The three winning mobile operators say they have already started testing the launch of 4G and will soon make the fourth generation technology available, offering extra speed and capacity which allows for high-quality streaming of audio, video and other content
TIRANA, March 23 – Three out of four mobile companies operating in Albania have been granted authorizations for the launch of the fourth generation of mobile service known as 4G LTE for a total amount of 23.5 million euros, the electronic communications authority, AKEP, has announced after a tender held in early March.
The electronic communications watchdog said Vodafone Albania, the country’s biggest mobile operator bid Euro 6.8 million on two authorization in the 1800 MHz frequency band for the GSM/LTE/UMTS/WiMAX systems, which was the lowest winning bid in the tender.
AMC operator, which is the second biggest operator now part of Deutsche Telekom, bid 9 million euros for access to two authorizations to use the 1800 MHz frequency band, making it the highest bidder.
Turkish-owned Albtelecom and Eagle Mobile, part of Calik Group present in Albania also with the BKT bank, offered 7.7 million euros for the two authorizations, said AKEP.
Plus Communication, the smallest and only Albanian-owned operator which hasn’t been able to launch its 3G services yet, did not participate in the tender.
The three winning mobile operators say they have already started testing the launch of 4G and will soon make the fourth generation technology available, offering extra speed and capacity which allows for high-quality streaming of audio, video and other content.
AKEP had set a minimum price tag of Euro 3.1 million for each 15-year authorization. Each operator has been given a two-month deadline to launch the 4G services.
The tender came after Albania’s Electronic and Postal Communications Authority finalized a public consultation paving the way to the launch of the fourth generation of mobile service known as 4G LTE coverage.
Currently, three out of four mobile companies operating in Albania, offer the 3G service enabling faster mobile internet access.
Vodafone Albania won the first 15-year licence after offering 31.4 million euros in November 2010. The second licence was awarded to AMC, now part of Deutsche Telekom, in October 2011 for 15.1 million euros and the third 3G licence in late 2012 went to Turkey’s Eagle Mobile for Euro 4 million.
Plus Communication, the smallest and only Albanian-owned mobile operator, was stripped of its opportunity to get its much-awaited 3G licence in late 2014 after failing to pay its Euro 3 million bid, the country’s Electronic Communications Authority said.
A recent report prepared by Cullen International for the European Commission says the Albanian mobile market has undergone rapid growth fuelled by competition among four mobile network operators. The deployment of mobile broadband, however, has been hampered by the late introduction of 3G services and further regulatory measures are required to complete refarming of 900 MHz and 1800 MHz spectrum for 3G and 4G mobile broadband services, says the report.
Mobile companies’ revenues suffered a double digit shrink in 2013 fuelled by ongoing slowdown in mobile tariffs which the Electronic and Postal Communications Authority says have now dropped to EU and regional countries levels.
An annual report issued by AKEP shows that after a recovery in 2012, mobile companies posted 37 billion lek (Euro 261 million) in revenues in 2013, a 12 percent decline compared to 2012, registering their lowest level since a decade ago when only two mobile companies operated in Albania.
The number of active mobile users, defined as those that have made or received at least a call or SMS in the last three months, dropped to 3.36 million in 2014, down from 3.68 million in 2013 with a penetration rate of 130 percent says the Electronic and Postal Communications Authority in its latest data. The number of mobile subscribers with 3G access almost doubled to 1.2 million in 2013 after a third operator made the service available.
“Mobile phone rates continued their downward trend even in 2013, dropping by 35 percent for medium user baskets and by 28 percent for the high usage basket, standing at the average rate of EU and regional countries,” says AKEP.
Albanians spent an average of 5,836 lek (Euro 42) on mobile phone services in 2013, down from 7,132 lek in 2012 and 8,594 lek in 2010.
Unified tariffs introduced
The electronic communications authority has recently ruled the application of unified on-net and off-net tariffs has been postponed until July 1, 2015 for pre-paid subscribers and until January 1, 2016 for post-paid subscribers. The decision was taken following complaints of short notice by the two biggest operators.
With on-net calls accounting for the overwhelming majority of 93 percent of mobile phone calls, the Electronic Communication Authority has decided that all four mobile phone operators must charge unified tariffs for both on-net and off-net calls to bring an end to discrimination for the smaller operators who claim the differentiated prices allow the bigger operators to keep their market shares.
In a report analyzing the mobile phone market in Albania, AKEP, which is responsible for regulating this market, considers the differentiated tariffs as abusive and damaging competition.
“The application of higher tariffs in calls to other mobile networks and fixed-line operators as well as the application of higher discounts on on-net calls are considered abusive and anti-competitive tariffs,” says AKEP.
The regulator is also concerned over standard packages offered by mobile operators whose tariffs are up to 10 times higher compared to Average Revenue Per Minute (ARPM). “At 29-39 lek/minute (Euro 0.2 to 0.27), the tariffs in standard pre-paid packages, are almost ten times higher than the average ARPM at 3.75 lek/minute (Euro 0.026) and 1.5 to 4 times higher compared to standard tariffs in regional countries,” says the regulator.
AKEP says failure by operators to meet obligations on non-discriminating on-net and off-net tariffs, discounts, SMSs will be considered abusive behaviour with their dominating position.
The on-net traffic accounted for 93 percent of mobile phone calls in 2013, down only 1 percent compared to 2011.
The Electronic and Postal Communication Authority, AKEP, has also decided to apply new cuts to mobile termination tariffs which is expected to bring another decrease in mobile tariffs in the next two years. “By January 2016, mobile termination tariffs for the four operators will reach 1.48 lek/minute which is a decrease from 68 to 83 percent compared to the current termination rates.”
