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Lithuania - Telecoms, Mobile, Broadband and Forecasts

This report covers trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP and IPTV developments. Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure;
  • Major players, revenues, subscribers, ARPU;
  • Internet, IPTV;
  • Mobile voice and data markets;
  • Broadband (FttH, DSL, cable TV, wireless);
  • Convergence and digital media.


Since independence Lithuania embraced market reform and joined the European Union overseeing rapid economic growth characterised by large real wage increases driven by declining unemployment and emigration, EU sourced development funds and extremely rapid credit growth. Like its Baltic neighbours to the north the global financial turmoil brought a sudden end to Lithuania’s boom, with eight years of consistent annual growth giving way to 14.8% real GDP contraction in 2009, with EU estimates of a further 0.6% contraction for 2010.

Lithuania’s telecoms market did not escape the effects of the economic downturn, contracting by 7.7% during 2009, smaller compared with the overall economy due to the utility nature of telecoms and communications services. Not all sectors of the communications market were affected equally; falls in revenue from fixed and mobile telephony were offset by increases from broadband, data transmission, leased line services and wholesale fibre access.

A number of alternative operators offer services in the liberalised fixed-telephony market although incumbent TEO is still the dominant operator. Fixed-line subscriber numbers are expected to continue trending downwards in 2010, attributed to fixed-to-mobile substitution, although fixed-line broadband services provides an incentive for consumers to hold onto fixed lines, which forms the basis of the incumbent’s future growth strategy.

Broadband accounts for 99% of all fixed Internet connections. Infrastructure-based competition has led FTTx to overtake ADSL to become the most popular fixed broadband access platform. Fibre is expected to represent a growing proportion of total fixed broadband subscriptions in 2010 due to the continued focus on fibre by both the private and public sector. With Internet access now commoditised, service providers have shifted focus to Internet-based convergence services such as broadband TV (IPTV) or bundled separate services to increase average revenue per user levels.

Widespread Internet usage has fostered Lithuania’s Internet society, the application of ICT to improve social and economic development, with various e-commerce, e-government, e-education and e-health initiatives underway and services available. A burgeoning digital TV market is evident due to the transition to digital-only broadcasting, with the telecoms incumbent well positioned for digital TV subscriber growth in 2010 due to its involvement in both IPTV and digital terrestrial TV.

Most Lithuanians possess a mobile phone and multiple SIM card ownership has pushed penetration levels beyond 100%. Services are offered by three mobile network operators and a number of mobile virtual network operators. Mobile broadband represents the next growth opportunity, building on past investments in 3G and HSDPA networks.

Market highlights:Fibre is the most popular fixed broadband access platform. Unlike the ADSL market competition is much stronger as the incumbent only represents a quarter of total FTTx subscriptions. Growth prospects for fibre are strong due to ongoing deployments by both the private and the public sector. The latter approved in late 2009 the second phase of the publicly funded rural fibre backbone network, Rural Area Information Technology Broadband Network.Widespread business usage of e-government services is evident, with an estimated 90% uptake in 2010 as businesses take advantage of the ability obtain information, forms and return forms online. Private uptake of e-government lags but is expected to grow on the back of increased awareness and recognition of its benefits. Similar initiatives extend to the health and education sectors, with the scope of such initiatives expected to broaden due to EU commitments to online services.Digital TV is expected to represent the majority of pay TV subscriptions in 2010. Telecoms incumbent TEO is well positioned to take advantage of the growing interest and uptake of digital TV services, given that it offers both IPTV and DTTV services.Mobile broadband is the focus for mobile network operators, with take up of HSDPA-based mobile broadband penetration at an estimated 8%. The future growth path of mobile broadband take up is expected to emulate that of the mobile voice market over the coming years as the cost of access and capable handsets decrease and end user awareness and ease of use increases, in turn leading to some cannibalisation of broadband subscribers between the fixed and mobile markets.Lithuania key telecom parameters - 2009 - 2010

Sector 2009 2010 (e)
Broadband    
Fixed broadband subscribers(thousand) 634 680
Fixed broadband penetration rate 19% 20%
Mobile broadband penetration rate 6% 8%
Subscribers to Telecoms Services    
Fixed-line telephone subscribers (thousand) 747 710
Mobile phone subscribers (thousand) 4,964 4,850
(Source: BuddeComm based on industry data and estimates)

1. Key Statistics
2. Telecommunications Market
2.1 Overview of Lithuania’s telecom market
3. Regulatory Environment
3.1 Background
3.2 Regulatory authority
3.2.1 Communications Regulatory Authority (RRT)
3.3 Telecom sector liberalisation in Lithuania
3.3.1 Overview
3.3.2 Privatisation
3.3.3 Interconnect
3.3.4 Access
3.3.5 Carrier selection and Carrier PreSelection (CPS)
3.3.6 Number portability
4. Fixed Network Market
4.1 Market overview
4.2 Lietuvos Telekomas (TEO)
5. Telecommunications Infrastructure
5.1 National telecom network
5.1.1 TEO
5.1.2 Alternative operators
5.2 International infrastructure
5.3 Telecoms & IT
6. Wholesaling
6.1 Overview
7. Internet Market
7.1 Overview
7.1.1 Internet statistics
8. Broadband Market
8.1 Overview
8.1.1 Fixed broadband statistics
8.2 Cable modems
8.3 Asymmetric Digital Subscriber Line (ADSL)
8.4 Fibre-to-the-Home (FttH) networks
8.5 Wireless broadband
8.5.1 Market overview
8.5.2 WiFi
8.5.3 WiMAX
8.6 Forecast broadband subscribers - 2010 - 2013; 2019
8.6.1 Scenario 1 - higher broadband subscriber growth
8.6.2 Scenario 2 - lower broadband subscriber growth
9. Digital Media
9.1 Overview of media convergence
9.2 Overview of broadcasting market
9.3 Digital TV
9.3.1 Broadband TV (IPTV)
9.3.2 Cable TV (CATV)
9.3.3 Satellite-based digital pay TV developments
9.3.4 Digital Terrestrial TV (DTTV)
10. Digital Economy
10.1 Lithuania’s emerging Internet society
10.2 E-government
10.2.1 Overview
10.2.2 Infrastructure
10.3 E-health
11. Mobile Communications
11.1 Overview of Lithuania’s mobile market
11.1.1 Mobile statistics
11.2 Regulatory issues
11.2.1 GSM licences
11.2.2 Mobile Number Portability (MNP)
11.2.3 Third GSM licence awarded
11.2.4 Significant Market Power (SMP)
11.2.5 Mobile Termination Rates (MTR)
11.3 Mobile technologies
11.3.1 Third Generation (3G)
11.4 Major mobile operators
11.4.1 Overview of operators
11.4.2 Omnitel
11.4.3 Bite
11.4.4 Tele2
11.5 Mobile voice services
11.5.1 Prepaid cards
11.6 Mobile messaging
11.6.1 Short Message Service (SMS)
11.6.2 Multimedia Messaging Service (MMS)
11.7 Mobile data services
11.7.1 Overview
11.7.2 General Packet Radio Services (GPRS)
11.7.3 Enhanced Data for GSM Evolution (EDGE)
11.7.4 BlackBerry
11.8 Mobile broadband (access)
11.8.1 Market overview
11.8.2 Market statistics
11.9 Mobile content and applications
11.9.1 Portals
11.9.2 Mobile TV
12. Glossary of Abbreviations
List of Tables and Exhibits
Table 1 - Country statistics Lithuania - 2009
Table 2 - Telecom revenue and investment statistics - 2009
Table 3 - Telephone network statistics - 2010
Table 4 - Internet user statistics - 2010
Table 5 - Internet subscriber statistics - 2010
Table 6 - Fixed broadband statistics - 2010
Table 7 - Mobile statistics - 2010
Table 8 - National telecommunications authority
Table 9 - Telecom revenue by service - 2008 - 2009
Table 10 - Market share of fixed-line alternative operators - 2003 - 2010
Table 11 - TEO financial data - 2006 - 2009
Table 12 - Fixed lines in service and teledensity - 1995 - 2010
Table 13 - TEO - fixed-line subscribers & outgoing call minutes - 2005 - 2010
Table 14 - Total international Internet bandwidth - 2000 - 2010
Table 15 - Workplace network usage by network type - 2006 - 2010
Table 16 - Internet users, subscribers and penetration rates - 1999 - 2010
Table 17 - Internet subscribers by access type - January 2010
Table 18 - ISP market share by subscribers - January 2010
Table 19 - Internet access market revenue - 2006 - 2009
Table 20 - Fixed broadband subscribers and penetration rate - 2001 - 2010
Table 21 - TEO fixed broadband subscribers and ARPU - 2005 - 2009
Table 22 - TEO ADSL subscribers - 2004 - 2010
Table 23 - TEO FTTx subscribers - 2006 - 2010
Table 24 - TEO WiFi subscribers - 2007 - 2010
Table 25 - Forecast fixed broadband subscribers - higher growth scenario - 2010 - 2013; 2019
Table 26 - Forecast fixed broadband subscribers - lower growth scenario - 2010 - 2013; 2019
Table 27 - Pay TV subscribers - 2008 - 2010
Table 28 - Digital TV subscribers by access method - January 2010
Table 29 - Digital TV market share by subscribers - January 2010
Table 30 - TEO IPTV subscribers - 2006 - 2010
Table 31 - Cable TV and MMDS subscribers - 1997 - 2010
Table 32 - Market share of cable TV and MMDS service providers - 2009
Table 33 - Viasat subscribers - 2005 - 2009
Table 34 - E-education usage by individuals - 2007 - 2010
Table 35 - E-education usage by businesses - 2008 - 2010
Table 36 - Proportion of population making online purchases - 2005 - 2010
Table 37 - Electronic sales as percentage of total non-VAT turnover for non-financial sector businesses with 10 or more employees - 2009
Table 38 - Take up of e-government services by businesses - 2004 - 2010
Table 39 - Take up of e-government services by individuals - 2004 - 2010
Table 40 - Mobile subscribers and penetration rate - 1998 - 2010
Table 41 - Mobile market revenue by service - September - December 2009
Table 42 - Market share per operator by revenue - September - December 2009
Table 43 - 3G subscriber market share per operator - September - December 2009
Table 44 - Pre and postpaid subscriber market share per operator by sector - January 2010
Table 45 - Omnitel subscribers - 2007 - 2010
Table 46 - Omnitel ARPU - 2005 - 2010
Table 47 - Omnitel MOU and churn - 2005 - 2010
Table 48 - Tele2 financial data - 2007 - 2009
Table 49 - Tele2 subscribers - 2007 - 2010
Table 50 - Ratio of prepaid to postpaid subscribers - 2002 - 2010
Table 51 - Omnitel prepaid subscribers - 2007 - 2010
Table 52 - Total SMS and MMS messages sent - 2004 - 2010
Table 53 - GPRS, EDGE and UMTS subscribers - 2004 - 2010
Table 54 - Mobile data subscriber market share per operator - January 2010
Table 55 - Mobile broadband subscribers and penetration rate - 2006 - 2010
Exhibit 1 - The EU regulatory framework for communications
Exhibit 2 - Access, the local loop and unbundling - an overview
Exhibit 3 - The Economist Intelligence Unit (EIU) annual E-readiness criteria
Exhibit 4 - 2G spectrum awarded
Exhibit 5 - BlackBerry services defined

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