TIRANA, Feb 17ؓince privatisation the telecoms incumbents is working to improve the quality and reach of services and network infrastructure while reducing pricing to increase its subscriber base. A significant competing operator has consolidated its presence through a number of acquisitions and financial backing from its international parent. Albania’s telecom industry has been liberalised and legislation has been recently introduced that adopts regulatory principles found in the EU’s regulatory framework for communications, which promotes competition as the most efficient way to offer communications products and services while ensuring universal access. The market’s growth potential has attracted international investment into both the incumbent and alternative operators. Future network development is expected in order to support the growing popularity of broadband services.
The country’s internet market offers much growth potential due to currently low penetration levels. Internet access is available through a variety of means including dial-up, leased line, microwave radio, ADSL, WiFi and fibre. Broadband take up is rising in response to increased availability and drastic tariff reductions implemented during late 2008 and early 2009. Public Internet access is also accessible through Internet cafes. Recognising the potential of applying ICT to improve both social and economic development, Albania has taken steps to develop a knowledge-based society, principally by improving IT literacy.
Broadband represents a strong growth market given currently low penetration levels. Price led competition continuing in 2009 has resulted in broadband overtaking dial-up and representing the majority of Internet connections. ADSL is overwhelmingly the most popular broadband access platform and the telecoms incumbent is the dominant services provider. In a country where fixed line and Internet penetration is low, broadband presents an opportunity to entice first time fixed line subscribers.
Albania’s mobile market has undergone rapid growth due to competition, initially with the entrance of Vodafone and later through the entrance of Eagle Mobile. The majority of mobile users utilise prepaid services, with its inherent affordability and flexibility popularising mobile ownership. With the mobile voice market maturing, new subscriber additions will become increasingly harder to attain hence mobile network operators are slowly turning their attention to increasing average revenue per user levels. Initiatives include encouraging prepaid users to take up postpaid offers and encouraging take up of mobile data services, with GPRS, EDGE-based mobile data services available. Currently, Albania counts 3.2 million mobile subscribers, a 15% increase from 2008.
