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Telecoms, IP Networks, Digital Media and Forecasts - Macedonia

Telecoms, IP Networks, Digital Media and Forecasts - Macedonia

Market consolidation sees VIP Operator merge with One

The former Yugoslav Republic of Macedonia (Macedonia) has been a European Union (EU) candidate country since 2005. As part of the EU pre-accession process, the country has built closer economic ties with the Union: the EU accounts for 60% of Macedonia's exports and about half of its imports. Closer regulatory and administrative ties with European Commission (EC) institutions have done much to develop the telecom sector and prepare the market for the competitive environment encouraged in the EU.

As part of EU integration legislation has implemented the principles of the EU's regulatory framework for communications, established an independent regulator and set out a number of provisions to provide for a competitive telecom market, including wholesale access to the incumbent's fixed-line network. Although the fixed telephony market has been liberalised, the incumbent continues to dominate the sector. Broadband services are widely available, with effective competition between DSL and cable platforms complemented by wireless broadband and a nascent FttX sector.

Broadband services are available via DSL, fibre, cable and wireless and the incumbent has launched IPTV services in competition with well-established cable TV operators.

Macedonia's mobile market is served by a triopoly of mobile network operators, two of which benefit from the technical know-how and financial resources of parent companies Deutsche Telekom and Telekom Austria. Mobile data services are also available and this market is also expected to become increasingly important as new subscriber additions fade in the maturing mobile voice market. With WCDMA/HSPA networks in place, the focus for mobile data has shifted to mobile broadband offerings.

Key telecom penetration for services 2014 (e)
Subscriber penetration rate: | Penetration
Fixed-broadband | 20%
Fixed-line telephony
| 19%
Mobile | 108% (Source: BuddeComm)

Market highlights:

Telekom Austria Group and Telekom Slovenije in October 2014 agreed to merge their mobile subsidiaries VIP Operator and ONE.

Blizoo was acquired by Telekom Austria in late 2014, enabling the operator to offer quad-play services;

Competitors are making inroads into the fixed telephony market, with alternative operators representing a growing proportion of fixed lines. EU-mandated regulatory measures have improved market prospects for competitors.

Broadband uptake growth is expected to maintain momentum during the next few years, with the incumbent placing greater emphasis in FttX networks.

Digital TV is widely available via satellite, digital terrestrial TV and broadband TV. The incumbent's IPTV subscriber base has grown steadily in the wake of upgraded network capabilities, which has contributed to fewer customers to satellite services.

Competition is intensifying in the mobile market, with the emergence of Albafon in 2013. The operator had only 1.2% of the market share by subscribers but this is expected to rise in coming years. Mobile number portability has grown steadily following a reduction in fees. Mobile voice penetration is on a par with the EU average, while high-end mobile data services represent a considerable growth area for MNOs in coming years.

The regulator's tender for the use of frequencies for LTE was suspended through lack of interest among operators. A renewed tender completed in mid-2013 has boosted the developing LTE market. ONE launched services in late 2014, and now competes with T-Mobile Macedonia in the sector.

In February 2014 Makedonski Telekom completed its migration to an All-IP network.

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

This report provides a comprehensive overview of trends and developments in Macedonia's telecommunications market. The report analyses the mobile, broadband, digital TV and converging media sectors.

Subjects include:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Infrastructure;
Major players, revenues, subscribers, ARPU, MoU;
Internet, VoIP, IPTV;
Mobile voice and data markets;
Broadband (FttP, DSL, cable TV, wireless);
Convergence and digital media;
Broadband market forecasts for selective years to 2020.

Key developments:

One launches LTE services; VIP Mobile to merge with ONE early in 2015; Makedonski Telekom completes PSTN migration to an All-IP network; Telekom Slovenije merges Macedonian subsidiaries into ONE; market for fixed-line telephony continues to fall; regulator auctions 4G licences in the 800MHz and 1800MHz bands; telecoms market accounting for 7% of GDP, well above the EU average; regulator's market data updates; telcos' operating and financial data to Q2 2014; regulator's market data updates to Q1 2014; recent market developments.

Companies covered in this report include:

Makedonski Telekom, ONE, VIP, Blizoo (formerly CableTel), Telecom Slovenia.


1. Executive summary
2. Key statistics
3. Telecommunications market
3.1 Overview of Macedonia's telecom market
3.1.1 EU candidacy
4. Regulatory environment
4.1 History
4.2 Regulatory authority
4.2.1 Agency for Electronic Communications (AEC)
4.3 Telecom sector liberalisation in Macedonia
4.3.1 Privatisation
4.3.2 Interconnect
4.3.3 Access
4.3.4 Carrier Selection (CS) and Carrier PreSelection (CPS)
4.3.5 Number Portability (NP)
5. Fixed network operators in Macedonia
5.1 Overview of operators
5.2 Makedonski Telekom
5.3 ONE
6. Telecommunications infrastructure
7. Internet market
7.1 Overview
7.2 Internet statistics
7.3 Macedonia's emerging internet society
8. Fixed broadband market
8.1 Overview
8.1.1 Broadband statistics
8.2 Asymmetrical Digital Subscriber Line (ADSL)
8.3 Cable broadband
8.4 Fibre-to-the-Premises (FttP)
8.5 Fixed wireless broadband
8.6 Wireless broadband
8.6.1 WiFi
8.6.2 WiMAX
9. Digital media
9.1 Overview of broadcasting market
9.2 Digital TV
9.2.1 Digital Terrestrial TV (DTTV)
9.2.2 Broadband TV (IPTV)
9.2.3 Cable TV (CATV)
9.2.4 Satellite-based digital pay TV developments
9.2.5 Bundled services
10. Mobile communications
10.1 Overview of Macedonia's mobile market
10.1.1 Mobile statistics
10.2 Regulatory issues
10.2.1 Third GSM licence
10.2.2 3G licence
10.2.3 4G licence
10.2.4 Mobile Number Portability (MNP)
10.3 Mobile technologies
10.4 Mobile operators
10.4.1 Overview of operators
10.4.2 T-Mobile Macedonia
10.4.3 One
10.4.4 VIP Operator
10.4.5 Merger of VIP Operator and One
10.4.6 Mobile Virtual Network Operators (MVNOs)
10.5 Mobile voice services
10.5.1 Prepaid
10.6 Mobile data services
10.6.1 Short Message Service (SMS)/Multimedia Messaging Service (MMS)
10.6.2 Enhanced Data for GSM Evolution (EDGE)
10.6.3 High-Speed Packet Access (HSPA)
10.6.4 Long-term Evolution (LTE)
10.6.5 Mobile broadband
10.7 Mobile content and applications
11. Broadband subscriber forecasts
11.1 Scenario 1 higher broadband subscriber growth
11.2 Scenario 2 lower broadband subscriber growth
11.3 Notes on scenario forecasts
12. Related reports
Table 1 Country statistics Macedonia 2014 (e)
Table 2 Telephone network statistics 2014 (Mar)
Table 3 Internet user statistics 2014 (e)
Table 4 Broadband subscribers 2014 (e)
Table 5 Mobile statistics 2014 (e)
Table 6 National telecommunications authority
Table 7 Telecom market revenue by sector 2008 - 2012
Table 8 Share of telecom market revenue by sector 2008 - 2010
Table 9 Investment in telecoms and transport sector 2004 2012; 2015
Table 10 Call termination on Makedonski Telekom's fixed network 2009
Table 11 Cost of LLU and shared access lines 2010
Table 12 Access lines by type 2010 - 2013
Table 13 CS and CPS lines 2010 - 2014
Table 14 Fixed-lines ported 2008 - 2014
Table 15 Fixed-line market share by key operators 2009 - 2014
Table 16 Makedonski Telekom revenue (HUF) 2009 - 2014
Table 17 Makedonski Telekom financial data (MKD) 2009 - 2012
Table 18 Makedonski Telekom fixed-voice lines in service 2010 - 2014
Table 19 One financial data 2010 - 2014
Table 20 ONE mobile and broadband subscribers 2009 - 2014
Table 21 Telephony-lines by type 2009 - 2014
Table 22 Historic - Fixed lines in service and teledensity 1995 - 2004
Table 23 Fixed lines in service and teledensity 2005 - 2014
Table 24 Wholesale leased lines in service, by type 2010 - 2012
Table 25 Internet market revenue 2008 - 2013
Table 26 Internet users and penetration rates 1999 - 2014
Table 27 Uptake of e-government services by individuals 2008 - 2012
Table 28 Uptake of e-government services by businesses 2006 - 2013
Table 29 Proportion of business engaged in e-commerce 2006 - 2013
Table 30 Broadband market share of subscribers by platform 2010 - 2014
Table 31 Household penetration of broadband services by type 2011 - 2013
Table 32 Proportion of households with computer/internet use 2010 - 2013
Table 33 Fixed broadband subscribers and penetration rate 2005 - 2015
Table 34 market share of internet subscribers by operator 2013 - 2014
Table 35 Internet subscribers by access type: dial-up, mobile, other 2009 - 2014
Table 36 Broadband subscribers by access speed 2014 - 2014
Table 37 Makedonski Telekom retail and wholesale DSL subscribers 2008 - 2014
Table 38 ADSL broadband subscribers 2008 - 2014
Table 39 One broadband subscribers 2011 2014
Table 40 Cable broadband subscribers 2008 - 2014
Table 41 FttP subscribers 2009 - 2014
Table 42 Market share of TV subscribers by platform 2007 - 2014
Table 43 Market share of TV subscribers by operator 2010 - 2014
Table 44 TV revenue 2004 2012; 2015
Table 45 Total TV subscribers 2010 2014
Table 46 DVB-T subscribers 2010 - 2014
Table 47 Makedonski Telekom IPTV subscribers 2008 - 2014
Table 48 IPTV subscribers 2010 - 2014
Table 49 Cable TV subscribers 2005; 2009 204
Table 50 Satellite TV subscribers 2009 - 2014
Table 51 Subscribers to bundled services by type 2012 - 2014
Table 52 Market share of double-play services by operator 2013 - 2014
Table 53 Market share of triple-play services by operator 2013 - 2014
Table 54 Historic - Mobile subscribers and penetration rate 2000 - 2004
Table 55 Mobile subscribers and penetration rate 2005 - 2014
Table 56 Mobile network operator market share by subscribers 2007 - 2014
Table 57 Mobile termination rates 2009
Table 58 Mobile traffic 2009 - 2014
Table 59 Cumulative mobile-lines ported 2008 2014
Table 60 T-Mobile subscribers 2004 - 2014
Table 61 T-Mobile MOU and ARPU 2004 - 2014
Table 62 One mobile subscribers 2009 - 2014
Table 63 VIP financial data 2007 - 2014
Table 64 VIP Operator subscribers 2007 - 2014
Table 65 Ratio of prepaid to contract subscribers 2005 - 2014
Table 66 T-Mobile prepaid subscribers 2004 - 2014
Table 67 SMS messages sent 2005 - 2014
Table 68 MMS messages sent 2009 - 2014
Table 69 Total mobile broadband capable subscribers 2008 - 2014
Table 70 Forecast broadband subscribers higher growth scenario 2010 - 2013; 2015; 2020
Table 71 Forecast broadband subscribers higher growth scenario 2010 - 2013; 2015; 2020
Chart 1 Makedonski Telekom revenue data 2009 2014
Chart 2 Fixed lines in service and teledensity 2005 2014
Chart 3 Fixed broadband subscribers and penetration rate 2005 2015
Chart 4 Makedonski Telekom retail and wholesale DSL subscribers 2008 2014
Chart 5 Mobile subscribers and penetration rate 2003 2014
Chart 6 Mobile network operator market share by subscribers 2007 2014
Chart 7 VIP financial data 2007 2014
Exhibit 1 EU The New Regulatory Framework (NRF)
Exhibit 2 Frequency bands and allocations
Exhibit 3 Frequency bands expressions of interest 2007

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