Landline telephony continues to lose ground

Statistics for 2016 show the value of fixed-line telephone services decreased by 14% on 2015 to 876 million lei. The decline was due to the diminution of the number of subscribers and voice traffic in fixed-line telephone networks. During a year the number of subscribed decreased by about 31,200 to almost 1.1 million, IPN reports, quoting the ICT regulator ANRCETI.

According to the data furnished by the 22 active fixed-line telephone providers to the regulator, the number of subscribers of S.A. “Moldtelecom” decreased by over 30,800, while of the alternative providers by 363. As a result, the fixed-line telephone penetration rate per 100 people declined by 0.9 percentage points on 2015, to 32.9%.

The decline in the total volume of voice traffic in fixed-line telephone networks resulted from the decrease in the volume of all types of traffic. The traffic initiated aboard and terminated in the fixed-line telephone networks in Moldova fell by 41.1%, traffic to other fixed-line networks by 37.4%, traffic to international networks by 25.4%, traffic to mobile networks by 10.3%, while interconnection traffic by 11.4%.

The revenues of practically all the fixed-line telephone providers declined. The sales of alternative providers decreased by 35.7 million lei to about 31.3 million. The sales of S.A. “Moldtelecom” diminished by 106.6 million lei to 844.8 million.

In the last ten years, the value of the fixed-line telephone services market decreased over 2.5 times, from 2.3 billion lei in 2007 to 876 million lei in 2016 following the switch in consumer preferences from landline telephone to mobile telephone and Internet services, which are more attractive and convenient for communication.

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