2012 Lithuania - Telecoms, IP Networks, Digital Media and Forecasts

Lithuania’s FttH reach approaching two-thirds of all households

BuddeComm’s annual publication, Lithuania - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in one of Eastern Europe’s more progressive countries. The report includes the regulator’s market data to the end of 2011, telcos’ financial and operating data to March 2012, and market developments into mid-2012.

Economic background

Lithuania’s recent economic troubles, largely connected with the continuing global financial turmoil, have resulted in some of the more dramatic falls in GDP in Europe. Nevertheless, the economy has shown signs of recovery since 2010, with an anticipated growth of 3% in 2012. This should have a positive knock-on effect for the telecoms market, which has been turbulent in recent years, with revenue falling 7% in 2011 alone and by a further 5% expected for 2012. Returning consumer confidence will encourage growth from 2013, leading to higher spend on telecom services and rejuvenated investment in infrastructure.

Telecom market overview

The broadband market benefits from extensive infrastructure-based competition. The dominant DSL platform has contracted in recent years as consumers have migrated to FttH networks. This trend will become more pronounced in coming years, compounded by greater adoption of mobile broadband offerings as LTE networks depending on fibre backhaul take shape into 2013. Lower revenue from fixed and mobile telephony has been partly offset by increases from the CATV sector.

Mobile market

The mobile sector is now the largest comms market in terms of revenue. High penetration rates have focussed MNOs’ attentions to mobile data services. These are set to develop swiftly in 2013 following the recent auction of spectrum in the 2.6GHz band. LTE services will become a dominant feature of the mobile landscape, supported by operators’ existing experiences in their Scandinavian markets.

Key telecom parameters – 2010; 2013

(Source: BuddeComm)

Market Highlights

• By early 2012, 32% of households were connected to cable or MMDS TV, while 86% could receive services, with 44 operators registered to offer cable TV services.
• TEO’s LTL329 million investment in FttX thus far has pushed availability to more than 100 towns and cities, connecting 705,000 households (59% of the total). The company aims to cover 80% of the country’s corporations and organisations by the end of 2012.
• The March 2012 auction for spectrum in the 2.6GHz band requires the three licensees to cover 50% of 15 cities within five years. Multi-band spectrum will vastly expand LTE reach nationally in coming years.
• DTTV programming is accessible by approximately 95% of the population. Two of the four national networks in operation are operated by TEO, with a third operated by Balticum TV.
• TEO’s FttH network has been scaled up to 300Mb/s, one of the fastest data rates available in Europe.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Lithuania. It provides further information on:

• Market liberalisation and regulatory issues;
• The impact of the global economic crisis;
• Telecoms operators – privatisation, acquisitions, new licences;
• Mobile data market developments in coming years in light of spectrum auctions and new license awards;
• 3G developments, regulatory issues and technologies including HSPA and LTE;
• Broadband migration to an FttH architecture;
• Historical and current subscriber statistics and forecasts;
• ARPU statistics and forecasts.

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