Report 2010ivq RRT

8/3/2019 Report 2010ivq RRT

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COMMUNICATIONS REGULATORY AUTHORITY

OF THE REPUBLIC OF LITHUANIAELECTONIC COMMUNICATIONS DEPARTMENTCOST ACCOUNTING AND STATISTICS DIVISION

REPORT ON THE ELECTRONIC COMMUNICATIONS SECTOR

ACCORDING TO INFORMATION PROVIDED BY ELECTRONIC COMMUNICATIONS

OPERATORS AND SERVICE PROVIDERS ON THE ELECTRONIC COMMUNICATIONS

ACTIVITIES CARRIED OUT DURING

QUARTER IV, 2010

2011-03-17 No. LD-465Vilnius


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Report on the electronic communications sector Quarter IV, 2010

2010 Communications Regulatory Authority (RRT) 2

Content

1. Preface 3

2. Main Indicators of the Electronic Communications Market 4

3. Fixed Telephony 8

4. Mobile Telephony 14

5. Leased Lines 26

6. Internet Access Services 28

7. Data Transmission Services 40

8. Television Activities 41

9. Wire Radio Activities 46

10. Radio and Television Programs Transmission Services 46

Annex. Summarised electronic communications indicators 47


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48 50 51

12 13 13 13 13 12

1216 11

1013 11

3 4 4

60

6662

2226

24

16 17 16

0

10

20

30

40

50

60

70

fixed telephone activities mobile telephone activities leas ed lines services

non active in the market active in the market

num ber of notifications

1. Preface

The report on the electronic communications sector has been prepared on the basis ofinformation provided by electronic communications operators and providers of services about theelectronic communications activities that were carried out in the fourth quarter of 2010, as well as on

other information available to the Communications Regulatory Authority (RRT).At the end of the fourth quarter of 2010 the following had the right to engage in the electroniccommunications activities (submitted notifications about the beginning of their activities): 62undertakings to engage in the provision of fixed public telephone network and (or) services (duringthe fourth quarter was submitted 1 new notification, 5 undertaking were deleted off the fixed telephonypart of the list of electronic communications networks and services providers), 24 undertakings toengage in the activities of providing mobile public telephone network and (or) services (during thefourth quarter was submitted 1 new notification, 3 undertakings were deleted off the mobile telephonypart of the list), and 16 undertakings to engage in the activities of providing leased lines services(during the fourth quarter were submitted 2 new notification, 3 undertakings were deleted off the leasedlines part of the list), 4 undertakings - to engage in the activities of public satellite communication

network and/or public satellite communication services (during the fourth quarter was submitted 1 newnotification), 1 undertaking to engage in the activities of public communications networks and/or publicelectronic communications services by using communications systems, ensured through powertransmission lines.

During the year were submitted 8 notifications about the beginning of activities in regard topublic fixed telephone network and/or service provision, in regard to public mobile telephone networkand/or service provision activities were submitted 6 notifications, in regard to leased lines servicesprovision activities were submitted 4 notifications, in regard to public satellite communication networkand/or public satellite communication services 2 notifications, in regard to public communicationsnetworks and/or public electronic communications services by using communications systems 1notification.

The number of undertakings, actually executing public fixed telephony activities increased by6,3%, the number of undertakings, actually executing public mobile telephony activities, increased by8,3%, leased lines services activities decreased by 7,7%.

Fig. 1. Notifications about the beginning of electronic communications activities


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2. Main Indicators of the Electronic Communications Market

Table 1. Summarised main electronic communications indicators

Name of indicator

Quarter

IV of2010

Quarter

III of2010

Change in

comparison

with IIIQ

of 2010, %

2009 2010

Change in

comparison

with 2009,

%

1. Total number of fixed telephone

subscribers1, total, units,753.439 761.417 -1,05 775.080 753.439 -2,79

including: - households 554.991 560.631 -1,01 580.031 554.991 -4,322. Number of fixed telephone lines2,

total, in units

733.713 740.808 -0,96 747.412 733.713 -1,83

3. Number of lines per 100 population3, 22,6 22,7 -0,44 22,5 22,6 0,514. Number of mobile telephone

subscribers, in units

4.890.979 4.893.656 -0,05 4.961.499 4.890.979 -1,42

5. Number of mobile telephone

subscribers per 100 population

150,7 150,1 0,46 149,0 150,7 1,17

6. Number of broadband Internet access

subscribers, in units

878.436 853.501 2,92 793.862 878.436 10,65

7. Number of broadband Internet access

subscribers per 100 population

27,1 26,2 3,45 23,8 27,1 13,76

8. Number of TV services subscribers

(pay TV)

638.284 622.358 2,56 599.342 638.284 6,50

-including digital TV subscribers 276.655 260.065 6,38 226.874 276.655 21,949. Number of digital TV (pay TV)

subscribers per 100 household

20,5 18,8 8,74 16,1 20,5 27,11

7. Revenue, in thou. Litas 631.159 659.015 -4,23 2.883.592 2.573.858 -10,74

including: fixed telephone 73.358 74.289 -1,25 354.910 302.577 -14,75mobile telephone 241.709 255.207 -5,29 1.126.440 984.090 -12,64

leased lines 8.219 8.675 -5,27 44.442 35.115 -20,99

internet access services 102.409 102.377 0,03 412.468 406.418 -1,47

data transmission services 22.105 21.861 1,12 88.714 87.153 -1,76

provision of physical optical fibre 4.994 4.903 1,85 20.853 19.659 -5,73

television 41.099 39.866 3,09 127.198 159.096 25,08

radio and television programs

transmission services

7.472 7.324 2,03 30.360 28.932 -4,70

wire radio 311 314 -0,95 1.375 1.328 -3,46

networks interconnection 129.483 144.198 -10,21 676.833 549.492 -18,81

8. Investments, in thou. Litas 169.289 80.195 111,10 328.262 358.593 9,24including the investments into the

electronic communication network

infrastructure

142.679 67.281 112,06 299.449 310.812 3,79

1 - the number of the fixed telephone subscribers is equated to the number of telephone lines, used for provision of fixedtelephone services and adding the subscribers, to whom fixed telephone services were provided by using the access,

provided by other operators2 - fixed telephone lines, including ISDN channels3 - population 3244,51 thousand according to the data of the Statistic Department (data for 2011.01.01)


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Fixed telephony11,62%

Mobile telephony38,30%

Leased lines1,30%

Internet access16,23%

Data transmission (excl.internet)3,50%

Physical optical fibre0,79%

Radio and televisionprograms transmission

1,18%

Television6,51%

Wire radio0,05%

Network interconnection20,52%

TEO LT, AB23,26%

UAB "Omnitel"21,61%

UAB "Bit Lietuva"23,54%

UAB "Tele2"22,06%

UAB "Mediafon"6,89%

Other2,64%

424,6 412,7 399,7 354,9 302,6

1.237,9 1.387,3 1.363,3 1.126,4984,1

311,7368,6 457,0

501,2493,6

88,298,6 119,2

158,9189,4

607,5673,8 730,3 676,8

549,5

2.696,22.974,5 3.124,8 2.883,6

2.573,9

2006 2007 2008 2009 2010Fixed telephony Mobile telephony Leased lines and physical optic fibre

Internet access and other data transmission services Audiovisual services Network interconnection

Total

In the fourth quarter of 2010 electronic communication market according to revenue from theprovision of fixed telephone networks and services, mobile telephone networks and services, leasedlines services, internet access, data transmission, physical optical fibre, television, wire radio, radio andtelevision programs transmission services and revenue from the networks interconnection in comparisonwith the third quarter of 2010 decreased by 4,2% and constituted LTL 631,16 million. In comparisonwith the year 2009 in the year 2010 market decreased by 10,7%.

Fig. 2. Distribution of revenue by markets for the fourth quarter of 2010, in % (total revenue LTL 631,16 mill.)

Fig. 3. Change of the electronic communication market (according to the revenues) (LTL mill.)


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UABOmnitel

22,1%

TEO LT,AB

26,0%UABBit

Lietuva

18,1%

UABTele218,3%

other15,5%

15,75

13,88

12,79

12,31

11,76

45,91

46,64

43,63

39,06

38,23

0,98

1,13

1,77

2,26

2,13

11,56

12,39

14,63

17,38

19,18

3,27

3,31

3,81

5,51

7,36

22,53

22,65

23,37

23,47

21,35

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2006

2007

2008

2009

2010

Fixed telephony Mobile telephony Leased lines and physical optic fibre Internet access and other data transmission services Audiovisual services Network interconnection

UABOmnitel

19,6%

TEO LT,AB

27,1%UABBit

Lietuva

17,2%

UABTele217,6%

Other18,5%

The structure of electronic communication market (according to the revenues) have changed: the

part of fixed telephony decreased from 15,75% in 2006 to 11,76% in 2010), accordingly the part ofmobile telephony decreased from 45,91% to 38,23% and increased the part of internet access and otherdata transmission market (from 11,56% to 19,18%), TV and radio (CaTV, MDTV, IPTV DVB-T,satellite TV, radio and television programs transmission, wire radio) (from 3,27% to 7,36%).

Fig. 4. Distribution of the revenues according to the electronic communication markets (%)

Estimating according to the revenues, received from the provision of all the aforementionedelectronic communications services, in 2010 only four companies occupied a market share larger than2%, the market share of all the other operators and providers of electronic communications services(152 companies) amounted to approximately 18,5%.

Fig. 5. Distribution of the electronic communications market against operators (estimating according to the revenues,

received in 2009 and 2010), %

. 2009 2010


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350,2 4

69,2

375,1

299,4

310,8

0,0

100,0

200,0

300,0

400,0

500,0

2006 2007 2008 2009 2010

69,

4

78,

9

77,

5

124,

3

115,

9

99,

7

106,

7147,

0

79,

491,

5

76,

9

127,

3

69,

7 92,

1

63,

6

74,

1

43

,2

57,

7

67,

3

142,

7

2006IQ

2006IIQ

2006IIIQ

2006IVQ

2007IQ

2007IIQ

2007IIIQ

2007IVQ

2008IQ

2008IIQ

2008IIIQ

2008IVQ

2009IQ

2009IIQ

2009IIIQ

2009IVQ

2010IQ

2010IIQ

2010IIIQ

2010IVQ

2.006 2007 2008 2009 2010

In the fourth quarter of 2010 the investments into the electronic communications network

infrastructure increased by 112,1%, comparing with the third quarter of 2010, and amounted to LTL142,68 million. As compared with the year 2009, the investments into the electronic communicationsnetwork infrastructure in the year 2010 increased by 3,8%.

Fig. 6. Investments into the electronic communication network infrastructure

In the fourth quarter of 2010 TEO LT, AB and all mobile network operators invested into theelectronic communications network infrastructure more than 10 million Litas.

The majority (more than half of all the fourth quarter investments into the electroniccommunications network infrastructure invested Teo LT, AB into fiber broadband networks. Mobilenetwork operators invested in 3G, 3,5G networks, data communications services through mobilenetworks.


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424,63412,74

399,70

354,91

302,58

84,21 79,04 75,89 74,29 73,36

17,38 18,52 18,39 18,94 18,434,76 4,35 4,66 4,54 4,89

0

50

100

150

200

250

300

350

400

450

2006 2007 2008 2009 2010 2009 IVQ 2010 IQ 2010 IIQ 2010 IIIQ 2010 IVQ

Total f ixed telephony revenues Fixed telephony revenues of a lterna tive operators

3. Fixed Telephony

51 company engaged in the activities of the fixed public telephone communication in the fourthquarter of 2010. Totally 34 companies specified that their fixed telephone services are provided byusing IP (16 of them provided UAB Nacionalinis telekomunikacij tinklas services by using theircable television and data transmission networks).

Undertakings that engaged in the activities of the fixed public telephone communication in thefourth quarter of 2010: UAB Agon Networks, UAB Alderada, UAB Balticum TV, UABBaltnetos komunikacijos, UAB CSC Telecom, UAB Cubio, UAB Dokeda, UAB EurocomSIP, UAB Eurofonas, UAB Gigatelis, UAB Gisnetas, V Infostruktra, UAB Init, A.Judicko individuali mon, Kavamedia UAB, L. Pruinsko I Kompiuterinis langas, AB Lietuvosgeleinkeliai, AB Lietuvos radijo ir televizijos centras, UAB Linkotelus, UAB Linktelis, UABMarsatas, UAB Medium Group; UAB Mikrovisatos TV, UAB Nacionalinis telekomunikacijtinklas, UAB NTT Cable Lietuva, AB Ogmios centras, UAB Penki kontinent komunikacijcentras, UAB Radijo elektronins sistemos, UAB Resvera, UAB Roventa, UAB SKYLINK LT,UAB Solocomas, UAB Stream Networks, UAB TELCO CONSULTING GROUP, UAB Tele2fiksuotas ryys, UAB Telekomunikaciju grupa, UAB Telerena, UAB Teletinklas, TEO LT, AB,UAB Transteleservis, UAB Viginta grup, UAB Vinita, UAB Zirzil and A. T. C. AvantTelecom Consulting AG, UAB Bit Lietuva, UAB EcoFon, UAB Fast traffic, UAB Group deluxe, UAB Mediafon, UAB Voicecom, UAB Voxbone.

Most undertakings provided retail fixed telephony services (43 undertaking from the beginningof the list provided international call services, 39 of them also provided services of national calls, others7 provided only wholesale (transit and other) services.

Total revenue from the provisions of fixed public telephone networks and services constitutedLTL 73,36 million during the fourth quarter of 2010, revenue of alternative providers of fixed telephonecommunication totalled LTL 4,89 million, or 6,66%. As compared with the last quarter, total revenue of

the providers of fixed telephone communication decreased by 1,2%, revenue of the alternative providersincreased by 7,7%. As compared with the year 2009 total revenue of the providers of fixed telephonecommunication in the fourth quarter of 2010 decreased by 14,7%, revenue of the alternative providersdecreased by 2,7%.

Fig. 7. Revenues from the provision of the public fixed telephone network and/or services (mill. Litas)

TEO LT, AB revenues from provision of local calls during the fourth quarter of 2010 accounted99,0% of market share, of domestic long-distance calls 88,4% (UAB Baltnetos komunikacijos


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6,18 6,186,63

6,81

8,53

6,816,28

8,40 8,51 8,53

4,094,49 4,60

5,34

6,095,66

5,50

6,15 6,106,66

0

2

4

6

8

10

2006 m. 2007 m. 2008 m. 2009 m. 2010 m. 2009 m. IVketv.

2010 m. I ketv. 2010 m. IIketv.

2010 m. IIIketv.

2010 m. IVketv.

Altern. share according to the number of subscribers Altern. share according to revenues

782,5 788,3 767,7

722,3 711,5 703,3 696,7 689,18

9,811,1

17,2

25,127,1 43,6 44,2 44,53

43,1 40,837,3

27,720,6

20,9 20,6 19,73

835,4 840,3 822,2

775,1759,1

767,8761,4 753,44

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31

Subscribers by using other el. com. operators access Alternative operators lines

TEO LT, AB lines Number of fixed telephone suscriber

2,2%, UAB Eurocom SIP 3,7%), of international calls 72,5% (UAB CSC Telecom 3,2%, UABCubio 2,1%, UAB Eurocom SIP 5,0%, UAB TELCO CONSULTING GROUP 4,3, otherless than 2%), of calls to public mobile telephone networks 82,7% (UAB Baltnetos komunikacijos 3,9%, UAB CSC Telecom 4,2%, UAB TELCO CONSULTING GROUP 5,6%).

The number of subscribers of alternative providers of fixed public telephone services at the endof the fourth quarter of 2010 totalled 64,3 thousand (8,5% of the total number of the subscribers 753,4

thousand) and during the quarter their number decreased by 0,8%. From the end of the fourth quarter of2009 number of the subscribers of alternative providers of fixed public telephone services increased by21,7%.

Fig. 8. Change of market share of alternative providers of fixed public telephone services according to the number of

subscribers and revenues, %

Fig.9. Number of telephone subscribers and lines, thou.

The number 733713 comprises 689183 lines of TEO LT, AB and 44530 telephone lines of thealternative operators.

During the fourth quarter of 2010 the total number of telephone lines decreased by 7,1 thousand(1,0%). during the year the number of telephone lines decreased by 13,7 thousand (1,8%).


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792,3

57

799,4

4

784,9

4

747,4

1

738,5

2

746,8

8

740,8

1

733,7

1

23,423,7

23,4

22,522,2

22,7 22,7 22,6

20

21

22

23

24

25

700

800

900

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31

Number of telephone lines, thou. Number of telephone lines per 100 population

twisted metallic pairloops (PSTN)

85,5%

wirelesscommunication lines

3,9%

cable televisionnetwork lines

0,4%

data transmissionnetwork lines

4,3%ISDN channels

5,9%

During the fourth quarter of 2010 the number of telephone lines per 100 population decreased by0,1 per cent and in the 31 December 2010 constituted 22,6 lines per 100 population 41,3 lines per 100households4. During the year penetration decreased by 0,1 per cent.

Fig. 10. Number of telephone lines, thou.

Twisted metallic pair loops were mostly used for access to the subscribers, also there were usedwireless communication lines, cable television and data transmission network lines.

Fig. 11. Distribution of the number of the telephone lines according to technologies, thou.

(total number 733,7 thou.)

The alternative service providers provided fixed telephone services to approximately 69,3%(44,5 thousand) subscribers by using their lines, the remaining subscribers (19,7 thousand) wereprovided the services by using the access, provided by other electronic communications operators.

As of 31 December of 2010 two agreements on provision of unbundled access to the local loop

service were signed (V Infostruktra, UAB Baltnetos komunikacijos) and TEO LT, AB wasproviding fully unbundled access5 to 695 local loops and shared access6 to 167 local loops.

4 - household - 2,36 person according to the data of the Statistic Department (data for 2008)5 - Full unbundled access to the local loop means the provision to a beneficiary of access to the local loop or local sub-loopof the operator bound by the procedure and conditions set out in the Electronic Communications Law, authorising the use ofthe full frequency spectrum of the physical circuit.6

- Shared access to the local loop means the provision to a beneficiary of access to the local loop or local sub-loop of anoperator bound by the procedure and conditions set out in this Law, authorising the use of the non-voice band frequencyspectrum of the twisted metallic pair.


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0,80,7

0,7 0,8 0,9 0,71,0 1,0 1,0

31,1 32,3 32,3 31,3

34,1

28,6

31,7

35,0

40,2

7,38,1

10,5

12,6

19,7

15,2

18,3

21,3

23,1

7,78,0

8,0

8,47,3 7,3 7,0 7,1 7,8

3,3 3,43,6

3,8 4,3 3,7 4,1 4,74,9

-3,0

2,0

7,0

12,0

17,0

22,0

27,0

32,0

37,0

42,0

2006 2007 2008 2009 2010 m. 2010 IQ 2010 IIQ 2010 IIIQ 2010 IVQ

local calls international calls to mobile telephone network long-distance calls total

Cable television networks and data communication networks were used for provision of thetelephony services by using IP protocol. Totally at the end of fourth quarter of 2010 37,8 thousandsubscribers used telephony services provided by using IP protocol for call initiation (34,2 thou. by usingtheir own lines and 3,5 thou. by using the access, provided by other electronic communicationsoperators).

The total duration of the calls initiated by using the IP protocol in the fourth quarter of 2010

constituted 6,02 million minutes (1,54% from all initiated fixed telephony calls), including 1,63million minutes of international calls (about 11,6% of all the international calls). In comparison withthe third quarter of 2010, the total duration of IP initiated calls increased by 14,0%. The revenuesfrom IP telephony services during the fourth quarter of 2010 amounted to LTL 1,56 million, including0,69 from international calls; in comparison with the third quarter, the revenues from retail IP callsincreased by 1,0%.

The share of TEO LT, AB telephone lines connected to digital telephone stations (ATS) at theend of the fourth quarter of 2010 was 94,0%.

During the fourth quarter of 2010 the number of main lines whereby the high-speed service ofsubscriber lines (hereinafter referred to as xDSL) decreased by 1,0% and on 31 December 2010 totalled

212,9 thousand. From the end of the fourth quarter of 2009 it decreased by 6,6%.

Fig. 12. The change of the market share of the alternative operators according to the initiated calls, %

The total duration of the calls initiated in public fixed telephone networks in the fourth quarterof 2010 increased by 12,7% comparing with the previous quarter, and constituted 391,09 millionminutes, including 371,75 million minutes (95,1%), which were initiated in the network of TEO LT,AB. As compared with the year 2009 the total duration of the calls in the year 2010 decreased by3,7%, share of duration of the calls initiated by alternative service providers increased by 0,5 per

cents.


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calls initiated in otherpublic fixed telephone

networks of the

Republic of Lithuania25,1%

calls initiated inpub lic mobile

telephone networks of

the Republic ofLithuania

41,2%

calls initiated in thenetworks of operatorsof foreign countries

33,7%

TEO LT, AB43,2% UAB Bit

Lietuva12,3%

UABTelekomunikaciju

grupa

3,0%UAB Mediafon

24,3%

UAB Nacionalinistelekomunikacij

tinklas

4,6%

UAB EcoFon9,7%

Other0,7% TEO LT, AB

70,0%

UAB Bit Lietuva8,8%

UAB Mediafon14,6%

Other6,6%

During the fourth quarter of 2010 alternative operators initiated:

- 40,2% international calls (including: 11,9% - UAB TELCO CONSULTING GROUP, 6,0% -UAB CSC Telecom, 2,6% - UAB Eurocom SIP, 2,3% - UAB Nacionalinis telekomunikacijtinklas, 2,0% - UAB SKYLINK LT, 3,0% - UAB Telekomunikaciju grupa, other less than 2%),

- 7,8%7 of long-distance calls,

- 1,0% of local calls,- 23,1% to mobile telephone networks (including: 11,2% - UAB TELCO CONSULTING

GROUP, 4,2% - UAB CSC Telecom, 2,7% - AB Lietuvos geleinkeliai, 2,3% - UAB Baltnetoskomunikacijos, other less than 2%),

- 1,0% over service and short numbers.During the fourth quarter the total duration of calls terminated in fixed public telephone

networks that were initiated in other networks (of the Republic of Lithuania and foreign countries) was81,17 million minutes (in comparison with the third quarter of 2010 increased by 5,1%), including72,68 million minutes (89,5%), which were terminated in the network of TEO LT, AB, 1,73 million

minutes (2,1%) - in the network of UAB Mediafon, 2,00 million minutes (2,5%) in the network ofUAB CSC Telecom.

As compared with the year 2009, total duration of calls terminated in fixed public telephonenetworks of the Republic of Lithuania during the year 2010 decreased by 2,2%.

Fig. 13. Distribution of duration of calls terminated in fixed public telephone networks (total duration 77,21 mill.

min.)

Fig. 14. Distribution of duration of calls, forwarded by transit against operators, %

to other public telephone networks of the Republic of to foreign countries public telephone networks

Lithuania (the total duration 75,54 mill. min.) (the total duration 92,20 mill. min

7 - including long-distance calls and calls to other public fixed telephone networks of the Republic of Lithuania


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In the fourth quarter of 2010 13 companies provided call transit services. The total duration ofcalls, forwarded by transit during the quarter amounted to 167,71 million minutes, including 75,54million minutes, forwarded to other public telephone networks of the Republic of Lithuania and 92,20million minutes to foreign countries public telephone networks. 43,2% of transits call minutes,forwarded to the public telephone networks of the Republic of Lithuania and 70,0% of call minutes,

forwarded to foreign countries public telephone networks were handled by TEO LT, AB.The total revenues from provision of transit services in the fourth quarter of 2010 amounted toLTL 41,26 million, 62,2% of which were received by TEO LT, AB, 9,0% UAB Bit Lietuva,21,3% - UAB Mediafon, 2,4% - UAB EcoFon. As compared with the third quarter of 2010revenues from provision of transit services in the fourth quarter of 2010 decreased by 16,2%.

TEO LT, AB is the only company, providing the payphone services. The total duration of callsfrom payphones in the fourth quarter of 2010 in comparison with the third quarter of 2010 decreased by5,0% and was 0,45 million minutes. During the quarter the number of payphones decreased by 0,9%,during the year decreased by 0,5% and was 1338. The average duration of calls, made from onepayphone per month amounted to approximately 110 minutes (8 minutes less than in the third quarter of

2010).

As of 31 December 2010 fixed telephone services, provided by 16 service providers (thenumber of providers with whom agreements have been concluded for that matter) were able to beselected in the network of TEO LT, AB by individual selection (by dialling the operator code 10XX),from them 4 and by carrier pre-selection (the possibility to use the providers services automatically, i.e. without dialling the operator code and without executing any other carrier selection procedure whencalling). In reality 10 service providers provided public fixed telephone services by using the individualselection, including UAB Eurocom SIP, UAB Cubio, UAB Linkotelus and carrier pre-selection.

During the fourth quarter of 2010 about 11,08 thousand users made use of this service (1,3% less

than during the previous quarter), 3,1 thousand of them by means of pre-selection. The total durationof calls, initiated in the fourth quarter of 2010 increased by 0,8%, compared with third quarter of 2010,and amounted to 2,21 million minutes, including 1,26 million minutes by pre-selection initiated calls.

Until the end of the fourth quarter of 2010 were assigned 22 operator selection codes 10XX to18 providers of services.

Until 31 December 2010 16,8 thousand subscribers had their numbers transferredto othernetworks (2,2% from the total number of the subscribers of fixed telephone service) by using the fixedtelephone number portability service. During the fourth quarter was transferred 1,15 thousand telephonenumbers, 4,9% more than in the third quarter of 2010.

8 - according to the data provided by TEO LT, AB


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1.237,87

1.387,25 1.363,31

1.126,44

984,09

260,73 238,97 248,20 255,21 241,71

35,54 49,54 45,18 29,20 21,47 6,32 5,40 5,31 5,40 5,36

0

300

600

900

1200

1500


To tal mo bi le co mmun icat io ns rev enu es Serv ice pro vi ders' mo bi le co mmun icat io ns rev enu es

UAB "Omnitel"35,40%

UAB "Tele2"34,34%


Service providers2,22%

4. Mobile Telephony

7 undertakings carried out the activities of mobile public telephony in the fourth quarter of 2010:3 operators (UAB Omnitel, UAB Bit Lietuva, UAB Tele2) ) and 4 providers of services thatdid not have own network (hereinafter referred to as the Service providers) (UAB Eurocom plius,

UAB Eurocom, UAB Teledema and UAB CSC Telecom), that provided services though thenetwork of UAB Bit Lietuva.Also in the fourth quarter of 2010 UAB Mediafon provided calls termination in the mobile

networks services, i. e. mobile numbers were used for the provision of value added services.5 undertakings (UAB Autovilgsnis, UAB Mobilus partneris, UAB Medium Group, UAB

Metameda ir ko, UAB Transteleservis carried out the activities as resellers.

In the fourth quarter of 2010 total revenue from the provision of public mobile telephonenetworks and services constituted LTL 241,71 million, revenue of Service providers were LTL 5,36million. Out of the total revenues 75,1% were those received from provision of voice services, 9,9%were the revenues, received for the forwarded SMS, 0,1% the revenues, received for the forwardedMMS, 3,1% - the revenues received for usage of data transmission services (GPRS, EDGE, UMTS),10,0% the revenues, received for calls from the subscribers, using the roaming services, 1,8% therevenues from provision of wholesale public mobile telephone network and services.

In comparison with the third quarter of 2010 total revenue in the fourth quarter of 2010decreased by 5,3%, revenue of Service providers decreased by 0,8%. In comparison with the year 2009mobile telephone market in the year 2010 decreased by 12,6%.

Fig. 15. Revenues from the provision of the public mobile telephone network and/or services (mill. Litas)

Fig. 16. Market shares of mobile fixed public telephone operators and providers of services by revenue, in %

(total revenue LTL 241,71 mill.)


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4718,24921,1

5022,64961,5 4811,4 4825,4 4893,7

4891,0

139,4146,2 149,9 149,0 144,8 146,6

150,1 150,7

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

0,0

1000,0

2000,0

3000,0

4000,0

5000,0

6000,0

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31

Number of active mobile subscribers, in thou Number of active mobile subscribers per 100 population

UAB "Omnitel"39,7%

UAB "Tele2"36,9%



UAB "Omnitel"40,5%

Service providers

0,005%


UAB "Tele2"11,3%

The number of active mobile telephony subscribers during the quarter almost unchanged(decreased by 0,1%) and on 31 December 2010 it reached 4,89 million, that is, 150,7 subscribers per100 population. During the year it decreased by 1,4%.

The number of subscribers of the Service providers decreased by 6,1% during the quarter and on31 December 2010 it totalled 101,1 thousand.

Fig. 17. Change in the number of mobile telephone subscribers, thou.

Fig. 18. Market shares of mobile public telephone operators and Service providers by the number of active

subscribers, in % (total number of active subscribers 4891,0 thou.)

The number of active mobile telephony subscribers, who used UMTS (Universal MobileTelecommunications System) services during the fourth quarter of 2010, was 753,5 thousand, incomparison with the previous quarter it increased by 18,2%.

6,9 thousand of such subscribers used the video call services provided using UMTS network,during the fourth quarter the number increased by 21,1%.

Fig. 19. Market shares of mobile public telephone operators and Service providers by the number of active

subscribers, who used UMTS services, in % (total number of active subscribers 753,5 thou.)


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3,08

2,03

2,61

2,202,07

2,20 2,20

2,20 2,20

2,07

2,87

3,573,31

2,59

2,192,42

2,26

2,14 2,12

2,24

0

1

2

3

4


Service providers share according to the number of subscribers Service providers share according to revenues

UAB "Omnitel"36,8%

UAB "BitLietuva"20,5%

Service providers4,4%UAB "Tele2"

38,3%

UAB "Omnitel"47,3%



UAB "Tele2"14,4%

UAB "Omnitel"39,3%



UAB "Tele2"41,3%

At the end of the fourth quarter of 2010 552,9 thousand subscribers (11,3% of the number ofactive mobile telephone subscribers) had their numbers transferred to other networks by using themobile telephone number portability service. During the fourth quarter were transferred 33,4 thousandnumbers, 1,5% more than in the third quarter of 2010.

Fig. 20. The change of mobile telephone Service providers market share according to the number of subscribers

and the revenue

Fig. 21. Market shares of mobile public telephone operators and providers of services by the number of active

subscribers in different categories

by consumers (paying against the bills): by business subscribers (paying against the bills):

(total number 1360,8 thou.) (total number 657,0 thou.)

by pre-paid subscribers:(total number 2873,2 thou.)


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33,033,7

35,3

38,6

40,2 40,7 40,641,3

20,0

25,0

30,0

35,0

40,0

45,0

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31

1005 10571142

1265 1290 13051361 1361

554 604632 650 642 658 657 657

3160 3260 3249 3047

28792863 2873 2873

0

500

1000

1500

2000

2500

3000

3500

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31

Consumers Business subscribers Pre-paid

At the end of the fourth quarter of 2010 all subscribers of mobile telephone communication bycategories were distributed as follows: 41,3% of subscribers who paid for the services against the bills,included 27,8% of consumers and 13,4% business subscribers and 58,7% of pre-paid subscribers.

The share of the number of UAB Omnitel subscribers who paid for the services against thebills (from all active UAB Omnitel subscribers) at the end of the fourth quarter was 41,8% (during thequarter it increased by 0,7 per cent), accordingly UAB Bit Lietuva 48,4% (during the quarter itincreased by 1,6 per cent), UAB Tele2 34,2% (during the quarter increased by 0,1 per cent).

Fig. 22. Share of the number of mobile telephone subscribers who paid for the services against the bills (from the

total active mobile subscribers), %

Fig.23. Change in the number of subscribers in different categories (in thou.)

The number of the active subscribers, which use the pre-paid services in the fourth quarter of2010 decreased by 1,1% (during the year it decreased by 5,7%), the number of subscribers, paying forthe services against the bills: the number of consumers increased by 2,0% (during the year it increasedby 7,6%), the number of business subscribers increased by 0,4% (during the year it increased 1,2%).


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490

448 455490

490

484 493 501

183 203217

243 250 258267 279

304362

426478 495

508 515 522

2744 45

53 55 56 59 60

0

100

200

300

400

500

600

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31

Consumers

267 279289 309 301 311 306 311

208 232 235 223 223 224 226 228

64 75 8493 95 96 95 95

1518 23 24 23 27

27 230

100

200

300

400

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31Businesssubscriber

s

973

1274

12641181

1165

1157 1142

1128

797

589 507 548 547547 560 540

1287

1359 1414

1287

1139

11351182

1186

10339

63 32 28 24 21 19

0

200

400

600

800

1000

1200

1400

1600

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31

Pre-paid

Omnitel Bit Lietuva Tele2 Paslaug teikjai

Fig 24. Change in the number of subscribers of mobile public telephone operators and Service providers in different

categories (in thou.)

The revenue received from the subscribers using the pre-payment option in the fourth quarter of2010 amounted about 23,5% (LTL 53,31 million, in comparison with previous quarter it increased by14,6%). The revenues received from subscribers, paying for the services against the bills, including:43,2% (LTL 101,64 million, in comparison with previous quarter it decreased by 2,8%) revenuereceived from consumers, 33,2% (LTL 78,17 million, in comparison with previous quarter it decreasedby 4,1%) - from business subscribers.

The duration of calls initiated in mobile public telephone networks in the fourth quarter of 2010in comparison with the previous quarter increased by 2,5% and totalled 1786,61 million minutes: 31,3%in the network of UAB Omnitel, 43,0% in the network of UAB Tele2, 23,2% in the network ofUAB Bit Lietuva and 2,5% by Service providers.


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UAB "Omnitel"29,7%



UAB "Tele2"47,8%

UAB "Omnitel"

36,4%



UAB "Tele2"28,2%

UAB "Omnitel"37,0%



UAB "Tele2"33,6%

UAB "Omnitel"34,3%



UAB "Tele2"21,5%

Total duration of calls initiated in mobile public telephone networks in the year 2010 in

comparison with the year 2009 increased by 15,7%.Off the total duration of the calls, originated in public mobile telephone networks in the fourth

quarter of 2010 75,3% were the calls inside the own network, 22,1% - the calls to other public mobiletelephone networks of the Republic of Lithuania, 1,7% - the calls to public fixed telephone networks of

the Republic of Lithuania, 0,9% - international calls. During the fourth quarter of 2010, in comparisonwith the third quarter of 2010, the duration of the calls inside the own network increased by 3,3%, thecalls to other public mobile telephone networks of the Republic of Lithuania increased by 0,3%, thecalls to public fixed telephone networks of the Republic of Lithuania increased by 2,2%, internationalcalls decreased by 5,0%.

Fig. 25. Distribution of calls initiated in mobile public Fig. 26. Distribution of calls initiated in mobile public

telephone networks, which are terminated on-net telephone networks, which are terminated in other

(total duration is 1345,6 mill. min. ) mobile telephone networks of the Republic of Lithuania

(total duration is 394,2 mill. min.)

Fig. 27. Distribution of calls initiated in mobile public Fig. 28. Distribution of calls initiated in mobile public

telephone networks, which are terminated in fixed telephone networks, which are terminated in the

public telephone networks of the Republic of Lithuania networks of foreign countries

total duration is 30,9 mill. min.) (total duration is 15,9 mill. min.)


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132,8

193,6

52,9

81,9

114,8

49,9

46,2

69,8

2,6

3,8

5,3

0,2

0,9

3,7

0,2

169,6

227,2

71,8

109,0

127,7

66,6

55,1

87,6

4,5

3,8

5,8

0,5

1,7

6,2

0,3

149,2

245,2

130,7

118,9

133,1

126,4

44,9

100,7

3,5

4,1

8,0

0,5

1,0

3,4

0,3

154,5

221,8

44,8

56,4

59,5

16,2

81,7

147,6

25,6

3,7

6,6

2,5

1,3

8,0

0,5

0,0 50,0 100,0 150,0 200,0 250,0 300,0

Consumers

Busines s subscribers

Pre-paid

Consumers


Pre-paid

Consumers


Pre-paid

Consumers


Pre-paid

Consumers


Pre-paid

Initiatedmobilecall(total)

callsintheownnetwork

tootherLRpublicmobile

telephonenetworks

toLRpublicfixedtelephone

networks

internationalcalls

UAB Omnitel UAB Bi tLietuva UAB Tele2 Service providers

Fig. 29. Duration of calls initiated in mobile telephone networks per relevant subscriber per month (duration of calls

initiated during the quarter divided by the number of active subscribers of the relevant provider and the number of

months) in minutes


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18,9 22,1 25,4 20,9 22,6 13,0 15,6 17,2 15,1 17,3

17,622,5

32,331,7

39,1

13,717,9 21,1 21,4

26,0

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

Duration of calls of the subscribers who have left for fo reign

countries

Duration of calls of the subscribers of providers of foreign m obile

telephone services, who hav e arrived to Lithuania

init iated calls received calls

127,8

113,4

152,9

16,1

9,3

10,6

0,0 20,0 40,0 60,0 80,0 100,0 120,0 140,0 160,0 180,0

UAB Omnitel

UAB Bit Lietuva

UAB Tele2

from public fixed telephone networks of the Republic of Lithuaniafrom other public mobile t elephone networks of the Republic of Lithuaniafrom the networks of foreign countries

105,3119,1 117,2

89,2 93,5

70,761,6

50,8

34,7 38,20,0

30,0

60,0

90,0

120,0

150,0

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

Revenues, received from ca lls, ma de by subscribers who ha ve left forforeign countries

Revenues, received from calls, ma de by subscribers of providers offoreign mob ile telephone services, who ha ve arrived to Lithuania

The duration of calls, initiated by Lithuanias mobile telephone subscribers, using roamingservices, in the fourth quarter of 2010 in comparison with the third quarter of 2010 decreased by 8,0%and totalled 5,71 million minutes. The duration of calls, initiated by subscribers of public mobiletelephone service providers of foreign countries that came to the Republic of Lithuania and usedroaming services, in the fourth quarter of 2010 comparing with the third quarter of 2010 decreased by26,1% and totalled 3,93 million minutes.

In the year 2010, in comparison with the year 2009, the duration of calls, initiated by Lithuaniasmobile telephone subscribers, using roaming services, increased by 8,3%; the duration of calls initiatedby subscribers of public mobile telephone service providers of foreign countries increased by 14,8%.

Fig. 30. Duration of calls of the subscribers who made use of roaming services, mill. min.

Fig. 31. Revenues, received from calls of subscribers, who made use of roaming services, mill. Litas

The duration of calls terminated in mobile telephone networks, which were initiated in othernetworks, in the fourth quarter of 2010 in comparison with the last quarter increased by 2,1% andtotalled 447,4 million minutes, including 33,7% in the network of UAB Omnitel, 37,6% in thenetwork of UAB Tele2, 28,7% in the network of UAB Bit Lietuva.

Fig. 32. Distribution of calls terminated in mobile telephone networks (mill. min.)


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UAB "Omnitel"41,1%

UAB "Bit

Lietuva"31,4%


UAB "Tele2"25,3%

Total duration of calls terminated in mobile telephone networks, which were initiated in othernetworks in the year 2010 in comparison with the year 2009 increased by 12,6%.

Number of subscribers who made use of the service of transmitting data through mobile publictelephone network during the fourth quarter decreased by 0,8% and totalled 1514,43 thousand, 99,9% ofthem is GPRS, EDGE, UMTS users. Total number of subscribers that used GPRS, EDGE, UMTS

services in the fourth quarter totalled 1512,81 thousand (0,8% less comparing with previous quarter and1,9% less comparing with the fourth quarter of 2009).

During the fourth quarter of 2010 278,1 thousand subscribers (including the subscribers, whoused such services by the help of mobile telephone communication terminal unit or computer) used theservices of High Speed Download Packet Access(HSDPA), provided through UMTS network. Duringthe quarter number of these subscribers increased by 6,2%.

According to the data, presented by mobile telephone operators approximately 89,1% ofsubscribers, using packet data communications services (GPRS, EDGE, UMTS), used the Internet at thepublic mobile telephone communications terminal equipment (WAP)9.

Fig. 33. Distribution of the number of mobile telephone subscribers, who made use of GPRS during the fourth

quarter of 2010, % (total number 1512,8 thou.)

In the fourth quarter of 2010 in comparison with the third quarter of 2010 the amount of data,sent and received by using the GPRS, EDGE, UMTS technologies increased by 29,4% and amounted toapproximately 1362,0 million megabytes (MB), including 1178,8 million MB (about 86,5%) ofreceived data. In average one subscriber sent and received 300,1 MB per month (70,0 MB more than inthe third quarter of 2010), including 259,7 MB of received data.

The amount of data, sent and received by UAB Omnitel subscribers was 664,7 million MB (inaverage one subscriber sent and received 356,3 MB), accordingly UAB Bit Lietuva 633,5 millionMB (444,5 MB), UAB Tele2 57,6 million MB (50,1 MB).

In the fourth quarter of 2010 mobile telephone subscribers sent 2029,76 million short messages(SMS) and 1,27 million illustrated short messages (MMS).90,7% of the recipients of the SMS, sent in the fourth quarter were subscribers of the own

network, 9,0% were subscribers of other public mobile telephone networks of the Republic ofLithuania, 0,4% - subscribers of foreign countries networks. 84,1% of the recipients of the MMS, sentin the fourth quarter were subscribers of the own network, 14,7% were subscribers of other publicmobile telephone network of the Republic of Lithuania, 1,2% - subscribers of foreign countriesnetworks.

9 - the remaining 10,9% used the GPRS, EDGE, UMTS Internet connection services, by using Flat rate plans, intended forpayment for the Internet access services, provided by using a computer and attributed to the Internet access market


23/57



UAB "Omnitel"22,4%


UAB "BitLietuva"

18,8%

UAB "Tele2"57,5%

During said quarter 0,3% more SMS and 24,5% less MMS messages were sent than during the

third quarter of 2010. During the year 2010, in comparison with the year 2009, the number sent SMSmessages decreased by 8,6%, the number of sent MMS increased by 7,9%.

Fig. 34. Distribution of the number of short messages (SMS) sent by mobile telephone subscribers

during the fourth quarter of 2010, in % (total number 2029,76 mill.)

Fig. 35. Distribution of the number of illustrated short messages (MMS) sent by mobile telephone subscribers

during the fourth quarter of 2010, in % (total number 1,27 mill.)

One subscriber sent on average 138 SMS messages and 0,1 MMS messages per month. OneUAB Bit Lietuva subscriber on average sent 205 SMS messages, accordingly UAB Tele2 145,UAB Omnitel 103.

The average call duration per one fixed telephone subscriber per month of the fourth quarter

increased by 13,8% and was 173 minutes. The average call duration per one subscriber per month ofTEO LT, AB increased by 22 minutes and was 180 minutes. During the fourth quarter the average callduration per one mobile telephone subscriber per month increased by 2,5% and was 122 minutes. Theaverage call duration per one UAB Omnitel mobile subscriber per month decreased by 5 minutes,UAB Bit Lietuva - increased by 7 minutes, UAB Tele2 increased by 9 minutes.

UAB "Omnitel"29,5%



UAB "Tele2"38,5%


24/57



18 2

101

177

8474

52 57

70

17 3

92

168

8410 8

71

122

85

180

98

175

92

119

99

123

100

183

97

177

90

115 109124

10 3

158

83

152

101

125 13313 7

11 9

180

100

173

96

132

142150

122

0

40

80

120

160

200

TEO LT, AB Alternative providers(fixed)

All fixed telephonyproviders

UAB "Omnitel" UAB "Bi t Lietuva" UAB "Tele2" Serv ice p rovider s All m ob ile telephonyproviders

2006 IVQ 2007 IVQ 2008 IVQ 2009 IVQ 2010 IIIQ 2010 IVQ

1729 1667 1662 1593 1534 423 373 347 391

3777

4606

53835906

6833

1589 1716 1742 1787

0

2000

4000

6000

8000

2006 m. 2007 m. 2008 m. 2009 m. 2010 m. 2010 m. Iketv.

2010 m. IIketv.

2010 m. IIIketv.

2010 IVketv.

Duration of calls, initiated in fixed telephone networks, mill. min.

Duration of calls, initiated in mobile telephone networks, mill. min.

Fig. 36. Duration of calls initiated in fixed public telephone and mobile telephone networks per subscriber per month

(duration of all calls initiated by a relevant provider divided by the total number of active subscribers of that

provider at the end of the quarter and the number of months) in minutes10

According to the submitted data the average duration of a mobile telephone call in fourth quarterof 2010 in comparison with third quarter of 2010 unchanged and was 2,0 min. The average duration of afixed telephone call in fourth quarter increased by 0,3min. and was 3,7 min. (the average duration of afixed telephone call for consumers was 3,3 times longer than for business subscribers, accordingly 5,6and 1,7 minutes).

The average duration of a mobile telephone call amounts to 82,0% of the total duration of calls,initiated in public telephone networks (the part decreased by 1,4 per cent comparing with the previousquarter).

The duration of mobile telephone calls constantly grows (in comparison with the year 2006, inthe year 2010 the duration of mobile telephone calls increased almost 2 times). The duration of calls,initiated in fixed telephone networks slightly decreases.

Fig 37. The duration of calls, initiated in fixed and mobile telephone networks, mill. min.

10

- the number of the fixed telephone subscribers is equated to the number of telephone lines, used for provision of fixedtelephone services and adding the subscribers, to whom fixed telephone services were provided by using the access,provided by other operators


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43

26

42

30

25

15

27

23

41

29

40

25

30

15

39

23

40

26

39

21

29

17

26

21

36

25

35

16

21

16

1917

33

19

32

15

21

17 17 17

33

21

32

15

20

1518

16

0

5

10

15

20

25

30

3540

45

TEO LT, AB Alternativeproviders (fixed)

All fixed telephonyproviders

UAB " Omn itel" UAB " BitLietuva"

UAB "Te le2" Service p rovider s All mobiletelephony providers

2006 IVQ 2007 IVQ 2008 IVQ 2009 IVQ 2010 IIIQ 2010 IVQ

Fig. 38. Average revenue derived from one subscriber per month in providing fixed public and mobile public

telephone services, including revenue earned from MMS, SMS, GPRS (all revenue received by a relevant provider

per quarter divided by the total number of active subscribers of a relevant provider at the end of the quarter and the

number of months) in Litas

The average revenue derived from one fixed telephony subscriber per month in the fourthquarter of 2010, in comparison with the third quarter of 2010, unchanged, the average revenue from onemobile telephony subscriber per month, decreased by 5,9%.

During the fourth quarter of 2010 mobile telephone operators received the permissions to use 56GSM/DCS base stations and registered 29 new UMTS base station. Included new stations, until 31December, 2010 was issued permissions to use 2986 GSM/DCS base stations and registered 1076UMTS base stations.

During the year the number of the GSM/DCS base stations increased by 5,3%, the number ofUMTS base stations - 19,2%.


26/57



39704196

4448

38833842 3778

3546

3.108

1000

2000

3000

4000

5000

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31

TEO LT, AB63,8%


AB"Lietuvos

geleinkeliai"2,4%

AB Lietuvos radijo irtelevizijos centras

3,4%

Vieoji staigaPlaiajuostis internetas

6,4%

UAB Linxtelecommunications

2,5%

UAB "Data Logistics

Center"12,6%

Other3,0%

5. Leased Lines

In the fourth quarter of 2010 the activities of providing leased lines were carried out by 12undertakings: TEO LT, AB, AB Lietuvos radijo ir televizijos centras, UAB "Data Logistics Center", ABLietuvos geleinkeliai, UAB Bit Lietuva, V Infostruktra, UAB Cubio, Lattelekom SIA

filialas, Vieoji staiga Plaiajuostis internetas, UAB Dicto Citius, UAB Linxtelecommunications, UAB Ektra.As of 31 December 2010 the total number of leased lines, provided to other operators was 3108

(12,4% less than as of 30 September 2010). Out of the total number 86,1% were primary leased lines,the remaining ones secondary.

40,2% (1249) of the provided leased lines were analogue, the greater part of them (99,0%) werelocal lines.

Fig. 39. Change of the number of leased lines, provided to other operators

The total revenue received from the leased lines provision activities during fourth quarter of2010 comparing with the third quarter of 2010 decreased by 5,3% and amounted to LTL 8,22 million.In comparison with the year 2009 leased lines provision market in the year 2010 decreased by 21,0%.

The largest market share of the provided leased lines by the earned revenue is occupied by TEOLT, AB: the undertakings revenue from the provision of leased lines accounted for 63,8% of the wholeleased lines market in the fourth quarter of 2010.

Fig. 40. Distribution of revenue from the provision of leased lines services by operators, in %

(total revenue 8,22 mill.)


27/57



Provision of the physical optical fibre (Dark Fibre)

In the fourth quarter of 2010 11 companies (TEO LT, AB, UAB Skaidula, UAB BalticumTV, Kavamedia UAB, UAB Data Logistics Center, UAB Telerena, UAB Socius, UAB Ektra,Vieoji staiga Plaiajuostis internetas, UAB Dokeda, UAB Elekta) were engaged in the activitiesof provision of physical optical fibre. The number of physical optical lines fibers, provided to others,was 2369, in comparison with previous quarter number increased by 2,7%. The revenues from theseactivities in the fourth quarter of 2010 constituted 4,99 million Litas, comparing with the third quarterof 2010 revenues increased by 1,9%.


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Dial-up0,13%Wireless

10,08%

Through the mobiletelephone network

22,10%

Cable modems5,55%

LAN2,82%

xDSL24,21% Leased lines

0,13%

Fiber (FTTH, FTTB)34,98%

Other15,4%

TEO LT, AB39,3%

UAB Omnitel12,6%

UAB "Bit Lietuva"

9,2%UAB Penki kont. komun.centas"2,5%

UAB Balticum TV2,8%

UAB "Dokeda"3,6%

UAB "Telerena"2,2%


5,3%

UAB"Vinita"2,0%

UAB Viginta moni grup2,7%

UAB Mikrovisatos TV2,4%

6. Internet Access Services

In the fourth quarter of 2010 108 providers provided the Internet access services.

The total number of the Internet subscribers at the end of the period was 879,6 thousand (that is

27,1 connections per 100 population). The said figure does not include 1318,4 thousand subscribers,who were using the service of Internet access at the public mobile telephone communications endequipment (WAP).

77,8% of subscribers used fixed broadband communication technologies for the Internet access,22,1% - connected to the Internet through the mobile public telephone network by using fixed rateplans, intended for payment for the Internet access services, provided by using a computer, 0,1% -connected to the dial-up Internet. The consumers amounted to 81,8% of the total number of subscribers,that is, 53,2 household had permanent connection to the Internet. The revenues, generated by theconsumers amounted to 68,3% off the total revenue, received from provision of the retail Internetservices.

As of the end of the fourth quarter of 2010 there were 3994 wireless Internet hotspots, including

3785 implemented by TEO LT, AB. Comparing with the end of the third quarter of 2010 the number ofwireless communication hotspots decreased by 0,4%, during the year it decreased by 5,0%.

Fig. 41. Distribution of the number of the Internet access subscribers by the manner of connection (total number of

subscribers 879,6 thou.)

Fig. 42. Distribution of the number of the Internet access subscribers by providers, in % (total number of subscribers

879,6 thou.)


29/57



TEO LT, AB42,7%

UAB Omnitel7,8%

UAB Bit Lietuva4,9%


5,9%UAB Balticum TV3,3%

UAB Penki kontinentkomunikacij centras

3,0%


UAB Telerena2,7%

UAB Viginta monigrup3,3%

UAB Vinita2,4%

UAB Dokeda

4,3%

Other16,8%

TEO LT, AB23,6%

UAB Omnitel34,0%

UAB Bit Lietuva28,6%


2,7%UAB Baltnetoskomunikacijos

3,7%

Other7,5%

Fig. 43. Distribution of the number of the Internet access customers 11 by providers, in % (total number 719,3

thou.)

Fig. 44. Distribution of the number of the Internet access business subscribers12 by providers, in % (total number

160,2 thou.)

The total revenue, received from the provision of the Internet access services almost unchanged(increased by 0,03%) comparing with the third quarter of 2010 and in the fourth quarter of 2010

amounted to LTL 102,41 million including LTL 90,72 million of the revenue from provision of retailInternet access services. Approximately 99,9% of the revenue from the provision of retail Internetaccess services were the revenue from the provision of the Internet services via the broadband access.

Total revenue from provision of Internet access services in the year 2010 in comparison with theyear 2009 decreased by 1,5%.

11 - natural persons12 - legal persons


30/57



0,00

100,00

200,00

300,00

400,00

500,00


Dial-up0,07%

Wireless8,72%

Through the mobiletelephone network

18,82%

Cable modems4,35%

LAN2,58%

xDSL30,02% Leased lines2,44%



38,5%

UAB Omnitel9,8%


UAB Penki kont. komun.centas"2,0%

UAB Balticum TV3,9%

UAB "Dokeda"2,4%

UAB Baltnetoskomunikacijos

3,1%

UAB Satgate9,1%


4,8%


Fig. 45. Revenues, received from the provision of the Internet access services, mill. Litas

Fig. 46. Distribution of the revenue for provision of retail Internet access services according to the manner of

connection (total revenue - LTL 90,72 mill.)

Fig. 47. Distribution of revenue from the Internet access service (retail and wholesale) by providers, in %

(total revenue is LTL 102,41 mill.)


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The average monthly revenues from one subscriber for the Internet access services (including allthe ways of connection) in the fourth quarter of 2010 amounted to LTL 34 (comparing to LTL 36 in thethird quarter of 2010). The largest average amount of revenue from one subscriber per month wasreceived from subscribers, who are connected to the Internet by leased lines - LTL 672 (LTL 759), thecorresponding amount, received from the subscribers connected by wireless communication lines was

LTL 30 (LTL 31), through mobile telephone networks (by using computer) LTL 29 (LTL 30), byxDSL line users was LTL 43 (LTL 44), by optical cable - LTL 32 (LTL 33), local area network (LAN) -LTL 31 (LTL 30), cable television networks - LTL 27 (LTL 28), dial-up - LTL 18 (LTL 20).

In the fourth quarter of 2010 13 undertakings had direct international Internet communicationchannels (not via other Internet access providers of Lithuania). The total speed rate of directinternational Internet communication channels (Mb/s) by the end of the fourth quarter of 2010amounted to 93787 Mb/s, i. e. increased by 22,8% comparing with the third quarter of 2010, and duringthe year grew by 2 times. By the end of the fourth quarter the largest speed rate of internationalchannels was held by TEO LT, AB (48300 Mb/s), UAB Bit Lietuva (22529 Mb/s), KTU Institute ofInformation Technology Development (5120 Mb/s), LATTELEKOM SIA filialas (5495 Mb/s).

Until 31 December, 2010 were registered 335 WiMax stations.

Narrowband

The Internet via narrowband access covers Internet via switched telecommunications lines (dial-up). The number of subscribers, connected to the dial-up Internet decreased by 14,9% comparing with thethird quarter of 2010, during the year it decreased by 47,9% and at the end of the fourth quarter of 2010amounted to 1,1 thousand. According to the data of fourth quarter of 2010 a subscriber used those

services in average 1,8 hours per month. The number of subscribers, connecting to the Internet by dial-upis constantly reducing.


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406,1

576,0

706,0

793,9 807,7 826,0853,5 878,4

12,0

17,1

21,1

23,8 24,325,1

26,227,1

0,0

5,0

10,0

15,0

20,0

25,0

0

100

200

300

400

500

600

700

800

900

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31

Broadband subscribers, thou. Penetration, %

Broadband

In the overview of the fourth quarter of 2010 there is included Internet via mobile telephonenetwork by using fixed payment plans, intended for paying for Internet access services by using acomputer.

At the end of the fourth quarter of 2010 the total number of the Internet subscribers at the end ofthe period was 878,4 thousand, during the quarter it increased by 2,9%, during the year 10,7%. Thebroadband penetration (subscribers per 100 population), including subscribers who connected to theInternet through the mobile public telephone network, was 27,1%, during the quarter it increased by 0,9per cent.

Fig. 48. Change in the number of Internet subscribers who make use of broadband technologies (including

subscribers who connected to the Internet through the mobile public telephone network)

Broadband through mobile telephone network

The total number of the subscribers, who connected to the Internet via the mobile telephone byusing a computer and paid for the Internet services according to payment plans, intended for usage of

the Internet via a computer as of 31 December amounted to 194,4 thousand, during the fourth quarter itincreased by 3,9%. In the fourth quarter of 2010 these services were provided by all three operators(UAB Omnitel, ,,UAB Bit Lietuva, UAB Tele2).

56,7% subscribers used UAB Omnitel services, 41,5% UAB Bit Lietuva, 1,8% Serviceproviders (that provided services though the network of UAB Bit Lietuva) and UAB Tele2services.

Total revenues from subscribers, who connected to the Internet via the mobile telephonenetwork in the fourth quarter of 2010 was LTL 17,08 million, 55,8% of them UAB Omnitel revenues,43,3% - UAB Bit GSM revenues, 0,8% - other providers revenues. Comparing with the thirdquarter of 2010, total revenues increased by 1,9%.


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37,4

68,5

115,9

160,1 165,4174,7 187,1 194,4

1,1

2,0

3,5

4,85,0

5,3

5,76,0

0

1

2

3

4

5

6

0

40

80

120

160

200

240

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31


368,7

507,6

590,1633,8 642,3

651,2 666,4 684,110,9

15,1

17,619,0

19,319,8 20,4 21,1

0

4

8

12

16

20

0

100

200

300

400

500

600

700

800

2006 12 31 2007 12 31 2008 12 31 2009 12 31 2010 03 31 2010 06 30 2010 09 30 2010 12 31


62,26

105,05

134,62138,86

82,53

43,6850,28

13,058,51 8,96

15,1917,62

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

2004 2005 2006 2007 2008 2009 2010 2009 IVQ 2010 IQ 2010 IIQ 2010 IIIQ 2010 IVQ

Fig. 49. Change in the number of broadband Internet subscribers through mobile telephone network

Broadband by using fixed communication technologies

The number of subscribers who make use of broadband fixed communication technologiestotalled 684,1 thousand as of 31 December 2010 (at the beginning of the period this figure stood at666,4 thousand), during the quarter it increased by 2,6%, during the year it increased by 7,9%.

Fig. 50. Change in the number of Internet subscribers who make use of fixed broadband technologies

Fig. 51. The number of connected new subscribers who make use of fixed broadband technologies within the quarter,in thou.


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0%

20%

40%

60%

80%

100%

2008 IQ 208 IIQ 2008 IIIQ 2008 IVQ 2009 IQ 2009 IIQ 2009 IIIQ 2009 IVQ 2010 IQ 2010 IIQ 2010 IIIQ 2010 IVQ

until 144 Kb/s from 144 to 512 Kb/s from 512 Kb/s to 2Mb/s from 2 Mb/s to 10 Mb/s

from 10 Mb/s to 30 Mb/s from 30 Mb/s to 100 Mb/s more than 100 Mbit/s

xDSLwireless

communication lines

cabletelevisionnetworks

FTTB FTTHlocal areanetworks(LAN)

leased line Total

more than 100 Mbit/s 0 0 7 54.723 332 41 2 55.105

from 30 Mb/s to 100 Mb/s 0 17 5 88.033 52.284 3.388 6 143.733

from 10 Mb/s to 30 Mb/s 3.336 13.802 6.461 23.699 37.917 2.540 87 87.842

from 2 Mb/s to 10 Mb/s 170.705 42.179 15.059 37.174 462 13.198 450 279.227

from 5 12 Kb/s to 2Mb/s 32.980 29.646 22.394 11.731 41 4.408 471 101.671

from 144 to 512 Kb/s 5.825 1.870 749 1.131 1 915 76 10.567

until 144 Kb/s 106 1.176 4.135 162 0 325 8 5.912

0%

20%

40%

60%

80%

100%

Fig. 52. Distribution of the number of the Internet access subscribers using fixed broadband technologies by

downstream speed, %

In compliance with the growing subscribers needs and provided new services, Internet serviceproviders increased Internet access speeds: within three years the number of subscribers, to whomthe downstream speed rate of 10 Mb/s and higher is ensured increased about 5,4 times.

According to the information provided by Internet access providers, the Internet accesssubscribers using fixed broadband technologies by the downstream speed were distributed as follows:

Sparta %, from all subscribers using

fixed broadband technologies

%, from all households

Until 2 Mb/s 17,3% 8,7%from 2Mb/s to 10 Mb/s 40,8% 20,7%from 10 Mb/s to 30 Mb/s 12,8% 6,5%

from 30 Mb/s to 100 Mb/s 21,0% 10,6%More than 100 Mb/s 8,1% 4,1%

Fig. 53. Distribution of the number of the Internet access subscribers using different connection to the Internet

technologies by downstream speed, %


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22,62

13,6 4 13,6312,25

9,237,49 7,11 6,93 6,15 5,76

4,10 3,36 3,231,84 1,71 1,68 1,55 1,27

0,00

5,00

10,00

15,00

20,00

25,00

2010 June 2010 December

4,45

2,75

1,66 1,60 1,601,27

1,060,82 0,79 0,71

0,50 0,48 0,38 0,36 0,21 0,15 0,13 0,00

0,00

1,00

2,00

3,00

4,00

5,00

According to the survey (December, 2010) performed by FTTH Council Europe and company

IDATE, Lithuania led under fibre broadband (FTTH, FTTB) penetration (number of subscribers per 100households). The ranking only took into account countries with more than 200,000 households andwhere the penetration rate is 1% and more.

Fig. 54. Fibre broadband penetration (the number of FTTH, FTTB subscribers per 100 households) in Europeancountries

Source: FTTH Council Europe and IDATE ( June of 2010, December of 2010)

Fig. 55. Change of fibre broadband penetration (from 2010 June to 2010 December). In per cents

Source: FTTH Council Europe and IDATE ( June of 2010, December of 2010)

According to the data submitted by Internet access providers, the fastest growing broadbandInternet technology is fibre broadband: comparing with the end of 2009, within 2010 the number ofsubscribers, connected to the Internet via fibre communication lines increased by 53,1 thousand,accordingly the number of subscribers, connected to the Internet via wireless lines by 19,2 thousand,number of subscribers, connected by other fixed broadband technologies decreased.


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41,2 40,839,4 38,9 38,6 38,0

34,7 33,8 33,1 32,9 32,9 32,330,0

26,7 26,2 25,3 24,8 24,522,6 22,1 21,1 20,1

18,9

15,4 15,0 13,9

0

5

10

15

20

25

30

35

40

45

2009 12 31 2010 12 31

7,06,6

5,2

3,7

2,7 2,6 2,4 2,4 2,4 2,2 2,1 2,1 2,1 2,0 1,9 1,9 1,8 1,8 1,7 1,7 1,5 1,4 1,3 1,2

0,4

-0,3

-1,0

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

The broadband penetration in Lithuania is still lagging behind the European Union countries

average.According to the data prepared by Point Topics World on the broadband connection and

published as the IV quarter report of 2010 shows that the penetration of broadband connection shiftsfrom 13,9 to 41,2 connections per 100 inhabitants. The highest broadband penetration in the European

countries is observed in Switzerland, Denmark, Norway and the lowest penetration rates are observed inPoland, Slovakia and Romania.

Fig. 56. Broadband per 100 population in European countries

Source: Point Topics World Broadband Statistics for December of 2009, December of 2010)

According to the data, provided by Point Topics World company, during the time period of oneyear from 31 December 2009 till 31 December 2010 the penetration of broadband communicationmostly increased in Estonia (7,0%), Latvia (6,6%), Malta (by 5,2%).

Fig. 57. Change of Internet subscribers who make use of broadband technologies in European countries (2009-12-31

to 2010-12-31)

Source: Point Topics World Broadband Statistics for December of 2009, December of 2010)


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Wireless12,97%

Cable modems7,14%

LAN3,63%

xDSL31,13%

Leased lines0,16%



50,4%


6,8%UAB Balticum TV

3,6%UAB Dokeda

4,6%


3,3%

UAB Telerena2,9%



UAB Vinita2,5%

Other16,4%

TEO LT, AB51,7%



6,7%UAB Balticum TV

5,3%

UAB "Baltnetoskomunikacijos"

4,3%

UAB Dokeda3,4%


2,7%

UAB Telerena1,9%



Fig. 58. Distribution of the number of the Internet access subscribers, who make use of broadband communications

technologies, according to the manner of fixed connection (total number 684,1 thou.), %

Fig. 59. Distribution of the number of the Internet access subscribers, who make use of broadband communications

technologies, by providers (total number - 684,1 thou.), %

Fig. 60. Broadband communication providers market shares according to the revenue, received from provision of

broadband Internet access (the total revenue from broadband communication LTL 73,59 mill.), %


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TEO LT, AB99,4%

Other providers0,6%

TEO LT, AB33,7%

UAB Dokeda

10,3%


7,4%

UAB Viginta monigrup7,2%

UAB Mikrovisatos TV6,4%UAB Telerena

5,4%UAB Balticum TV5,1%

UAB Elekta2,7%

UAB Telelanas2,5%

UAB Kauno internetosistemos

2,4%

L. Pruinsko IKompiuterinis langas

2,0%

Other

14,8%

AB Lietuvos radijoir televizijos centras

52,1%

TEO LT, AB

32,8%

UAB Balticum TV3,3%

UAB Baltnetoskomunikacijos

2,8%

Other8,9%

On 31 December 2010 the number of telephone line, whereby the high-speed service ofsubscriber lines (hereinafter referred to as xDSL) is provided, totalled 212,9 thousand (34,0% of the totalnumber of metallic twisted pair lines). During the fourth quarter it decreased by 1,0%, during the yeardecreased by 6,6%.

By using 99,4% of the lines TEO LT, AB provided the Internet access services to its customersand 1282 xDSL access units were whole-sold to other Internet access service providers. According toinformation available to the Regulatory Communications Authority, apart from TEO LT, AB, 10 moreproviders provide xDSL services.

Fig. 61. Number of xDSL lines being provided, in %

Also, there were provided broadband Internet services for 0,05 thousand subscribers by usingshared access to local loop.

Fig. 62. Distribution of the number of the subscribers, connected to the Internet via optical fibre communication, by

providers, in % (total number of subscribers 307,7 thou.), %

Fig. 63. Distribution of the number of the subscribers, connected to the Internet via wireless communication lines,

by providers, in % (total number of subscribers 88,7 thou.), %


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UAB Vinita35,5%

UAB Kabeliniai ryitinklai

14,0%

UAB Init10,9%

UAB Balticum TV9,6%

UAB Telerena7,5%

UAB Rygveda6,0%

UAB Satela3,8%

UAB Televizijoskomunikacijos

2,6%

Other10,1%

Fig. 58. Distribution of the number of the subscribers, connected to the Internet via cable TV networks, by

providers, in % (total number of subscribers 48,8 thou.), %


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TEO LT, AB64,1%

UAB "Omnitel"

2,6%UAB "Bit Lietuva"

5,4%

V " Infos truktra"16,1%

UAB "Data LogisticsCenter"9,6%

Oher2,2%

7. Data Transmission Services

Other data transmission services in the fourth quarter of 2010 were provided by 15 undertakings.The total revenue, received from provision of data transmission services increased by 1,1% comparingwith the third quarter of 2010 and amounted to LTL 22,11 million. Total revenues received from

provision of data transmission services during the year 2009 in comparison with the year 2010decreased by 1,8%.The main services provided were the following: virtual private network (VPN), IP, Frame Relay,

Ethernet, Ethernet VLAN, MPLS, etc.

Fig. 65. Data transmission service providers market shares according to the revenue from provision of data

transmission services (the total revenue LTL 22,11 mill.), %


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Cable TV15,7%

MMDS7,2%

IPTV25,6%

Digital terrestrialtelevision (DVB-T)

23,0%

Satellite TV28,5%

TEO LT, AB47,4%UAB Balticum

TV6,9%

UAB MikrovisatosTV5,7%

UAB Vigintamoni grup

3,6%

AS Viasat28,5%

Other7,8%

TEO LT, AB42,2%

UAB Balticum TV3,8%

UAB Mikrovisatos

TV4,0%

UAB Vigintamoni grup

2,1%

AS Viasat42,4%

Other5,6%

8. Television Activities

At the end of the fourth quarter of 2010 638,3 thousand subscribers (i. e. 47,2% of allhouseholds) used pay television (pay-TV) services (including provided through cable TV and MMDSnetworks, TV services based on IP technologies (IPTV), digital terrestrial television (DVB-T) services

and satellite TV), during the fourth quarter the number of pay-TV subscribers increased by 2,6%.Total revenues received from pay-TV services during the fourth quarter of 2010 in comparison

with the third quarter of 2010 increased by 3,1% and totalled LTL 41,10 million.43,3% of the pay-TV subscribers used digital pay-TV services. At the end of the fourth quarter

of 2010 276,7 thousand subscribers used digital pay-TV services, during the quarter the numberincreased by 6,4%. During the year the number of digital TV subscribers increased by 21,9%.

The penetration of digital pay-TV per 100 population in the end of the fourth quarter was 8,5, i.e. 20,5% of households were connected to the digital pay-TV.

In the fourth quarter of 2010 digital television services were provided by 26 undertakings.

Fig. 66. Distribution of the number of the digital television subscribers by the manner of connection (total number of

subscribers 276,7 thou.)

Fig. 67. Distribution of the number of the digital television subscribers by providers (total number of subscribers

276,7 thou.)

Fig. 68. Distribution of revenue from digital television by providers (total revenue LTL 23,73 mill.), %


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99,13

93,44 92,63 92,56 90,8288,51

84,54 82,94 81,1478,81 77,57 75,81

69,05

63,06 62,9860,22

59,83 59,11 57,0154,41

51,81

45,1241,77

41,11

27,85

14,80

Pay TV per 100 househols Pay digital TV per 100 digital households

Fig. 69. The number of pay television subscribers and the number of pay digital television subscribers per 100

household in European countries

Source: IHS Screen Digest data, 2010 IIIQ

According to IHS Screen Digest, in the third quarter of 2010 digital pay TV platform continuedto grow in every country across the Europe. Similarly pay TV penetration showed growth in almost allthe countries. The growth on pay digital platform is typically higher than pay TV, as digital pay TVgrows on the cable platform also due to analogue TV subscribers converted to digital TV services.

Fig. 70. Change of the digital television subscribers per 100 household (during the third quarter of 2010) in European

countries, in per cents

Source: IHS Screen Digest data (2010 IIQ, IIIQ)


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136,65

83,95

55,75

26,0311,05 10,94 9,85 8,30 7,59 6,46

68,19

11,5818,86 16,12

8,32 2,181,22 0,20 1,03 0,29 0,22 3,34

0

20

40

60

80

100

120

140

160

Bendras abonent skaiius (KTV, MDTV) Skaitmenins KTV, MDTV abonent skaiius

UAB Balticum TV15,7% UAB Telerena

4,1%

UAB AVVA

2,2%

UAB Init7,9%

UAB Kabeliniai ryi tinklai7,8%

UAB Lignita2,8%

UAB Mikrov isatos TV11,8%

UAB Rygveda4,1%


UAB Vinita16,7%

Other18,0%

1. Cable television andmicrowave multi-channel distribution system (MMDS) networks (including

analogue and digital)

In the fourth quarter of 2010the activities of providing cable television services were carried outby 49 undertakings and microwave multi-channel television services were carried out by 3

undertakings.On 31 December 2010 405,0 thousand subscribers used cable television services (during the

Documents

Report 2010ivq RRT