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

According to the data reported to the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI), in 2011, the fixed telephone market underwent a slight increase in terms of number of subscribers against the descending sales of public services persisting during the recent four years. Thus, the number of subscribers reached 1 million 179,3 thousand – a 19 thousand (+1,38%) increase over 2010, whereas the volume of fixed telephone services was 1 billion 647,3 million lei, a decrease by 14,06%.

The data delivered to ANRCETI by the fixed telephone service providers show that of the 19 thousand new subscribers registered in 2011, 3,5 thousand were connected to the network of JSC „Moldtelecom”, about 15,5 thousand – to the networks of alternative fixed operators. Thus, during the reporting timeframe, the number of subscribers to alternative operators’ networks reached 52,7 thousand (+41,6%). The incumbent JSC „Moldtelecom” increased its client base by 0,31% (total – 1 million 127,2 thousand). As a result of the increase in the number of subscribers, the fixed penetration rate, per 100 residents, constituted 33,14% (+0,56% over 2010.)

The volume of voice traffic realized by end users via fixed telephone networks decreased as compared to 2010, by 10,3%, down to 3 billion 321 million minutes. The traffic to fixed networks decreased by 11,07% (down to 2 billion 613 million minutes), to mobile networks – by 5,5% (down to 120 million minutes). Also, the traffic to international networks reduced by 10,0% (down to 73 million minutes), whereas the interconnection traffic – by 7,52% (to 515 million minutes).

The decreasing traffic, as well as tariffs for wholesale fixed call termination services, led to a drop of revenues of fixed service providers. The volume of sales, realized by JSC „Moldtelecom” dropped to 1 billion 619,4 million lei (-14,5%), compared to 2010. However, the sales of alternative providers increased by over 17,27% and reached 27,8 million lei. The average revenue per user (ARPU) decreased by 15,5% and constituted 117,25 lei. The ARPU of JSC „Moldtelecom” was 119,9 lei (-15,2%), the ARPU of alternative providers – 51,0 lei (-9,1%).

In the reporting timeframe, the fixed telephone market was shared between 20 providers: JSC „Moldtelecom” – 98,3% market share (31.12.2011) by turnover, the rest 19 providers (Arax-Impex, Orange-Moldova, Starnet, Sun Communications etc.) shared 1,67% market.

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

March 28, 2012