Albania: Albania Communication Profile

Albanian mobile operators bid for 2.6GHz spectrum

Albania’s telecom market continues to have room for further development. Penetration in the fixed-line and broadband sectors remains very low by European standards, and there are opportunities for further investment in networks upgrades to help propel the country’s economic increase through digital offerings and IP-based technologies and services. On the other hand, poor fixed-line infrastructure has encouraged consumer use of mobile telephony, and presently Albania boasts one of the highest mobile penetration rates in Europe.

The country has long sought accession to the European Union (EU) which has benefited its telecoms sector through closer scrutiny of its regulatory regime and through the injection of funding to help modernise infrastructure. Albania signed a Stabilisation and Association Agreement with the EU, which came into force in mid-2009. As part of the EU pre-accession process, Albania has received financial aid to build public institutions and improve cross-border co-operation under the EU’s Instrument for Pre-Accession Assistance funding mechanism. Since June 2014 Albania has been recognised as an official candidate for accession to the EU.

Albania’s economy has enjoyed strong increase in GDP throughout the GFC, albeit from a low base. It has weathered the economic impact resulting from the faltering economies of its major trading partners Italy and Greece. Further increase recovery was evident in 2014.

Next network development has been undertaken to support the growing popularity of broadband services: given the low broadband penetration level, Albania’s internet market offers considerable potential, which is in part being met by the two mobile network operators. This has gone far to alleviate poor connectivity in rural areas.

Albania’s mobile market has undergone rapid increase due to competition, with four operators inclunding Vodafone, Eagle Mobile, Cosmote’s AMC and Plus Communication offering services. Operators are looking to mobile data applications and services to increase ARPU.

Key telecom penetration by service – 2014 (e)