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
TIRANA, Jan. 8 – Citing an abuse of dominant position by market operators, the Competition Authority has launched an enquiry into the mobile telephony market 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.
“Statistical and financial indicators in the electronic communications market for 2011 show that the mobile telephony market generated around 39.2 billion lek in revenues from its four market operators. This market is characterized by enterprises of dominant position in the retail mobile telephony sector,” says the Authority, adding that a preliminary report on the investigation covering the January 2012-November 2012 period will be made available by January 31, 2013.
Data by the Electronic and Postal Communications Authority (AKEP) show pre-paid customers account for 91 percent of mobile phone users.
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.
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 although having a 35 percent share in terms of subscribers.
Vodafone Albania, owned at 50% by Vodafone Europe B.V. and 50% by Vodafone Panafon International Holdings B.V 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.
Albania’s electronic communication market continued growing in 2011 in all its segments, mobile and fixed telephony as well as internet, according to an annual report by the Electronic and Postal Communication Authority (AKEP).
The number of mobile phone subscribers in 2011, when another fourth operator launched operations rose by 15 percent to 5.2 million, for a resident population 2.8 million people, revealing that almost every resident Albanian possesses at least two SIM cards. While Albania’s mobile penetration rate stands at a record 185 percent, the situation with fixed-line telephony lags behind with an estimated 12 percent, considerably lower to the EU 27 average rate of 45 percent.
Increased competition and interventions by the Electronic and Postal Communications Authority have considerably lowered mobile tariffs during the past 3 years in Albania, but still remain slightly above the average in the region.
Last October, eight insurance companies operating in Albania have been fined a total of 89 million lek (Euro 625,000) after the Competition Authority uncovered a price-fixing deal in compulsory motor insurance policy. The deal was made in February 2012 when all companies fixed motor insurance prices in a banned deal severely damaging competition.
150,000 subscribers port numbers
Twenty months after the mobile number portability service was made available, some 150,000 subscribers have successfully ported their numbers, the Electronic and Postal Communications Authority says. Mobile customers 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 May 2011, when Albania became the last regional country to offer the number portability service, mobile phone subscribers have been able to port their numbers to any of the four mobile companies operating in Albania within three days and free of charge.
