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Market |
Telecommunications |
Report Type |
Market Research |
Country |
Bulgaria |
Published |
22 February 2010 |
Number of Pages |
84 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
our Q2 2010 update on the Bulgarian telecommunications market contains the latest operational and financial data published by the country’s leading network operators; they include Telekom Austriabacked Mobiltel, which is Bulgaria’s largest mobile operator, and second-ranked cellco Globul, which is backed by OTE/Deutsche Telekom. Together, these two operators account for 89% of the country’s mobile customer base. Our latest update incorporates Q309 data published by these operators in order to produce a new five-year growth forecast for Bulgaria’s mobile telephony market.
In the first nine months of 2009, Bulgaria’s mobile subscriber base shrank by 3.8%, with the number of users dropping to 10.38mn. The country’s shrinking mobile market, throughout the greater part of 2009, reflected the deduction of inactive prepaid customers from the reported operator totals. We suspect that Bulgaria’s economic slowdown led to a larger number of mobile SIM cards falling into the 12-month inactive category. Bulgaria is unusual in that it uses a 12-month active definition when deciding whether to define a prepaid mobile user as active or inactive.
The contraction in the number of 12-month active mobile customers was particularly acute in the first half of 2009. Although negative customer growth was also recorded in the third quarter of the year, the level of inactivity, and therefore the rate of customer decline, was significantly improved on the previous two quarters. In the second half of 2009, market leader Mobiltel broke the trend witnessed in the earlier part of the year, by reporting a return to net customer growth. Growth was limited, however, and was based entirely on the operator’s postpaid customer base.
One development that is predicted to have a profound impact on Bulgaria’s mobile subscriber base and penetration level going forward is the introduction of compulsory SIM card registration. This development is expected to significantly reduce the country's mobile subscriber base going forward.
In other news, it was announced in January 2010 that Bulgaria’s Commission on Protection of Competition (CPC) had approved SpectrumNet’s proposed acquisition of rival Orbitel in a deal worth EUR5mn (US$7.17mn). Both companies compete in the fixed-line, internet, data transfer and VoIP markets. News that the merger had been given the go-ahead came just a few months after the announcement that Bulgaria’s two largest cable operators, CableTEL and Eurocom, would be merged in a move that will likely create a major new player in the country’s wireline communications market.
Bulgaria has moved one place up our latest set of Business Environment Ratings for Central and Eastern Europe. This is in spite of the lower score that the country receives in the Telecoms Market category.
Bulgaria’s weaker score in the Telecoms Market category mainly reflects the negative subscriber growth that characterised the mobile market throughout much of 2009.
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