Lithuania Communication Profile 2012

05/11/2010 Since independence the country embarked on market reform and joined the European Union supervision of rapid economic increase characterized by large increases in real wages caused by declining unemployment and emigration, the original Community development fund and the extremely rapid increase of credit. Like its Baltic neighbors north of the world financial crisis put an abrupt end to the development of Lithuania, with eight years of annual increase in yield to 14.8% in real terms of GDP contraction in 2009, with EU estimates a contraction of 0.6% for 2010.

The market in the country has not escaped the effects of economic recession, Contracts 7.7% in 2009, smaller compared to the in general economy due to the nature of telecommunications and utility communications services. Not amount sectors of the communications market was as well affected, declining revenues from fixed and mobile telephony have been offset by increases in broadband, data transmission services, leased lines and wholesale fiber access.

A number of alternative operators offer services in the liberalized market of fixed telephony, although TEO history is still the dominant operator. number of fixed telephone subscribers is expected to continue downward trend in 2010, allocated to fixed-mobile substitution, although the fixed broadband services is an incentive for consumers to keep landlines, which is the basis of the incumbent strategy for next increase.

Wideband represents 99% of amount fixed Internet connections. the infrastructure-based competition has surpassed FTTx broadband to become the majority popular platform for fixed broadband access. The fibers are supposed to represent an increasing share of total fixed broadband subscriptions in 2010 due to continued focus on the fiber by both the private and public. With Internet access now commonplace, service providers have changed their orientation to Internet convergence services, such as broadband TV (IPTV) or bundled services distinct to increase average revenue per user levels.

Most Lithuanians have a mobile phone and multiple SIM card ownership has pushed the penetration rate above 100%. Services are offered by three mobile network operators and a number of MVNOs. Mobile broadband is the next increase opportunity, building on past investments in 3G and HSDPA.

Widespread Internet use has promoted the Internet Society of Lithuania, the application of ICT to improve social and economic development, electronic commerce, different e-government, e-learning and e-health initiatives underway and services available. A digital TV market is booming because of the obvious transition to digital only, with the incumbent well positioned for increase in digital TV subscribers in 2010 because of his involvement in IPTV and Digital Terrestrial Television.
Market Overview:

• The fiber is the majority popular platform for fixed broadband access. Unlike competitive ADSL market is much stronger than the incumbent is only a quarter of total FTTx subscriptions. Increase prospects for fibers are strong due to ongoing deployments by both the private and public sectors. The latter was approved in late 2009, the second phase of the public network fiber backbone rural, rural data technology broadband network.
• The use of general business services e-government is evident, with a fixation estimated 90% in 2010, companies benefit from the ability to obtain data, forms and reporting forms online. private absorption of e-government accusations, but it should grow on the back of increased awareness and recognition of its benefits. Similar initiatives extend to areas of health and education, the scope of these initiatives should expand due to EU commitments to online services.
• Digital television is supposed to represent the majority of pay-TV subscriptions in 2010. TEO telecoms incumbent is well positioned to take chance of the growing interest and adoption of digital television services, as it provides IPTV and DTT.
• Mobile broadband is the center for mobile operators, with take penetration of broadband HSDPA-based mobile to an estimated 8%. The road to the next increase of mobile broadband is likely to mimic that of the mobile market in the coming years as the cost of access and capable handsets and lower end-user awareness and ease of use increases, leading in turn to a cannibalization of broadband subscribers between fixed and mobile markets.

Convergence, Broadband and Internet Market
Lithuania has a small but sophisticated Internet market, with broadband accounting for 99% of amount Internet connections. FttX has overtaken ADSL to become the majority popular fixed-broadband access platform. With Internet access now commoditised, service providers have shifted focus to Internet-based convergence services such as broadband TV (IPTV) or bundled separate services to increase average revenue per user (ARPU) levels. Widespread Internet usage has laid the foundation for an emerging Internet society, the application of ICT to improve both social and economic development, with various e-commerce, e-government, e-education and e-health services available.

A burgeoning digital TV market is evident due to the transition to digital-only broadcasting, with the telecoms incumbent well positioned for increase due to its involvement in both IPTV and digital terrestrial TV (DTTV).

Regulatory and Fixed-line Telecoms
Lithuania has a small but developing telecoms market. A number of alternative operators have launched services although incumbent TEO is still the dominant operator. Fixed-line subscriber numbers are in steady decline, attributed to fixed-to-mobile substitution, although fixed line broadband services provide an incentive for consumers to hold onto lines, which forms the focus of TEO's next increase strategy.

Mobile Market
Lithuania's small but sophisticated mobile market is served by mobile network operators Omnitel, Bite and Tele2, inclunding a number of MVNOs. SIM card penetration is extremely high although actual mobile user penetration is lower. Prepaid accounts for the majority of SIM cards although the proportion postpaid services is increasing. With dwindling new subscriber acquisition opportunities, mobile operators are heavily marketing mobile broadband services, made possible from past investments in 3G and HSDPA networks. As was the case with the mobile voice market, competition is driving down prices for mobile broadband plans and accelerating take up.