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The "battle" for fixed Internet, high competition brought the loss of ground by the 6 big operators

2024-01-15 13:51:23Biznes SHKRUAR NGA REDAKSIA VOX

The "battle" for fixed Internet, high competition brought the loss of

The fixed internet service in Albania has become in recent years the subject of a strong battle between a very large number of operators for the widest possible extension. According to the official data of AKEP, in this battle there were about 240 operators until the end of 2021, most of them small operators who managed to win the battle against the big ones. A victory that, in any case, has started to be curbed after 2022, with the big market operators that, especially during 2023, have started little by little to gain the lost ground.

The beginning of 2022 has found the Albanian market with 240 licensed fixed operators offering internet services. A main feature of the development of competition in the Albanian market is the increasing importance of small operators. The combined market share of the six largest operators in Albania decreased from 89% in 2017 to 68% at the end of 2022. However, the growth of the market share of the smaller operators seems to have stopped since 2022.

The good news is that such a high presence of operators and the reduction of the dominance of the big ones has resulted in a high level of competition, both in prices and in the quality of service.

Both the limited geographical coverage of most operators and the difference between urban and rural areas signal that market conditions vary across the Albanian territory and that competition is determined, to some extent, at a local rather than a national level.

Most operators in Albania are small in size and have a limited network presence in specific geographic areas, especially in urban or rural areas near urban centers. Few of the operators in this market have wide coverage as most broadband service providers compete in smaller segments and are mainly local providers. The market share of the main operators in rural areas is much lower compared to urban areas. In some counties such as Berat, Dibër, Elbasan, Fier, Korçë, Lezhë and Shkodër, they have almost no presence in rural areas. End users in these areas are almost entirely connected by smaller local operators.

Such a strong competition is also reflected in prices, which are below the average of European Union countries. For the packages that include internet access, voice phone and TV services, it turns out that the prices offered by broadband service providers in Albania are consistently lower than the average prices recorded in the European Union member countries. The difference in prices ranges from -7€ measured by consumers' purchasing power for basic broadband connections to -1€ for ultra-fast broadband connections.

In general, the prices offered by broadband service providers in Albania are in line with the level of prices proposed in other countries of the European Union, concludes the analysis made by the Albanian Authority for Electronic and Albanian Communications.

 

 


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