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Lithuanian Communications Sector 2011

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Lithuanian Communications Sector 2011 COMMUNICATION REGULATORY LITHUANIAN COMMUNICATIONS AUTHORITY OF THE REPUBLIC OF SECTOR 2011 LITHUANIA 1 Lithuanian Communications Sector 2011 CONTENTS FOREWORD BY THE MINISTER OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LITHUANIA ................................................................................................. 3 FOREWORD BY THE DIRECTOR OF THE COMMUNICATIONS REGULATORY AUTHORITY OF THE REPUBLIC OF LITHUANIA ............................................................. 5 I. ELECTRONIC COMMUNICATIONS MARKET ................................................................ 7 1. Overview of the Electronic Communications Sector ..................................................... 7 1.1. General Trends ...................................................................................................... 7 1.2. Social and Economic Factors .............................................................................. 15 2. Telephone Communication ........................................................................................ 25 2.1. Voice Services ..................................................................................................... 25 2.2. SMS and MMS ..................................................................................................... 38 2.3. Networks Interconnection .................................................................................... 41 3. Internet Access and other Data Transmission Services ............................................. 49 3.1. Internet Access Services ..................................................................................... 49 3.2. Other Data Transmission Services ...................................................................... 61 3.3. Wholesale Access ............................................................................................... 62 4. Television and Radio .................................................................................................. 68 4.1. Television Services .............................................................................................. 68 4.2. Television and Radio Programs Transmission Services ...................................... 78 5. Leased Lines .............................................................................................................. 84 II. Postal and Courier Services Market............................................................................... 88 2 Lithuanian Communications Sector 2011 FOREWORD BY THE MINISTER OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF LITHUANIA Information and communication technologies (ICT) have become an integral part of today’s life to most of us. Public institutions utilize the ICT for the development of their activities and employ new ways of communication and provision of services to people and business. Business enterprises integrate the ICT into their production and trade processes, since they are indispensable for successful activities. Residents use the ICT for communication, entertainment, working and education. The ICT are especially actively used by young people. The successful use of the possibilities, provided by the ICT, opens increasingly broader possibilities for development of the economy and the society. Therefore we are glad to note Lithuania’s achievements in certain areas of development of the broadband Internet. Lithuania has retained its leading positions in Europe as regards the development of the fibre Internet network and is still ahead of the household fibre markets of such countries as Sweden and Norway. According to the data of FTTH Council Europe, the fibre communication penetration in Lithuania reached 28.3 per cent in 2011. Lithuania, where the average data download rate is 1462 kb per second, takes the fourth spot in the world according to the said indicator and bypasses such countries as Japan and Sweden, which are famous with their especially modern data communication infrastructures. The implementation of the “Rural Area Information Technology Broadband Network (RAIN)“ (RAIN- 2) project has a particularly significant influence on the development of broadband communication in the country. In 2013, following the implementation of the project, 98 per cent of the country’s rural residents and public sector’s institutions will have the possibility to use broadband communication services. The broadband network construction works are rapidly implemented throughout the country. Nearly 2700 km of fibre cable lines were laid in 2011, which amounts to approximately 60 per cent of all the planned works. During the implementation of the RAIN-2 project 770 settlements will be connected to the broadband network, 417 were already connected at the end of 2011. A well-developed basic broadband Internet communication infrastructure will create the preconditions for the households, business enterprises and public sector’s institutions, existing in remote areas, to use high speed rate Internet and so ensure an even development of the Internet market. However, it is important not only to ensure a well-developed broadband infrastructure, but also to encourage the residents to use the digital technologies and reduce the digital divide in certain social groups. The role of the state is to help the people, who, due to one or another reason, still do not use the ICT, to become skillful, courageous and responsible users of the ICT in all the areas of their activities and interests – from communicating with friends to participation in decision making of the national importance. Another significant challenge, whose importance grows with the increase of use of the ICT, is the on- line safety and privacy, therefore it is important to develop appropriate legal and regulatory measures, which 3 Lithuanian Communications Sector 2011 would provide the residents and businesses with the possibility to use safe and reliable information resources and safely operate in the digital space. Lithuania is a country, able not only to create modern technological solutions for the needs of local residents and businesses, but also to export them to foreign markets. Lithuanian experts implement IT projects in Azerbaijan, Kazakhstan, Russia and other markets. It is vitally important to retain the continuity of the said trends. In doing so it is necessary to ensure the supply of qualified ICT specialists, therefore it is important to promote the ICT professions among young people, develop corresponding extra-curricular activities and encourage more young people to take interest in exact sciences and related professions. By ensuring the conditions, favorable to the ICT sector, we will create the conditions for the development of an economy, creating a big added value. The Minister of Transport and Communications Eligijus Masiulis 4 FOREWORD BY THE DIRECTOR OF THE COMMUNICATIONS REGULATORY AUTHORITY OF THE REPUBLIC OF LITHUANIA No one would doubt today that technological progress is the driving force behind the entire economy, encouraging the speed of development of the entire country. Communications sector commands global attention due to its susceptibility to innovation, continuous progress and importance in the life of the society. In 2011 Lithuanian communications sector saw a staggering rate of growth. Continuous investment of market players into the electronic communications infrastructure grew by as much as 12.2 per cent. Trends observed in the electronic communications sector during several years show that broadband services have strengthened their position as a priority branch of the sector. The market players’ focused investments into the next generation of fibre networks resulted in the growth of both residents’ and business segments’ needs for high quality broadband services. In 2011 the most popular Internet access services’ speed rate was higher than 10 Mbps and almost 10 per cent of consumers used the Internet of the speed, higher than 100 Mbps. In terms of development of broadband communications, Lithuania remains at the center of world’s attention, i. e. the country not only ranks first in Europe and sixth in the world in terms of fibre penetration, but also is the first in terms of the quality parameters of broadband services: according to the data of Net Index, at the end of 2011 Vilnius city ranked first in the world in terms of the average data download speed rate, Kaunas was the fourth in terms of the said indicator. Due to the increasing competition the prices of voice services continued to reduce, which resulted in the growth of their use. The fixed and mobile communications convergence processes are not a novelty in the electronic communications sector. However, each year one may observe that a clear line between the fixed and mobile telephone communication services is disappearing. Significant changes on the television services market are about to occur. On 29 October, 2012 the analogue terrestrial broadcasting of television programs will be completely replaced by digital broadcasting. The television subscribers, who prepare for the aforementioned market changes, frequently choose pay-TV services, thus the number of subscribers of pay-TV services has increased. Similarly to the entire electronic communications market, the trend of consumers’ choice being determined not only by the price, but also by the quality of the services, has been becoming a more prominent on the television services market. In 2011 more than half of pay-TV service users chose digital television. The decisions, made
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