National Regulatory Agency for Electronic Communications and Information Technology of the Republic of Moldova

In the first quarter of 2011, the number of subscribers to broadband Internet access at fixed locations increased compared to the same period last year by 39,4% and reached about 292,8 thousand. The penetration rate of these services per 100 inhabitants increased by 2,3 percentage points and reached 8,2%. These are the data made available by the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) about the developments on this market segment.

ANRCETI specialists explain the rapid development of broadband services by the increasing demand and the availability of data services, including in rural areas, de-monopolization of cross-border access to the global Internet and the increased number of operators who have direct access to the global network and offer Internet traffic to other providers on this market.

During the reporting period, about 23,7 thousand people became subscribers of broadband Internet access at fixed locations. Most subscribers – over 17,9 thousand (75,8% of new subscribers) – were connected by Moldtelecom. Companies „Starnet” and „Sun Communications” increased their subscriber base by 3,9 (16.5%) and by 1000 (3,8%). Other operators had 3,9% net connections. 55% of new subscribers were connected to the Internet via optic fiber networks, 37,2% – via ADSL (Asymmetric Digital Subscriber Line) and 8% – via cable TV networks.

According to the data, by the end the first quarter, the most significant market share in terms of number of subscribers – 70,9% – was owned by „Moldtelecom”. Company Starnet owned 17,9% of the market and the other operators shared 11,2%.

In this timeframe, the total sales on the market for Internet access services at fixed locations increased, compared to the first quarter of 2010, by 18,3% and exceeded 147,3 million lei. This increase was basically driven by higher volume of sales by companies „Starnet” (increased by 81,4% and exceeded 25,3 million lei) and „Moldtelecom” (by 10,6% and equaled to 96,7 million lei). First operator sales grew by about 81,4% and exceeded 25.3 million lei, while the second operator – 10.6% and made up over 96.7 million MDL. The total volume of sales by the rest of the players on the market increased by 9,5% and reached 25,3 million lei.

We would remind that in the first quarter the number of subscribers to 3G mobile broadband increased by about 13,4% and reached 137,9 thousand, while the penetration rate of per 100 inhabitants was 3,9%. The total number of subscribers to broadband Internet at fixed and mobile locations increased compared to early 2011, by 10,2% and reached 430,6 thousand with the 12,09% penetration rate.

According to ANRCETI’s forecasts for 2011, this year the number of subscribers to broadband Internet at fixed and mobile locations will increase by 35 - 40% and will reach 350 thousand and 165 thousand accordingly. The penetration of broadband services at fixed locations, per 100 inhabitants, will reach 10%, at mobile locations – 4.7%.

Additional information about the Internet access market for the first quarter of 2011 are available on the Agency website: www.anrceti.md, in the „Market Evolution” „Statistical data” section.

May 16, 2011