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

After a drop in 2009, in 2010 the electronic communications sector returned to the trend of growth as before the general economic recession of 2008 – 2009. Last year, the total volume of sales on the four electronic communications markets – mobile telephony, fixed, data transmissions and Internet access, broadcasting and retransmission of audiovisual programs – grew over 2008 and 2009, by 7,3% and, respectively, by 9,1% and equaled 6 billion 142,1 million lei.

This information was presented on Monday, April 18, during a press conference, where the National Regulatory Agency for Electronic Communications and Information (ANRCETI) presented the Report on its activity and the developments of electronic communications market in 2010.

Vladimir Vozian, Chief of Department, said that mobile and broadband access markets continued to be the main drivers of the communications sector increase. The first market increased by about 14%, the second – by 25%. Number of mobile users increased by 13,7% and exceeded 3 million 165,1 thousand, whereas the broadband Internet access at fixed and mobile locations – by 46,4% and reached 390,7 thousand. The mobile penetration rate per 100 population increased to 88,8%, broadband access at fixed and mobile locations - to 11%.

Pursuant to the data presented by the providers, the total number of electronic communications users grew by over 11% and reached 4 million 825,9 thousand. 65,6% of these are mobile users, 24% – fixed telephony users, 5,6% – Internet access users and 4,8% – multichannel TV users.

Vozian mentioned that for this year, the Agency forecasts on-going dynamic increase of the markets for broadband Internet access and for mobile telephony. The number of mobile telephony users is expected to increase by 10 - 12%, exceeding 3,5 million, and the mobile penetration rate is expected to reach 98%. The number of broadband mobile users is expected to 35 - 40% and makes 165 thousand, whereas the number of broadband users at fixed locations – by 30 - 35% and reach 350 thousand. The speeding up of broadband service market is determined by the development of optic fiber networks, liberalization of access to JSC Moldtelecom infrastructure, as well as the rapid increase of demand for these services.

According to the Agency estimations, due to the development of voice-over-broadband services, the number of fixed telephony users will increase by 1,5 – 2% and make 1,18 million. The estimations also show that as a result of intensified competition on the market due to IPTV, DTH and cable digital TV services, the share of digital service users within the structure of subscribers to multichannel TV, will reach 33 - 35% in 2011.

As estimated by the agency, this year, the turnover in the electronic communications sector will increase by 3 - 4% and will make 6.3 to 6.4 billion MDL. V. Vozian motivated slowdown by the reduction of revenues generated from national traffic termination services on mobile and fixed networks by 23 - 24% and the reduction of fixed sales by 5 - 6%. These reductions will be offset by the increased mobile sales approximately by 10% and data transmission and Internet access services - by 20 - 22%.

April 18, 2011