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Mobile tariffs ‘scandalously high,’ says IT Minister

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TIRANA, Jan. 11 – Government has admitted mobile phone tariffs in Albania remain higher than in the region and even EU-27 despite decreases in the past two to three years. Speaking at a press conference on Tuesday, Innovation and ITC Minister Genc Pollo said described the mobile tariffs Albanian have been charged since the service 2001, when the was first launched by AMC as scandalous.
“During the past 10 years Albanians have been charged for their mobile phone calles tariffs which compared to cost, would have been scandalous all over the world,” said Pollo.
Government hopes the expected decrese in mobile termination tariffs by the Electronic and Postal Communications Authority (AKEP) will be accompanied by a drop in mobile phone tariffs for users.
A study carried out by AKEP has shown the profit rates for mobile operators with significant market power, AMC, Vodafone Albania and Eagle Mobile are not normal and ethical especially at a time when poverty is still present in many areas, especially rural and mountainous ones.
Albania’s current mobile termination rate is 10.5 Lek/minute or 7.61 eurocent.
The Electronic and Postal Communications Authority (AKEP) has launched a public consultation campaign aimed at further reducing mobile phone rates in Albania.
According to AKEP, termination tariffs for AMC, Vodafone Albania and Eagle Mobile and newly launched Albanian-owned Plus Communication will be reduced to 4.57 lek/min by September 2014, down from 10.5 lek/min currently.
The decrease is expected to become effective starting from this year when termination tariffs, fees mobile phone companies charge other carriers to terminate calls on their networks, are expected to drop by up to 7.57 lek/min starting from September 2011.
Albania has recently launched the 3G mobile phone service, currently offered by only one operator, and is expected to offer the mobile number portability by spring 2011.

Internet

Innovation and IT Minister says 2011 will be the year of the establishment of the National Broadband Network and connection to the international fiber optic cable system.
The government’s ambition is to further extend e-cabinet, and set up e-Parliament and e-Presidency so that every document circulates electronically to cut printing because of major reduction in tree cutting. The initiative is also expected to cover local government institutions after the May 8, 2011 local elections.
2011 is also expected to mark the end of the GovNet project to link public institutions with regional councils.
Government says the number of internet users has increased to more than 50 percent of the population, up from around 20 percent in 2009.
Data show 1/3 of Albanians, slightly more than 1 million people use Facebook, the most popular social network around the world.
UNIFI Communications (UNIFI), a leading US-based international carrier, and Alcatel-Lucent, a leading provider of end-to-end undersea cable systems announced the signature of the Balkans-Italy Network (BIN) Phase 1 Supply Contract. Alcatel-Lucent will provide turn-key implementation of Albania’s first private undersea fiber optic cable system, which will connect Tirana, Albania to Bari, Italy. The network is expected to begin providing service by the end of 2011.
The internet market was characterized by positive developments in the first half of this year with both the number of subscribers and internet speed reported to have increased.
However, Albania’s broadband internet, fixed-line phone rates per 100 inhabitants remain far from EU 27’s average of more than 20 and 40, respectively. The number of internet service providers (ISPs) at the end of June 2010 was 27, public internet access points increased to 1,319 while internet cafes to 731.
Meanwhile, the number of broadband internet subscribers increased to 110,000, compared with 90,000 at the end of the 2009 taking the penetration rate to 3.4 percent per inhabitant or 12.5 percent per household.
The number of subscribers accessing internet from their mobile phones continued increasing, climbing to 1 million, 225,000 more than December 2009.
Internet speed also improved to 1-2 Mbits compared to 256 kbit/s at the end of 2009. Internet tariffs are also reported to have dropped, with 2 Mbps internet access offered at the same prices as 1Mbps last year.

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