Data show total revenue in the electronic communications market reached 55 billion lek in 2012, registering a 6.65 percent increase compared to 2011
TIRANA, Oct. 2 – Mobile companies’ revenues registered a turning point in 2012 when they increased by 7.2 percent to 42 billion lek (Euro 291 million), ending their downward trend in the 2009-2011 period. Data published by the country’s Electronic and Postal Communications Authority (AKEP) show the increase was a result of positive performance by Vodafone which holds a dominant position in terms of revenues with more than half of the market share and higher revenues in Albanian-owned Plus operator which two years after its launch has increased its market share to 5 percent.
Vodafone and Plus increased their revenue by 16.7 percent and 142 percent respectively in 2012 while AMC and Eagle Mobile saw their income drop by 6 percent and 10 percent.
Data show Vodafone increased its revenue market share to 56 percent in 2012, up from 52 percent in 2011 and 48 percent in 2010. Vodafone, which has a 36 percent share in mobile phone subscribers, saw its revenue increase to 23 billion lek (Euro 159 million) in 2012, up from 20 billion lek in 2011, but yet lower compared to its peak rate of around 25 billion lek in 2008.
Meanwhile, AMC, the second largest mobile operator, registered the lowest income in the past eight years with revenues at 12.3 billion lek (Euro 85 million), down from 13 billion lek in 2011 and its peak rate of 23.4 billion lek in 2008.
Turkish-owned Eagle Mobile also saw its revenue drop to 4.3 billion lek (Euro 30 million), down from 4.8 billion lek i 2011 and 5.2 billion lek in 2010.
Plus Communication, which is the only wholly-owned Albanian operator, active in the mobile market since three years saw its income climb to 1.8 billion lek Euro 12.7 million), up from 759 million lek in 2011.
Data show total revenue in the electronic communications market reached 55 billion lek in 2012, registering a 6.65 percent increase compared to 2011. Mobile operators account for 76 percent of the e-communication market, with the remaining share by fixed-line Albtelecom and alternative operators.
Mobile operators saw their revenues drop for the third year in a row in 2011, reflecting the crisis impacts and increased competition which has considerably lowered tariffs. A report published by the Electronic and Postal Communication Authority (AKEP) shows total revenues for all four mobile operators in 2011 shrank by 6 percent to 39.2 billion lek (Euro 275 million). The market started slightly shrinking in terms of revenue in 2009 after the successful launch of the third operator, Turkish-owned Eagle Mobile in March 2008, which made competition tougher. In 2010, mobile companies’ revenues dropped by 11 percent year-on-year.
Data made available by the Electronic and Postal Communications Authority (AKEP) show the number of mobile phone subscribers in 2012 reached 5.6 million, double compared to the 2.8 million residents in Albania as revealed by the latest 2011 housing and population census. The number of subscribers is 7 percent higher compared to 2011, revealing that almost every Albanian holds at least two SIM cards. AKEP says the number of active subscribers (those who have used mobile services in the past three months) is 3.5 million which is 14 percent more compared to 2011, and a mobile penetration rate of 125 percent, almost the same compared to the EU average.
In 2012, mobile airtime grew by 14 to 17 percent while SMSs rose by a huge 75 to 83 percent measured by the number of active users. An active subscriber spent an average of 319 minutes of airtime a month compared to 277 minutes in 2011 and 35 SMSs a month compared to 19 SMSs in 2011.
“The trend of the reduction of mobile tariffs continued even in 2012 mainly as a result of tougher market competition, the reduction of termination tariffs among operators and the positive impact from the mobile number portability,” says AKEP.
The number of fixed-line telephone subscribers dropped by 27,000 to 311,600 registering a decrease of 8 percent in 2012. “The declining trend in the number of fixed line subscribers is following that of the European Union although the penetration rate at 11 percent in Albania continues remaining very low compared to the EU average of 40 percent, says AKEP.
Probe launched into Vodafone’s dominant position
The Competition Authority says it has opened a probe into Vodafone Albania over alleged abuse of its dominant position after identifying that the operator has more than half of the revenue share in a market with four operators. The Competition Authority will determine if there is limited competition considering that Vodafone’s market share is considerably bigger than all three other mobile operators. The probe into the 2011-2012 activity of the pre-paid mobile market will cover the 2011-2012 period and is expected to conclude soon.
Citing an abuse of dominant position by market operators, the Competition Authority launched a preliminary enquiry into the mobile telephony market in January 2013 after observing signs of limited competition. In a decision taken in late December 2012, the Competition Authority says it has launched a preliminary enquiry into the pre-paid mobile telephony market after observing potentially anti-competitive behaviour by market operators which could target or result in limited free competition.
In a reaction to some media articles, the Competition Authority says it is in its final stage of the thorough investigation and that the final stance of the Authority will be published under procedures envisaged by law.
Data by the Electronic and Postal Communications Authority (AKEP) show pre-paid customers account for 91 percent of mobile phone users.
AKEP data show Vodafone Albania, which was the first operator to launch the 3G service in November 2010, increased its revenue market share to 52 percent in 2011 although having a 35 percent share in terms of subscribers. Vodafone Albania, part of Vodafone Group Plc, launched its GSM services in Albania in August 2001. In November 2010, Vodafone became the first operator to offer 3G service in Albania after winning a 15-year license for 31.4 million Euros.
Meanwhile, AMC the second biggest operator saw its market share in terms of revenues drop by 6 percent to 34 percent and the number of subscribers to 37 percent. In September 2011, AMC, the first mobile operator in Albania since 2000 part of Greece’s Cosmote Group and Deutsche Telecom, was announced the winner of the second 3G license after offering 15.1 million Euros, 2.6 million more than the price tag government had set.
Data show Turkish owned Eagle Mobile, which has been operating in Albania for four years, maintained its 12 percent market share for revenues for 2011 and had its subscribers increase by 3 percent to 21 percent.
Plus Communication, the only wholly Albanian-owned mobile operator which launched its services in late in 2010, gained a 2 percent market share and 8 percent of total subscribers.
Data for the two leading companies, Vodafone and AMC, which have 86 percent of total revenues and 72 percent of subscribers, show their profit rates have considerably shrunk during the past two years. Vodafone’s profit rate in 2011 dropped to 21 percent down from 29 percent in 2010, 42 percent in 2009 and 46 percent in 2008. Vodafone’s net income also shrank to 4.2 billion lek in 2011, down from 5.9 billion lek in 2010 and 11.4 billion lek in 2008.
Meanwhile, AMC’s profit rate also dropped to 31 percent of total revenues in 2011, down from 38 percent in 2010 and 60 percent in 2009. Its net income registered 4 billion lek drown from 6.2 billion lek in 2010 and 12 billion lek in 2009, AKEP data show.
Some 200,000 numbers ported in two years
Some 200,000 mobile subscribers have ported their numbers since May 2011 when Albania offered the number portability service, allowing subscribers to port their numbers to any of the four mobile companies operating in Albania within three days and free of charge. The Electronic and Postal Communications Authority (AKEP) says some 1,000 fixed-line subscribers have also ported their numbers since the service was made available last April. “Mobile subscribers continue being active in choosing their service providers and tariff plans which best suit them. It is worth stressing that the number of users who have benefitted from new tariff plans is several times higher than the number of ported numbers,” says the Authority.
Since April 1, 2013, the service is now being offered all over Albania allowing fixed-line subscribers to switch the operator but keep the original phone number.
“Through this new service to the fixed-line phone subscribers, AKEP is giving another opportunity to the market to increase competition and offer consumers alternatives to new competitive services, quality and prices,” the Authority said in a statement.
