new infrastructure deployments covered. The important broadband market is assessed, together with forecasts for broadband growth to 2017 for all three countries based on factors such as network investment, the regulatory environment and consumer demand. The report provides essential statistics covering the broadband, mobile and digital TV sectors, highlighting technological developments and the emergence of media convergence and triple play offerings.

Key Highlights

  • Broadband accounts for nearly all Internet connections in each country, with dial-up almost completely disappearing. Future broadband subscriber growth will be driven predominantly by first time subscribers rather than migrations from dial-up.
  • Healthy infrastructure-based competition in the broadband market is evident as ADSL accounts for less than 50% of total broadband connections in all three countries. Cable is the leading competing broadband platform in all three countries while FttH/FttB accounts for approximately 15% of total broadband connections in Estonia and Lithuania.
  • Despite widespread availability of ADSL and introduction of ADSL2+, Lithuania’s incumbent has embarked on a FttX rollout drive which entails deploying infrastructure in the country’s five largest cities. For the country overview, see chapter 3, page 52.
  • Large scale or nationwide WiMAX deployments are underway or have been completed in Estonia and Lithuania, providing alternative last-mile access in urban areas or extending access networks into rural areas.
  • Lithuania’s incumbent has also aggressively rolled out WiFi hotspots as part of its target of 20,000 WiFi hotspots by 2010. For more information, see chapter 3.7.6.1, page 65.
  • Estonia dominates Eastern Europe in broadband penetration and Internet economy development. It is the only Eastern European country with broadband penetration above the EU average. Internet banking is undertaken by half of the population while the entire voting population is able to vote online, the first such country in the world. For the country overview, see chapter 1, page 1.
  • IPTV has been launched by incumbents in all three countries. Take up has been the most successful in Latvia, which launched MPEG-4 based services in April 2007. For the country overview, see chapter 2, page 29.
  • 3G-based mobile broadband access services with affordable pricing and generous data bundles (varying from 1Gb a month to unlimited) are available in all three countries. One Latvian mobile operator estimates that 30% of all laptops in Latvia will be connected to mobile broadband services during 2008.
  • Mobile Internet access via WAP is very high in Lithuania, accounting for 73% of all Internet subscribers. For more information, see chapter 3.9.6.3, page 75.

Mobile subscribers and penetration in the Baltic countries - March 2007

Country Mobile Subscribers Penetration
Estonia 1,558,000 118%
Latvia 2,303,000 102%
Lithuania 4,795,000 134%
(Source: BuddeComm)

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

Table of Contents

1.ESTONIA
1.1Key statistics
1.2Telecommunications market
1.2.1Overview of Estonia’s telecom market
1.3Regulatory environment
1.3.1Background
1.3.2Regulatory authority
1.3.3Telecoms sector liberalisation in Estonia
1.4Fixed network operators in Estonia
1.4.1Overview of operators
1.4.2Eesti Telekom (Elion)
1.4.3Uninet/Elisa
1.5Telecommunications infrastructure
1.5.1National telecom network
1.5.2International infrastructure
1.5.3Telecoms & IT
1.6Internet market
1.6.1Overview
1.6.2ISP market
1.7Broadband market
1.7.1Overview
1.7.2Broadband statistics
1.7.3Cable modems
1.7.4Asymmetric Digital Subscriber Line (ADSL)
1.7.5Fibre-to-the-Home (FttH) networks
1.7.6Wireless broadband
1.7.7Broadband forecasts to 2017
1.8Convergence
1.8.1VoIP
1.8.2Triple play
1.8.3Overview of broadcasting market
1.8.4Digital TV
1.9Mobile communications
1.9.1Overview of Estonia’s mobile market
1.9.2Regulatory issues
1.9.3Mobile technologies
1.9.4Major mobile operators
1.9.5Mobile voice services
1.9.6Mobile data services
1.9.7Mobile content and applications
2.LATVIA
2.1Key statistics
2.2Telecommunications market
2.2.1Overview of Latvia’s telecom market
2.3Regulatory environment
2.3.1Background
2.3.2Regulatory authority
2.3.3Telecom sector liberalisation in Latvia
2.4Fixed network operators in Latvia
2.4.1Overview of operators
2.4.2Lattelecom
2.4.3Telecentrs
2.5Telecommunications infrastructure
2.5.1National telecom network
2.5.2International infrastructure
2.5.3Telecoms & IT
2.6Internet market
2.6.1Overview
2.7Broadband market
2.7.1Overview
2.7.2Broadband statistics
2.7.3Cable modems
2.7.4Asymmetric Digital Subscriber Line (ADSL)
2.7.5Fibre-to-the-Home (FttH) networks
2.7.6Wireless broadband
2.7.7Broadband forecasts to 2017
2.8Convergence
2.8.1Triple play models
2.8.2Digital TV
2.9Mobile communications
2.9.1Overview of Latvia’s mobile market
2.9.2Regulatory issues
2.9.3Mobile technologies
2.9.4Mobile operators
2.9.5Mobile voice services
2.9.6Mobile data services
2.9.7Mobile content and applications
3.LITHUANIA
3.1Key statistics
3.2Telecommunications market
3.2.1Overview of Lithuania’s telecom market
3.3Regulatory environment
3.3.1Background
3.3.2Regulatory authority
3.3.3Telecom sector liberalisation in Lithuania
3.4Fixed network operators in Lithuania
3.4.1Market overview
3.4.2Lietuvos Telekomas (TEO)
3.5Telecommunications infrastructure
3.5.1National telecom network
3.5.2International infrastructure
3.5.3Telecoms & IT
3.6Internet market
3.6.1Overview
3.6.2Internet access locations
3.6.3ISP market
3.7Broadband market
3.7.1Overview
3.7.2Broadband statistics
3.7.3Cable modems
3.7.4Asymmetric Digital subscriber Line (ADSL)
3.7.5Fibre-to-the-Home (FttH)
3.7.6Wireless broadband
3.7.7Broadband forecasts to 2017
3.8Convergence
3.8.1Overview
3.8.2Triple play models
3.8.3Overview of broadcasting market
3.8.4Digital TV
3.9Mobile communications
3.9.1Overview of Lithuania’s mobile market
3.9.2Regulatory issues
3.9.3Mobile technologies
3.9.4Major mobile operators
3.9.5Mobile voice services
3.9.6Mobile data services
3.9.7Mobile content and applications
4.GLOSSARY OF ABBREVIATIONS
Exhibit 1 – 2G spectrum awarded


Table 1 – Country statistics Estonia – 2007
Table 2 – Telephone network statistics – 2006
Table 3 – Internet user statistics – 2006
Table 4 – Internet subscriber statistics – 2006
Table 5 – Broadband statistics – March 2007
Table 6 – Mobile statistics – March 2007
Table 7 – National telecommunications authority
Table 8 – Total telecom sector revenue – 2004 - 2006
Table 9 – Number of service providers by service offered – 2006
Table 10 – Interconnection rates – 2005 - 2006
Table 11 – Unbundled loops and access lines – 2006 - 2007
Table 12 – Cost of fully unbundled local loop and shared access line – 2005 - 2006
Table 13 – Market share of fixed-line service providers and annual change – 2005 - 2006
Table 14 – Eesti Telekom group – financial data and annual change – 2005 - 2006
Table 15 – Elion – fixed-line subscribers & outgoing call minutes – 2005 - 2007
Table 16 – Elion voice traffic market share – 2005 - 2006
Table 17 – Fixed lines in service and teledensity – 1995 - 2006
Table 18 – Elion PSTN/ISDN subscribers – 2002 - 2006
Table 19 – E-business usage indicators – 2005 - 2006
Table 20 – Workplace ICT usage – 2004 - 2006
Table 21 – Take up of online services – 2005 - 2006
Table 22 – E-government availability & usage indicators – 2005 - 2006
Table 23 – E-commerce availability & usage indicators – 2005 - 2006
Table 24 – Internet users and penetration – 1998 - 2006
Table 25 – Internet subscribers and penetration – 2000 - 2006
Table 26 – Internet access by location – 2004 – 2006
Table 27 – Household PC & notebook penetration – 2005 - 2006
Table 28 – Factors behind households not connected to the Internet - 2006
Table 29 – Registered top level domains (TLDs) – April 2007
Table 30 – Broadband subscribers and penetration – 2001 - 2007
Table 31 – Broadband subscribers by access technology and annual change – March 2007
Table 32 – Elion broadband subscribers – 2003 - 2006
Table 33 – Forecast broadband subscriber growth – stronger market growth scenario – 2007 - 2011; 2017
Table 34 – Forecast broadband subscriber growth – weaker market growth scenario – 2007 - 2011; 2017
Table 35 – Daily audience share by broadcaster – September 2007
Table 36 – Household widescreen and standard TV penetration – 2006
Table 37 – TV content reception method – 2006
Table 38 – Starman revenue, operating and net profit, investment and annual change – 2005 - 2006
Table 39 – Starman operational data: home and subscriber statistics – 2005 - 2007
Table 40 – Mobile operators, technology, subscribers and annual growth – March 2007
Table 41 – Mobile subscribers and penetration – 1998 - 2007
Table 42 – Average monthly MOU per operator – 2006
Table 43 – Consumer’s attitudes to fixed-mobile substitution – 2006
Table 44 – Elisa revenue, EBITDA and EBIT – 2004 - 2006
Table 45 – Household penetration of prepaid & postpaid mobile phones – 2006
Table 46 – EMT prepaid subscribers – 2002 - 2007
Table 47 – SMS messages sent by operator – 2006
Table 48 – MMS messages sent by operator – 2006
Table 49 – GPRS users by mobile operator – 2006
Table 50 – Effects of mobile spam on users – 2005 - 2006
Table 51 – Country statistics Latvia – 2007
Table 52 – Telephone network statistics – 2006
Table 53 – Internet user statistics – 2006
Table 54 – Internet subscriber statistics – 2006
Table 55 – Broadband statistics – March 2007
Table 56 – Mobile statistics – March 2007
Table 57 – National telecommunications authority
Table 58 – Interconnection rates – 2005 - 2006
Table 59 – Unbundled loops and access lines – 2006 - 2007
Table 60 – Cost of fully unbundled local loop and shared access line – 2005 - 2006
Table 61 – Market share of fixed-line service providers and annual change – 2005 - 2006
Table 62 – Lattelecom Group revenue, EBITDA, profit, CAPEX and annual change – 2005 - 2006
Table 63 – Fixed lines in service and teledensity – 1995 - 2006
Table 64 – Lattelecom PSTN / ISDN subscribers & network digitalisation rate – 2002 - 2007
Table 65 – E-business usage indicators – 2005 - 2006
Table 66 – Workplace ICT usage – 2004 - 2006
Table 67 – Take up of online services – 2005 - 2006
Table 68 – E-government availability & usage indicators – 2005 - 2006
Table 69 – E-commerce availability & usage indicators – 2005 - 2006
Table 70 – Internet users and penetration – 1996 - 2006
Table 71 – Internet subscribers and penetration – 2000 - 2006
Table 72 – Internet access by location – 2004 - 2006
Table 73 – Household PC & notebook penetration – 2005 - 2006
Table 74 – Factors behind households not connected to the Internet – 2006
Table 75 – Registered top level domains (TLDs) – April 2007
Table 76 – Broadband subscribers by access technology and annual change – March 2007
Table 77 – Broadband subscribers and penetration – 2001 - 2007
Table 78 – Lattelecom broadband subscribers and quarterly change – 2002 - 2007
Table 79 – Lattelecom ADSL subscribers – 2001 - 2007
Table 80 – Forecast broadband subscriber growth – stronger market growth scenario – 2007 - 2011; 2017
Table 81 – Forecast broadband subscriber growth – weaker market growth scenario – 2007 - 2011; 2017
Table 82 – Household widescreen and standard TV penetration – 2006
Table 83 – TV content reception method – 2006
Table 84 – Mobile operators, technology, subscribers and annual growth – March 2007
Table 85 – Mobile subscribers and penetration – 1995 - 2007
Table 86 – Consumer’s attitudes to fixed-mobile substitution – 2006
Table 87 – Household penetration of prepaid & postpaid mobile phones – 2006
Table 88 – LMT prepaid subscribers – 2002 - 2007
Table 89 – Effects of mobile spam on users – 2005 - 2006
Table 90 – Country statistics Lithuania – 2007
Table 91 – Telephone network statistics – 2006
Table 92 – Internet user statistics – 2006
Table 93 – Internet subscriber statistics – 2006
Table 94 – Broadband statistics – March 2007
Table 95 – Mobile statistics – March 2007
Table 96 – National telecommunications authority
Table 97 – Telecom revenue & investment and annual change – 2005 - 2006
Table 98 – Unbundled loops and access lines – 2006 - 2007
Table 99 – Cost of fully unbundled local loop and shared access line – 2005 - 2006
Table 100 – Market share of fixed-line alternative operators – 2003 - 2006
Table 101 – TEO revenue, EBITDA, net profit, CAPEX and annual change – 2005 - 2006
Table 102 – TEO revenue breakdown by service – 2006
Table 103 – Fixed lines in service and teledensity – 1995 - 2006
Table 104 – TEO fixed-line subscribers & outgoing call minutes – 2005 - 2007
Table 105 – E-business usage indicators – 2005 - 2006
Table 106 – Workplace ICT usage – 2004 - 2006
Table 107 – Take up of online services – 2005 - 2006
Table 108 – E-government availability & usage indicators – 2005 - 2006
Table 109 – E-commerce availability & usage indicators – 2005 - 2006
Table 110 – Internet users and penetration – 1996 - 2006
Table 111 – Total Internet market revenue & Internet subscribers – 2003 - 2006
Table 112 – Internet access type by subscribers and revenue market share – 2006
Table 113 – ISP market share by subscribers and revenue – 2006
Table 114 – Household PC & notebook penetration – 2005 - 2006
Table 115 – Factors behind households not connected to the Internet – 2006
Table 116 – Registered top level domains (TLDs) – 2007
Table 117 – Internet access by location – 2004 - 2006
Table 118 – Broadband subscribers by access technology and annual change – March 2007
Table 119 – Broadband subscribers and penetration – 2001 - 2007
Table 120 – Monthly cost of unlimited broadband connection by connection speed – 2005 - 2006
Table 121 – TEO broadband subscribers – 2003 - 2007
Table 122 – TEO ADSL subscribers – 2004 - 2007
Table 123 – Forecast broadband subscriber growth – stronger market growth scenario – 2007 - 2011; 2017
Table 124 – Forecast broadband subscriber growth – weaker market growth scenario – 2007 - 2011; 2017
Table 125 – Household widescreen and standard TV – household penetration – 2006
Table 126 – TV content reception method – household penetration – 2006
Table 127 – Cable TV and MMDS subscribers – 1997 - 2006
Table 128 – Market share of cable TV and MMDS operator – 2006
Table 129 – Mobile operators, technology, subscribers and annual change – March 2007
Table 130 – Mobile subscribers and penetration – 1998 - 2007
Table 131 – Monthly ARPU per quarter by mobile operator – 2006
Table 132 – Consumer’s attitudes to fixed-mobile substitution – 2006
Table 133 – Omnitel MOU, postpaid and prepaid ARPU and churn – 2005 - 2007
Table 134 – Household penetration of prepaid & postpaid mobile phones – 2006
Table 135 – Market share by operators of the postpaid business market – June 2006
Table 136 – Percentage of prepaid subscribers – 2003 - 2006
Table 137 – Combined GPRS/EDGE/UMTS mobile data subscribers – 2004 - 2006
Table 138 – Total SMS messages sent and annual change – 2004 - 2006
Table 139 – Total MMS messages sent and annual change – 2004 - 2006
Table 140 – Effects of mobile spam on users – 2005 - 2006

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Technologies

Broadband Fixed
Internet
Mobile Communications (voice and infrastructure)
Strategies & Analyses (Industry & Markets)
Telecoms Infrastructure

Number of pages 99

Status Archived

Last updated 27 Nov 2007
Update History

Analyst: Stephen McNamara

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