TIRANA, Oct. 19 – The Albanian mobile phone market continues growing with the number of subscribers increasing moderately during this year although no clear data are made available on the revenues of the current three mobile operators.
A recently released report by the Electronic and Postal Communications Authority (AKEP) showed the number of mobile phone subscribers at the end of July 2010 reached 4.4 million, up 5.5 percent compared to the end of 2009 and 25 percent year-on-year.
The market continued being dominated by AMC, Albania’s first operator owned by Greece’s OTE (OTEr.AT) regarding the number of subscribers, but Vodafone Albania topped the revenue table despite have some 330,000 fewer subscribers.
AKEP data show Vodafone’s 2009 revenues were 22.87 billion lek, accounting for 49 percent of the market share, followed by AMC with 19.97 billion lek (42 percent of the market) and Eagle Mobile with 4.3 billion lek or a 9 percent share.
Total turnover of electronic communications operators in 2009, including fixed-line Albtelecom and other alternative operators reached 61.5 billion lek. Although no data were made available on the mobile operators’ revenues in previous years, the Communications agency said 2009 registered a drop in mobile operators’ revenues but an increase in Albtelecom and other alternative operators, mainly operating in the internet access service.
Meanwhile, Institute of Statistics (INSTAT) data show post-telecommunications, one of the country’s most vital sectors in previous year, continued suffering, registering negative growth rates during the first half of this year reflecting the consequences of the global economic crisis.
INSTAT year-on-year data show post-telecommunications market shrank by 2.6 percent year-on-year in the second quarter of 2010, but grew by 0.2 percent compared to the first quarter of 2010.
The telecommunications market also suffered in the first quarter of this year dropping by 9 percent compared to the previous quarter, and slightly growing by 1 percent on the year.
Data show Albania’s mobile penetration rate climbed to 136 percent at the end of July 2010, which is 14 percent higher than the 2009 EU average. The situation is mainly a result of the successful launch of Eagle Mobile, Albania’s third mobile operator owned by Turkey’s Calik Group.
“With an investment of 50 million Euros in a very short period of two years, Eagle Mobile has achieved approximately 700,000 subscribers. During this process, the market share based on clients reached 15% and revenue base growth reached 10%,” the company’s president Ahmet ȡlik was quoted as saying in EagleMag’s latest issue.
Mobile airtime also increase to 95-170 minutes per months at the end of July 2010 compared to 100-130 minutes in 2009.
Data show mobile operators account for 77 percent of the market, followed by Turkish- owned Albtelecom and alternative operators such as Primo, ASC and Abcom, controlling 2.5 percent of the telecommunications sector and 50 percent of total alternative operators revenues.
Mobile phone tariffs registered a 23 percent decrease for Eagle Mobile’s low usage basket and 16 and 25 percent for Vodafone and AMC’s high usage basket, respectively.
As far as the number of subscribers is concerned, data on the first half of 2010 show AMC climbed to 2.03 million, up from 1.9 million at the end of 2009. Second came Vodafone with 1.7 million subscribers and Eagle Mobile with 697,000.
Pre-paid subscribers continue accounting for more than 90 percent of the total.
Despite increased revenues, the number of Albtelecom subscribers dropped to 287,000 at the end of the first of this year, down from 298,000 at the 2009.
AKEP described the subscribers’ drop with lack of efficient competition in the fixed-line phone market, 80 percent of which is controlled by Albtelecom.
The telecommunications market has some 3,747 employees, of whom 1,800 work for Albtelecom and 1,250 in the three existing mobile operators.
Addressing a seminar on the publication of electronic communications market indicators, the first of this kind following a newly adopted regulation in March 2010, AKEP head Pirro Xhixho said the newly published data, in line with EU standards, will make them more efficient and accessible both for domestic and international institutions and serve for in-depth analysis.
Fourth Operator
AKEP head Pirro Xhixho reconfirmed Albania’s fourth mobile operator, Plus Communications will be launched by the end of this year.
PLUS was expected to enter the Albanian market on July 8 but its launch was delayed because of interconnection disputes with the existing mobile operators and fixed-line Albtelecom.
The company had announced that it would launch its operations in several phases starting with the Tirane-Durres-Rinas Airport area and later expanding in main cities.
The company’s shareholders have planned to invest 100 million euros during the first two years. PLUS has currently finished the contracting process for 100 base stations and is currently building 50 other stations.
The fourth mobile operator PLUS (Mobile 4 AL Sha), a consortium led by Kosovo Post-Telecom company (PTK), was founded in June 2009 and awarded the fourth GSM licence in an international tender in January 2009 for 7.2 million euros.
Internet market
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.
3G Technology
Last month, government turned down requests by the country’s four mobile operators to grant four 3G licenses instead of one. The Innovation and Technology Ministry assured the four operators, AMC, Vodafone Albania, Eagle Mobile and the newly created Plus, that the granting of a single 3G licence would not create a monopoly situation as the companies claimed in a joint declaration addressed to government earlier.
The tender with a price tag of 12.5 million euro will be held soon and managed by the Electronic and Postal Communications Authority.
“Only one individual authorization will be initially granted. The race starts from the price of 12.5 million euros,” says the ministry.
The four mobile companies had earlier suggested the granting of four 3G licences to promote competition and increase technology investments, warning that a monopoly would be created.
Number portability
The Electronic and Postal Communications Authority (AKEP) had previously announced it would hold an international tender at the end of September to offer the mobile number portability, a service enabling mobile phone users to retain their numbers when switching from one mobile operator to another.
In an announcement published on its website, the Authority said the tender on the “purchase of a reference centralized database on number portability, the provision of the number portability service and the maintaining of the system” would be held on September 29, but no information has been made available.
With more than one year from the expiry of the legal deadline, the mobile number portability, has not been offered yet in Albania. The implementation of this service in other countries has considerably lowered tariffs because of increased competition among mobile operators. Its launch in Albania is expected to have the same effects.
The law approved in May 2008 foresees that mobile operators should give the opportunity to their subscribers to port their number when choosing another company.
Article 137 of the law foresees even fines from 4 to 7 percent of the annual income for operators not offering the number portability service to their customers.
The law, which obliges AKEP to guarantee the service under a special regulation determining its application and deadlines, is considered an EU standard, protecting consumers’ rights and interests. The service is currently offered in all EU 27 member countries but not yet in Albania, a potential EU candidate country.
The consumer protection is also foreseen in article 76 of the Stabilization and Association Agreement (SAA) Albania has signed with the European Union, in force since April.
