2018 Lithuania - Telecoms, Mobile and Broadband - Statistics and Analyses

Telia partners with vendor to develop 5G services

Lithuania’s small telecoms market is among the better developed in Europe. Several alternative operators offer services although the incumbent Telia Lithuania is still 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 broadband segment remains small while the DSL segment has been in decline as subscribers are migrated to fibre networks. The focus among telcos as well as the government has been on investing in fibre, with an emphasis on delivering gigabyte data speeds. Fibre now account for most new broadband connections.

The country has one of the highest broadband penetration rates in Europe, and it has one of the most mature fibre markets in the region. ISPs have focussed in IP-delivered services and bundled offers, which has encouraged investment in fibre infrastructure as a delivery platform. Widespread internet use 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.

In the mobile sector there is effective competition among the three networks operators Telia Lithuania, Bité and Tele2, which have all invested in LTE in a bid to develop revenue from mobile data services. SIM card penetration is high for the region, and while the prepaid sector accounts for most subscribers the proportion of higher-ARPU postpaid subscribers is increasing. Mobile operators are developing the mobile data services sector through continuing investments in 3G and LTE networks, while work is also underway to develop services based on 5G.

The auction of spectrum in a range of bands has enabled the MNOs to improve on mobile broadband capacity. In April 2018 the regulator launched a consultation on the use of spectrum in the 3400MHz-3800MHz and 3800MHz-4200MHz ranges, both of which have been earmarked for 5G services within Europe. In addition, a spectrum refarming exercise in late 2017 has enabled MNOs to have greater continuous spectrum bands to improve data service offerings. Since mid-2018 Telia Lithuania has repurposed some of its 3G spectrum holdings for LTE use.

This report provides an overview of Lithuania’s fixed-line communications 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 covers the fixed and wireless broadband markets, including subscriber forecasts, and reviews the highly-developed mobile market, covering the major operators, regulatory developments, mobile technologies, and services.

Key developments:

• Telia Lithuania begins refarming 3G spectrum for LTE use;
• Regulator consults on future use of 3400MHz-3800MHz and 3800MHz-4200MHz spectrum ranges;
• MNOs complete refarming of 900MHz and 1800MHz spectrum;
• Tele2 launches tri-band carrier aggregation technology to provide data at up to 350Mb/s;
• Telia Company partners with Ericsson to develop 5G services;
• Cgates expands through additional acquisitions;
• Lithuanian FttP penetration ranked third highest in Europe;
• Government develops RAIN project extending fibre backbone to rural areas;
• Telia’s fibre networks reach three-quarters of the population;
• Bité, Tele2 and Telia create JV to administer number portability database;
• Report update includes the regulator’s market data to Q1 2018, telcos’ financial and operating data to Q2 2018, recent market developments.

Companies mentioned in this report:

Telia Lietuvos (Telia Lithuania), Vinita, Tele2 Lithuania, Balticum TV, Cgates, CSC Telecom, Telekomunikaciju grupa, Cubio, Eurocom SIP, Nacionalinis telekomunikacij tinklas, Norby Telecom, Bité Lithuania.