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

The statistical data on mobile market developments in the first quarter of 2016, published on the official website of the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) shows a slight decrease of the main indicators of this market over this timeframe. In the first three months of this year, the number of users decreased by 23,3 thousand (-0,5%) and totaled 4 mln. 300,2 thousand, the volume of voice traffic decreased compared to the same period of 2015 by 2,2% and totaled 1 billion. 5044 million minutes, while the total volume of sales in this sector decreased by 4,3%, making over 804 mil. lei.

According to the data presented to ANRCETI by the three mobile providers (Orange Moldova, Moldcell and Moldtelecom), the decrease of the total number of mobile telephony users was caused by the reduction of the customer base of Orange Moldova by 39 thousand. Meanwhile, Moldcell and Moldtelecom managed to increase their user base by 13,4 thousand and by 2,3 thousand accordingly. Following this development, the penetration rate of these services per 100 inhabitants decreased by 0,6 p.p. and made up 121%.

The decrease of total traffic volume was caused mainly by the decrease of voice traffic in the networks of Moldcell and Orange Moldova. This factor brought about a slight decrease of the average traffic per user (0,4%) to 218 minutes (three hours 38 minutes). In the first quarter, the highest monthly average number of minutes (258 minutes) was used by Orange Moldova customers, while a Moldcell customer used 174 minutes per month on average, a Moldtelecom customer – 119 minutes.

The negative dynamics in the mobile revenues was also driven by lower sales by Moldcell and Orange Moldova. Moldcell's sales decreased by 5,4% and totaled 225,5 mil. lei, while those of Orange Moldova decreased by 4,8% and totaled 544,7 mil. lei. Meanwhile, revenues from mobile services by Moldtelecom grew by 14,8% and exceeded 33,9 mil. lei. Consequently, the average revenue per user (ARPU) fell by 3,2% and accounted for 62,2 lei. Orange Moldova had an ARPU of 72,9 lei Moldcell – 50,1 lei and Moldtelecom – 35 lei.

The lower voice traffic via mobile networks and reduced sales were caused mainly by the increasing use of voice service via mobile internet (Skype, Viber, etc). ANRCETI believes that this trend, which is one perceived globally, will enhance in the coming years, when most users will use smartphones.

During the reporting period, the positions of the three mobile providers by turnover did not change significantly, with biggest market share of 67,7% held by Orange Moldova, followed by Moldcell and Moldtelecom with 28,1% and 4,2% accordingly.

Other data on the development of the mobile telephony market in the first quarter of 2016 are available on www.anrceti.md, Statistical Data section.

May 26, 2016