Regulator withdraws TEO obligations in fixed line market

23 Jul 2013

Lithuania’s Communications Regulatory Authority (RRT) has withdrawn the obligations imposed on TEO LT in the fixed telephony markets after assessing that there is efficient competition in the sector. TEO, which is more than 88%-owned by TeliaSonera, has announced that certain fixed telephony pricing restrictions, price control and cost accounting requirements, including the accounting separation obligation, have been removed. ‘This means that TEO will have more flexibility to set prices for residential customers and businesses. As a result of reduced administrative requirements, we will be able to respond more quickly to market conditions and provide more attractive offers to consumers,’ noted Nerijus Ivanauskas, chief marketing officer at TEO. The RRT obligations and the related requirements for the provision of domestic and international fixed line telephony services by TEO to residents and businesses will expire on 1 January 2014.

In other news, the RRT has reported that Lithuania ended March 2013 with a total of 782,300 fixed broadband subscribers, an increase of 5.8% from 739,300 twelve months earlier. Fibre connections (FTTH and FTTB) made up the majority (52.5%) of total subscribers at Q1 2013, followed by xDSL with 23.1%, wireless (17.0%), cable modem (5.5%) and other connections (1.9%). Mobile broadband customers reached 287,900 at the end of March 2013, up 11.5% from 258,200 a year earlier. 59.6% of total mobile subscribers used the network of Omnitel in Q1 2013, followed by Bite Lithuania with a market share of 32.9% and Tele2 with 7.1%, while other service providers (using Bite’s network) made up the remaining 0.4%.