CURRENT TRENDS OF ITT MARKET IN LITHUANIA

Vytautas Vitkauskas

President

Infobalt association

2006Vilnius

Kind of services mln, EURShare of ITT market, %

Changed in comparison with 2005, %

All Services 373,8 100 +6,62fixed line services 62,25 16,2 -4,52mobile services 169 45 +3,04Connections of networks 82,43 22,8 +16Internet access 37,35 10 +31,4Cable TV, transmissions of data, etc.

19,1 6 ~ +2,4

ITT Market (1st half 2006)

Source: Communication Regulatory Authority report of electronics communications sector activities 2nd quarter, 2006

Indicators of Telecommunication Market

AmountPenetration

%

Fixed lines 789 472 23,3

-2,25

Mobile phone 5,9 mln 173

active users 4,4 mln 130

+ 26,9

paying by invoices 1,5 mln 44

prepaid users 4,4 mln 130

Internet subscribers 1,44 mln 42,4

+ 23,8

Mobile Internet 1,13mln 33,5

+ 146

SMS/MMS per active subscriber per month

170 -

(1st half 2006)

Change in comparison with 2005

Change in comparison with 2005

Change in comparison with 2005

Change in comparison with 2005

Internet market (1st half, 2006)1. Penetration – 41 % (increase +126%);

2. Total amount of users – 1.4 mln;

Type of Internet access technology

1. Mobile networks – 79 % of users (increase +146%);

2. DSL – 9.3 %;

3. Cable TV – 4 %

4. LAN – 3.86 %;

5. Optic cables – 1.07 %;

6. Conducted lines – 1.15 %;

7. Fixed wireless – 1.51 %

Mobile ITT market

Share of the market (5.9 mln subscribers)

1. By subscribers a). Omnitel – 37.13 %;b). Tele 2 – 34.3 %;c). BITĖ – 27%

2. By income

a). Omnitel – 48.7 %;b). Tele 2 – 21 %;c). BITĖ – 27,4 %

Share of prepaid subscribers by income – 20.7 %

Share of the calls by type

1. Calls using one operators network ~ 75 %;

2. Calls using more than one operator networks ~ 20 %;

3. Calls to fixed lines customer ~ 2.7 %;

4. International calls ~ 1.5 %

Total increase of mobile calls in comparison with 2005 went up to 39.5 %

Duration of calls (per month)

Duration, minutes

Income per subscriber, EUR

Change in comparison with 2005, per cent

Average duration of one call, minutes

1. Fixed lines 204 15 -8,1 2,92. Mobile 1,9 a) Omnitel 88 8,7 -19 b) BITĖ 68 6,1 -16 c) TELE 2 53 4 -12,5

Duration of calls (per month)

3G Services• Launched in February 2006 (Omnitel)

• Coverage: 2006 – 25 %, 2007 – 50 %, 2008 – 75 % of the territory;

• Speed of data (down line) – 384 Kb/sec (2006), 3.6 Mb/sec (2007);

Technology - HSDPA

Prognoses of investment for next 10 years ~ 300 mln EUR per operator

Top3 services (by income, 1st half, 2006)

1. Air Tickets – 29 mln EUR;

2. Tickets for culture performances (cinemas, theatres, concerts) – 3.5 mln EUR;

3. Books selling – 0.8 mln EUR

Per cent

2000 2001 20022003

1 quarter

2004 1

quarter

2005 1

quarter

2006 1

quarter

Households possessing personal computer

5,3 8,5 12 19,3 25 29 36,5

Households having access to the Internet at home

2,3 3,2 4,1 6,2 10,6 14,4 31,7

Households possessing personal computer and having access to the Internet at home

Source: Usage of information technologies in households in 1st quarter 2006 by Department of Statistics to the Government of the Republic of Lithuania

16-24 35-34 35-44 45-54 55-64 65-74

Persons who used mobile phones

81,4 98 95,7 91,5 84,1 65,2 31,6

All persons aged 16-74

of whom by age group, years

Usage of mobile phone, 1 quarter 2006Per cent of total population in the corresponding age group

Per cent of those who used the Internet

All persons aged 16-74

Persons using the Internet for the following purposes (activities):

sending / receiving e-mails 77,3

telephoning over the Internet / videoconferencing 26,9

other (use of chat sites, etc.) 37,6

finding information about goods and services 70,5

using services related to travel and accomodation 28,1

listening to web radios / watching web television 40,3

playing / downloading games and music 58,1

downloading software 31,4

reading / downloading online newspapers / magazines 72,1

looking for a job, sending a job application 22,6

seeking health-related information 36,6

Purposes of using the Internet, I quarter 2006

Communication

Information search and online services

Internet banking 35,1

selling goods and services 5,2

obtaining information from public authorities` websites 29,9

downloading official forms 16,1

sending filled in forms 14,6

using services related to training and education at school, university 34,2

using services related to post-educational courses 38,6

using services related specifically to employment opportunities 37,7

Purchasing and selling of goods and services, banking

Interaction with public authorities

Training and education

16-24 35-34 35-44 45-54 55-64 65-74

Use public authorities` web services

31,8 21,1 40,5 37,2 36,7 37,6 14,9

Are interested in the possibility to use public authorities` web services, but have not used them yet

23,7 20,7 23,9 25,6 29,4 21,8 24,5

Never used and never were interested in the possibility to use public authorities` web services

44,5 58,2 35,6 37,2 33,9 40,6 60,6

Opinion of respondents on using the public authorities` web services

Per cent of those who used the Internet in the corresponding age group

All persons aged 16-74

of whom by age group, years

16-24 35-34 35-44 45-54 55-64 65-74

the required services are not available online or difficult to find

18,9 17,2 20,2 24,2 17,6 9,7 8,6

personal contact is missing

25,5 19 26,7 35,2 31,3 26,7 17,7

immediate response is missing

12,6 10,4 15,9 13 15,1 9,9 8,1

concerned about protection and security of personal data

14,4 12,1 15,4 16,3 19,1 14 1,5

additional costs (e.g. connection costs)

9,5 11,9 9,9 8,3 4,4 2,9 11,6

using the Internet for contacts with public administration is too complex

19,7 15,2 18,2 23,4 28,7 26,8 31,2

there was no need etc 39 47,6 36,3 28,5 27,8 40,9 53,5

Per cent of persons in the corresponding age group who used the Internet, but never used the public authorities’ web

Reasons for not using the public authorities` web services

All persons aged 16-74

of whom by age group, years

Use public authorities web services

Are interested in the possibility to use public authorities` web services, but have not used yet

Filling the income tax declaration

18,7 29

Searching job by labour offices

9,2 31,6

Public libraries (availability of catalogues, search tools)

11,7 31,4

Using services related with health

4,8 42,8

Filling documents related with social security benefits

1,2 37,5

Car registration 0,3 41,1Enrolment in higher education or university

3,4 34,4

Respondents using the public authorities` web servicesPer cent of those who used the Internet

16-24 35-34 35-44 45-54 55-64 65-74

over the last 3 months 5,4 5,0 8,1 4,9 3,2 2,0 0,6over the last year 9,3 9,7 13,2 8,1 4,5 3,0 2,7

Persons who bought or ordered goods or services on the Internet

Per cent of those who used the Internet in the corresponding group

Respondents using e-commerce for private purposes

All persons aged 16-74

of whom by age group, years

16-24 35-34 35-44 45-54 55-64 65-74

Have never bought (ordered) any goods or services for these reasons:no need 81,4 83,7 79,0 80,2 79,9 85,3 80,7prefer to shop in person, like to see product

51,4 48,5 53,4 54,4 53,0 44,4 59,9

lack of skills 12,7 10,2 13,2 13,8 13,9 18,8 28,5delivery of goods ordered over the Internet is a problem

8,5 9,9 9,6 6,7 6,3 6,5 8,7

security concerns, worried about giving credit card or personal details on the Internet

17,8 16,5 22,6 15,5 16,8 15,4 16,3

trust concerns 17,9 16,4 21,4 17,8 17,3 10,5 26,3do not have a payment card allowing to pay over the Internet

12,0 17,7 9,9 7,6 7,9 7,5 22,1

speed of the Internet connection is too slow

1,2 1,7 1,3 0,4 1,6 - 1,3

other 1,4 2,0 0,8 1,2 1,4 1,4 -

Per cent of those who have ever used the InternetReasons limiting use of e-comerce for private purposes

All persons aged 16-74

of whom by age group, years

Infobalt EU projects

Previous PHARE BSP “Business Support project for CEE associations”, 2000 – 2002

PHARE project Business Support Programme (BSP-2) ELECTRANET, 2003-2004

PHARE project of “Strengthening the Office of Copyright and Related Rights”, 2000-2001

EU IST project TELEBALT ”Promotion of telework and other information society development programs in Baltic States”, (IST-2001-33041) (2001-2003)

PHARE project “Promotion and awareness of e-commerce for SME’s”, 2000

Infobalt EU projects

Running

• EU IST project IST4Balt, "Information Society Promotion in Baltic States (IST) Priority of the Sixth Framework Programme (FP6) (2004-2006)

• EU IST project StarNET (2005-2007)

• EU IST Project PRO_NMS (Proactive actions for new member states, 2005-2007)

• EU eTEN program project INNOVALL (negotiations with EC currently), 2007-

Thanks!

http://www.infobalt.lt

http://2006.infobalt.lt