Transcript Sektori i Komunikimeve Elktronike

Regional Conference for Europe
Regulatory Activity in Electronic Communication Sector
ALBAN KARAPICI (Board member of AKEP)
Market and regulatory situation
in Albania
29-30 September 2014, Budva, MONTENEGRO
Market overview in Albania
2
 During 2013, the electronic communications market has
increased regarding the use of mobile networks services
and broadband Internet access.
 On the other hand, the fixed telephony segment has
suffered a decrease. This is a trend similar to that of the
recent years where the fixed telephony has been
decreasing and being replaced by the mobile telephony.
 The broadband access has grown in both its segments:
from fixed and mobile networks.
Background
3
 Mobile operators significant investment in 3G
networks:

Coverage: 85% of territory / 92% of population
 Albtelecom significant investment in NGN/NGA:
 100% of subscribers connected to NGA (MSAN)
 Albtelecom/AO: significant investment in backbone
networks in the last 2-3 years
 Mobile broadband subscribers and traffic are
growing.
Fixed telephony (2013)
4
 281 thousands subscribers


10% lower than end 2012
Reduction of Albtelecom and the largest alt.net
 Penetration level: 10% population/ 38% HH
 Albtelecom: 75% market share
Albtelecom
Abcom
ASC
Nisatel
AMC
Fixed
Other
AO
Total
Fixed
2010
277,763
19,975
7,408
5,900
-
20,456
331,502
2011
258,943
27,167
10,129
4,950
7,565
30,090
338,844
2012
230,397
33,000
7,649
5,500
6,119
28,996
311,661
2013
Difference
2013/2012
210,382
13,680
15,047
7,166
6,950
27,975
281,200
-9%
-59%
97%
30%
14%
-4%
-10%
Mobile Telephony (2013)
5
Number of active mobile users 2010-2013
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2010
2011
2012
2013
Plus
28,162
182,391
202,426
221,086
EM
602,775
415,307
435,922
424,237
Vodafone
1,129,715
1,358,871
1,491,126
1,659,697
AMC
1,396,752
1,151,518
1,407,811
1,380,963
Broadband Access (2013)
6
 Broadband Access (fixed and Mobile 3G modem/USB):

294,000 subscribers:



182,000: fixed broadband
111,000: Mobile Broadband 3G USB/modem
Penetration 10 % (7 % 2012)
Penetration
Population
Number of subscribers
Total
Fixed
Total 3G
2011
2012
2013
139,697
160,088
182,556
34,493
55,405
111,367
Total
Fixed +
3G
174,190
215,493
293,923
Difference
2013/2012
14%
101%
36%
Family
Fixed
3G
Fixed
+3G
Fixed
Fixed
+3G
4.9%
5.7%
6.4%
1.2%
2.0%
3.9%
6.2%
7.6%
10.4%
17%
20%
22%
22%
27%
37%
Fixed broadband (2013)
7
 The most used access speed: 2-4 Mbps.
 Main operators offers for 4-20 Mbps, but with limited take up.
 Total Installed optical fibre: 3.235 km.
 International Internet Connectivity: 44 Gbps.
Albtelecom
Abcom
Abissnet
ASC
Other AO
Total Fixed
Broadband
2010
70,597
13,575
7,000
5,666
23,162
120,000
2011
60,055
29,321
15,321
10,129
24,871
139,697
2012
66,757
35,870
17,719
11,777
27,965
160,088
2013
73,242
43,430
20,562
15,432
29,890
182,556
Difference
2013/2012
10%
21%
16%
31%
7%
14%
Mobile Broadband (2013)
8
The number of mobile broadband users (3G with USB cards/modem for use on a PC) by
the end of 2013 reached about 111 thousand, compared with 55 thousand by the end of
2012, which constitutes a duplication of this number or an increase by 101%.
 A considerable increase is marked in the number of 3G broadband users from mobile
phones, reaching to about 1.1 million by the end of 2013 compared with 594 thousand
in 2012.
 The total number of 3G broadband users (mobile phones and USB cards) in 2013
reached to 1.2 million.

AMC
USB/
Modem
Vodafone
Mobile
phone
EM
Total
USB/
Modem
Mobile
phone
USB/
Modem
Mobile
phone
USB/
Modem
Mobile
phone
2011
9,000
46,000
25,493
202,756
N/A
N/A
34,493
248,756
2012
17,833
222,882
37,572
371,426
N/A
N/A
55,405
594,308
2013
32,138
279,428
66,086
568,207
13,143
272,257
111,367
1,119,892
Difference
2013/2012
80%
25%
76%
53%
N/A
N/A
101%
88%
Market overview
9
 Broadband services (Internet, social networking,
high quality IP TV, work from home, etc.) require
adequate transmission capacities (more than 20
Mbit/s) that can be achieved through optical access
infrastructure and corresponding next-generation
wireless technologies.
 Accordingly, it is necessary to create appropriate
incentives for the investment in wire and wireless
networks of new generation.
Infrastructure for Internet/Broadband
10
 Broadband access services may be provided through a variety
of electronic communications networks. The most important
electronic communications networks through which services
of broadband access are provided are as follows:

Cable networks:





The existing telephone networks (xDSL - networks based on copper cables)
Next generation networks (FTTx - networks based on optical fiber cables)
Cable operators networks (networks based on coaxial cables)
Hybrid optical-coaxial networks (HFC).
Wireless networks:





GSM/GPRS/EDGE - second generation mobile networks,
UMTS / HSDPA / HSPA + - third generation mobile networks,
Wi-Fi - wireless local area networks,
WiMAX - Fixed Wireless Access,
LTE - fourth generation mobile networks.
Mobile Networks
11
 A wide range of mobile communications services in
Albania is provided through four terrestrial mobile
communications networks.
 All four networks are based on the harmonized
standards of the second generation (GSM, including
its improvements in GPRS and EDGE) and third
generation (UMTS, including HSDPA and HSPA +).
 In all three operators, 2G and 3G networks operate
integrally with an integrated core of network and
shared transmission network.
Spectrum licenses
12
 In Albania, all four mobile operators have similar spectrum
assignments in the 900 MHz and 1800 MHz bands, but
three of them, Vodafone, AMC and Eagle Mobile have been
awarded spectrum in the 2100 MHz.
 Pursuant to the process on granting for use the frequency
band IMT-2100 MHz, with Decision No. 2491, dated
17/07/2014, AKEP approved the public Tender document,
with the object: “On granting the rights to use frequencies in
the band 1965 – 1980 MHz paired with 2155- 2170 MHz and
5 MHz unpaired spectrum 1915 – 1920 MHz”. The bids
were open on September 15, 2014.
On-going spectrum licenses
13
 The national frequency plan was amended in early 2013 to allow the use of 3G and
4G in the 900 MHz and 1800 MHz bands.
 AKEP has been working for a national spectrum policy for 800 MHz, 900 MHz,
1800 MHz, 2100 MHz.
 In January 2014 AKEP published for consultation a draft proposal to amend the
current spectrum authorizations of the four mobile operators allowing the use of 3G
and 4G technologies in both bands.
 The process for the renewal of the Individual Authorization for the use of
frequencies in the GSM 900/1800 MHz granted to Albanian Mobile
Communications sh.a. has initiated. The Report for Meeting the Conditions for the
use of frequencies GSM900 and GSM1800 by Albanian Mobile Communications
sh.a. is currently under approval.
 The remaining spectrum assignment in the 1800 MHz is planned to be awarded in
fourth quarter of 2014. The proposal is sent to the Government this month.
Spectrum management for mobile operators
14
 Different types of mobile devices such as tablets,
smartphones and datacards as well as new types of
applications such as Web 2.0 cause a drastic increase in
mobile data traffic.
 Unfortunately spectrum is not an infinite resource.
 In this context Spectrum Re-farming is the most
cost effective way to increase network capacity.
 Re-farming is a spectrum management tool, which can
be used to increase spectrum efficiency or work towards
international harmonization of spectrum usage.
Re-farming Process
15
 Spectrum re-farming is the process of re-deploying
spectrum from available users and re-allocating it to
others.
 A very good candidate for re-farming to LTE is GSM
1800 MHz band, which is presently commonly used for
voice communication.
 With government pressure for universal access to
broadband re-farming is a key issue for governments and
regulators.
 Well done re-farming optimizes overall network
resources utilization without impacting legacy users
while providing an operator with a possibility to deploy
LTE services.
Digital Dividend
16
 At WRC-07, the band 790–862 MHz was allocated to the
mobile service in Region 1 (Africa and Europe),
 Transfer to the digital TV frees up one very important
radio-broadcasting frequency spectrum between 790862MHz -> digital dividend.
 Completion of digitalization of radio-broadcasting, which
is in Albania is scheduled for 17 June of 2015, in the UHF
band a total of 72 MHz of spectrum (range 790-862
MHz) of very good advertizing characteristics (“digital
dividend”) will be released.
 The frequency band of 790-862 MHz is going to be
assigned to mobile network operators
Advantages of 4G/LTE networks
17
 Most significantly, 4G offers:
 Higher bandwidth – increasing the speed of data transfer
 Lower latency – providing faster response times from the
network
 Improved spectrum efficiency – which increases overall
network capacity
 An LTE network provides a data rate of up to
100Mbps in the downlink and 50Mbps in the
uplink.
Future Spectrum Usage?
18
MHz
2,500
LTE
LTE
LTE
2,000
3G
3G
3G/LTE
1,800
GSM
GSM/LTE
LTE
GSM/3G
GSM/3G
3G/LTE
LTE
LTE
900
470-862
Analog TV
LTE
DVB-T
DVB - T
200
VHF
2013
VHF
2015
VHF
2020
NGN migration in Albania
19
 Albtelecom (the incumbent operator) has completed
the migration from PSTN to NGN,
 The Regulator should recognized that there are
fundamental differences in regulating NGN and the
traditional PSTN,
 AKEP is at an early stage for this regulation.
Growth in National Broadband Plans, 2005-2013
20
Referenca: “ITU/UNESCO Broadband Commission dhe ITU
Telecommunication/ICT Regulatory Database”.
Targets for Albanian Broadband Plan
21
Referenca: Cullen International, Shkurt 2014
Challenges for the future
22
 It is widely recognized that in the future networks will be
mostly based on fiber and wireless technologies rather
than cooper.
 Therefore the rules should be technologically neutral in
order to support any technological development suitable
for broadband provision.
 Liberalization of access to spectrum. Liberalization refers
to the removal of technology restrictions on spectrum, to
enable more flexible use.
[email protected]
www.akep.al