Negative trends on the electronic communications market are felt most strongly in fixed telephone services. Total revenue from fixed and public phones in 2013 continued to record double-digit decline (14.7%) and now stands at only 226.6 million levs. There is an increased reduction in traffic from national and international calls in minutes, indicating that the decrease in revenue is due to the depreciation of the services, and that people generally talk less.
Negative trends in the fixed telephony interfere with the entry of new players in the battle for a thinning clientele. In 2013 the Commission for Communications Regulation issued permits to implement fixed telephone service to five new companies – Compatel limited, Telecommunications Company Varna EAD Novatel Ltd., Trirtel Ltd., and Alfa Tech Ltd. Thus the total number of alternative telecoms to BTC, now operating under the name of Vivakom, increased to 27.
All these competitors are gradually gaining momentum. They already have taken 14.3% of the market, which is 1.6 percent more than 2012. The former state monopoly still controls 85.7% of revenues in the sector, or 194.2 million levs. At the same time, Vivakom holds only two thirds of the telephone lines, which reveals that the company asks for much higher rates than other players.
However, it is worth paying attention to how things are with the number of fixed telephone lines in general. Information submitted by companies providing end-user access to the fixed telephone service, shows that compared to previous years, 2013 saw the suspension of the growth trend of subscribers to fixed telephone lines accessible through mobile networks or as part of a bundled service. So far, this was the main reason to keep the total number of telephones in the country. Last year, the number fell by 8.8% – to about two million. For comparison – in 2005 the fixed-line phones in Bulgaria were over 2.5 million.
Another curious detail is that unlike mobile services, the fixed lines collect 66.5% of the revenues from installation fees and subscriptions. Only 23 percent, or 52 million levs, are the telecom revenues from calls.
As for public telephone booths, the number at the beginning of 2014 was just 11,096. Surprising as it is, it stayed unchanged in comparison with 2013 and even recorded a slight increase – of 16 new booths. However, traffic and revenue from this service reduced by 18.8 percent. In general, the calls, income and the number of supported public telephones is generated almost entirely by the activity of BTC, as an enterprise offering universal telecom services.
The BANKER
