Latvia Telecommunications Report 2011

Latvia Telecommunications Report provides industry professionals and strategists, corporate analysts, telecommunication associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Latvia's telecommunications industry.

BMI’s 2011 report on Latvia’s telecoms market contains updated and extended forecasts that predict how the country’s fixed-line, internet, broadband and mobile sectors will develop through to the end of 2015.Our new forecasts reflect Q310 data published by Latvia’s fixed-line incumbent operator Lattelecom, as well as the country’s three mobile operators, Latvijas Mobilais Telefons (LMT), in which Nordic carrier TeliaSonera has a major interest; privately-owned Bité Latvija; and Tele2 Latvia, the Latvian arm of Swedish carrier Tele2 AB.

In the Latvian mobile market, data from the country’s three wireless operators shows that the number of cellular subscribers fell by 5.6% in the first nine months of 2010. This was a notable change from the flat growth seen in 2009. BMI believes that the acceleration in subscriber uptake in 2010 was due to the improvement in Latvia’s economy which boosted consumer confidence and promotional activities introduced by operators to attract new customers. Based on trends witnessed in the nine months to September 2010, we estimate that the Latvian mobile market expanded by 6.4% for the year as a whole,taking the mobile penetration rate to around 116.6%. We anticipate an average annual growth of 1.5%over our forecast period. By the end of 2015, we predict the Latvian mobile market will have around2.8mn, reflecting a penetration rate of 130%.

Evidence suggests that 3G customer growth has been strong in recent months, with mobile data services emerging as an important alternative to fixed broadband services. We estimate the 3G subscribers accounted for around 22.1% of the total mobile customer base at the end of 2010. We predict this figure will rise to almost 60% by the end of 2015. The increasing availability and affordability of 3G compatible devices, including smart phones and tablet computers, will be a major driver of 3G growth in Latvia.One consequence of the impressive growth in the number of mobile broadband customers has been a slowdown in the demand for DSL services. In 2009, the number of Lattelecom DSL customers grew by just 7.7% to 194,000. The incumbent reported more robust growth in 2010 with its broadband subscriber base expanding by 12.9% in the nine months to September. Besides the recovery of Latvia’s economy from the recession in 2009, BMI believes the growing popularity of multi play offerings from the Lattelecom has been a key growth driver for fixed broadband subscriptions. Faced with increased competition, mobile operators in the internet access market, established wireline operators such as Lattelecom, Baltkom and IZZI are responding with investment into new high-speed broadband infrastructure.

By the end of 2015, we forecast a market of about 685,000 non-mobile broadband subscriptions, which is equivalent to nearly a third of Latvia’s population. Investment in higher speed fibre and cable services should help to keep the demand for fixed broadband services fairly buoyant over the next five years. SHOW LESS READ MORE >

Executive Summary

SWOT Analysis
Latvia Wireless SWOT
Latvia Wireline SWOT
Latvia Political SWOT
Latvia Economic SWOT
Latvia Business Environment SWOT

Business Environment
Central And Eastern European Markets
Table: Central And Eastern Europe Business Environment Rankings
Latvia

Industry Forecast Scenario
Mobile
Table: Latvian Telecoms Sector – Mobile Historical Data And Forecasts
Fixed-Line
Table: Latvian Telecoms Sector – Fixed-Line Historical Data And Forecasts
Internet
Table: Latvian Telecoms Sector – Internet Historical Data And Forecasts

Market Data Analysis
Mobile
Table: Latvia Mobile Subscribers Q309-Q310 (000’)
Customer Divisions
ARPU
3G
Mobile Contract Wins
Table: Mobile Contract Wins
Mobile Content
Regional Outlook
Country Outlook
Value-Added Services Timeline
Table: Selected VAS Services
Mobile Operator Data
Table: Latvia Mobile Market Overview
Table: LMT
Table: Bité
Table: Tele2
Fixed-Line
Internet
FTTH
WiMAX
IPTV
Digital Terrestrial Television
Table: Wireline developments

Regulatory Environment And Industry Developments
Table: Latvia - Regulatory Bodies And Their Responsibilities
Legislation And Market Liberalisation
Regulation
Regulation Developments

Competitive Landscape
Key Players
Table – Key Players: Latvia Telecommunications Market
Table: Selected Operators Financial Indicators

Company Monitor
Ericsson Nikola Tesla
Table: Ericsson Nikola Tesla Financial Performance, 2007-2010 (HRK mn)
Table: Ericsson Nikola Tesla Recent Contract Wins in Emerging Europe

Company Profiles
Lattelecom
Latvijas Mobilais Telefons (LMT)
Tele2 Latvia
Baltkom TV

Regional Telecommunications Penetration Overview
Mobile
Table: Regional Mobile Penetration Overview
Fixed-Line
Table: Regional Fixed-Line Penetration Overview
Internet
Table: Regional Broadband Penetration Overview

Country Snapshot: Latvia Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education And Healthcare
Table: Education, 2002-2005
Table: Vital Statistics, 2005-2030
Section 3: Labour Market And Spending Power
Table: Employment Indicators, 2001-2006
Table: Consumer Expenditure, 2000-2012 (US$)
Table: Average Annual Wages, 2000-2012

BMI Methodology
How We Generate Our Industry Forecasts
Table: Key Indicators For Telecommunications Industry Forecasts
Telecoms Business Environment Ratings
Risk/Reward Ratings Methodology
Table: Ratings Indicators
Weighting
Table: Weighting Of Indicators
Sources

- Lattelecom
- Latvijas Mobilais Telefons (LMT)
- Tele2 Latvia
- Baltkom TV