Bulgaria - Telecoms, IP Networks, Digital Media and Forecasts

Paul Budde Communication Pty Ltd, January 2013, Pages: 61

Vivacom’s FiberNet offer to reach over one million households by 2014BuddeComm’s annual publication, Bulgaria - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in one of Eastern Europe’s more progressive countries. The report includes the regulator’s market data updates, telcos’ operating data to Q3 2012, and market developments to January 2013.

Economic background

Following its accession to the EU, Bulgaria benefited from strong economic growth brought about by large capital inflows. However, the continuing global financial crisis has impacted the country’s economy through reduced capital inflows and export demand since 2009. Though GDP growth has improved it is expected to have fallen to 1% for 2012, remaining low for 2013. These difficulties have impacted the overall telecom sector, where revenue and investment has fallen steadily since 2010. As a result, the sector accounts for less than 1% of GDP, compared to 2-4% in many other European countries.

Telecom market overview

The broadband market enjoys healthy cross-platform competition supported by governments eager to exploit the potential of ICT to social and economic development and develop an internet society encompassing commerce, health and government services. Cable TV penetration is well above the EU average although the number of major service providers is falling due to market consolidation. The mobile market, served by three MNOs, is increasingly focussed on mobile data to secure revenue and improve ARPU, while the competitive nature of the market has encouraged players to expand into the fixed-line market.

Key telecom parameters – 2010; 2012

Sector | 2010 | 2012 (e) |

Subscribers by sector (thousand): |
Fixed broadband subscribers | 1.1 | 1.36 |
Mobile phone | 10.2 | 10.27 |
Fixed-line telephony | 2.16 | 2.19 |

Penetration by sector: |
Fixed broadband | 14.0% | 15.9% |
Mobile | 139% | 140% |
Fixed-line | 51% | 53% |

(Source: BuddeComm)

Market Highlights

The association of cable communications operators (BACCO) continues to guide infrastructure expansion and ensure access to Vivacom’s passive network while liaising with municipalities and broadcasters.

Although FttH is still restricted to urban areas, a number of players are expanding their networks more widely. Blizoo has invested €25 million in its fibre network, and offers among Europe’s fastest data rates.

Bulgaria has one of the highest CATV penetration rates in Central and Eastern Europe with over 60% of households subscribing, well above the EU average.

M-Tel in early 2012 began rolling out LTE networks in a number of cities, with test services made available to customers of the other MNOs. This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Bulgaria.

It provides further information on:

- Market liberalisation and regulatory issues;
- The impact of the global economic crisis;
- Telecoms operators – privatisation, acquisitions, new licences;
- Mobile data market developments in coming years in light of spectrum auctions and new license awards;
- 3G developments, regulatory issues and technologies including HSPA and LTE;
- Broadbdand migration to an FttH architecture;
- Historical and current subscriber statistics and forecasts;
- ARPU statistics and forecasts.Data in this report is the latest available at the time of preparation and may not be for the current year.

1. Key Statistics

2. Telecommunications Market
2.1 Overview of Bulgaria’s telecom market

3. Regulatory Environment
3.1 History
3.1.1 Revised NFR
3.2 Regulatory authority
3.2.1 Communications Regulation Commission (CRC)
3.3 Telecom sector liberalisation in Bulgaria
3.3.1 Privatisation
3.3.2 Interconnect
3.3.3 Access
3.3.4 Number portability
3.3.5 Carrier selection/carrier PreSelection

4. Fixed Network Market
4.1 Overview of operators
4.1.1 Bulgarian Telecommunications Company (BTC)/Vivacom
4.1.2 Orbitel
4.1.3 Vestitel
4.1.4 MobilTel

5. Telecommunications Infrastructure

6. Broadband Market
6.1 Fixed broadband overview
6.2 Broadband statistics
6.3 Bulgaria’s emerging internet society
6.3.1 E-government
6.3.2 E-health
6.4 Cable
6.5 Asymmetrical Digital Subscriber Line (ADSL)
6.6 Fibre-to-the-Home (FttH)
6.7 Wireless broadband
6.7.1 World Interoperability for Microwave Access (WiMAX)
6.8 Satellite broadband
6.8.1 Mobile broadband

7. Digital Media
7.1 Overview of digital media market
7.1.1 Digital TV

8. Mobile Communications
8.1 Overview of Bulgaria’s mobile market
8.1.1 Mobile statistics
8.2 Regulatory issues
8.2.1 Second GSM licence
8.2.2 Third GSM licence
8.2.3 Fourth GSM licence
8.2.4 Third generation (3G) licences
8.2.5 TETRA licences
8.2.6 Mobile Number Portability (MNP)
8.2.7 EU roaming tariffs
8.2.8 Mobile Termination Rates (MTR)
8.3 Mobile technologies
8.3.1 GSM
8.3.2 TETRA
8.3.3 Third generation mobile (3G)
8.4 Major mobile operators
8.4.1 Vivacom
8.4.2 MobilTel/M-Tel
8.4.3 Cosmo Bulgaria Mobile/Globul
8.5 Mobile voice services
8.5.1 Prepaid cards
8.6 Mobile data services
8.6.1 Overview
8.6.2 Short Message Service (SMS)/Multimedia Messaging Service (MMS)
8.6.3 General Packet Radio Service (GPRS)
8.6.4 Enhanced Data for GSM Evolution (EDGE)
8.6.5 Evolved High Speed Packet Access (HSPA+)
8.6.6 Long-term Evolution (LTE)
8.6.7 Mobile TV
8.6.8 Mobile broadband
8.7 Mobile content and applications
8.7.1 M-commerce (micropayments)

9. Forecasts
9.1 Fixed broadband forecasts – 2010 - 2013; 2020
9.1.1 Scenario 1 – higher broadband subscriber growth
9.1.2 Scenario 2 – lower broadband subscriber growth
9.1.3 Notes on scenario forecasts

10. Glossary of Abbreviations

Table 1 – Country statistics – 2012 (e)
Table 2 – Telephone network statistics – 2012 (e)
Table 3 – Internet user statistics – June 2012
Table 4 – Broadband subscriber statistics – 2012 (e)
Table 5 – Mobile statistics – 2012 (e)
Table 6 – National telecommunications authority
Table 7 – Telecom sector revenue, annual change – 2006 - 2012
Table 8 – Telecom sector revenue by service– 2008 - 2010
Table 9 – BTC interconnection rates – 2006 - 2009
Table 10 – Cost of local loop unbundling and shared access – 2006 - 2009
Table 11 – Vivacom financial data – 2003 - 2012
Table 12 – Vivacom financial data by sector– 2010 - 2012
Table 13 – MobilTel fixed-telephony and broadband subscribers – 2011 - 2012
Table 14 – Fixed lines in service and teledensity – 2000 - 2012
Table 15 – Internet users and penetration rates – 2000 - 2012
Table 16 – Broadband market share by access type – 2009 - 2010
Table 17 – Fixed broadband subscribers and penetration – 2005 - 2012
Table 18 – Fixed broadband subscribers by data speed – 2010
Table 19 – ICT usage by businesses – 2006 - 2011
Table 20 – Online purchases by individuals – 2005 - 2012
Table 21 – E-education usage by individuals – 2007 - 2012
Table 22 – E-education usage by businesses – 2007 - 2012
Table 23 – Uptake of e-government services by businesses – 2004 - 2010
Table 24 – Uptake of e-government services by individuals – 2004 - 2010
Table 25 – MobilTel broadband subscribers –2011 - 2012
Table 26 – Cable broadband subscribers – 2005 - 2012
Table 27 – ADSL subscribers – 2005 - 2012
Table 28 – FttX subscribers – 2007 - 2012
Table 29 – Total mobile broadband-capable subscribers – 2006 - 2011
Table 30 – MobilTel mobile broadband subscribers – 2008 - 2012
Table 31 – Proportion of analogue/digital viewing – 2008 - 2012
Table 32 – IPTV subscribers – 2008 - 2012
Table 33 – Cable TV subscribers – 2006 - 2012
Table 34 – Satellite TV subscribers – 2006 - 2012
Table 35 – Mobile subscribers and penetration – 1995 - 2012
Table 36 – Mobile sector revenue – 2009- 2012
Table 37 – Mobile market share of subscribers by operator – 2006- 2010
Table 38 – Mobile market revenue share by service – 2008- 2010
Table 39 – Mobile portings – 2008 - 2011
Table 40 – European roaming charges – 2007 - 2012
Table 41 – Vivacom mobile revenue – 2009 - 2012
Table 42 – MobilTel financial data – 2005 - 2012
Table 43 – MobilTel prepaid, postpaid and blended monthly ARPU – 2004 - 2012
Table 44 – MobilTel subscribers – 2007 - 2012
Table 45 – MobilTel Minutes of Use (MOU) – 2007 - 2012
Table 46 – Globul financial data – 2009 - 2012
Table 47 – Globul subscribers – 2007 - 2012
Table 48 – Ratio of prepaid to postpaid subscribers – 2002 - 2012
Table 49 – MobilTel prepaid subscribers – 2004 - 2012
Table 50 – Globul prepaid subscribers – 2007 - 2011
Table 51 – Total SMS messages sent – 2003 - 2012
Table 52 – Total MMS messages sent – 2003 - 2012
Table 53 – Total mobile broadband-capable subscribers – 2006 - 2012
Table 54 – MobilTel mobile broadband subscribers – 2008 - 2012
Table 55 – Forecast fixed broadband subscribers – higher growth scenario – 2010 - 2013; 2020
Table 56 – Forecast fixed broadband subscribers – lower growth scenario – 2010 - 2013; 2020

Chart 1 – Vivacom financial data – 2003 - 2012
Chart 2 – Vivacom financial data by sector– 2010 - 2012
Chart 3 – Fixed broadband subscribers and penetration – 2005 - 2012
Chart 4 – Mobile subscribers and penetration – 2002 - 2012
Chart 5 – MobilTel financial data – 2005 - 2012
Chart 6 – MobilTel prepaid, postpaid and blended monthly ARPU – 2004 - 2012
Chart 7 – Globul financial data – 2009 - 2012

Exhibit 1 – The EU regulatory framework for communications
Exhibit 2 – Access, the local loop and unbundling – an overview
Exhibit 3 – The Economist Intelligence Unit (EIU) annual E-readiness criteria

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