EVOLUTION of Electronic Communications Market in 2014en.anrceti.md/files/filefield/Evolutia pietei...

National Regulatory Agency for Electronic Communications and Information Technology of the Republic of Moldova

Evolution of Investments

Internet Revenues

Dynamics of Revenues EVOLUTION

of Electronic CommunicationsMarket in 2014

EVOLUTIONof Electronic CommunicationsMarket in 2014

2,4%

18%

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Preface 3

Key-indicators of the electronic communications market 4

1 General Overview of the Market 61.1 Main events of 2014 61.2 Dynamics of revenues 61.3 Evolution of the number of end users 91.4 Evolution of voice traffic 101.5 Dynamics of investments 11

2 Mobile Telephony 142.1 Dynamics of the market 142.2 End users and penetration rates 152.3 Evolution of voice traffic 172.4 Rates of radio signal coverage 18

3 Fixed Telephony 233.1 Dynamics of the market 233.2 Subscribers and penetration 243.3 Evolution of traffic 25

4 Fixed and Mobile Internet Access 274.1 Market feature 274.2 Revenues 27

4.2.1 Dynamics of revenues from fixed broadband access services 284.2.2 Dynamics of revenues from mobile Internet access services 29

4.3 Subscribers and Internet access penetration rates 314.3.1 Subscribers, penetration rates and technologies of fixed Internet access 334.3.2 Subscribers and penetration of dedicated mobile Internet access service 38

5 Broadcasting and Retransmission of Audiovisual Programs 405.1 Dynamics of the market 405.2 Subscribers and penetration 41

Conclusions and forecast 45Annex 46



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Contents

PrefaceThe Report of the National Regulatory Agency for Elec-tronic Communications and Information Technology (ANRCETI) Evolution of electronic communications market in 2014 was developed based on the data col-lected from statistical reports submitted by electron-ic communications providers. In drafting the report, ANRCETI also used the data from a number of market studies, published by European and international ICT bodies (International Telecommunications Union).

ANRCETI started to collect from providers, pursu-ant to Law on Electronic Communications no.241 of 15.11.2007 (hereinafter - Law 241/2007), statistical data regarding the quarterly situation on all electronic communications market segments. On basis of report-ed data, ANRCETI specialists collect the necessary in-formation for the evaluation of development trends of market segments and for the market analysis process. Quarterly, ANRCETI publishes on its official Web page charts and reports as to the market situation, while yearly, before April 30, makes publicly available the Report on market evolution for the preceding year.

Although ANRCETI specialists make thorough verifica-tions of the statistical reports presented by providers, the authors of this report do not exclude the possibil-ity that certain statistical indicators might contain mi-nor errors. Those errors can be subsequently detected, when ANRCETI will compare the evolution of some in-dicators across time.

Readers are welcome to provide comments and ask questions on the contents and format of this Report to the e-mail address: [email protected]


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Key-indicators of the electronic communications marketIndicators 2013 2014 Change

MOBILE TELEPHONY Subscriptions 4.430.778 4.373.328 -1,3%- active users - individuals 3.464.180 3.500.494 1,0%- active users - businesses 232.654 237.631 2,1%In-networks traffic (million minutes) 5.651,0 6.092,1 7,8%MoU (monthly minutes per users) 200 211 5,5%SMS (million) 760,0 1.162,1 52,9%MMS (million) 2,12 2,13 0,4%Penetration rate 124,48% 122,86% -1,62 p.p.Revenues (million lei) 3.491,26 3.453,35 -1,1%ARPU (monthly) 68,2 65,1 -4,5%Mobile broadband traffic, TB 820,80 2.146,85 161,6%

DEDICATED MOBILE BROADBAND Subscriptions 259.613 299.518 15,4%Penetration rate 7,29% 8,41% 1,12 p.p.Revenues (million lei) 259,68 291,28 12,17%ARPU (monthly) 98,8 86,8 -12,1%Dedicated mobile broadband traffic (TB) 20.175,70 26.718,98 32,43%

FIXED TELEPHONY Subscriptions, total 1.221.474 1.218.274 -0,3%- individuals 1.078.598 1.083.351 0,4%- businesses 142.876 134.923 -5,6%Penetration rate 34,3% 34,2% 0,1 p.p.In-network traffic (million minutes) 2.684,5 2.262,0 -15,7%MoU (monthly minutes per users) 301 250 -16,6%Revenues (million lei) 1.114,73 1.002,15 -10,1%ARPU (monthly) 76,47 68,46 -10,5%

FIXED BROADBAND Subscribers 467.072 509.195 9,0%- individuals 443.726 481.435 8,5%- businesses 23.346 27.760 18,9%Penetration rate 13,1% 14,3% 1,2 p.p.Revenues (million lei) 785,26 927,65 18,1%ARPU fixed broadband (monthly) 150,1 160,5 6,9%Capacity total external Internet (Gbps) 143,54 239,75 67,03%Revenues data transmission (million lei) 94,79 68,79 -27,4%

BROADCASTING AND RE-TRANSMISSION OF AUDIO-VISUAL PROGRAMS Pay TV subscribers 286.509 274.039 -4,4%Pay TV penetration rate 8,05% 7,67% 0,38 p.p.Revenues (million lei) 352,84 370,17 4,9%ARPU Pay TV (monthly) 49,2 48,3 -2,0%

Revenues from other electronic communications activities (million lei) 544,00 688,30 26,5%Total revenues in electronic communications market (million lei) 6.642,60 6.801,70 2,4%Total investments in electronic communications market (million lei) 1.290,92 2.375,40 84,0%



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General Overview of the Market1National Regulatory Agency for Electronic Communications and Information Technology of the Republic of Moldova


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Evolution of Electronic Communications Market in 20146

1General Overview of the Market

1.1 Main events of 2014The main event of the year in the electronic communications sector was the application of the new licenses for 800 MHz, 900 MHz and 1800 MHz spectrum for the provision of public terres-trial mobile communications networks and ser-vices, with effect from November 6, 2014. It is for the first time that ANRCETI issued the licenses to the three mobile providers – Joint Stock Com-panies Orange Moldova, Moldcell and Mold-telecom, under technological neutrality condi-tions, for a 15-year timeframe. This means that the license holder may choose and apply any technology compatible with the GSM-UMTS / HSPA, WIMAX (known as 3G), LTE (known as 4G) and enhanced technologies based on the men-tioned standards family in the given frequency bands and without an administrative permis-sive decision.

In 2014, the most significant moves occurred on the mobile and fixed broadband access market. Statistical data show that Moldovans download-ed a greater volume of data and more frequently used mobile devices to access the Internet. Thus, in a year’s time, the Internet traffic via mobile phones doubled, the number of users 4G in-creased six times: from 4000 subscribers at end 2013 to 26,000 at the end of 2014.

It should be mentioned that in 2014, the top most popular with end-users was the connec-tion to high-speed Internet (over 30 Mbps or 100 Mbps). The average fixed broadband speed (download) increased by about 10 Mbps for the second successive year and made up 41,5 Mbps, which indicator ranked Moldova 17th in the world. The average mobile broadband access

speed (download) was 10,4 Mbps, which ranked Moldova 58th at global level.

The cumulated volume of fixed and mobile broadband revenue grew significantly over 2013: fixed broadband revenue increased 18% up to 0,92 billion lei, while mobile broadband revenue - about 19%, up to 0,48 billion lei. The total turnover on this market segment amount-ed to 1,4 billion lei.

ANRCETI considers that the main factors enhanc-ing the development of the broadband access services are the variety of high-speed Internet connection offers in fixed and mobile networks, the tariff plans with a bigger volume of included traffic, higher speeds of access and more attrac-tive bundled offers.

It is notable that the number of digital TV ser-vice users started to grow fast – an event largely determined by the wide range of digital TV of-fers, which include high quality channels (HD), a growing and more varied number of channels and bundled offers (TV services, Internet access and fixed telephony).

1.2 Dynamics of revenuesAccording to the statistical data, reported to ANRCETI by electronic communications provid-ers (386 active providers), in 2014, the turnover of the electronic communications (EC) sector (fixed and mobile telephony, fixed and mobile Internet access, broadcasting and re-transmis-sion of audio-visual programs, other electronic communications activities increased over 2013 by 2,4% and totaled 6 billion 801,7 million lei.



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Evolution of electronic communications market in 20147

Chart 2 Structure of the electronic communi-cations market, by revenuesSource: ANRCETI

The most significant sales increase were attested on the following market segments: sales of broad-band access at fixed locations and data transmis-sion increased by 13,2% up to 996,4 million lei, sales of access to dedicated mobile broadband – by 12,2% reaching 291,3 million lei, sales of broadcasting and re-transmission of audio-visual

programs – by 4,9% and made up 370,2 million lei, while the revenues from other EC activities1 increased by 26,5% up to 688,3 million lei. As well, the biggest volumes of sales were recorded on the mobile and fixed telephony markets – 3 billion 453,4 million lei (drop by 1,1%) and, accordingly, 1 billion 2,1 million lei (drop by 10,1%) (Chart 1).

Chart 1 Evolution of revenues in EC sector (million lei)Source: ANRCETI

As a result of this evolution, the share of reve-nues from mobile telephony within the structure of the total electronic communications revenues was 50,8%, fixed telephony – 14,7%, fixed broad-band and data transmission – 14,6%, broadcast-ing and retransmission of audiovisual programs – 5,4%, dedicated mobile broadband – 4,3% and revenues from other electronic communications activities – 10,1% (Chart 2).

1 Revenues from other electronic communications activities include the revenues of the electronic communications network provid-ers that are not part of the five basic markets and are generated by installation, operation, management or provision of electronic communications networks or associated infrastructure to a third party (Art.2 of Law on Electronic Communications 241/2007).

4.000 8.000

3.500 7.000

3.000 6.000

2.500 5.000

2.000 4.000

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1.000 2.000

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0 0

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8,0 54

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6,7

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284,

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434,

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229,

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158,

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484,

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259,

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2,8 88

0,1

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4,7

3.49

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544,

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291,

337

0,2 99

6,4

1.00

2,1

3.45

3,4

688,

3

2010 2011 2012 2013 2014 Dedicated mobile broadband Broadcasting and re-transmission of audio-visual programs

Fixed broadband and data transmission Fixed telephony

Mobile telephony Total revenues EC

Total venituri CE

6.216,2 6.219,7 6.282,2 6.642,66.801,7

Mobile telephony Fixed telephony Fixed broadband and data

transmission

Broadcasting and re-transmission of audio-visual programs

Dedicated mobile broadband Other EC activities

50,8%

14,5%14,6%

5,4%

4,3%

10,1%



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In 2014, the fixed broadband market accounted for the most significant monthly average rev-enue per user (ARPU) – 160,1 lei. This indicator for the dedicated mobile broadband market was

86,8 lei, fixed telephony market – 68,5 lei, mobile telephony market – 65,1 lei, pay TV market – 48,3 lei (Chart 3).

Chart 3 Evolution of average monthly revenue per user - ARPU (lei)Source: ANRCETI

Chart 4 Dynamics of providers’ revenues in 2013-2014 (million lei)Source: ANRCETI

In 2014, Orange Moldova made the highest vol-umes of sales (2 billion 544,9 million lei or 37,4% of the total), followed by Moldtelecom (1 billion 824 million lei or 26,8% of the total) and Moldcell (1 bil-

lion 35,8 million lei or 15,2% of the total). The cumu-lative sales of other providers was 1 billion 396,4 mil-lion lei or 20,5% of the total of revenues generated by the electronic communications sector. (Chart 4).

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2010 2011 2012 2013 2014 Pay TV Dedicated mobile broadband

Mobile telephony Fixed broadband

Fixed telephony

982,3

1.035,8

1.857,3

1.824,6

2.612,6

2.544,9

1.190,4

1.396,4

6.642,6

6.801,7

MOLDCELL

MOLDTELECOM

ORANGE MOLDOVA

OTHER PROVIDERS

TOTAL REVENUES

2013 2014



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1.3 Evolution of the number of end usersIn 2014, the number of end users of the servic-es provided on the five electronic communica-tions market segments differed in their evolution (Chart 5). So, on the Internet access markets the number of users increased, while on the mobile and fixed telephony markets, for the first time, slightly decreased. As a result, the number of subscribers to dedicated mobile broadband ac-cess services grew 15,4% over 2013, up to 299,5 thousand, while the number of fixed broadband

access services grew 9% up to 509,2 thousand. On the other hand, the number of mobile telephony users dropped 1,3%, the number of fixed teleph-ony subscribers dropped 0,3%, or cumulatively – by about 60 thousand people. This development was caused by the market saturation phenome-non and the effects of telephone number porta-bility, which enable users to keep their telephone numbers when switching to other providers. As to the evolution of the number of subscribers to the pay TV service, their number dropped 5,8%.

Chart 5 Evolution of the number of end users of EC services (thousand)Source: ANRCETI

Chart 6 Evolution of EC service penetration ratesSource: ANRCETI

The different evolution of the number of end-users brought about changes of penetra-tion rates per 100 population. The value of this indicator on the mobile telephony market was

122,9%, fixed telephony market – 34,2%, fixed broadband market - 14.3%, dedicated mobile broadband - 8,4% and Pay TV market – 7,7% (Chart 6).

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2010 2011 2012 2013 2014 Dedicated mobile broadband Fixed telephony

Pay TV Mobile telephony

Fixed broadband

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%

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% 33,1

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,3 % 34

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2010 2011 2012 2013 2014 Dedicated mobile broadband Fixed telephony

Pay TV Mobile telephony

Fixed broadband



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1.4 Evolution of voice trafficIn 2014, mobile and fixed telephony users gen-erated 8,35 billion minutes total voice traffic, which is 0,2% increase over 2013. The voice traf-

fic in mobile telephony networks increased 7,8% and reached 6,09 billion minutes, while the traf-fic in fixed telephony networks dropped 15,7% and constituted 2,26 billion minutes. (Chart 7).

Chart 7 Evolution of voice traffic in mobile and fixed telephony networks (billion minute)Source: ANRCETI

Chart 8 Shares of types of traffic in the structure of total voice traffic in mobile and fixed telephony networksSource: ANRCETI

The data in the Chart above show that in 2014 the rate of annual voice traffic growth was the lowest - 0,2%, compared to the rate during the recent five years (3,6%). This is explained by the fact that a part of voice traffic from telephony network migrate to the Internet, while owners of smartphones makes calls for free (by apps), both factors having a negative im-pact on the revenues of telephony service providers.

The share of the traffic generated in mobile net-works (this includes in-network traffic and mo-bile to mobile network traffic) and the traffic generated in fixed networks was 61,7% and, ac-cordingly 19,9% within the structure of the total voice traffic.

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4,74

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2010 2011 2012 2013 2014 Мobile Fixed Total

7,81 8,07 8,12 8,34 8,35

2014 61,7 % 11,3 % 19,9 % 7,2 %

2013 55,9 % 11,9 % 23,8 % 8,4 %

2012 50,8 % 11,9 % 28,5 % 8,8 %

2011 47,7 % 11,1 % 32,4 % 8,8 %

2010 41,8 % 10,8 % 37,6 % 9,8 %

0 % 20 % 40 % 60 % 80 % 100 %

Мobile-mobile Мobile-others Fixed-fixed Fixed-others



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The increase of the share of traffic generated in mobile networks as related to fixed networks re-flects the global trend in the recent years of traf-fic migration from fixed to mobile networks. This trend occurred due to the advantages of mo-bile service: accessibility everywhere, mobility and possibility, with the increasing adoption of smartphones, to access the Internet via mobile

phone, which is not possible with a fixed termi-nal telephone.

1.5 Dynamics of investmentsIn 2014, the total volume of investments in the EC sector increased 84%: from 1,29 billion lei, in 2013, to 2,37 billion lei, in 2014 (Chart 9).

Chart 9 Evolution of investments in EC sector (million lei)Source: ANRCETI

The most significant volume of investments was directed to the development of mobile commu-nications networks. Their total volume grew al-most three times: from 656 million lei, in 2013, to 1,7 billion lei, in 2014. Biggest part of the amount – about 1 billion lei – was disbursed by the three mobile communications providers (Orange Mol-dova, Moldcell and Moldtelecom) to the state budget, for the new 800 MHz, 900 MHz and 1800 MHz spectrum licenses, to be used in the provi-sion of public mobile terrestrial mobile commu-nications services, for a 15-year timeframe. Once

being awarded the licenses, the three providers intensified the investment process in their mo-bile networks, in particular for the development of 3G/4G networks.

According to the statistical data, presented by the providers, the investments in the fixed net-works increased 3,7% over 2013 and made up 625,3 million lei, the rate of growth on this mar-ket being lowest in 2014. Investments in broad-casting networks increased 27,5% up to 41,5 mil-lion lei.

2010 1.726

2011 1.810

2012 1.743

2013 1.291

2014 2.375

0 500 1.000 1.500 2.000 2.500



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The data from the Chart above show that about 3/4 of the total investments in EC sector went to mobile networks and 1/4 – to fixed and broad-casting networks. It is notable that in 2014 the investments – revenue ratio in EC sector was 35% (average of the last five years - 28%). This means that on average, per every 100 lei gener-ated by electronic communications revenue, 35 lei were re-invested.

When examining this indicator per network, we find that in 2014 the ratio investments–revenue for mobile networks was highest - 46% (average of the last five years - 30%). The ratio investments - revenue for fixed networks was 31% (average in the last five years - 29%), and for broadcast-ing networks - about 7% (average in last years - about 8%).

Chart 10 Evolution of investments, depending on types of networks (million lei)Source: ANRCETI

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Broadcasting networks Fixed networks Mobile networks Total investments

1.726

941

752

33,5 60,7 66,4 32,5 41,5

617 536

1.132 1.140

656

603

1.709

625

1.810 1.743

1.291

2.375

Mobile Telephony2National Regulatory Agency for Electronic Communications and Information Technology of the Republic of Moldova


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2 Mobile Telephony

2.1 Dynamics of the marketIn 2014, the revenues from mobile telephony services, for the first time since their launch, dropped 1,1% compared to 2013, and made up 3 billion 453,4 million lei. The revenues of Mold-cell increased 4,3% up to 929 million lei, the ones

of Orange Moldova dropped 2,7 % and consti-tuted 2,4 billion lei, while the revenues of Mold-telecom dropped 7,4% and made up 122,9 mil-lion lei (Chart 11).

Chart 11 Evolution of revenues obtained by mobile telephony operators (million lei)Source: ANRCETI

The table below represents the break-down of revenues per wholesale and retail mobile markets (individuals and businesses).

Table 1 Revenues on wholesale and retail mobile markets

2011 2012 2013 2014 Change 2013-2014

Revenues wholesale market 1.112,15 1.161,64 1.152,04 1.264,32 9,7%Revenues retail market: 2.215,25 2.322,82 2.270,03 2.120,63 -6,6%

including individuals 1.859,76 1.788,49 1.871,32 1.793,48 -4,2%including businesses 355,48 457,05 398,71 327,14 -17,9%

Revenues from other services 107,52 0,31 69,18 68,39 --Source: ANRCETI

2 The wholesale market includes interconnection services, offered to other EC providers: call/SMS/Internet termination services, traffic transit services, infrastructure access services, etc.3 The retail market includes services provided to end users: individuals and businesses.

Data from the table show that about 1/3 of the total revenues (37%) were generated on the wholesale market2 and 2/3 - on the retail mar-ket3. The revenues generated from individuals made more than half of total mobile revenues

market (52%) or 85% of the retail market. As for the dynamics revenues generated by business-es, the findings are that they paid for mobile ser-vices 17,9% less than in 2013, although the voice traffic voice volume increased about 10%.

90,9

825,

4

2.44

3,2

106,

9

884,

1

2.44

3,9

122,

0

881,

3

2.48

1,5

132,

6

890,

7

2.

467,

9

122,

9

929,

0

2.40

1,5

2010 2011 2012 2013 2014

Moldtelecom Moldcell Orange Moldova Total revenues

4.000

3.500

3.000

2.500

2.000

1.500

1.000

500

0

3.359,6 3.434,9 3.484,8 3.491,3 3.453,43.000

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This is due to the fact that businesses apply technical solutions enabling them to make cheaper calls (internal PBX with SIM cards) or corporate web solutions to communicate via the Internet at low cost or even free (Skype for

Business, etc.). Revenues decrease is due to the fact that mobile operators have reduced rates per minute / MB in their new tariff plans in loyalty programs or in new service package (bundle).

Table 2 Revenues on retail market: from postpaid and pre-paid cards

2011 2012 2013 2014 Change 2013-2014

Revenues postpaid 1.135,96 1.275,32 1.225,63 1.162,28 -5,2%Revenues prepaid 1.079,29 1.047,50 1.044,40 958,35 -8,2%

Source: ANRCETI

The data from the table show that the amount of revenues generated from postpaid SIM were higher (55%) than the revenues from pre-paid SIM owners, although their share in the structure of mobile users is much bigger (78%) than the share of pre-paid SIM owners.

Following this evolution, the monthly average

revenue per mobile user (ARPU) decreased com-pared to 2013 by 4,5% and made up 65,1 lei (Chart 12). The highest ARPU was recorded by Orange Moldova – 79,9 lei. The ARPU of Mold-cell was 49,7 lei and the ARPU of Moldtelecom – 29,2 lei. The average revenue per individual user4 constituted 43,1 lei and per business user5 – 116,6 lei.

4 Average bill value paid by an individual user, VAT excluded.5 Average bill value paid by a business, VAT excluded.

Chart 12 Evolution of average monthly revenue per mobile user - ARPU (lei)Source: ANRCETI

2.2 End users and penetration rates

In 2014, for the first time since mobile servic-es were launched, the number of mobile users dropped 1,3% compared to 2013 and totaled 4

million 373 thousand. In this timeframe, the mo-bile telephony penetration rate was 122,9%, de-creased by 1,6 p.p. (Chart 13).

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100

180

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140

12 0

0

111,

9

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In comparison with the situation in other countries/communities, the mobile telepho-ny penetration rate in the Republic of Mol-dova (Chart 14) exceeds the global average (95,5%) by 27,4 p. p. This indicator is 3,7 p.

p. lower than in Romania and 15,2 p.p. lower than in Ukraine. Also, this indicator is 1,8 p. p. lower than the average in EU states (124,7%) and 17,7 p. p. lower than the average in CIS countries (140,6%).

6 Statistical data from 2013 ITU Report.7 According to ANRCETI methodology, active users are those users who consumed and paid for at least one service within the last three months before the statistical data were reported.

Chart 13 Number of users (thousand) and mobile penetration ratesSource: ANRCETI

Chart 14 Mobile telephony penetration rates6 in R. Moldova and other countries/communitiesSource: ANRCETI

As per 31.12.2014, 85,5% of the total users of mobile telephony services were active7 users, while 14,55% - passive users (Chart 15).

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Number of users Penetration

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120 %

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85,4 %100,8 %

114,6 %124,5 % 122,9 %

160 %

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100 %

180 %

160 %

140 %

12 0 %

0 %

88,7

%

95,5

%

95,5

%

98,5

%

113,

7 %

115,

0 %

118,

8 %

119,

0 %

122,

9 %

122,

9 %

123,

8 %

124,

7 %

126,

6 %

138,

1 %

140,

6 %

145,

2 %

150,

0 %

152,

8 %

158,

9 %

159,

7 %

Chin

a

Glob

al

USA

Fran

ce

Neth

erla

nds

Geor

gia

Japa

n

Bela

rus

Germ

any

R. M

oldo

va

Grea

t Brit

ain UE

Rom

ania

Ukra

ine

CIS

Bulg

aria

Pola

nd

Russ

ia

Ital

y

Esto

nia



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


The share of subscription mobile telephony us-ers was 21,8%, pre-paid users – 78,2% (Chart 16). The share of pre-paid cards in the structure of

1,41 million mobile telephony users have accessed the Internet via mobile devises through 2G/3G/4G networks, as an additional service to the voice service. At the same time, these users generated 2,1 million GB mobile broadband traffic, while the average monthly Internet consumption per user (AUPU) was 127 MB, increased by 157%.

mobile telephony users is close to the value of this indicator at global level. (about 77%, Source: GSMA).

2.3 Evolution of voice traffic

In 2014, the total volume of voice traffic in mobile telephony networks increased 7,8% over 2013 and exceeded 6,09 billion minutes. The traffic to mo-bile networks increased 62,14% up to 829,5 million minutes, while the in-network traffic increased 4,3

Chart 15 Structure of the market, by types of users (active/passive)Source: ANRCETI

Chart 16 Structure of the market by types of users (pre-paid/post-paid)Source: ANRCETI

100 %

80 %

60 %

40 %

2 0 %

0 %

80,6

%

19,4 %

89,7

%

10,3 %

87,8

%

12,2 %

83,4

%

16,6 %

85,5

%

14,5 %

2010 2011 2012 2013 2014

Active users Passive users

100 %

80 %

60 %

40 %

2 0 %

0 %

72,3

%

27,7 %

69,5

%

30,5 %

73,7

%

26,3 %76

,1 %

23,9 %

78,2

%

21,8 %

2010 2011 2012 2013 2014

Pre-paid users Post-paid users



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


The MoU indicator (average minutes of use per user per month) increased 5,4% or 11 minutes and made up 211 minutes (3 hours and 31 min-utes). For Orange Moldova this indicator in-

2.4 Rates of radio signal coverage

According to the data submitted by the three mobile operators, as per 31.12.2014,

creased from 259 to 266 minutes, for Moldcell – from 125 to 149 minutes, while for Moldtelecom the indicator dropped from 121 to 102 minutes (Chart 18).

Orange Moldova provided 99% of 2G terri-tory coverage, Moldtelecom (CDMA2000 1x in 450 MHz) –98,07% and Moldcell – 97,36% (Chart 19).

Chart 17 Evolution of voice traffic in mobile networks (million minutes)Source: ANRCETI

Chart 18 Evolution of MoU indicator (minutes)Source: ANRCETI

% up to 4,3 billion minutes. The international traf-fic dropped 7,9% and made up 586,5 million min-

utes. The traffic to fixed networks dropped 1,2% and made up 349,9 million minutes (Chart 17).

5.000

4.500

4.000

3.500

3.000

2.500

2.000

1.500

1.000

500

0

274,

35

340,

29

552,

47

2.93

4,51

261,

74

361,

74

620,

22

3.50

0,03

303,

36

362,

65

657,

73

3.76

9,29

354,

25

511,

59

636,

72

4.14

8,44

349,

96

829,

50

586,

46

4.32

6,17

2010 2011 2012 2013 2014 Traffic to fixed networks Traffic to other mobile networks International traffic In-network traffic

300

250

200

150

100

50

0

147

171

247

220

130

168

258

221

127

133

261

204

121

125

259

200

102

149

266

211

2010 2011 2012 2013 2014 MoU Moldtelecom MoU Moldcell MoU Orange Average MoU



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


In terms of 3G territory coverage, as per 31.12.2014, Orange Moldova provided 99%,

Moldtelecom– 91,40% and Moldcell - 77,71% (Chart 21).

In terms of 2G population coverage, Orange Mol-dova reported 99% coverage at the end of 2014,

Moldtelecom - 98,38% and Moldcell – 96,82% (Chart 20).

Chart 19 Rate of 2G territory coverage (%)Source: ANRCETI

Chart 20 Rate of 2G population coverage (%)Source: ANRCETI

100

95

90

85

80

99,0

0

97,0

0

97,2

2

99,0

0

97,7

8

97

,35

99,0

0

98,0

7

97,3

5

99,0

0

98,0

7

97,3

6

99,0

0

98,8

7

97,3

6

2010 2011 2012 2013 2014 Orange Moldova Moldtelecom Moldcell

100

95

90

85

80

99,5

0

94,6

0

96,8

1

99,0

0

98,6

2

96,8

1

99,0

0

98,7

9

96,8

2

99,0

0

99,0

0

96,8

2

99,0

0

98,3

8

96

,82

2010 2011 2012 2013 2014 Orange Moldova Moldtelecom Moldcell



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


The data from the charts above show that Mold-telecom significantly increased its 3G coverage rate, which is due to the implementation of 3G services in 900 MHz spectrum.

As for 4G/LTE population coverage, at the end of 2014 Orange Moldova provided 33% coverage rate, Moldcell – 14% (Chart 23).

The data regarding 3G population coverage show that in 2014 the highest coverage rate - 99% - was provided by Orange Moldova, fol-

lowed by Moldtelecom - 96,5% and Moldcell – 62% (Chart 22).

Chart 21 Rate of 3G territory coverage (%)Source: ANRCETI

Chart 22 Rate of 3G population coverage (%)Source: ANRCETI

100

80

60

40

20

0

98,0

0

77,6

0

72,7

0

99,0

0

80

,40

75,8

9

99,0

0

80,4

0

77,7

1

99,0

0

91,4

0

77,7

1

2010 2012 2013 2014

Orange Moldova Moldtelecom Moldcell

100

80

60

40

20

0

99,0

0

59,0

0

51,1

5

99,0

0

81,2

0

57,5

7

99,0

0

81,2

0

62,0

1

99,0

0

96,5

0

62

,01

2010 2012 2013 2014

Orange Moldova Moldtelecom Moldcell



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


Chart 23 Rate of 4G/LTE population coverage (%)Source: ANRCETI

35

30

25

20

15

10

5

0

16

13

28

14

33

14

2012 2013 2014

Orange Moldova Moldcell

3

Fixed Telephony3National Regulatory Agency for Electronic Communications and Information Technology of the Republic of Moldova


Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%

23Evolution of Electronic Communications Market in 2014

3Fixed Telephony

3.1 Dynamics of the marketIn 2014, the total volume of fixed telephony rev-enue decreased 10,1% compared to 2013 and to-taled over 1 billion lei. The sales of the incumbent

Moldtelecom dropped 11,1% and constituted 942,9 million lei, the ones of alternative providers grew 8,9% and made up 59,3 million lei (Chart 24).

Chart 24 Evolution of revenues of fixed telephony providers (million lei)Source: ANRCETI

Chart 25 Evolution of average monthly revenue per subscriber - ARPU (lei)Source: ANRCETI

The average monthly revenue per user (ARPU) of fixed telephony operators 68,5 lei, 10,6% decrease compared to 2013. For Moldtelecom the ARPU was 71,0 lei (decrease 10,1%), for al-ternative providers – 43,7 lei (decrease 9,1%).

The average monthly revenue per individual users was 31,5 lei (7 lei or 18% decrease), per business - 92,9 lei (12,2 lei or 11,6% decrease) (Chart 25).

2.000,00

1.800,00

1.600,00

1.400,00

1.200,00

1.000,00

800,00

600,00

400,00

200,00

0,00

1.89

3,64

23,0

3

1.61

9,45

27,5

7 1.11

7,27

41,6

0 1.06

0,31

54,4

2 942,

90

59,2

6

2010 2011 2012 2013 2014

Moldtelecom Alternative providers Total revenue

1.916,67

1.647,02

1.158,87 1.114,731.002,15

160

140

120

100

80

60

40

20

0

138,

9

141,

3

58,5

117,

3

119,

9

51,1

81,0

82,7

51,3 76

,5

79,0

48,0 68

,5

71,0

43,7

2010 2011 2012 2013 2014 Average ARPU Moldtelecom Alternative operators



Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%


3.2 Subscribers and penetrationThe number of subscribers to fixed-telephony8 services dropped 3,2 thousand or 0,3%, and made 1 million 218,3 thousand, of which individ-ual subscribers - 88,9% and businesses - 11,1%. By place of residence, 675 thousand subscribers (55,4%) were urban residents and 543,3 thou-sand (44,6 %) - rural.

In 2014, the subscriber base of Moldtelecom decreased by 6,7 thousand customers, while the subscriber base of al-ternative providers increased by about 13,5 thousand. As per 31.12.2014, Moldtelecom had 1 million 98,4 thousand subscribers, alternative providers – 119,9 thousand. The fixed telephony service penetration rate per 100 popula-tion decreased 0,09 p. p. and showed 34,23% (Chart 26). For urban areas, this indicator was 45,3%, for rural – 26,2%.

Chart 26 Number of subscribers (thousand) and fixed telephony penetration ratesSource: ANRCETI

Chart 27 Fixed telephony penetration rates in Moldova and other countries/communitiesSource: ANRCETI

As per 31.12.2014, the market share of the in-cumbent Moldtelecom, by subscribers, was 90,2%, six alternative providers (Starnet Solu-tions, Sun Communications, Orange Moldova, Arax – Impex, Riscom and Moldova Railway) had market shares between 0,23% and 3,5%, the rest of alternative providers – smaller market shares.

Compared to the situation in other states/com-munities, in 2014 the fixed telephony penetra-tion rate in the Republic of Moldova was higher than in Ukraine and Romania by 8 p. p. and by 12 p. p. accordingly. At the same time, this indica-tor was 5 p. p. lower than the 39% average in EU countries (Chart 27).

1.400

1.200

1.000

80 0

60 0

40 0

20 0

0

1.16

0,9

1.17

9,9

1.20

5,8

1.22

1,5

1.21

8,3

2010 2011 2012 2013 2014

Fixed telephony subscribers Penetration per 100 persons

40 %

35 %

30 %

25 %

20 %

15 %

10 %

32,54 % 33,11 % 33,87 % 34,32 % 34,23 %

60 %

50 %

40 %

30 %

20 %

1 0 %

0 % 13,9

%

15,8

%

19,3

%

21,8

%

24,9

%

26,2

%

26,9

%

27,7

%

28,5

%

33,1

%

34,2

%

34,3

% 39,2

%

42,2

%

42,5

% 47,8

%

50,4

%

52,9

% 58,9

%

60,8

%

Pola

nd

Glob

al

Chin

a

Rom

ania CIS

Ukra

ine

Bulg

aria

Geor

gia

Russ

ia

Esto

nia

R. M

oldo

va

Ital

y EU USA

Neth

erla

nds

Bela

rus

Japa

n

Grea

t Brit

ain

Germ

any

Fran

ce

8 Calculations include fixed subscriber lines, for VoIP services – telephone numbers allocated to end users.



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


3.3 Evolution of trafficThe total volume of traffic in fixed telephony networks dropped 15,7% compared to 2 billion 262 million minutes. All types of traffic gener-ated in fixed telephony networks were under

decline. Thus, the voice traffic to international destinations decreased about 26,6% (to 39,1 mil-lion minutes), to mobile networks - 13% (to 98,3 million minutes) and the interconnection traffic – 12,7% (to 463,1 million minutes). (Chart 28).

Chart 28 Evolution of traffic in fixed telephony networks (million minutes)Source: ANRCETI

Chart 29 Evolution of MoU indicator (minutes)Source: ANRCETI

In the reporting timeframe, the MoU indicator (average number of minutes spent by a subscriber) on the fixed te-lephony market dropped 16,6% compared to 2013 and equaled 250 minutes ( 4 hours and 10 minutes) (Chart 29).

4.000

3.500

3.000

2.500

2.000

1.500

1.000

500

0

81,3

1

340,

29

552,

47

3.70

4,02

72,8

9

120,

07

515,

83

3.32

0,37

62,9

3

118,

71

51

4,99

3.01

1,30

53,2

0

113,

02

530,

32

2.68

4,53

39,0

6

98,2

8

463,

14

2.26

2,00

2010 2011 2012 2013 2014 Outgoing international trafic Traffic to mobile networks Interconnection traffic Traffic to fixed telephony networks

600

500

40 0

30 0

200

10 0

0

486

199

423

166

364

111

319

87

270

67

2010 2011 2012 2013 2014

MoU Moldtelecom Alternative operators MoU Average MoU

550

450

350

250

150

50

-50

478

413

350301

250

3

Fixed and Mobile Internet Access4National Regulatory Agency for Electronic Communications and Information Technology of the Republic of Moldova


Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%


4 Fixed and Mobile Internet Access

4.1 Market featureIn 2014, the capacity of Internet access chan-nels from R. Moldova increased 21,6% over 2013, and reached 239,7 Gbps. This evolution was caused by the increase of investments and development of fiber and 4G networks, growth of the number of broadband users and speeds, offered by providers in their tariff plans, more frequent Internet access from dif-ferent devices (computer, laptop, smartphone,

tablet), including for viewing video content of increasing resolution, etc.

According to the specialized site www.netindex.com, as per 31.03.2015, the average fixed broad-band access speed (download) in Moldova was 41,5 Mbps (increased over 10 Mbps in one year), the global average being 22,6 Mbps, while the upload average speed – 35,3 Mbps, the average in the world being 10,2 Mbps.

Table 3 Average speeds of fixed and mobile broadband access, according to the data of netindex.com site

Fixed broadband access Mobile broadband accessDownload (Mpbs) Upload (Mpbs) Download (Mpbs) Upload (Mpbs)

Republica Moldova 41,5 35,3 10,4 2,9Global 22,6 10,2 12,1 4,9UE 28,9 9,9 16,9 6,4

Source: ANRCETI

The data in the table show that the average speeds of fixed broadband access in Moldo-va are higher than the global average and EU average. This is explained by the fact that in Moldova, along with the development of fiber networks (FTTB and FTTH), which enable up to 1Gbps access speeds, users commonly choose high-speed fixed broadband (over 30Mbps and above 100 Mbps) and less frequently - mobile broadband because the access speeds for con-nections of this type are lower.

4.2 RevenuesIn 2014, 71 providers offered fixed Internet access services and three – mobile Internet services. Ac-cording to the data reported by those providers, the total volume of sales on the market for fixed and mobile Internet access increased 18% over 2013 and exceeded 1,4 billion lei, which makes over 20% of electronic communications market value. The most significant increase of revenues - 29% - occurred on the market for mobile Inter-net access services via mobile phones ( addons for mobile voice users).

Table 4 Revenues from fixed and mobile Internet access

2011 2012 2013 2014Fixed Internet access (broadband) 540,2 652,6 785,3 927,7Mobile Internet access: 256,4 383,4 407,9 482,2Including revenues from mobile voice users9 (as addons) 103,3 113,5 148,2 190,9Including revenues from dedicated mobile broadband access 153,1 269,9 259,7 291,3Total revenues from fixed and mobile Internet access 796,6 1.036,0 1.193,2 1.409,8Share of revenues from fixed broadband access (%) 67,8% 63,0% 65,8% 65,8%Share of revenues from mobile broadband access (%) 32,2% 37,0% 34,2% 34,2%

Source: ANRCETI

9 Veniturile din serviciile de acces la Internet prin intermediul tefefonului mobil sunt prezentate cu titlu informativ pentru a arăta care sunt veniturile totale pe piaţa accesului la Internet. Adiţional, aceste venituri se regăsesc ca parte componentă a volumului total de venituri înregistrate pe piaţa de Mobile telephony, dat fiind că sunt venituri din servicii adiţionale a serviciului de bază – Mobile telephony.



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


4.2.1 Dynamics of revenues from fixed broad-band access services

The data reported by fixed broadband service providers show that the total volume of sales on this market increased 18,1% over 2013 and made

up 927,66 million lei. The turnover of Starnet Solu-tions LLC increased 35,6% and reached 208,07 million lei, the one of Sun Communications LLC – 23,5% up to 36,14 million lei, of Moldtelecom - 15,0% and made up 603,34 million lei (Chart 30).

Chart 30 Evolution of revenues collected by fixed broadband providers (million lei)Source: ANRCETI

Chart 31 Market shares of fixed broadband providers, by revenuesSource: ANRCETI

The data in the Chart above show that in recent five years, some of the above-mentioned provid-ers strengthened their positions. While the market share of Moldtelecom (2/3 of the market) almost stays unchanged, Starnet Solutions LLC and Sun

The average monthly revenue per user (ARPU) of fixed broadband providers increased 6,9% over 2013, making up 160,5 lei (Chart 32). The ARPU

Communications LLC expanded their market shares (Chart 31). The expansion of these providers’ market shares was a result of major investments in network and service development, a factor that ensures growth of revenues from providing these services.

per individual subscriber was 146,3 lei, while the ARPU per business subscriber was 605,1 lei.

600

500

400

30 0

20 0

10 0

0

11,9

4

75,1

7

66,6

3

277,

46

13,4

5

103,

12

76,1

4

347,

52

21,6

0

120,

02

78

,98

43

1,98

29,2

6

153,

40

77,8

5

524,

75

36,1

4

208,

07

80,1

1

603,

34

2010 2011 2012 2013 2014

Sun Communications Starnet solutions Other providers Moldtelecom Total

1.000

900

800

700

600

500

400

300

200

100

0

431,21

540,24

652,58

785,26

927,66

100 %

80 %

60 %

40 %

2 0 %

0 %

64,3

%

17,4 %

15,5 %2,8 %

64,3

%

19,1 %

14,1 %2,5 %

66,2

%

18,4 %

12,1 %3,3 %

66,8

%

19,5 %

9,9 %3,7 %

65,0

%

22,4 %

8,6 %3,9 %

2010 2011 2012 2013 2014

Moldtelecom Starnet Solutions Sun Communications Other operators



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


This indicator increased due to the growing number of end users prefer the advantageous packages proposed by providers that include free or at reduced rates (TV and free HD channels included, mobile broadband traffic at reduced rates, voice fixed-mobile minutes at discounted rates) and high speed broadband access.

4.2.2 Dynamics of revenues from mobile Inter-net access services

In 2014, the total revenues collected by the three

mobile communications providers from mobile Internet access services (including dedicated broadband access and Internet access via mo-bile phone as additional service) increased 18% over 2013 up to 482,16 million lei. This is 1/3 of the cumulated volume of revenues collected on the market for broadband access. Orange Mol-dova collected 290 million lei revenues, Mold-cell– 106,2 million lei and Moldtelecom – 86,1 million lei (Chart 33).

Chart 32 Evolution of average monthly revenue per user (ARPU) of fixed broadband access services (lei)Source: ANRCETI

Chart 33 Revenues of mobile Internet access operators (million lei)Source: ANRCETI

160

140

120

100

80

60

40

20

0

154,5 154,1141,0 150,1 160,5

2010 2011 2012 2013 2014

350

300

250

200

15 0

10 0

5 0

0

218,8

76,0

88,6

247,5

91,1

69,3

289,9

106,2

86,1

2012 2013 2014

Orange Moldova Moldcell Moldtelecom Total

600

500

400

300

200

100

0

383,4407,9

482,2



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


The largest share on the market for mobile Inter-net access by turnover – 60,1% - was held by Or-ange Moldova, followed by Moldcell with 22,3% and Moldtelecom – 17,9% (Chart 34). Compared with 2013, the market shares of the three pro-

viders have significantly changed. The market shares of Orange Moldova and Moldcell slightly dropped against a slight increase of Moldtele-com’s share.

Chart 34 Market shares of mobile Internet access providers, by turnoverSource: ANRCETI

Chart 35 Revenues of dedicated mobile broadband providers (million lei)Source: ANRCETI

The size of Orange Moldova’s market share is due to more extended population and territory coverage by its 3G and 4G networks and bigger mobile telephony subscription base.

Statistical data also show that the total of rev-enues collected by the three mobile operators

from dedicated mobile broadband access ser-vices increased 12,2% over 2013 up to 291,3 mil-lion lei. The volume of sales for these services by Orange Moldova was 108,1 million lei, Moldcell– 103 million lei and Moldtelecom – 80,3 million lei (Chart 35).

100 %

80 %

60 %

40 %

2 0 %

0 %

57,1

%

19,8 %

23,1 %

60,7

%

22,3 %

17,0 %

60,1

%

22,0 %

17,9 %

2012 2013 2014

Orange Moldova Moldcell Moldtelecom

75,8

10,8

7,8

113,

9

39,2

22,6

112,

1

73,1

44,6

109,

1

88,0

62,6 10

8,1

103,

0

80,3

2010 2011 2012 2013 2014

Orange Moldova Moldcell Moldtelecom Total revenue

350

300

250

200

150

100

50

0

140

120

100

80

60

40

20

0

94,4

175,7

229,8259,7

291,3



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


In the reporting year, the largest share on the market for dedicated mobile broadband access, by turnover – 37,1% - was held by Orange Moldova. Moldcell’s market share was 35,3% and Moldtelecom’s – 27,6%

(Chart 36). The data in the figure below shows that in the recent five years the market share of Orange Moldova declined, while Moldcell and Moldtelecom strengthened their positions on this market.

Chart 36 Market shares of dedicated mobile broadband providers, by turnoverSource: ANRCETI

Chart 37 Average monthly revenue per user (ARPU) of dedicated mobile broadband providers (lei)Source: ANRCETI

The average monthly revenue per user (ARPU) for dedicated mobile broadband, decreased 12%, to 86,8 lei. Moldtelecom had the highest

ARPU - 106,5 lei, followed by Moldcell - 92,7 lei, Orange Moldova – 72,5 lei (Chart 37).

The decline of the ARPU indicator in the recent three years was caused by the reduction of price per GB in-cluded in the subscription, by the launch of prepaid dedicated mobile broadband offers, the broadband access option included in the bundled service packag-es, free Internet traffic offered within loyalty programs and launch of special tariff options: free Internet traffic

at nighttime or weekends and free traffic offered for purchase of more expensive handsets/tablets.

4.3 Subscribers and Internet access penetration rates

In 2014, the number of fixed broadband subscrib-ers increased 9% over 2013 and reached 509,2

100 %

80 %

60 %

40 %

2 0 %

0 %

80,3 %

11,4 %

8,3 %

64,8 %

22,3 %

12,9 %

48,8 %

31,8 %

19,4 %

42,0 %

33,9 %

24,1 %

37,1 %

35,3 %

27,6 %

2010 2011 2012 2013 2014

Orange Moldova Moldcell Moldtelecom

85,6

27,7

104,

3 114,

7

14,3

125,

7

126,

8

154,

5

112,

7

109,

7

98,8

89,5

106,

5

92,7

72,5

2010 2011 2012 2013 2014

Moldtelecom Moldcell Orange Moldova Average ARPU

140

120

100

80

60

40

20

0

160

140

120

100

80

60

40

20

0

78,1

118,8126,3

98,886,8



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


thousand, while the number of mobile Internet access users (via mobile phone, modems - 2G, 3G, 4G) increased 3,7% and exceeded 1 million 708,4 thousand. The analysis of the increase of fixed and

mobile connections in absolute values shows that within one year the number of mobile Internet access users increased 61,2 thousand, while the number of fixed broadband users - 42,1 thousand.

Table 5 Subscribers to fixed and mobile broadband services

2010 2011 2012 2013 2014 Schimbare2014-2013

1. Fixed broadband subscription 269.126 355.099 417.177 467.072 509.195 +9,0%

2. Mobile Internet access subscribers: - 409.760 1.536.074 1.647.262 1.708.430 +3,7%

2.1 including users of mobile Internet access 863.839 1.032.931 1.208.429 +17,0%

2.1.1 including subscribers dedicated mobile broadband 121.599 124.813 178.459 259.613 299.518 +15,4%

2.1.2. including broadband users, voice users - 685.380 773.318 908.911 +17,5%

Mobile Internet access users via mobile phone (2G, 3G, 4G) - - 1.357.615 1.387.649 1.408.912 +1,5%

1. Fixed broadband penetration 7,5% 10,0% 11,7% 13,1% 14,3% +1,2 p.p.

2. Mobile Internet penetration 43,2% 46,3% 48,0% +1,7 p.p.

2.1 including mobile broadband penetration 24,3% 29,0% 33,9% +4,9 p.p.

2.1.1 including dedicated mobile broadband penetrations 3,4% 3,5% 5,0% 7,3% 8,4% +1,1 p.p.

Source: ANRCETI

The data from the chart below show that the number of mobile broadband (3G/4G) users in-creased 17% or 175,5 thousand users, which in-dicates to the fact that Moldovan people prefer

to access the Internet via mobile phone (once new handsets are purchased, most of them - smartphones) or tablets (Chart 38).

Chart 38 Structure of fixed and mobile broadband usersSource: ANRCETI

1.600

1.200

800

40 0

0

863,8

417,2

1.032,9

467,1

1.208,4

509,2

2012 2013 2014

Mobile broadband Fixed broadband



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


In the reporting year, the mobile broadband penetration rate was the highest - 48% (increase 1,7 p. p.). This is due to the fact that the mobile penetration rate is rather high in Moldova. How-ever, the fixed broadband penetration rate was 14,3% (increase 1,2 p.p.), while mobile broad-

band access – 33,9% (increase 4,9 p.p.) (Chart 39). The penetration rate of dedicated mobile broadband services was 8,4 (increase 1,1 p.p.), which is equal to the rate in Romania.

Chart 39 Evolution of Internet access penetration rates (per 100 inhabitants)Source: ANRCETI

Chart 40 Market shares of fixed broadband providers, by number of subscribersSource: ANRCETI

4.3.1 Subscribers, penetration rates and technologies of fixed Internet access

In 2014, the market shares of the main Internet access (broadband) service providers, by num-ber of subscribers, did not significantly change.

Moldtelecom had the highest share - 66,6%, fol-lowed by Starnet Solutions - 19,9%, Sun Com-munications - 6,4%, other providers shared 7%. (Chart 40).

50,0 %

40,0 %

30,0 %

20,0 %

1 0,0 %

0,0 % 2010 2011 2012 2013 2014

Mobile Internet access Mobile broadband access Fixed Internet access Mobile dedicated broadband access

100 %

80 %

60 %

40 %

2 0 %

0 %

70,4

%

18,0 %

8,3 %3,29 %

69,5

%

17,6 %

8,1 %4,79 %

68,4

%

17,6 %

8,4 %5,69 %

68,1

%

18,4 %

7,5 %5,99 %

66,6

5 %

19,88 %

7,03 %6,44 %

2010 2011 2012 2013 2014

Moldtelecom Starnet Solution Sun Communications Other providers



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


The penetration rate of fixed broadband services in Moldova exceeds 4,5 p. p. the global average (9,8%). This indicator is by 5,5 p. p. higher than the one recorded in the Ukraine (8,8%) and by 3

p. p. lower than the one in Romania (17,3%). The value of this indicator is similar to the average in the CIS countries and by 12,3 p. p. lower than the average 26,6 % in EU states. (Chart 41).

Chart 42 Number of fixed broadband subscribers, by technologySource: ANRCETI

In 2014, the most frequently used technologies of fixed broadband access were FTTx and xDSL. The number of subscribers connected to the Internet by means of FTTx increased 13,6% and reached 259,9 thousand, the num-

ber of those connected by means of coaxial cable (DOC-SIS technology) - 26,8% and exceeded 35,8 thousand, while the number of subscribers connected by means of xDSL - 2% and totaled 211,8 thousand (Chart 42).

10 Statistical data from ITU 2013 Report.

Chart 41 Fixed broadband access penetration rates10 in Moldova and other countries/communitiesSource: ANRCETI

40 %

30 %

20 %

1 0 %

0 % 8,8 % 9,

8 % 10,2

% 13,6

%

14,3

%

14,3

%

15,6

%

16,6

%

17,3

%

19,0

% 22,3

% 26,5

%

26,5

%

28,5

%

28,8

%

29,8

% 34,6

%

35,7

% 38,8

%

40,1

%

Ukra

ine

Glob

al

Geor

gia

Chin

a

R. M

oldo

va CSI

Pola

nd

Russ

ia

Rom

ania

Bulg

aria

Ital

y

Esto

nia EU USA

Japa

n

Bela

rus

Germ

any

Grea

t Brit

ain

Fran

ce

Neth

erla

nds

75,8

164.

675

95.2

29

16,2

51

196.

659

140.

964

23.4

82

203.

032

189.

321

28.2

59

207.

737

228.

781

35.8

38

211.

832

259.

890

2010 2011 2012 2013 2014

DOCSIS xDSL FTTx Total

500.000

400.000

300.000

200.000

100.000

0

300.000

250.000

200.000

150.000

100.000

50.000

0

269.126

355.099

417.177467.072

509.195



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


In the reporting timeframe, the share of FT-Tx-based connections 51,0%, increased 2 p. p.,

while the share of xDSL connections was 41,6%, down 2,9 p. p. (Chart 43).

Chart 43 Use of technologies for fixed broadband accessSource: ANRCETI

Chart 44 Structure of fixed broadband subscribers, by access speedSource: ANRCETI

The increase of the FTTx connections was gen-erated by the expansion of these networks in urban and rural areas of the country and the substitution of xDSL with FTTx connections, where such networks are available. The substitu-tion is determined by technological advantages (speed, quality) for Internet access via FTTx com-pared to xDSL-based access.

In terms of speed of fixed broadband Internet access, the data aggregated by ANRCETI show that, in accordance to the tariff plans chosen by subscribers, in 2014 4% had access to high speed Internet (100 Mbps), 37% - at speeds higher than 30 Mbps, 19% - at speeds of between 10 and 30 Mbps, 32% - at speeds of between 2 and 10 Mbps, and 8% - at speeds up to 2 Mbps (Chart 44).

100 %

80 %

60 %

40 %

2 0 %

0 %

35,4 %

61,2 %

0,63 %2,80 %

39,7 %

55,4 %

0,35 %4,58 %

45,4 %

48,7 %

0,32 %5,63 %

49,0 %

44,5 %

0,49 %6,05 %

51,0 %

41,6 %

0,34 %7,04 %

2010 2011 2012 2013 2014

FTTx xDSL DOCSIS Other

100 %

80 %

60 %

40 %

2 0 %

0 %2012 2013 2014

up to 2 Mbps 2-10 Mbps 10-30 Mbps 30-100 Mbps over 100 Mbps

37 %

4 %

19 %

32 %

8 %



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


Statistical data show that the number of high speed internet access connections is growing, which confirms that end users prefer high speed Internet access (over 30 and 100 Mbps).

Comparing the penetration rates of fast Internet access (over 30 Mbps) in Moldova and EU coun-tries from the Chart below, we find that the level in our country is 1.1 p.p lower than the average in EU countries and twice lower than the aver-age in Romania (Chart 45).

Chart 45 Penetration rates11 of high-speed fixed broadband access service (30 Mpbs up) – in Mol-dova and EU statesSource: ANRCETI

The territorial development of Internet access services at fixed locations in 2014 continued to be featured by a high concentration of subscribers in Chisinau municipality, which represent more than 41,3% of the total number of subscribers to these services. According to data presented by provid-

ers, 62,4% of the total number of subscribers to these services reside in urban areas and 37,6% - in rural. At the end of 2014, the penetration rates of fixed broadband access, per 100 households, in Chisinau, was 75,6% and in other administrative units - varied between 21 and 48% (Table no. 6).

11 Statistical data from ITU 2013 Report.

20 %

15 %

10 %

5 %

0 %

0,1 %

0,4 % 1,

5 % 3,2 % 3,

9 % 4,4 % 4,6 % 5,

2 %

5,3 % 5,6 % 6,

3 % 6,7 % 7,

7 % 8,3 % 8,3 % 8,7 %

8,7 % 10

,2 %

10,3

%

10,5

% 12,5

%

13,2

%

17,2

% 22,7

%

Ital

y

Cypr

us

Slov

enia

Fran

ce

Spai

n

Esto

nia

Czec

h Rep

ublic

R. M

oldo

va

Slov

akia

Germ

any EU

Finl

and

Pola

nd

Bulg

aria

Hung

ary

Grea

t Brit

ain

Luxe

mbu

rg

Port

ugal

Denm

ark

Rom

ania

Swed

en

Lith

uani

a

Neth

erla

nds

Belg

ium



Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%


Table 6 Fixed broadband access provided in administrative-territorial units of Moldova, as per 31.12.2014Source: ANRCETI

No.Administra-

tive-territorial unit

Total broadband subscribers

Broadband service pene-

tration per 100 households

Subscribers Share of broadband access technologies

xDSL FTTxCoaxial cable

Other tech-nologies

xDSL FTTxCoaxial cable

Other tech-nologies

1 Chisinau 210.595 75,55% 13.121 165.975 30.913 586 6,2% 78,8% 14,7% 0,3%

2 Balti 26.823 48,83% 4.400 20.976 1.439 8 16,4% 78,2% 5,4% 0,0%

3 Anenii Noi 9.473 34,95% 7.801 1.468 204 82,3% 15,5% 0,0% 2,2%

4 Basarabeasca 3.003 31,21% 2.651 352 0 88,3% 11,7% 0,0% 0,0%

5 Briceni 8.876 34,85% 6.811 2.065 0 76,7% 23,3% 0,0% 0,0%

6 Cahul 15.053 38,36% 9.699 5.164 166 24 64,4% 34,3% 1,1% 0,2%

7 Cantemir 6.174 33,90% 5.701 473 0 92,3% 7,7% 0,0% 0,0%

8 Calarasi 7.104 25,95% 4.938 2.161 5 69,5% 30,4% 0,0% 0,1%

9 Causeni 8.835 29,51% 8.071 763 1 91,4% 8,6% 0,0% 0,0%

10 Cimislia 6.406 33,19% 4.301 2.105 0 67,1% 32,9% 0,0% 0,0%

11 Criuleni 8.066 34,81% 6.865 1.200 1 85,1% 14,9% 0,0% 0,0%

12 Donduseni 3.993 22,28% 3.573 420 0 89,5% 10,5% 0,0% 0,0%

13 Drochia 9.201 27,99% 6.540 2.281 380 0 71,1% 24,8% 4,1% 0,0%

14 Dubasari 3.096 28,15% 3.036 58 2 98,1% 1,9% 0,0% 0,1%

15 Edinet 9.647 31,93% 5.695 3.952 0 59,0% 41,0% 0,0% 0,0%

16 Falesti 8.367 25,35% 5.956 2.410 1 71,2% 28,8% 0,0% 0,0%

17 Floresti 9.185 28,24% 6.332 2.650 203 68,9% 28,9% 0,0% 2,2%

18 Glodeni 6.193 28,85% 5.368 825 0 86,7% 13,3% 0,0% 0,0%

19 Hincesti 11.731 31,40% 8.597 3.134 0 73,3% 26,7% 0,0% 0,0%

20 Ialoveni 13.053 43,69% 7.571 4.630 851 1 58,5% 35,8% 6,6% 0,0%

21 Leova 5.242 31,03% 4.647 595 0 88,6% 11,4% 0,0% 0,0%

22 Nisporeni 5.072 24,60% 4.277 795 0 84,3% 15,7% 0,0% 0,0%

23 Ocnita 5.351 25,87% 4.897 454 0 91,5% 8,5% 0,0% 0,0%

24 Orhei 12.257 29,66% 7.542 4.711 4 61,5% 38,4% 0,0% 0,0%

25 Rezina 4.889 27,54% 3.343 1.545 1 68,4% 31,6% 0,0% 0,0%

26 Riscani 7.108 27,03% 4.692 2.416 0 66,0% 34,0% 0,0% 0,0%

27 Singerei 9.603 30,91% 6.430 3.173 0 67,0% 33,0% 0,0% 0,0%

28 Soroca 9.726 26,59% 5.738 3.987 1 59,0% 41,0% 0,0% 0,0%

29 Straseni 10.171 36,41% 7.199 2.818 154 70,8% 27,7% 0,0% 1,5%

30 Soldanesti 3.209 21,14% 3.068 140 1 95,6% 4,4% 0,0% 0,0%

31 Stefan Voda 6.600 28,38% 4.286 2.313 1 64,9% 35,0% 0,0% 0,0%

32 Taraclia 5.062 39,37% 4.570 492 0 90,3% 9,7% 0,0% 0,0%

33 Telenesti 6.204 25,72% 5.856 348 0 94,4% 5,6% 0,0% 0,0%

34 Ungheni 12.754 32,94% 6.303 6.450 1 49,4% 50,6% 0,0% 0,0%

35 Gagauzia 21.073 45,53% 11.942 9.128 3 56,7% 43,3% 0,0% 0,0%

Total 509.195 42,47% 211.817 262.427 33.749 1.202 41,6% 51,5% 6,6% 0,2%



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


4.3.2 Subscribers and penetration of dedicated mobile Internet access service

In 2014, the number of dedicated mobile In-ternet users increased 15,4 % over 2013, and

reached 299,5 thousand, while the penetration rate per 100 inhabitants grew 1,12 p. p. up to 8,41% (Chart 46).

Chart 46 Number of users (thousands) and dedicated mobile Internet penetration ratesSource: ANRCETI

Chart 47 Evolution of the number of users of dedicated mobile Internet access, per providerSource: ANRCETI

As per 31.12.2014, Orange Moldova had the big-gest number of users of dedicated mobile Inter-net – 132 thousand, followed by Moldcell - 102,2

thousand, and Moldtelecom - 65,3 thousand (Chart 47).

In 2014, the total traffic of dedicated mobile In-ternet services was 26 million 719 thousand GB,

while the monthly average Internet traffic per user (AUPU) was 8 GB.

71.7

48

40.7

88

9.06

3

79.2

14

21.8

18

23.7

81

86.5

81

57.0

21

34.8

57

116.

525

82.8

84

60.2

04

131.

998

102,

166

65.3

54

2010 2011 2012 2013 2014

Orange Moldova Moldcell Moldtelecom Total

300.000

250.000

200.000

150.000

100.000

50.000

0

140.000

120.000

100.000

80.000

60.000

40.000

20.000

0

121.599 124.813

178.459

259.613 299.518

121,60 124,81178,46

259,61299,52

2010 2011 2012 2013 2014

Number of users Penetration

9 %

8 %

7 %

6 %

5 %

4 %

3 %

2 %

1 %

0 %

350

300

250

200

150

100

50

0

3,41 % 3,51 %

5,01 %

7,29 %

8,41 %

Broadcasting and Retransmission of Audiovisual Programs

5National Regulatory Agency for Electronic Communications and Information Technology of the Republic of Moldova


Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%


5 Broadcasting and Retransmission of Audiovisual Programs

5.1 Dynamics of the marketIn 2014, the market for broadcasting and re-transmission of audiovisual programs was op-erated by 143 providers. The total volume of sales increased 4,9% over 2013 and reached 370,17 million lei. TV and radio broadcasting services had the biggest share – 56,2% (or 207,9 million lei) – in the structure of this mar-

ket, followed by pay TV - 43,8% (or 162,28 mil-lion lei) (Chart 48).

Compared to the situation of 2013, the revenues collected from pay TV services dropped 3,8%. The decline was caused mainly by the decrease of the number of subscribers to this service.

Chart 48 Evolution of revenues from broadcasting and retransmission of audiovisual programs (million lei)Source: ANRCETI

As a result of decline in the revenues collected by pay TV providers, the average monthly reve-

nue per user (ARPU) dropped (for four consecu-tive years), 2%, down to 48,25 lei. (Chart 49).

Chart 49 Evolution of average monthly revenue per user - ARPU (lei)Source: ANRCETI

115,

35

112,

68

112,

57

171,

38

162,

15

166,

81

184,

10

168,

74 207,

89

162,

28

2010 2011 2012 2013 2014

TV and radio broadcasting Pay TV Total

400

350

300

250

200

150

100

0

250

200

150

100

50

0

228,03

283,95328,96

352,84 370,17

60

50

40

30

20

1 0

0

40,97

58,7851,39 49,22 48,25

2010 2011 2012 2013 2014



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


Statistical data prove that average monthly reve-nues per user (ARPU) of the biggest providers on this market – Sun Communications and Moldtel-ecom – have been under decline for the recent three years. In 2014, the ARPU of Sun Commu-nications was 36,9 lei, the ARPU of Moldtelecom – 67,7 lei.

The big difference between the ARPUs of the two providers occurred due to the fact that Moldtel-ecom’s subscribers base consists exclusively of digital TV service-IPTV users, while the subscrib-ers base of Sun Communications includes both

digital TV and analog cable TV subscribers. Also, digital TV service subscriptions are more expen-sive for the reason that the image quality is high-er, the service includes additional functionality (missing with analogue TV), such as: choice of video content language, programs guides - EPG, video by request, video library, HD and 3D chan-nels, etc.

Like in the previous years, in 2014 the biggest shares of the pay TV market, by turnover were held by „Sun Communications – 28,5%, Moldtel-ecom – 26,3% and „A.M.T. – 4,1% (Chart 50).

Chart 50 Market shares of pay TV providers by turnoverSource: ANRCETI

5.2 Subscribers and penetration

In 2014, for the first time in the recent years, the number of pay TV subscribers decreased, 4,4% compared to 2013, and made up 274 thousand. The situation can be explained by the preference of many people to watch video content (includ-ing online TV) on a computer, laptop, tablet or smartphone. This fact was also confirmed by the data of ANRCETI’s survey in autumn 2014. Ac-cording to these data, 58% of Moldovans access the Internet to watch video content.

Statistical data show that most pay TV subscrib-ers - 81,9% - are urban residents, while 18,1%

- are rural residents. The concentration of sub-scribers in urban area, in particular in Chisinau, where 50% of subscribers are located, occurs due to the fact that in cities, there are more pay TV providers with attractive offers, including packages with Internet access and digital TV. The situation is different in rural areas. In big villages, commonly, there is one provider who offers 30-50 analog channels, while in smaller villages, there is no TV provider. Another reason for low penetration of pay TV services in rural ar-eas is the low purchasing power of rural popu-lation. Usually, villagers have the free TV service via common antennas or satellite services via parabolic ones.

100 %

80 %

60 %

40 %

2 0 %

0 %

35,4 %

4,5 %

7,8 %

29,4 %

6,3 %

43,6 %

23,3 %

20,0 %

8,9 %4,2 %

32,6 %

32,0 %

23,7 %

7,3 %4,4 %

30,0 %

35,9 %

24,2 %

5,4 %4,5 %

28,5 %

38,2 %

26,3 %

2,9 %4,1 %

2010 2011 2012 2013 2014

Sun Communications Moldtelecom A.M.T. Focus Sat Other providers



Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%


As for the pay TV penetration rate in households, the value of this indicator in 2014 was 23,1%

(drop 1 p. p.). This means that every forth house-hold in Moldova use the pay TV service. (Table 7).

Chart 51 Number of pay TV subscribers, by reception technologySource: ANRCETI

Table 7 Number of pay TV subscribers and penetration rates

2010 2011 2012 2013 2014Subscribers cable TV 196.231 211.186 227.398 220.619 209.258Subscribers IPTV 23.124 35.111 46.847 55.500 62.652Subscribers DTH 6.304 6.282 7.758 7.450Subscribers MMDS 4.179 3.539 2.824 2.940 2.129Total subscribers 229.838 256.118 284.827 286.509 274.039Penetration per 100 population 6,4% 7,2% 8,0% 8,0% 7,7%Penetration per 100 households 19,3% 21,5% 24,0% 24,1% 23,1%

Source: ANRCETI

According to the data submitted by providers, 209,2 thousand (76%) of the total number of pay TV subscribers, are subscribers to TV coaxial ca-

ble networks, 62,6 thousand (23%) - to IPTV ser-vices and 2,1 thousand (1%) - to MMDS services (Chart 51).

In 2014, the ascending trend of digital Pay TV use continued. In the recent years, the number of digital Pay TV subscribers almost doubled up to 132 thousand in 2014. At the same time, the number of subscribers to analog TV services

dropped 13% (- 22 000) and was 144,7 thousand. At the end of 2014, the share of analog pay TV subscribers was 52% and the share of digital TV subscribers - was 48% (Chart 52).

100 %

90 %

80 %

70 %

60 %

50 %

40 %

30 %

2 0 %

1 0 %

0 %

82 %

14 %

80 %

16 %

77 %

19 %

76 %

23 %

2011 2012 2013 2014

Cable TV IPTV DTH MMDS



Internet Revenues




2,4%

18%

84%



Internet Revenues




2,4%

18%

84%


Most digital TV subscribers are users of digital TV via coaxial cable and IPTV. (Chart 52). The data from the chart below show an increase in the number of digital pay TV service based on IPTV technology. This is explained by the fact that the service providers offer attractive deals with

service package users to (double and triple play bundles) such as Internet access, fixed telepho-ny and TV with HD channels. At the end of 2014, the share of subscribers to digital TV services via coaxial cable was 51% and to IPTV service - 47% (Chart 53).

Chart 52 Share of Pay TV subscribers by reception formatSource: ANRCETI

Chart 53 Shares of digital TV subscribers, by reception technologySource: ANRCETI

100 %

90 %

80 %

70 %

60 %

50 %

40 %

30 %

2 0 %

1 0 %

0 %

44 %

44 %

8 %

44 %

45 %

8 %

49 %

43 %

6 %

51 %

47 %

2011 2012 2013 2014

Digital cable TV IPTV DTH MMDS

100 %

80 %

60 %

40 %

2 0 %

0 %2010 2012 2013 2014

Analog TV subscribers Digital TV subscribers

28 % 36 % 44 % 48 %

72 % 64 % 56 % 52 %

~ every second TV subscriber is connected at digital TV



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


Chart 54 Market shares of pay TV service providers, by number of subscribersSource: ANRCETI

It should be noted that most subscribers to digi-tal TV service via coaxial cable are also receiving analogue TV signal, according to the tariff plans offered by providers, being consumers of pay TV services both in analog and digital formats.

Like in the previous years, the largest market share by number of subscribers – 37,6% (102,7

thousand) - was held by Sun Communications. Meanwhile, Moldtelecom, due to national cover-age, package offers, increased number of stand-ard definition and high definition channels (HD), including 3D format, succeeded, for five years in a row, in strengthening its market share. Thus, in 2014, this this provider increased its market share by 2,3 p.p and reached 20%. (Chart 54).

100 %

80 %

60 %

40 %

2 0 %

0 %

46,2 %

31,5 %

10,9 %

2,7 %8,7 %

42,4 %

33,9 %

13,5 %

2,5 %7,8 %

39,0 %

34,7 %

15,7 %

2,7 %7,9 %

36,9 %

35,7 %

17,7 %

2,6 %7,2 %

37,6 %

36,6 %

20,0 %

5,8 %

2010 2011 2012 2013 2014

Sun Communications Moldtelecom A.M.T. Focus Sat Others providers



Income fromInternet




2,4%

18%

84%



Income fromInternet




2,4%

18%

84%


Conclusions and forecastIn 2014, the aggregated turnover of the electronic communications sector has moderately increased – 2,4%. This evolution was caused mainly by the in-creasing development of the market for access to fixed and mobile broadband, which has become the main driver of the sector, by the downturn of the mobile telephony market and the recession on the fixed telephony market in the recent years.

In the reporting year, for the first time, the mobile telephony market was affected by the change of users’ preferences regarding the use of voice ser-vice. The fact that a growing number of mobile users prefer voice services offered via Internet (Skype, Viber, etc.) and the impact of number portability service led to a decrease of the total number of mobile users (1,4% ) and of sales vol-ume on this market segment (by 1,1%).

ANRCETI believes that this trend, which is per-ceived on the global mobile market will become even more prominent in the coming years, when the number of smartphone users will increase at higher pace. Taking into account the effects of this phenomenon, ANRCETI estimates that in 2015 the basic indicators of the mobile market will evolve as in 2014.

The change of consumer’s preferences in terms of the use of voice services had a stronger impact on the fixed telephony market. Thus, in 2014, the fixed telephony traffic declined 15,7%, the number of subscribers – 0,3% and the sales – 10,1%. In 2015, the indicators listed above are expected to reduce further. The negative dynamics of this market is part of a global trend of fixed telephony stagna-tion, caused by the use increasing use of other ser-vices, more convenient and advantageous: mobile telephony, OTT (Over The Top): Skype, Viber , etc.

The change of preferences in the use of differ-ent service led to a slight decrease (4,4%) in the number of pay TV subscribers. This trend is ex-plained by the fact that some of subscribers mi-

grate to alternative services of TV content view-ing on the Internet (free or pay) or satellite (free or pay), these services being offered in digital format in comparison with analog TV service of-fered by most cable TV providers.

The report data show that in 2014 the fixed and mobile Internet market underwent the highest increase. The number of fixed and mobile In-ternet users of grew by about 5%, while the cu-mulated revenue volume of these services grew 18% and exceeded 1,4 billion lei.

ANRCETI believes that the main trends attested in the recent two years the electronic commu-nications market will also continue in 2015. The estimates show that the fixed and mobile broad-band market most will continue to be the most dynamic market in 2015, this market will increase sales, Internet traffic and speed, number of sub-scribers, penetration rates. The upward trend of this market is driven by the enhancing influence of the Internet on daily lives, development of the broadband access infrastructure based on 3G and 4G technologies, fiber, offers convenient and attractive for users.

Following the analysis of the evolution of elec-tronic communications sector in 2014 and the global development trends on this market, AN-RCETI estimates that in 2015 the sector turnover will keep to the level of 2014. If the sales of the mobile telephony continue to decline, the turn-over in the sector could reduce by about one percent. The significant influence of the mobile telephony market on the general situation in the sector is explained by the fact that this mar-ket accounts for half of total sales in the sector. Even if the sales of the fixed and mobile broad-band market grow, 15% according to ANRCETI estimates, the situation in the sector will not change significantly, as the revenues from the fixed telephony services will fall 10%, while the revenues of the market for broadcasting and re-transmission of audiovisual programs will be the same level as in 2014.

Fixed broadband subscribers and use of access technologies in 2014

This report is available in electronic form. To open it, click Evolution of electronic communications market or scan the QR the code above with the smartphone or tablet.

No.Territorial-ad-ministrative

unit

Total broadband subscribers

Penetration broadband ser-

vices per 100 households

Subscribers Share of broadband access technologies

Penetra-tion per

100 popu-lation

Dynamics of penetration Dynamics of technology share Increase of subscriber number

xDSL FTTx Coaxial cable

Other tech-nologies xDSL FTTx Coaxial

cableOther tech-

nologies xDSL FTTx xDSL FTTx Coaxial cable

Other tech-nologies xDSL FTTx Coaxial

cableOther tech-

nologiesBroadband subscribers

1 Chisinau 210.595 75,55% 13.121 165.975 30.913 586 6,2% 78,8% 14,7% 0,3% 26,50% 5,33 1,87 -2,4 1,6 1,4 -0,6 -3.814 14.914 4.923 -1.177 14.8462 Balti 26.823 48,83% 4.400 20.976 1.439 8 16,4% 78,2% 5,4% 0,0% 17,98% 3,66 1,35 -4,7 4,7 0,1 0,0 -844 2.726 125 1 2.0083 Anenii Noi 9.473 34,95% 7.801 1.468 204 82,3% 15,5% 0,0% 2,2% 11,40% 1,17 0,38 1,4 -1,3 0,0 -0,1 389 -69 0 -3 3174 Basarabeasca 3.003 31,21% 2.651 352 0 88,3% 11,7% 0,0% 0,0% 10,36% 0,77 0,26 1,9 -1,9 0,0 0,0 120 -46 0 0 745 Briceni 8.876 34,85% 6.811 2.065 0 76,7% 23,3% 0,0% 0,0% 11,88% 3,33 1,14 -11,4 11,4 0,0 0,0 -262 1.111 0 0 8496 Cahul 15.053 38,36% 9.699 5.164 166 24 6 4,4% 34,3% 1,1% 0,2% 12,05% 2,63 0,83 -1,6 1,1 0,4 0,2 436 510 62 24 1.0327 Cantemir 6.174 33,90% 5.701 473 0 92,3% 7,7% 0,0% 0,0% 9,88% 2,69 0,78 -0,1 0,1 0,0 0,0 445 44 0 0 4898 Calarasi 7.104 25,95% 4.938 2.161 5 69,5% 30,4% 0,0% 0,1% 9,02% 3,19 1,11 -5,0 5,0 0,0 0,0 295 576 0 2 8739 Causeni 8.835 29,51% 8.071 763 1 91,4% 8,6% 0,0% 0,0% 9,60% 3,28 1,07 0,2 -0,1 0,0 -0,1 914 73 0 -6 981

10 Cimislia 6.406 33,19% 4.301 2.105 0 67,1% 32,9% 0,0% 0,0% 10,45% 2,64 0,83 -5,8 5,8 0,0 0,0 1 508 0 0 50911 Criuleni 8.066 34,81% 6.865 1.200 1 85,1% 14,9% 0,0% 0,0% 11,00% 5,91 1,87 -7,8 7,8 0,0 0,0 642 729 0 -1 1.37012 Donduseni 3.993 22,28% 3.573 420 0 89,5% 10,5% 0,0% 0,0% 8,91% 2,18 0,87 -4,2 4,2 0,0 0,0 197 193 0 0 39013 Drochia 9.201 27,99% 6.540 2.281 380 0 71,1% 24,8% 4,1% 0,0% 10,28% 3,96 1,46 -8,3 4,2 4,1 0,0 271 652 380 0 1.30314 Dubasari 3.096 28,15% 3.036 58 2 98,1% 1,9% 0,0% 0,1% 8,80% 1,07 0,34 -0,7 0,7 0,0 0,0 94 23 0 1 11815 Edinet 9.647 31,93% 5.695 3.952 0 59,0% 41,0% 0,0% 0,0% 11,69% 3,25 1,19 -4,7 4,7 0,0 0,0 176 806 0 0 98216 Falesti 8.367 25,35% 5.956 2.410 1 71,2% 28,8% 0,0% 0,0% 9,06% 2,95 1,06 -4,2 4,2 0,0 0,0 381 594 0 0 97517 Floresti 9.185 28,24% 6.332 2.650 203 68,9% 28,9% 0,0% 2,2% 10,36% 3,57 1,29 -1,5 1,0 0,0 0,5 612 391 0 67 1.07018 Glodeni 6.193 28,85% 5.368 825 0 86,7% 13,3% 0,0% 0,0% 10,09% 2,80 0,98 -4,4 4,4 0,0 0,0 277 325 0 0 60219 Hincesti 11.731 31,40% 8.597 3.134 0 73,3% 26,7% 0,0% 0,0% 9,65% 2,81 0,86 -2,7 2,7 0,0 0,0 478 573 0 0 1.05120 Ialoveni 13.053 43,69% 7.571 4.630 851 1 58,5% 35,8% 6,6% 0,0% 13,09% 4,74 1,53 -6,8 8,5 -0,8 0,0 41 1.481 0 -1 1.52121 Leova 5.242 31,03% 4.647 595 0 88,6% 11,4% 0,0% 0,0% 9,78% 2,68 0,85 -1,0 1,0 0,0 0,0 353 100 0 0 45322 Nisporeni 5.072 24,60% 4.277 795 0 84,3% 15,7% 0,0% 0,0% 7,62% 1,74 0,54 -10,1 10,1 0,0 0,0 -176 534 0 0 35823 Ocnita 5.351 25,87% 4.897 454 0 91,5% 8,5% 0,0% 0,0% 9,59% 2,25 0,84 -0,3 0,3 0,0 0,0 412 54 0 0 46624 Orhei 12.257 29,66% 7.542 4.711 4 61,5% 38,4% 0,0% 0,0% 9,74% 2,54 0,84 -0,6 0,6 0,0 0,0 580 472 0 -1 1.05125 Rezina 4.889 27,54% 3.343 1.545 1 68,4% 31,6% 0,0% 0,0% 9,35% 1,95 0,66 0,0 0,0 0,0 0,0 237 110 0 0 34726 Riscani 7.108 27,03% 4.692 2.416 0 66,0% 34,0% 0,0% 0,0% 10,23% 3,73 1,41 -11,7 11,7 0,0 0,0 -72 1.053 0 0 98127 Singerei 9.603 30,91% 6.430 3.173 0 67,0% 33,0% 0,0% 0,0% 10,30% 3,36 1,12 -4,6 4,6 0,0 0,0 309 736 0 0 1.04528 Soroca 9.726 26,59% 5.738 3.987 1 59,0% 41,0% 0,0% 0,0% 9,72% 1,52 0,56 0,9 -0,9 0,0 0,0 411 145 0 0 55629 Straseni 10.171 36,41% 7.199 2.818 154 70,8% 27,7% 0,0% 1,5% 11,12% 2,96 0,90 -1,0 1,2 0,0 -0,1 487 339 0 0 82630 Soldanesti 3.209 21,14% 3.068 140 1 95,6% 4,4% 0,0% 0,0% 7,46% 2,41 0,85 -0,6 0,6 0,0 0,0 333 33 0 0 36631 Stefan Voda 6.600 28,38% 4.286 2.313 1 64,9% 35,0% 0,0% 0,0% 9,23% 3,72 1,21 -17,8 17,7 0,0 0,0 -457 1.321 0 1 86532 Taraclia 5.062 39,37% 4.570 492 0 90,3% 9,7% 0,0% 0,0% 11,48% 1,24 0,36 -0,7 0,7 0,0 0,0 112 48 0 0 16033 Telenesti 6.204 25,72% 5.856 348 0 94,4% 5,6% 0,0% 0,0% 8,40% 2,81 0,92 -0,2 0,2 0,0 0,0 627 50 0 0 67734 Ungheni 12.754 32,94% 6.303 6.450 1 49,4% 50,6% 0,0% 0,0% 10,88% 2,84 0,94 -3,1 3,1 0,0 0,0 180 920 0 0 1.10035 Gagauzia 21.073 45,53% 11.942 9.128 3 56,7% 43,3% 0,0% 0,0% 13,07% 3,27 0,94 -4,9 4,9 0,0 0,0 -105 1.617 0 0 1.512

Total 509.195 42,47% 211.817 262.427 33.749 1.202 41,6% 51,5% 6,6% 0,2% 14,31% 3,52 1,19 -2,9 2,6 0,6 -0,3 4.080 33.646 5.490 -1.093 42.123

Annex

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