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

Statistical data on the evolution of the market for fixed and mobile broadband in the first half of 2014 published today by ANRCETI show continuously increasing number of subscribers and revenues. The number of subscribers to mobile broadband (via modems and data cards) grew more than 16,6 thousand (+6,4%) and exceeded 276,2 thousand; the number of fixed broadband subscribers - 18,7 thousand (+4%) up to about 486 thousand. The total number of subscribers to these services increased by 35,5 thousand (+4,9%) up to 762,2 thousand, the turnover of these services - by 93,5 million lei (+18.4% ) and exceeded 601,6 million lei.

The data reported by the three mobile providers that, in the first half-year, the mobile broadband subscriber base of Moldcell increased by over 10,9 thousand and reached 93,8 thousand, the one of Orange Moldova increased by 5,7 thousand up to 122,2 thousand. Meanwhile, the subscriber base of Moldtelecom (Unite) decreased by 50 customers and made 60,2 thousand. During the same period, the total volume of mobile broadband traffic increased over the first half of 2013 by 27% and amounted to 12 million 589,7 thousand GB, while the monthly average traffic generated by a subscriber was 7,8 GB.

The aggregated income of the three mobile providers from mobile broadband services increased over the first half of last year by 8,5% up to 149,3 million lei. The sales of Orange Moldova increased by 1,1% up to 54,9 million lei, of Moldcell – 2% up to 50,5 million lei, of Moldtelecom – 33,7% up to 38,6 million lei. Meanwhile, the average monthly revenue per user (ARPU) for these services decreased 20,6% down to 89,1 lei. At mid-year, the three providers’ market shares by turnover were as follows: Orange Moldova – 38,1%, Moldcell – 35,1% and Moldtelecom – 26,8%.

According to the data supplied by the 63 fixed broadband providers, of the 18,9 thousand total of new subscribers connected to the network by mid-year 2014, about 14 thousand (+6,1%) use FTTx (Fiber to the Premises) technology, about 36 thousand (+1.8%) – xDSL (Digital Subscriber Line) and about 26 thousand – coaxial cable. In mid-2014, about 50% of total fixed broadband subscribers used FTTx technology, 43,7% – xDSL, 6,3% – coaxial cable. According to aggregated data available with ANRCETI, 12% of total fixed broadband subscribers use speeds below 2 Mbps, 37% – speeds 2 to 10 Mbps, 24% – 10 to 30 Mbps, 25% – 30 to 100 Mbps and 3% – more than 100 Mbps.

By mid-2014, the total sales volume of fixed and mobile broadband services increased 21,4% and got up to 491,3 million lei, the bulk of this sum – got over 457,7 million lei coming from Internet access services. Starnet Solutions and Moldtelecom recorded highest increase of sales, by 38% up to 97,7 million lei, and by 16,5% up to 310.1 million lei, respectively. The revenues of Orange Moldova decreased by 1,7% down to 14 million lei and the cumulative volume of sales made by the other 60 providers of data transmission service and fixed Internet access services decreased by 30,3% down to 69,3 million lei. The average revenue per user (ARPU) from fixed broadband services increased more than 9,7% and made 159,4 lei.

As a result of the aforementioned developments, in mid-2014 the market shares based on revenues, were as follows: Moldtelecom – 63,1%, Starnet Solutions – 19,9%, Orange Moldova – 2,9%, the cumulative share the other suppliers – 14,1%. More information on the development of fixed and mobile broadband market in the first half of 2014 is available on ANRCETI website: www.anrceti.md, Section Statistical Data.

September 4, 2014