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

Statistical data on the evolution of fixed telephone market, published by the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI) show that in the half-year of 2013, the trend of diminishing revenues from sales of fixed telephone services against the slight increase of the number of subscribers has become more prominent. The total volume of sales on this market segment dropped by 14% (- 108,7 mil. lei), as compared to the same timeframe of 2012 and made about 666,4 mil. lei, whereas the number of subscribers to fixed telephone services increased by 0,7% (8,9 thousand) in half-year, reaching 1 mil. 214,7 thousand.

According to the statistics reported to ANRCETI by active providers of fixed telephone services, the number of subscribers increased exclusively due to alternative providers. They connected over 9 thousand new subscribers to their networks, whereas the subscriber base of JSC Moldtelecom decreased by 113 subscribers. As of July 1st, 2013 JSC Moldtelecom had 1 mil. 123,1 thousand subscribers, the 21 alternative providers – over 91,6 thousand.

1 mil. 073,9 thousand of the total number of subscribers, are natural persons, 141,7 thousand – legal persons. The fixed penetration rate per 100 inhabitants of Moldova increased over the end of 2012 by 0,28 percent points (p.p.) reaching 34,2%.

During the same timeframe, the voice traffic in fixed telephone networks decreased by 10,3% making 1 billion 413,9 thousand minutes, compared to the same timeframe of 2012, whereas the average monthly traffic per subscriber (MoU) reduced by 12,2% and constituted 195 minute (3 hours and 15 minutes).

As a result of the decreased traffic and number of subscribers, the revenues of JSC Moldtelecom from fixed telephone services reduced by 14,7%, compared to the same timeframe of 2012, and made 643,3 mil. lei. However, the aggregated revenues of the 21 alternative fixed telephone service providers increased by 11,5% and totaled 23,1 mil. lei. Under these conditions, the average monthly revenue per user (ARPU) dropped by 15,8 p.p. and constituted 91,8 lei. The ARPU of JSC Moldtelecom was 95,4 lei (decreased by 14,5 p.p.), whereas the ARPU of alternative providers – 44,1 lei (decreased by 24,7 p.p.).

As a result of the evolution of the mentioned indicators, at the end of the half-year of 2013, the market share of JSC Moldtelecom”, in terms of revenues, reduced by 0,8% and made 96,5%, whereas the share of alternative providers of fixed telephone services increased the same value and reached 3,5%. ANRCETI specialists explain the slight increase of the indicators registered by alternative providers by the extension of their subscriber bases, as a result of having new subscribers connected to triple play services (Internet, TV and fixed telephony).

Other information about the evolution of the fixed telephone market in the half-year of 2013 is available on: www.anrceti.md, section Statistical Data.

August 28, 2013