Macedonia - Telecoms, IP Networks, Digital Media and Forecasts

Paul Budde Communication Pty Ltd, April 2013, Pages: 45

Reference offer sets out regulatory encouragement for FttH

The former Yugoslav Republic of Macedonia (Macedonia) has been a European Union (EU) candidate country since 2005. As part of the EU pre-accession process, the country has built closer economic ties with the Union: the EU accounts for 60% of Macedonia’s exports and about half of its imports. Closer regulatory and administrative ties with European Commission (EC) institutions have done much to develop the telecom sector and prepare the market for the competitive environment encouraged in the EU.

As part of EU integration legislation has implemented the principles of the EU’s regulatory framework for communications, established an independent regulator and set out a number of provisions to provide for a competitive telecom market, including wholesale access to the incumbent’s fixed-line network. Although the fixed telephony market has been liberalised, the incumbent continues to dominate the sector. Broadband services are widely available, with effective competition between DSL and cable platforms complemented by wireless broadband and a nascent FttX sector.

Broadband services are available via DSL, fibre, cable and wireless and the incumbent has launched IPTV services in competition with well-established cable TV operators.

Macedonia’s mobile market is served by a triopoly of mobile network operators, two of which benefit from the technical know-how and financial resources of parent companies Deutsche Telekom and Telekom Austria. Mobile data services are also available and this market is also expected to become increasingly important as new subscriber additions fade in the maturing mobile voice market. With WCDMA/HSPA networks in place, the focus for mobile data has shifted to mobile broadband offerings.

Market highlights:

Competitors are making inroads into the fixed telephony market, with alternative operators representing almost a fifth of fixed lines. Market prospects for competitors have improved as a result of recent regulatory measures.
Broadband uptake growth is expected to maintain momentum during the next few years, with the incumbent placing greater emphasis in FttX networks.
Digital TV is widely available via satellite, digital terrestrial TV and broadband TV. The incumbent’s IPTV subscriber base has grown steadily in the wake of upgraded network capabilities, which has contributed to fewer customers to satellite services.
Competition is intensifying in the mobile market. Mobile number portability has grown rapidly following a reduction in fees. Mobile voice penetration is on a par with the EU average, while high-end mobile data services represent a considerable growth area for MNOs in coming years.
The regulator in mid-2012 prepared a public tender for the use of frequencies in the 470-790MHz band to support two multiplexes for DTTV broadcasts nationally.

Data in this report is the latest available at the time of preparation and may not be for the current year.

This report provides a comprehensive overview of trends and developments in Macedonia’s telecommunications market. The report analyses the mobile, broadband, digital TV and converging media sectors.

Subjects include:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Infrastructure;
Major players, revenues, subscribers, ARPU, MoU;
Internet, VoIP, IPTV;
Mobile voice and data markets;
Broadband (FttH, DSL, cable TV, wireless);
Convergence and digital media;
Broadband market forecasts for selective years to 2020.

Key developments:

Telekom Slovenije merges Macedonian subsidiaries into ONE; market for fixed-line telephony falls in 2011; regulator prepares for 4G licence auction in 800MHz band; telecoms market accounting for 7% of GDP, well above the EU average; VIP Mobile awarded additional spectrum for 3G services; regulator market data for Q2 2012; telcos’ operating and financial data to June 2012.

Companies covered in this report include:

Makedonski Telekom, ONE, VIP, Blizoo (formerly CabelTel), Telecom Slovenia.

1. Executive summary

2. Key statistics

3. Telecommunications market
3.1 Overview of Macedonia’s telecom market
3.1.1 EU candidacy

4. Regulatory environment
4.1 History
4.2 Regulatory authority
4.2.1 Agency for Electronic Communications (AEC)
4.3 Telecom sector liberalisation in Macedonia
4.3.1 Privatisation
4.3.2 Interconnect
4.3.3 Access
4.3.4 Carrier selection (CS) and Carrier PreSelection (CPS)
4.3.5 Number portability (NP)
4.4 Overview of operators
4.5 Makedonski Telekom
4.6 ONE

5. Telecommunications infrastructure

6. Internet market
6.1 Overview
6.2 Internet statistics
6.3 Macedonia’s emerging internet society

7. Fixed broadband market
7.1 Overview
7.1.1 Broadband statistics
7.2 Asymmetrical Digital Subscriber Line (ADSL)
7.3 Cable broadband
7.4 FttH
7.5 Fixed wireless broadband
7.6 Wireless broadband
7.6.1 WiFi
7.6.2 WiMAX

8. Digital media
8.1 Overview of broadcasting market
8.2 Digital TV
8.2.1 Digital Terrestrial TV (DTTV)
8.2.2 Broadband TV (IPTV)
8.2.3 Cable TV (CATV)
8.2.4 Satellite-based digital pay TV developments

9. Mobile communications
9.1 Overview of Macedonia’s mobile market
9.1.1 Mobile statistics
9.2 Regulatory issues
9.2.1 Third GSM licence
9.2.2 3G licence
9.2.3 4G licence
9.2.4 Mobile Number Portability (MNP)
9.3 Mobile technologies
9.4 Mobile operators
9.4.1 Overview of operators
9.4.2 T-Mobile
9.4.3 One
9.4.4 VIP Mobile
9.4.5 Mobile Virtual Network Operators (MVNOs)
9.5 Mobile voice services
9.5.1 Prepaid
9.6 Mobile data services
9.6.1 Short Message Service (SMS)/Multimedia Messaging Service (MMS)
9.6.2 Enhanced Data for GSM Evolution (EDGE)
9.6.3 High-Speed Packet Access (HSPA)
9.6.4 Mobile broadband
9.7 Mobile content and applications

10. Broadband subscriber forecasts
10.1 Scenario 1 – higher broadband subscriber growth
10.2 Scenario 2 – lower broadband subscriber growth
10.3 Notes on scenario forecasts

11. Related reports

Table 1 – Country statistics Macedonia – 2012 (e)
Table 2 – Telephone network statistics – 2012 (Mar)
Table 3 – Internet user statistics – 2011
Table 4 – Broadband subscribers – 2012 (e)
Table 5 – Mobile statistics – 2012 (e)
Table 6 – National telecommunications authority
Table 7 – Telecom market revenue by sector – 2008 - 2012
Table 8 – Share of telecom market revenue by sector – 2008 - 2010
Table 9 –Investment in telecoms and transport sector – 2004 – 2012; 2015
Table 10 – Call termination on Makedonski Telekom’s fixed network – 2009
Table 11 – Cost of LLU and shared access lines – 2010
Table 12 – Access lines by type – 2010 - 2012
Table 13 – CS and CPS lines –2010 - 2011
Table 14 – Fixed-lines ported –2008 - 2012
Table 15 – Fixed-line market share by key operators –2009 - 2012
Table 16 – Makedonski Telekom revenue (HUF) – 2009 - 2012
Table 17 – Makedonski Telekom financial data (MKD) – 2009 - 2012
Table 18 – Makedonski Telekom fixed-voice lines in service – 2010 - 2012
Table 19 – ONE revenue – 2010 - 2012
Table 20 – ONE subscribers – 2009 - 2010
Table 21 – Telephony-lines by type –2009 - 2012
Table 22 – Fixed lines in service and teledensity – 1995 - 2013
Table 23 – Wholesale leased lines in service, by type – 2010 - 2012
Table 24 – Internet market revenue – 2008 - 2011
Table 25 – Internet users, subscribers and penetration rates – 1999 - 2011
Table 26 – Online purchases by individuals – 2006 - 2011
Table 27 – Uptake of e-government services by individuals – 2008 - 2011
Table 28 – E-education usage by individuals – 2008 - 2010
Table 29 – Broadband market share of subscribers by platform – 2010 - 2012
Table 30 – Household penetration of internet by technology: urban/rural – Sep 2011
Table 31 – Household penetration of broadband services by type – Sep 2011
Table 32 – Proportion of households with computer/internet use – 2010 - 2011
Table 33 – Fixed broadband subscribers and penetration rate – 2005 - 2013
Table 34 – Internet subscribers by access type: dial-up, mobile, other – 2009 - 2012
Table 35 – Makedonski Telekom retail and wholesale DSL subscribers – 2008 - 2012
Table 36 – ADSL broadband subscribers – 2008 - 2013
Table 37 – One broadband subscribers – 2011 - 2012
Table 38 – Cable broadband subscribers – 2008 - 2013
Table 39 – FttH subscribers – 2009 - 2012
Table 40 – WiMAX voice lines – 2009 - 2012
Table 41 – Market share of TV subscribers by platform – 2007 - 2012
Table 42 – Market share of TV subscribers by operator – 2010 - 2012
Table 43 – TV revenue – 2004 – 2012; 2015
Table 44 – Total TV subscribers – 2010 – 2012
Table 45 – DVB-T subscribers – 2010 - 2012
Table 46 – Makedonski Telekom IPTV subscribers – 2008 - 2012
Table 47 –IPTV subscribers – 2010 - 2012
Table 48 – Cable TV revenue – 2008 - 2011
Table 49 – Cable TV subscribers – 2005; 2009 – 2015
Table 50 – Satellite TV subscribers – 2009 - 2012
Table 51 – Mobile subscribers and penetration rate – 2000 - 2013
Table 52 – Mobile network operator market share by subscribers – 2007 - 2012
Table 53 – Mobile termination rates – 2009
Table 54 – Mobile market revenue – 2008 – 2012
Table 55 – Mobile traffic – 2009 - 2012
Table 56 – Cumulative mobile-lines ported –2008 – 2012
Table 57 – T-Mobile subscribers – 2004 - 2012
Table 58 – T-Mobile MOU and ARPU – 2004 - 2012
Table 59 – One mobile subscribers – 2009 - 2012
Table 60 – One financial data – 2010 - 2012
Table 61 – VIP financial data – 2007 - 2012
Table 62 – VIP Mobile subscribers – 2007 - 2012
Table 63 – Ratio of prepaid to contract subscribers – 2005 - 2013
Table 64 – T-Mobile prepaid subscribers– 2004 - 2012
Table 65 – SMS messages sent – 2005 - 2012
Table 66 – MMS messages sent – 2009 - 2012
Table 67 – Total mobile broadband capable subscribers – 2008 - 2013
Table 68 – Household penetration of mobile broadband services by type – Sep 2011
Table 69 – Forecast broadband subscribers – higher growth scenario – 2010 - 2013; 2020
Table 70 – Forecast broadband subscribers – lower growth scenario – 2010 - 2013; 2020

Chart 1 – Makedonski Telekom revenue data – 2009 – 2012
Chart 2 – Makedonski Telekom financial data (MKD) – 2009 – 2012
Chart 3 – Fixed lines in service and teledensity – 2003 – 2013
Chart 4 – Fixed broadband subscribers and penetration rate – 2005 – 2013
Chart 5 – Makedonski Telekom retail and wholesale DSL subscribers – 2008 – 2012
Chart 6 – Mobile subscribers and penetration rate – 2003 – 2013
Chart 7 – Mobile network operator market share by subscribers – 2007 – 2012
Chart 8 – VIP financial data – 2007 – 2012

Exhibit 2 – Frequency bands and allocations
Exhibit 3 – Frequency bands – expressions of interest – 2007

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