Macedonia Communication Profile 2012

04/11/2010  Telecoms, Mobile and Broadband
Macedonia has an economy dominated by services, which represents about 60% of GDP, a low-income countries through the World Bank, Economic growth expected to reach 2% in 2010 and medium term prospects were considered good by the Fund International Monetary due to continued macroeconomic stability and continued structural reforms.

Much of the structural reforms have been established because of its application for accession to the European Union, which runs as indicated by its official candidate status for EU. In the process of accession to the EU, Macedonia has received funding to build state institutions and improving cross-border cooperation in the framework of the EU funding mechanism for Pre-Accession Instrument. Under the plan, Macedonia should receive € 92.3 million in 2010, € 98.7 million in 2011 and € 105 800 000 during 2012.

As part of the economic reforms of the communications market has been liberalized and privatized the incumbent. Following the implementation of the EU regulatory framework for communications, the controller has completed a series of analysis of competitiveness of the market and made a number of recommendations to promote effective competition.

Wideband represents the majority of Internet connections. Competition is based primarily on infrastructure improvements even if regulations are creating a viable market for big, evidenced by the growing number of unbundled and wholesale line rental. Improving the speed of the Internet has opened the way for new Internet-based services such as broadband TV and encouraged the development of the Internet Society.

Macedonian mobile market is served by three mobile network operators. penetration levels of SIM card are indicative of market saturation. Future growth in the medium term depends on the use of mobile broadband services, made possible after the recent deployment of WCDMA / HSDPA.

Market Overview:

• * Competitors are making inroads in the market for fixed telephony, with alternative operators that represent nearly 20% of total fixed lines. The market outlook for the competitors have improved thanks to recent regulatory changes.
• * The growth of broadband is expected to maintain momentum in 2010. The broadband market is basically improving the development following a LRIC pricing model and impose the incumbent with regard to unbundling the local loop and broadband access .
• * Digital television is widely available via satellite, digital terrestrial television and broadband. absorption data is promising, digital terrestrial television subscribers reached 10,000 in the first four months of operation while the subscriber base of the incumbent IPTV has increased by 50% during the first six months of 2010.
• * The competition in the mobile market as a new market share gains mobile network operator. The uptake of mobile number portability improved following a reduction of fees. After increasing 30 times over the previous year, continued strong growth in mobile broadband penetration is expected due to increased affordability.