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

This year the electronic communications sector (mobile, fixed communications, Internet access and data transmission, broadcasting and re-transmission of audiovisual programs) will increase over 2011 by 2% and will amount to 6,3 - 6,4 billion lei. These are the estimations from the Annual Report of the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI), made publicly available on the Agency’s Internet site. The document describes the main activities performed by the regulator last year, as well as the evolution of the electronic communications markets during the reporting timeframe.

According to this document, in 2011, the total value of the electronic communications markets increased over 2010, by 1,3%, reaching 6 billion 220 million lei. As per the values of the gross domestic product recorded in 2011, the volume of sales in this sector constituted 7,72%. The Agency experts explain the slowdown in the sector, compared with 2010,  by the maturation of  mobile communications market, reduction in the volume of sales of fixed telephone services and revenues obtained by providers from excessive charges for call termination services in mobile and fixed networks after ANRCETI decision to bring these charges in line with their costs.

According to ANRCETI estimations, this year the markets for broadband Internet access and broadcasting/re-transmission of audiovisual programs will undergo major increase – 25% and 20% accordingly. The market for broadband Internet access at fixed locations is going to become the most dynamic market in 2012. The number of subscribers to these services will exceed 450 thousand, which is a 30% - 35% increase, whereas the penetration rate for these services per 100 population will reach 12,8%. The growth of this market is determined by the influence of the Internet on the daily lives of Moldovans (social media, blogging, video sharing, cloud computing, e-services, etc.), development of network access infrastructure based on global optical networks, the increase of the tariff plans offered, including the offer of additional services and tariff reduction per megabyte.

The value of the electronic communications market will increase by 5%, the number of users – by about 15% and will exceed 4,3 million., whereas the penetration rate for these services per 100 population will reach 120%. The number of subscribers to broadband mobile services will increase by 30% and will reach 160 thousand. At the same time, due to the development of Internet access services via mobile networks and reduction of prices for devices (smartphone, tablet, etc.), the number of mobile Internet users will also increase.

ANRCETI estimates that the number of fixed telephone subscribers will increase by 1 - 2% and will reach 1,2 million and the penetration of these services per 100 population will make 33,7%. This increase will be determined mainly by new residence sectors, provided with telephone services and the developing triple-play (Internet, TV and telephone) services. However, the revenues from fixed telephone service will decrease by about 10%, because of the continued migration of traffic from fixed networks to the Internet and mobile networks and because of the dependence of fixed telephone service providers on the income from international calls (53% of income), while this type of traffic in fixed networks is reducing.

The estimations also show that in 2012 the market for broadcasting and retransmission of audiovisual programs will exceed the rates of increase in the number of subscribers and the revenues generated by these services last year. This tendency is caused by the intensified competition between providers of digital TV services – IPTV and those of cable TV services.

May 3, 2012