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Moldova - Telecoms, Mobile, Broadband & Forecasts

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The Moldova - Telecoms, Mobile, Broadband & Forecasts report includes all BuddeComm research data and analysis on this country. Covering trends and developments in telecommunications, mobile, internet, broadband, infrastructure and regulation.

Executive summary

Moldova is the poorest country in Europe. In the 1990’s Moldova experienced a sharp GDP contraction, with the result that its economy by the end of 1998 was around one third of its 1989 size. This collapse was partly caused by a civil war with the eastern Transdniester region, a severe drought in 1994 and Russia’s financial crisis of 1998, Moldova’s largest export partner. However the country has enjoyed consistent economic growth since 2000 until it was affected by the recent global economic turmoil.

The eastern part of the country is a disputed region known as Transdniester, governed by the internationally unrecognised Pridnestrovian Moldavian Republic (PMR), and possessing separate telecommunications and broadcasting networks.

A European Union aspirant, Moldova is a partner country within the European Neighbourhood Policy (ENP), through which financial assistance is offered in exchange for observing strict conditions of government or economic reform. As part of the ENP, an EU-Moldova ENP Action Plan was adopted by both countries in February 2005 for a three-year duration and prolonged by mutual agreement beyond February 2008. The ENP Action Plan established strategic development objectives which encompasses among other, the area of telecoms and information society. Telecoms and information society development objectives included:

Adopting a comprehensive regulatory framework encompassing licensing, network access and interconnection, numbering, cost-orientation of tariffs, Universal Service and users rights, privacy protection and data security.

Promoting use of the new technologies by business and administration, in particular in regards to e-commerce, e-government, e-health and e-learning via the provision of infrastructure and development of content and the introduction of pilot projects.

Market liberalisation commencing at the beginning of 2004.

Ensuring the independence, powers and efficiency of the market regulator.

Improving ICT literacy among the general population.In its ENP strategy for 2007-2013, the EU pledged support for establishing a comprehensive regulatory framework, improving the capacity of the regulator and promoting the use of broadband infrastructure and online services by businesses, public administration and citizens.

Moldova’s relations with the EU and participation in the ENP delivered approximately €300 million in financial assistance to Moldova during 1991-2006. Another €230 million has been allocated for 2007-2010, with this amount expected to increase for 2011-2013.

Mirroring the general economy, the overall telecoms industry has recorded consistent annual growth. Market liberalisation has opened up the entire communications market to competition;
the success of this policy is evident in the broadband and mobile markets but not as such in the fixed telephony market, where the incumbent still dominates the market due to delays in implementing an effective regulatory regime to promote fair competition. During 2010 and 2011 the regulator is expected to exert recently obtained powers to improve competition.

Moldova’s Internet market is one of rapid change. Broadband now representing the majority of Internet connections, with future growth in 2010 and 2011 expected to be centred on broadband subscriptions. Fixed broadband services are accessible via ADSL, cable, FttH and LAN, with underdeveloped competition and low penetration levels presenting future growth opportunities.

Recognising the potential of applying ICT to improve both social and economic development, Moldova has taken steps to develop a knowledge-based society, initially with policy driven measures aimed at increasing Internet usage through improved competition and later through creating policy designed to stimulate development of online applications in relation to health, education and public administration.

Moldova’s mobile market has grown rapidly and accounts for almost half of all telecoms revenue. A total of four operators, three GSM and one CDMA, are licensed to offer services. CDMA services are available in the Transdniester region. Current penetration levels point to continued future growth due to new subscriber additions in the mobile voice market. The launch of 3G/HSDPA networks has opened up a new revenue growth opportunity in 2010 centred on mobile broadband, with the mobile operators well positioned due to the lack of broadband market competition outside of large cities, the geographical reach of their networks, market brand recognition and existing customer relationships.

Key highlights:

Market competition is expected to improve after the regulator was granted powers in 2009 to ensure fair competition by imposing obligations on market participants possessing significant market power (SMP), the ability to unduly influence the market.
Broadband now represents the majority of Internet connections. Broadband growth has been attributed to ADSL, overwhelmingly the most popular broadband access platform as it is available nationally from the incumbent operator compared with the limited reach of competing platforms. FTTx services have been launched, offering up to 100Mb/s access to local content. In a country where fixed line and Internet penetration is low, broadband presents an opportunity to entice first time fixed line subscribers.
Digital TV availability via cable, satellite and digital terrestrial TV (DTTV). Cable operators offer triple play services bundling VoIP telephony, broadband Internet access and cable TV services. The incumbents of both Moldova and Transdniester offer IPTV services.
Now the largest market sector, current penetration levels point to continual growth in Moldova’s mobile market. The launch of 3G/HSDPA networks has opened up a new revenue growth opportunity in 2010 centred on mobile broadband, with the mobile operators well positioned due to the lack of broadband market competition outside of large cities, the geographical reach of their networks, market brand recognition and existing customer relationships.Moldova key telecom indicators - 2008 - 2009
Sector20082009 (e)
Fixed broadband subscribers (thousand)115180
Fixed broadband penetration rate3%5%
Subscribers to telecoms services
Fixed-line telephone subscribers (thousand)1,1141,120
Mobile phone subscribers (thousand)2,1802,700
(Source: BuddeComm based on industry data)
This report covers trends and developments in telecommunications, mobile, Internet, broadband, digital TV. Subjects include:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Major Players, Revenues, Subscribers, ARPU, MOU;
Mobile Voice and Data Markets;
Broadband (FttH, DSL, cable TV, wireless);
Digital Media.

1. Executive summary
2. Key statistics
2.1 Country overview
3. Telecommunications market
3.1 Overview and analysis of Moldova’s telecom market
3.1.1 Statistics
4. Regulatory environment
4.1 Background
4.2 Regulatory authority
4.3 Telecom sector liberalisation in Moldova
4.3.1 Privatisation
4.3.2 Interconnection
4.3.3 Access
4.3.4 Number portability
5. Fixed network operators in Moldova
5.1 Moldtelecom
5.2 InterDnestrCom (IDC)
6. Telecommunications infrastructure
6.1 National telecom network
6.2 International infrastructure
7. Internet market
7.1 Overview
7.1.1 Moldova’s emerging Internet economy
7.1.2 Internet statistics
7.2 ISP market
8. Broadband market
8.1 Overview
9. Overview of broadcasting market
9.1 Digital TV
9.1.1 Broadband TV (IPTV)
9.1.2 Cable TV
9.1.3 Satellite-based digital pay TV developments
10. Mobile communications
10.1 Overview of Moldova’s mobile market
10.1.1 Mobile statistics
10.2 Regulatory issues
10.2.1 First and second GSM licences awarded
10.2.2 Third GSM licence
10.2.3 CDMA licence awarded
10.2.4 UMTS licences
10.3 Mobile technologies
10.3.1 Digital
10.3.2 3G UMTS
10.4 Major mobile operators
10.4.1 Orange / VoxTel
10.4.2 Moldcell
10.4.3 Eventis
10.4.4 UNITE
10.4.5 IDC
10.5 Mobile voice services
10.5.1 Prepaid
10.6 Mobile data services
10.6.1 Enhanced Data for GSM Evolution (EDGE)
10.6.2 Broadband wireless data service (1x EV-DO)
10.6.3 Mobile TV
10.7 Mobile content and applications
11. Forecasts - Fixed broadband market - 2009 - 2012; 2019
11.1 Scenario 1 - higher fixed broadband subscriber growth
11.2 Scenario 2 - lower fixed broadband subscriber growth
11.3 Notes on scenario forecasts
12. Related reports
List of tables and exhibites
Table 1 - Country statistics Moldova - 2009
Table 2 - Telephone network statistics - 2009
Table 3 - Internet user statistics - 2009
Table 4 - Internet subscriber statistics - 2009
Table 5 - Broadband statistics - September 2009
Table 6 - Mobile statistics - March 2009
Table 7 - National telecommunications authority
Table 8 -Telecom revenue by service type - 2008
Table 9 - Total telecom revenue - 2005 - 2008
Table 10 - Total investment by service type - 2008
Table 11 - Total telecom industry investment - 2004 - 2008
Table 12 - Fixed line revenue by service - 2008
Table 13 - Fixed lines in service and teledensity - 1995 - 2009
Table 14 - Internet users, subscribers and penetration rates - 1999 - 2009
Table 15 - ISP market share by revenue - 2006 - 2008
Table 16 - Fixed broadband subscribers and penetration - 2004 - 2009
Table 17 - Broadband ISP market share by subscribers - 2006 - 2009
Table 18 - Broadband subscribers by access type - 2005 - 2009
Table 19 - Broadcasting sector revenue and investment - 2004 - 2008
Table 20 - Total cable TV subscribers and ARPU- 2005 - 2009
Table 21 - Cable TV operator market share by revenue - 2008
Table 22 - Mobile operators, subscribers and annual change - March 2009
Table 23 - Mobile subscribers and penetration rate - 1998 - 2009
Table 24 - Mobile market revenue by operator - 2004 - 2008
Table 25 - Mobile market ARPU by operator - 2004 - 2008
Table 26 - Total mobile revenue by service - 2007 - 2008
Table 27 - Moldcell subscribers and MOU - 2006 - 2008
Table 28 - Moldcell prepaid subscribers - 2006 - 2008
Table 29 - Total SMS and MMS messages sent - 2002 - 2008
Table 30 - Forecast fixed broadband subscribers - higher growth scenario - 2009 - 2012; 2019
Table 31 - Forecast fixed broadband subscribers - lower growth scenario - 2009 - 2012; 2019

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