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

Data of the National regulatory Agency for Electronic Communications and Information Technology (ANRCETI) regarding the situation of the fixed telephone market show that in the first half of 2011, the number of subscribers to fixed telephone services increased over the same timeframe of last year by 2,2% and reached 1 million 170,9 thousand, whereas the total volume of sales decreased by 10% and constituted 827,5 million lei.

These contradictory trends in the market evolution occurred in 2009, evolved in 2010 and became more prominent in 2011. The number of subscribers increased mainly due to the rapid development of the voice-over-broadband, whereas lower sales on this market segment is caused by the intensified substitution of fixed calls with mobile and Internet calls.

The data of the Agency also specify that in the reporting timeframe the number of fixed subscribers of JSC “Moldtelecom” increased by 0,8% and exceeded 1 million 125 thousand, whereas the number of the subscribers of alternative providers increased by 57,1%, reaching 45,9 thousand. In the mentioned timeframe JSC „Moldtelecom” connected 945 new subscribers, the alternative operators – over 5,3 thousand. As a result of the increase in the number of fixed subscribers, the penetration rate per 100 population grew by 0,6 percentage points and reached 32,9%.

The volume of sales by JSC “Moldtelecom” was 815,5 million lei, a decrease by 10,3%, the sales of alternative operators increased by 20,3% and constituted over 11,9 million lei. As a result of this development, the average monthly revenue per user (ARPU) decreased by 11,6% to 118,3 lei: the ARPU of JSC „Moldtelecom” – 122,7 lei (decreased by 10,9%), alternative providers – 47,8 lei (decreased by 8,7%).

The fixed market is operated by 18 providers, the biggest market player is the incumbent – JSC „Moldtelecom” – with 96,08% market share in terms of turnover, the rest of the fixed providers jointly – 3,92%.

According to ANRCETI early 2011 estimations, the number of fixed subscribers will reach 1,18 million, whereas the penetration rate will exceed 33%.

Other details regarding the development of the fixed market in the first half of 2011 are available on the Agency Web page: www.anrceti.md, Market Evolution section.

August 11, 2011