WORLDWIDE MARKET RESEARCH REPORT - CISE

EC/IST FP6 Project No 026920
Work Package: 6
Type of document: Report
Date: 20.12.2007
File name: OP_WP6_D37_V1.0.doc Version: 1.0
Title: Worldwide Market Research Report 170 / 356
reaching saturation, the mobile data sector is still in the growth stages of market
development. The introduction of additional content such as mobile TV in Lithuania, and the
eventual introduction of high-speed third generation services in all three countries will have a
positive impact on mobile data usage. The introduction of mobile applications such as email
and services that use mobile phones to monitor the status of cars and houses in Estonia
highlights the increasing potential of the mobile applications market. The Russian mobile
applications market is developing: there are approximately 100 distribution companies
providing or promoting content, and about 40 content providers. The majority of them
develop their own content while a few purchase programs from foreign companies.
Strong broadband growth has been recorded in all five countries in the Central European
region the highest growth rate attributed to the Czech Republic, where the number of ADSL
connections increased sixfold in 2004 to 101,000. However broadband penetration in each
of the countries remains below the EU average. Strong growth has also been recorded in the
Balkans, with annual growth rates of 95.19% to 382,783 broadband connections in Romania,
584% in Croatia to 30,550 connections, 300% for ADSL in Greece to 88,400 subscribers and
547% increase for broadband in Macedonia to 5,530. In the CIS region broadband
penetration grew strongly in Belarus, with penetration increasing threefold in the capital,
although the increase came from a small user base. Broadband penetration is very low in
Moldova but is growing as new operators launch services for cable broadband and WiFi. The
situation is the same in Russia where future broadband penetration holds much potential as
current penetration levels were less than 1% in 2004.
WiMAX services are growing in Russia. In May 2005 Moscow-based operator
MediaNetworks launched a WiMAX-specification network in Nizhny Novgorod. Major
alternative operator Golden Telecom is also reported to have launched a WiMAX-
specification network. Another operator, Prestige Internet holds a licence to provide wireless
broadband services in 29 major Russian cities and launched services by end-2005 and
plans to expand services to all 29 cities by end-2007. The operator is 50% owned by
Japanese firm Sumitomo. The increasing availability of broadband offerings is expected to
significantly drive broadband uptake.