Latvia - Telecoms, Mobile and Broadband

Latvia's telecom market continues to benefit from investment and from regulatory measures aimed at developing 5G and fibre-based infrastructure. There is effective competition in the mobile market, with extensive services based on LTE-A technologies to boost data speeds. Operators such as Bité Latvia and Tele2 Latvia have also begun transitioning their networks to support services and applications based on 5G, though with the existing capacity of LTE infrastructure a large scale 5G deployment is not expected until 2023. To facilitate this progress, the regulator in March 2021 approved an application from Tele2 Latvia and Bité to share almost half of their spectrum assets.

In the fixed-line broadband sector, the country is ranked second highest in Europe (after Iceland) for fibre coverage and take-up, closely followed by Lithuania. With this infrastructure in place, the country has also developed a sophisticated digital economy, with e-commerce and e-government services widely available.

BuddeComm notes that the Covid-19 pandemic continues to have a significant impact on the telecoms market. On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, has offset such pressures. In many markets the net effect has been a reduced (and sometimes negative) subscriber growth, which will continue into 2021.

Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key Developments:

Tet prepares to launch a 10Gb/s FttP service to areas of Riga;

Regulator permits Bité and Tele2 Latvia to share spectrum assets;

Rostelecom starts work on cable system running from the Latvian border to Sakhalin in Russia's Far East;

Latvia's MNOs undertaking cautious 5G expansion program while LTE infrastructure takes most of the mobile data load;

Tele2 Latvia secures a 50MHz block of 3.5GHz spectrum, installs initial 5G base stations;

Report update includes the regulator's market data updates for 2020, telcos' operating and financial data to Q1 2021, Telecom Maturity Index charts and analyses, assessment of the global impact of Covid-19 on the telecoms sector, recent market developments.

Key companies mentioned in this report:

Tet (Lattelecom), Baltcom TV, Izzi, Viasat, Latvia Mobilais Telefons, Bité Latvia, Telekom Baltija, ZetCom, Tele2 Latvia, Latvenergo.

Key statistics

Regional European Market Comparison

Europe Telecom Maturity Index by tier
- Market Leaders
- Market Challengers
- Market Emergents
TMI versus GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview

Economic considerations and responses
Subscribers
Infrastructure

Telecommunications market

Market analysis

Regulatory environment

Regulatory authority
Fixed-line developments
- Market liberalisation
- Privatisation
- Interconnect
- Access
- Carrier selection (CS) and Carrier PreSelection (CPS)
- Number Portability (NP)
- European Electronic Communications Code
Mobile network developments
- CDMA licence awarded
- 900MHz spectrum
- 2.3GHz spectrum
- 2.6GHz spectrum
- 700MHz spectrum
- 3G licences
- 3.5GHz
- EU roaming tariffs
- Mobile Termination Rate (MTR)
- Mobile Number Portability (MNP)
- Network sharing

Mobile market

Market analysis
Mobile statistics
Mobile infrastructure
- 5G
- 4G (LTE)
- 3G
- Other infrastructure developments
Mobile data
- SMS and MMS
Mobile broadband
Major mobile operators
- Latvia Mobilais Telefons (LMT)
- Tele2 Latvia
- Telekom Baltija/Triatel
- Bité Latvia
Mobile Virtual Network Operator (MVNO)

Fixed-line broadband market

Market analysis and statistical overview
Government support
Broadband statistics
Hybrid Fibre Coax (HFC) networks
Digital Subscriber Line (DSL) networks
- ADSL2+/VDSL
Fibre-to-the-Premises (FttP) networks
Other fixed-line broadband services
- Fixed wireless (WiMAX, WiBro, Wi-Fi)
- EV-DO

Digital economy

E-government
E-education

Fixed network operators

Tet
Norby Telecom

Telecommunications infrastructure

Overview of the national telecom network
International infrastructure
Telecoms and IT

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

Table 1 - Top Level Country Statistics and Telco Authorities - Latvia - 2021 (e)
Table 2 - Development of Latvia's telecom market revenue (€) - 2009 - 2020
Table 3 - Development of telecom market revenue by sector (million €) - 2018 - 2020
Table 4 - Development of retail revenue by sector (million €) - 2018 - 2020
Table 5 - Change in the number of retail subscribers by sector (thousand) - 2018 - 2020
Table 6 - Change in the number of fixed number portings - 2013 - 2018
Table 7 - 2.6GHz spectrum auction results - January 2012
Table 8 - 700MHz spectrum auction results - 2013
Table 9 - Change in the number of mobile number portings - 2007 - 2018
Table 10 - Growth in the number of mobile subscribers and penetration - 2011 - 2026
Table 11 - Change in mobile voice traffic by type (million minutes)- 2018 - 2020
Table 12 - Increase in the number of LMT's M2M connections - 2014 - 2021
Table 13 - Fall in SMS traffic - 2013 - 2020
Table 14- Growth in the number of active mobile broadband subscribers and penetration - 2011 - 2026
Table 15 - Mobile broadband connections by data rate - 2018 - 2020
Table 16 - Change in the average 3G mobile data speed (Mb/s) by operator - 2015 - 2016; 2018
Table 17 - Change in the average LTE download speed by MNO (Mb/s) - 2015 - 2019
Table 18 - Change in the market share of mobile subscribers by operator - 2018 - 2020
Table 19 - Growth in the number of LMT's mobile subscribers (million) - 2011 - 2021
Table 20 - Drop in the number and proportion of LMT's prepaid subscribers - 2009 - 2021
Table 21 - Development of LMT's mobile ARPU (€) - 2009 - 2021
Table 22 - Development of LMT's financial data - 2011 - 2021
Table 23 - Growth in LMT's mobile services revenue - 2009 - 2021
Table 24 - Growth in LMT's mobile services revenue by quarter - 2012 - 2021
Table 25 - Change in Tele2 Latvia's financial data (SEK million) - 2011 - 2021
Table 26 - Change in the number of Tele2 Latvia's mobile subscribers - 2011 - 2021
Table 27 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Table 28 - Fixed broadband connections by data rate - 2018 - 2020
Table 29 - Decline in the number of cable broadband subscribers - 2011 - 2020
Table 30 - Decline in the number of DSL subscribers - 2011 - 2020
Table 31 - Growth in the number of fibre broadband subscribers - 2011 - 2020
Table 32 - Drop in the number of fixed wireless broadband subscribers - 2013 - 2020
Table 33 - Development of Lattelecom Group's financial data (€ million) - 2011 - 2020
Table 34 - Development of Lattelecom Group's financial data (SEK million) - 2017 - 2021
Table 35 - Decline in the number of fixed lines in service and teledensity - 2011 - 2026
Table 36 - International internet bandwidth - 2013 - 2018
Table 37 - Increase in internet bandwidth per subscriber - 2008 - 2017
Table 38 - Historic - Mobile subscribers and penetration - 1999 - 2010
Table 39- Historic - Active mobile broadband subscribers and penetration - 2005 - 2010
Table 40 - Historic - Fixed-line broadband subscribers and penetration rate - 2001 - 2010
Table 41 - Historic - Fixed lines in service and teledensity - 1999 - 2010
Table 42 - Historic - Fixed-line market revenue (LVL million) - 2005 - 2011
Table 43 - Historic - DSL subscribers - 2001 - 2010
Table 44 - Historic - Growth in the number of LMT's mobile subscribers - 2006 - 2010
Table 45 - Historic - Development of Lattelecom Group's financial data (€ million) - 2004 - 2010
Table 46 - Historic - Change in Tele2 Latvia's financial data (SEK million) - 2008 - 2010
Table 47 - Historic - Decline in the number of Tele2 Latvia's mobile subscribers - 2008 - 2010
Table 48 - Historic - Decline in the number of cable broadband subscribers - 2007 - 2010
Table 49 - Historic - Growth in the number of fibre broadband subscribers - 2007 - 2010
Table 50 - Historic - Development of LMT's financial data (SEK million) - 2008 - 2010

List of Charts

Chart 1 - Europe Telecoms Maturity Index - Market Leaders (top tier)
Chart 2 - Europe Telecoms Maturity Index - Market Challengers (middle tier)
Chart 3 - Europe Telecoms Maturity Index - Market Emergents (bottom tier)
Chart 4 - Overall view - Telecoms Maturity Index vs GDP per Capita
Chart 5 - Europe - mobile subscriber penetration vs mobile broadband penetration
Chart 6 - Scandinavia and Baltics - mobile subscriber penetration vs mobile broadband penetration
Chart 7 - Northern Europe - mobile subscriber penetration vs mobile broadband penetration
Chart 8 - Southern Europe mobile subscriber penetration vs mobile broadband penetration
Chart 9 - Eastern Europe mobile subscriber penetration vs mobile broadband penetration
Chart 10 - Scandinavia and Baltics fixed and mobile broadband penetration
Chart 11 - Northern Europe fixed and mobile broadband penetration
Chart 12 - Southern Europe fixed and mobile broadband penetration
Chart 13 - Eastern Europe fixed and mobile broadband penetration
Chart 14 - Development of Latvia's telecom market revenue (€) - 2009 - 2020
Chart 15 - Development of telecom market revenue by sector (million €) - 2018 - 2020
Chart 16 - Development of retail revenue by sector (million €) - 2018 - 2020
Chart 17 - Change in the number of retail subscribers by sector (thousand) - 2018 - 2020
Chart 18 - Change in the number of fixed number portings - 2013 - 2018
Chart 19 - Change in the number of mobile number portings - 2007 - 2018
Chart 20 - Growth in the number of mobile subscribers and penetration - 2011 - 2026
Chart 21 - Change in mobile voice traffic by type (million minutes)- 2018 - 2020
Chart 22 - Increase in the number of LMT's M2M connections - 2014 - 2021
Chart 23 - Fall in SMS traffic - 2013 - 2020
Chart 24 - Growth in the number of active mobile broadband subscribers and penetration - 2011 - 2026
Chart 25 - Change in the average LTE download speed by MNO (Mb/s) - 2015 - 2019
Chart 26 - Change in the market share of mobile subscribers by operator - 2018 - 2020
Chart 27 - Growth in the number of LMT's mobile subscribers - 2011 - 2021
Chart 28 - Drop in the number and proportion of LMT's prepaid subscribers - 2009 - 2021
Chart 29 - Development of LMT's mobile ARPU (€) - 2009 - 2021
Chart 30 - Development of LMT's financial data - 2011 - 2021
Chart 31 - Growth in LMT's mobile services revenue - 2009 - 2021
Chart 32 - Growth in LMT's mobile services revenue by quarter - 2012 - 2021
Chart 33 - Change in Tele2 Latvia's financial data - 2011 - 2021
Chart 34 - Change in the number of Tele2 Latvia's mobile subscribers - 2011 - 2021
Chart 35 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Chart 36 - Decline in the number of cable broadband subscribers - 2011 - 2020
Chart 37 - Decline in the number of DSL subscribers - 2011 - 2020
Chart 38 - Growth in the number of fibre broadband subscribers - 2011 - 2020
Chart 39 - Drop in the number of fixed wireless broadband subscribers - 2013 - 2020
Chart 40 - Development of Lattelecom Group's financial data (€) - 2011 - 2020
Chart 41 - Development of Lattelecom Group's financial data (SEK million) - 2017 - 2021
Chart 42 - Decline in the number of fixed lines in service and teledensity - 2011 - 2026
Chart 43 - Increase in international internet bandwidth - 2010 - 2019
Chart 44 - Increase in internet bandwidth per subscriber - 2008 - 2017

List of Exhibits

Exhibit 1 - Generalised Market Characteristics by Market Segment
Exhibit 2 - Overview of access, the local loop and unbundling
Exhibit 3 - Overview of Carrier Selection and Carrier PreSelection
Exhibit 4 - Number portability defined

Latvia - Telecoms, Mobile and Broadband - Statistics and Analyses

Description

Table of Contents

List of Tables

Regulator approves spectrum sharing to facilitate 5G deployment

Key Developments:

Key companies mentioned in this report:

Table of Contents

Key statistics

Regional European Market Comparison

Country overview

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Digital economy

Fixed network operators

Telecommunications infrastructure

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

List of Charts

List of Exhibits