2015 Lithuania - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Fibre accounting for two-thirds of broadband lines in Lithuania

Lithuania’s small telecoms market is among the more developed in Europe. A number of alternative operators offer services although the incumbent TEO, owed by TeliaSonera, remains the dominant operator in the fixed-line and broadband sectors. The number of fixed-line voice subscribers is in steady decline, attributed to fixed-to-mobile substitution.

The cable and DSL broadband sectors remain vibrant, offering effective competition in urban areas, though the focus among telcos as well as the government has been on investing in fibre networks, with an emphasis on delivering gigabyte data speeds. By early 2016 fibre accounted for the majority of new broadband connections. As a result of these efforts, Lithuania has one of the highest fibre broadband penetration rates globally. Regulatory measures have ensured that there is effective competition to TEO, while the government has also committed to providing €1 billion for fibre-based national broadband infrastructure. Widespread internet usage has also resulted in a fast-emerging internet society, with a range of ICT services improving social and economic development, and with various e-commerce, e-government, e-education and e-health services increasingly available and used.

A burgeoning digital TV market is evident as a consequence of the transition to digital-only broadcasting. TEO is well positioned to develop the sector due to the company’s involvement in both videostreaming services and digital terrestrial TV.

The mobile market is served by Omnitel, Bité and Tele2, as well as by a number of MVNOs. In addition, the state-owned broadcaster Telecentras has become the fourth mobile operator, with an extensive LTE infrastructure using spectrum formerly assigned to its WiMAX offering.

SIM card penetration is high for the region, and while the prepaid sector accounts for the majority of subscribers the proportion of postpaid services is increasing. With dwindling new subscriber acquisition opportunities, mobile operators are heavily marketing mobile broadband services, made possible from past investments in 3G and HSPA networks and ongoing upgrades with LTE technology. By early 2016 services based on LTE networks were available to more than 90% of the population.

The recent acquisition by TEO of the remaining shares in Omnitel, the second largest player in the mobile market, has also provided the company with a secure presence in the market for convergent services and bundled offerings.

This report provides an overview of Lithuania’s telecom sector. It includes a variety of statistics from the regulator and the main players, as well as an overview of regulatory developments, and telecommunications network infrastructure. The report also reviews Lithuania’s highly-developed mobile market, covering the major operators, regulatory developments, mobile technologies, mobile data services and the development of 5G which is expected to be commercialised by 2018. In addition, the report offers a wide range of statistical data on the fixed and wireless broadband markets, including forecasts to 2020, as well as an overview of the videostreaming and digital TV sectors.

Key developments:

• TEO and Omnitel merge;
• JV created by Bité, Omnitel, Tele2 and TEO begins administering number portability;
• Regulator removes obligations on TEO relating to fixed access market;
• Lithuanian FttP penetration ranked among highest in the world; Government develops RAIN project extending fibre backbone to rural areas;
• TEO fibre networks reach three-quarters of the population;
• Regulator prepares auction for 900MHz and 1800MHz spectrum, licences to be held to 2032;
• Tele2 launches tri-band carrier aggregation technology to provide data at up to 300Mb/s;
• Mid Europa Partners agrees to sell Bité Lithuania;
• Telecentras contracts Huawei to upgrade its mobile network with LTE;
• Bité Lithuania expands LTE-A services delver data at up to 300Mb/s;
• TeliaSonera partners with Ericsson to develop 5G services by 2018;
• Report update includes the regulator’s market data to September 2015, telcos’ financial and operating data to Q4 2015, recent market developments.

Companies mentioned in this report:

TEO, CSC Telecom, Telekomunikaciju grupa, Cubio, Eurocom SIP, Nacionalinis telekomunikacij tinklas, Norby Telecom, Vinita, Balticum TV, Omnitel, Bité Lithuania, Tele2 Lithuania.