LITHUANIA. Information and communication technology · LITHUANIA. Information and communication...

Korea agency for digital opportunity and promotion Ričardas Budavičius 1 psl

LITHUANIA.Information and communication

technology

LITHUANIA.Information and communication

technology

Dr. Ričardas BudavičiusDeputy head of Frequency Management Division

Communications Regulatory Authority

of Republic of Lithuania

2007


Lithuania – a country in northern Europe. Situated along

the south-eastern shore of the Baltic Sea.

Area – 65.200 km². Population - 3,575,439 (2007). Capital – Vilnius. Currency – Litas (LTL).

The Lithuanian landscape has been smoothed by glaciers. The highest areas are the

moraines in the western uplands and eastern highlands, none of which are taller than 300

metres above sea level, with the maximum elevation being at 294 meters. The terrain

features numerous lakes and wetlands; a mixed forest zone covers 30% of the country. The

climate lies between maritime and continental, with wet, moderate winters and summers.

Lithuania

http://upload.wikimedia.org/wikipedia/commons/1/11/Flag_of_Lithuania.svg

http://upload.wikimedia.org/wikipedia/commons/0/04/EU_location_LIT.png

http://upload.wikimedia.org/wikipedia/commons/6/6d/European_flag.svg

http://upload.wikimedia.org/wikipedia/en/c/c2/Vilnius_skyline_at_night.Lithuania.JPG


In 2003, prior to joining the European Union, Lithuania had the highest economic growth rate

amongst all candidate and member countries, reaching 8.8% in the third quarter. In 2004 —

7.3%; 2005 — 7.6%; 2006 — 7.4% growth in GDP reflected impressive economic

development. Most of the trade Lithuania conducts is within the European Union.

It is a member of the World Trade Organization, and the European Union. By UN

classification, Lithuania is a country with a high average income. The country boasts a well

developed modern infrastructure of railways, airports and four lane highways. It has almost

full employment, with an unemployment rate of only 2.9%. According to officially published

figures, EU membership fuelled a booming economy, increased outsourcing into the country,

and boosted the tourism sector.

Like other countries in the region (Estonia, Latvia) Lithuania also has a flat tax rate rather

than a progressive scheme. In 2006 income tax was reduced to 27% and a further reduction

to 24% is expected in October of 2007.

The minimum wage currently stands at 600 litas (€174). The average wage in 2005 was

1453LTL (€420).

Economy

http://images.google.lt/imgres?imgurl=http://remis.sig.lt/modules/Testai/images/pinigai.jpg&imgrefurl=http://remis.sig.lt/testai.php%3Fop%3Dmodload%26name%3DTestai%26file%3Dpsichologiniai%26group%3D6%26id%3D4&h=100&w=100&sz=5&hl=lt&start=14&um=1&tbnid=kdCohWLAPwFnlM:&tbnh=82&tbnw=82&prev=/images%3Fq%3Dpinigai%26svnum%3D10%26um%3D1%26hl%3Dlt


• In the 2006 report on global development of ICT, each year prepared by

World Economic Forum, Lithuania ranked 39th among 122 countries (in 2005

Lithuania ranked 44th, in 2004 - ranked 43rd).

• The mobile communications segment in Lithuania’s ICT sector still remains

the most innovative. In February 2006, just upon awarding of the licenses,

provision of third generation mobile radio communications (UMTS) services was

commenced.

• June 2006 saw the arrival of high speed rate mobile Internet services by

using HSDPA data communication technology. Lithuania is among the first

countries, which applied the new technology commercially.

• Already for the third year in a row penetration of mobile communications in

Lithuania was the biggest among the European Union (EU) Member States.

Information communication technology


… 1995 1996 1997 1998 1999 2000 2001 2002 2003

New regulatory

framework in EU

Law on RadioCommunications(no longer inforce)

Law onProvision ofInformation tothe Public

Law on theNational Radioand Television

European Convention on Transfrontier Television

Conceptual Framework of theNational Information SocietyDevelopment of Lithuania(Government Resolution)

Strategy for the Assignment of Radio Frequencies to Broadcasting and Transmission of Radio and Television Broadcasts (Government Resolution)

Law on Legal Protection of Personal data

Law on Telecommunications (no longer in force)

Law on Electronic Signature

Control of the off-the-recordinformation in computer networksof public usage and rules ofdistribution of limited publicinformation (GovernmentResolution)

Order of Minister of Economyregarding the regulation ofprovision of some services ofinformation society, especially ofelectronic commerce, in internalmarket

Order of Director of the RRTConcerning the Approval of theRules for Allocating and Usingof Radio Frequencies /Channels

Law (revised) on Telecommunications (no longer in force)

Strategic Plan of the Development of Information Society in Lithuania (Government Resolution)

Directive 1999/93/EC on Electronic Signature

Law on Communications (no longer in force)

“Television without Frontiers” Directive 89/552/EC (amended by Directive 97/36/EC on 30 June 1997)

Directive 2000/31/EC on Electronic Commerce

ICT: Legal Aspects


Model of

Implementation of

Digital Television in

Lithuania (Government

Resolution)

2003 2004 2005

Law on Electronic Communications

Law concerningthe ratification ofthe Conventionon ElectronicCrimes

Order of Director ofRRT on DigitalTerrestrial TelevisionDevelopment Plan

Strategy of the Development of Informational Society of Lithuania (Government Resolution)

National Radio

Frequency Allocation

Table (Government

Resolution)

In the nearest

future

Strategic Plan for the Assignment of Radio Frequencies to Broadcasting and Transmission of Radio and Television Broadcasts

Law on Services of Information Society

Order of Director of the RRT onAllocation of UMTS Frequencies /Channels

Law on Amendment of Republic of Lithuania Law on Provision of Information to the Public

Order of Director of theRRT Concerning theApproval of the Plan ofDevelopment of RadioCommunications in 3,410– 3,800 MHz Frequencies(Channels) Bandwith

2006

ICT: Legal Aspects


Lithuanian context:

• ICT represents 8,72 % of Lithuanian GDP and approximates or even

exceeds other traditionally important sectors

European context:

• ICT represents 6-8% of GDP in EU, but it determines

• EU productivity’s growth by 40% and

• EU GDP’s growth by 25 %.

0.10%0.50%

4.40%

8.72%

0.70%0.10%

7.70%

3.80%

8.06%

5.80%

0.0%

2.5%

5.0%

7.5%

10.0%

Agriculture, forestry, hunting Fishery Mining and quarrying Electricity, gas and w ater

supply

ICT

2000 2004

Trends are the same

as in other EU

Member States

ICT Market Development


1 Jan 2003 - electronic market liberalization de jure

Leading operators’ market shares continue to decline and a steady

growth of new market players’ market shares indicates decreased

market power of the incumbent operators

Lithuania was one of the first EU countries to refuse the licensing

system and to move to the general authorization system in the

telecommunication sector

Fully implemented fixed and mobile number portability and

carrier selection and pre-selection stimulates competition as well

Radio spectrum policy and effective management boosts

successful development of wireless technologies

Low administrative charges have created preconditions for the

lowest service prices on the retail market as ITU indicates

ICT. General outlook


Electronic communication market is a fast developing sector, whose main driving forces are competition, general authorization regime and technological changes

Growth of Lithuania’s GDP and electronic

communications sector (comparing with the

corresponding time period of the previous

year)

Source: Statistics Lithuania, RRT

Even though the prices of

communication services have been falling

down the growth of the sector is

substantial

Electronic communications market’s

share within Lithuania’s GDP structure in

average amounted to 3,5 %.

Lithuania’s electronic communications

market grew by 11.9 % in 2005

(comparing with 2004) and amounted

2.391 billion LTL in 2004*

* Revenues from data transmission, cable TV, MMDS, radio and

TV transmission and cable radio are not included

8,09

11,6512,75

14,53

5,16 5,08

10,91

13,62

1

5

9

13

17

Ist half

2004

II half 2004 I half 2005 II half 2005

GDP grow th, % Sector's grow th, %



Source: RRT

20292137

2516737

671

387

310273 277

0

100

200

300

400

500

600

700

800

Y 2

000

Y 2

001

Y 2

002

Y 2

003

Y 2

004

Y 2

005

0

500

1000

1500

2000

2500

3000

Total revenues from electronic communications

marketInvestment into the electronic communications

infrastructure

Electronic communications sector value

and infrastructure investment dynamics

in 2000-2005, LTL million

Investments Market StructureDistribution of 2003–2005 revenues

according to the separate electronic

communications sector markets, %

26,66

24,21

21,91

20,74

17,87

16,77

48,23

50,50

51,67

50,80

46,29

46,83

6,19

6,9

8,08

7,83

9,25

18,03

17,92

18,3

19,17

21,88

21,37

5,71

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

1st half of 2003

2nd half of 2003

1st half of 2004

2nd half of 2004

1st half of 2005

2nd half of 2005

Fixed telephone communication Mobile telephone communication

Leased lines Internet access

Audiovisual services Netw orks interconnection

Data transmission

Source: RRT



Source: RRT

"The direct economic contribution of industries using the radio spectrum is already

considerable, between 1 and 2% of national GDP in the EU,…" said Viviane Reding, DG InfSo.

In 2004-2005 growth of mobile communications penetration of in Lithuania was the fastest

among all the EU Member States

Penetration of mobile communication was the highest in the world in December 2005

54.1 75.0

61.0 8

9.2

103.1

127.7

28.5

47.656.0

63.0

79.9

99.9

119.2

153.4

0

25

50

75

100

125

150

175

2001,

2 H

2002,

2 H

2003,

1 H

2003,

2 H

2004,

1 H

2004,

2 H

2005,

1 H

2005,

2 H

Penetration against the active subscribers

Penetration against all the subscribers

Mobile communication penetration

growth in Lithuania in 2002-2005, %

112.26%

116.39%

116.49%

117.16%

125.12%

127.80%

128.04%

131.10%

131.95%

138.53%

100% 110% 120% 130% 140%

Hong Kong

Macau

Bahrein

Italy

Cyprus

Israel

Netherlands

Barbados

Luxembourg

Lithuania

Countries with highest penetration rates

in the world as of December of 2005

Source: Informa Telecoms & Media.

Mobile communication revenues in

2002-2005, mln.LT

610566559

528527

475

0

100

200

300

400

500

600

700

2003,

1 H

2003,

2 H

2004,

1 H

2004,

2 H

2005,

1 H

2005,

2 H

Source: RRT

Mobile Communications


1994-10

GSM 900

Omnitel

Commercial

GSM services

Omnitel

1995-03

1995-05

GSM 900

Bite GSM

Commercial

GSM services

Bite GSM

1995-10

1998-09

DCS 1800

Bite GSM

DCS 1800

Omnitel

DCS 1800

Tele2

GSM 900

Tele2

2001-01

Commercial

GSM services

Tele2

2000-05

GPRS

services

2001-02

GPRS

flat rate

2002-07

2005-09

Live TV

broadca

sting

EDGE

services

2003-12

Live TV

broadca

sting

2005-09

EGDE

services

2003-12

GPRS

services

2001-10

Mobile

internet

2005-03

GPRS

flat rate

2002-10

MMS

services

MMS

services

2002-09

Mobile

internet

2005-02

GPRS

services

2004-07

TV via

mobile

2005-04

3G trial

2004-10

3G,

HSPDA

3G

3G

2006

NMT

MMDS

FWA

MMDS

HDTV trial

… and all that is just 10 years’ story …



0

200

400

600

800

1000

1200

2003 I-II Q 2003 III-IV Q 2004 I Q 2004 II Q 2004 III Q 2004 IV Q 2005 I Q 2005 II Q

Fixed Mobile

0

20

40

60

80

100

120

140

2000 01 01 2001 01 01 2002 01 01 2003 01 01 2004 01 01 2005 01 01 2005 07 01

Mobile telephony penetration Fixed telephony penetration

2. Voice is going mobile

1. Users are going mobile

0%

20%

40%

60%

80%

100%

2003 07 01 2004 07 01 2005 01 01 2005 07 01

Other

LL

Fiber optic

WLA

LAN

CaTV

xDSL

Dial - up

Mobile

3. Data is going mobile

… having a clear tendency of going mobile …

0

25000

50000

75000

100000

125000

150000

175000

200000

2003 07-01 2004 01-01 2004 04-01 2004 07-01 2004 10-01 2005 01-01 2005 04-01 2005 07-01

Other

LL

Fiber optic

WLA

LAN

CaTV

xDSL



UMTS development:

In beginning of 2006, UAB „Omnitel”, UAB „Bitė Lietuva” ir UAB „Tele2” were provided with a right to use radio frequencies in the UMTS bandwidth to build UMTS networks

3G services are provided in the market since I quarter of 2006.In 2006, 3G communication is provided in 11 cities and cover ~35 % of Lithuanian population;

Now, 3G be available to more than 50 % of Lithuanian population, and in 2008 – 75 %.

The new services being offered by 3G operators include high speed internet

access, information services, news, video messaging or conversations, games

and music downloads

Cheaper and smaller handsets for 3G available on the market are expected to be

significant drivers of 3G take-up

Wireless broadband services in 3,5 GHz, 10 GHz, 26 GHZ, 28 GHz :Plan for development of 3,5 GHz was publicly consulted, and soon a relevant order will be issued;

In 2006, 2 operators had permissions to make activities in 3,5 GHz and 2 operators - in 10,5 GHz; 4 operators had permissions to make activities in 26 GHz.



Source: RRT

• The number of fixed telephone subscribers is reducing

• The subscribers’ structure remains sufficiently stable – residential users

form more than 90 %

Fixed telephone communication

market revenue dynamics, 1998-2005,

LTL thousand

443

,65

462

,60

809

,40

648

,00

619

,00

804

,70

658

,20

515

,30

0

200

400

600

800

1998* 1999* 2000* 2001* 2002* 2003 2004 2005

56,9% 57,3% 56,0% 54,7% 53,9% 54,0%

45,0%46,5%47,3%48,6%52,5%51,6%

32,0%35,4%

36,2%38,2%38,9%39,4%

23,5%23,9%23,9%27,0%

33,1%34,0%

10%

30%

50%

70%

Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Oct-05

The EU-25 The EU-15

The EU-10 Lithuania

Sources: ANACOM, ITU, Regulatel, RRT.


penetration dynamics in 2001–2005, %

Market share of new entrants,

2004-2005, %

3,8

4%

4,6

3%

5,0

2%

5,6

5%

5,5

0%

6,2

5%

6,3

1%

6,4

5%

0%

2%

4%

6%

2004, 1

Q

2004, 2

Q

2004, 3

Q

2004, 4

Q

2005, 1

Q

2005, 2

Q

2005, 3

Q

2005, 4

Q

Source: RRT



2003 2005

Live reality broadcasting

over IP – dedicated to

special projects

ATM

1998

Privatization

199919981996

Frame Relay Internet dial-

up

“Takas”

ISDN

Centrex

1999

xDSL

2001

MPLS VPN

over IP

2002 2003

WLAN

2005

DVBT

broadcasting:

license

2000

PSTN network

Fixed communication


Source: RRT

Internet access market is one of the fastest growing sectors

and is attractive for business in a long term perspective

31,7

2,74,7

7,9

14,9

18,6

0

10

20

30

40

1st half

of 2003

2nd half

of 2003

1st half

of 2004

2nd half

of 2004

1st half

of 2005

2nd half

of 2005

Penetration per 100 inhabitants

Internet penetration dynamics in

2003-2005, %

0%

20%

40%

60%

80%

100%

1st half

of

2003

2nd

half of

2003

1st half

of

2004

2nd

half of

2004

1st half

of

2005

2nd

half of

2005

Omnitel Bitė Lietuva

Lietuvos Telekomas Others

Internet access service providers

market shares according to the

revenue in 2003-2005, percent

Source: RRT

Active market entities, 2005

Source: RRT

18

8

24

1015

98

40

1015

60

11

115

0

20

40

60

80

100

120

140

Fixed comm. Mobile comm. Leased line Internet access

2003 2004 2005

Internet access


A significant part of Lithuanian territory is covered by EDGE networks

UAB „Omnitel“ EDGE network, 2007

Source: www.omnitel.lt

Source: www.bite.lt

Internet access


Source: World Broadband Statistics Q1 2005 // Point

Topic Ltd., 2005.

Each year the broadband communication penetration in Lithuania nearly

doubles (during 2005 the number of broadband Internet access subscribers

grew by 81.4 %)

Broadband communication penetration

dynamics in 2003-2005, %

Source: RRT

6.90%

1.11%1.94%

2.56%

3.75%

5.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

1st half

of 2003

2nd half

of 2003

1st half

of 2004

2nd half

of 2004

1st half

of 2005

2nd half

of 2005 0 10 20 30 40 50

Turkey

Thailand

Poland

Czech Republic

Lithuania

Slovenia

Australia

Venezuela

New Zealand

Mexico

The ten world’s countries with fastest growing

broadband penetration, as of 1st Q, 2005

Broadband communications


Source: RRT

2004 2006

Broadband penetration, 144 kbps and more

At the end of 2005 the broadband communication, according to its provision

feasibilities was available to the absolute majority of Lithuania’s residents and

organizations.



Source: European Electronic Communications

Regulation and Markets 2005 (11th Report),

European Commission, Brussels, 2006.

Competition between technologies in Lithuania in the broadband

communications market is the most intense in the whole EU

57

56

52

44

43

43

42

40

38

37

37

35

35

31

28

24

23

18

21

11

6

6

4

3

2

0 25 50 75 100

Lithuania

Czech Republic

Estonia

Austria

Portugal

Latvia

Malta

Netherlands

Belgium

Denmark

Slovenia

Sweden

Hungary

Poland

The UK

Ireland

Spain

Finland

Slovakia

Luxembourg

France

Italy

Cyprus

Germany

Greece

Other technologies xDSL

xDSL

44,76%

LAN

20,21% Cable TV

netw orks

21,19%

Wireless

communica

tion

netw orks

7,66%Leased

lines

0,61%

Other

0,04%

Optical

f ibre

cables

5,53%

Distribution of subscribers against the

broadband technologies in Lithuania 2005, %

Source: RRT



In 2003 first transmissions in DVB-T format started by LRTC;

In 2005, digital TV station broadcasted 5 TV programs in Vilnius;

In 2005, DVBT transmission licenses were distributed and two operators have

commenced to develop digital TV infrastructure:

Before 2006 June 30, digital TV transmitters will be installed in Vilnius,

Before 2007 December 31, digital TV transmitters will be installed in five largest

cities;

Before start-2009, at least one digital TV network will cover not less than 95% of

the territory of Lithuania.

Starting from 2012 – a gradual switch-off of the analogue TV shall be

commenced in Lithuania

Digital broadcasting


Envisaged coverage by digital TV (DVB-T) networks

LRTC networks

TEO LT networks

Digital broadcasting


ICT sector in Lithuania if fully open;

ICT market trends: Going to data

Going to wireless and mobile

Going to converged networks and services

Going to accessibility and affordability to everyone

ICT market prospects:New technologies already on their way will make tremendous shifts in the established

market structure

Liberal view with regard to experimental use of certain bands for demanding entities

allow to check possibilities to use implement new technologies

Regulatory issues:Alteration of the whole regulatory system to the changes in the sector

Apropos pro-/re- action to new threats in the electronic medium

Gradual introduction of spectrum trading

Wise management of radio resources: relevant spectrum ranges for new – more

efficient – technologies to be ready timely without delay

Conclusions


Thank you!




Date post:	30-Jun-2018
Category:	Documents
Upload:	vuongdiep
View:	217 times
Download:	0 times

LITHUANIA. Information and communication technology · LITHUANIA. Information and communication...

Documents