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Lithuanian leadership in mobile telecommunications
Lithuania - truly mobile country
Explosive growth of mobile penetration, in Q4 2005:
– 153,2 % mobile penetration– 23,5 % fixed penetration
74% of telecommunication revenues are from mobile
Source: Lithuanian NRA
Source: Lithuanian NRA
Total outgoing minutes
4% 7%
15%
41%
55%
58%
62%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1999 2000 2001 2002 2003 2004 2005
Mobile
Fixed
Telecomunications market revenue
33%
33%
42%
55%
66%
71%
74%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1999 2000 2001 2002 2003 2004 2005
Mobile
Fixed
23.5%
153.2%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
H12003
H22003
Q12004
Q22004
Q32004
Q42004
Q12005
Q22005
Q32005
Q42005
Fixed line penetration Mobile penetration total (SIM cards)
Penetration of fixed and mobile telephony in Lithuania
• In 1991, after Lithuania regained independence, Dr. J. Kazickas founded Omnitel, the 1st private telecommunications company in Eastern Europe– The idea behind independent communications with
the rest of the world
• In 1996 Motorola joined with 45% of shares • In 1998 Amber Mobile (Telia & Sonera) became
majority (55%) shareholder• In September 2004, TeliaSonera acquired 100%
control
A brief history of Omnitel
Bringing innovations to the country
• First in Lithuanian to introduce GSM (1995)• First commercial Internet provider (1995)• One of the first in Europe to provide integrated services portal to GSM
service users (1999) • First in Lithuania to introduce WAP protocol for data transfer and the first
WAP portal (1999)• One of the first in the Europe to introduce GPRS (2001)• The first in the world to launch and operate Motorola’s latest base stations
Horizon II (2003)• The 4th company in Europe and the 7th in the world to have implemented on
its network the latest GPRS technology CS3/CS4 (2003). GPRS data transfer rates are increased up to 70%
• UMTS trial – live video call to Brussels (2004)• HSDPA trial (2005)• First UMTS operator in Lithuania (2006)
Omnitel today
• Top-1 telecommunications company in the Baltics • Top-3 tax payer to the budget• Top-5 most profitable Lithuanian company • Top-10 largest Lithuanian company• Top2 best reputation company in the country• TeliaSonera – one of the largest investors in Lithuania
Mobile market shares
Source: NRA, 2005 4Q
53.5%
27.8%
25.1% 19.4%
24.3%45.8%
37.7%
27.8%
33.8%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Active subscribers
GSM revenue
Outgoing minutes
Omnitel Bitė Tele2 Service providers
Customers
• Half of Lithuanian population uses Omnitel services• 1,000,000th customer in 2003
214,000334,000
579,000850,000
1,053,000
1,338,000
1,888,000
0200,000400,000600,000800,000
1,000,0001,200,0001,400,0001,600,0001,800,0002,000,0002,200,000
1999 2000 2001 2002 2003 2004 2005
Business market leadership
Source: List of the largest (9 mos. 2004) Lithuanian companies by Verslo žinios, market surveys
Lithuanian companies
Omnitel customers
TOP 10 80%
TOP 20 90%
TOP 50 78%
TOP 100 83%
All companies 70%
Highly loyal customersWorldwide consumer loyalty to mobile industry
Average loyalty
Average loyalty
5151
AustraliaAustralia
7575
Conversion ModelTM index averages in different countries
SwedenSweden
4444
LithuaniaLithuania
7777USAUSA
6565
St. AfricaSt. Africa
6464
KanadaKanada
4040
4343
UKUK
4242GermanyGermany
Source: TNS Gallup
OmnitelOmnitel
8585
What comes next?
The mobile internet revolution!to create the future via mobile internet
Mobile Internet gains momentum
0%
10%
20%
30%
40%
50%60%
70%
80%
90%
100%
2003 2004 2005i 2006p
Laptops Desktops
Mobile Internet – the fastest growing Laptop PC sales exceeds the sales of Desktops
According NRA 4Q report more than 76% of users are accessing Internet
via mobile channels in Lithuania
Source: Lithuanian NRA Source: Infobalt
Total Internet subscribers, th. eop
0
200
400
600
800
1,000
H12003
H22003
Q12004
Q22004
Q32004
Q42004
Q12005
Q22005
Q32005
Q42005
Other
Leased lines
LAN
Optic lines
Cable TV
Other wireless
Mobile Internet
xDSL
Fixed dail-up
Total Omnitel mobile internet subscribers, th.
050000
100000150000200000250000
300000350000400000450000500000
Q32004
Q42004
Q12005
Q22005
Q32005
Q42005
Attractive offers boosting Mobile Internet take up
Subsidized Omni Connect card – 1 Lt;
Monthly fee for unlimited Internet use: 100Lt (28 Euro)
Subsidized HP Laptop(!) + Omni Connect card – 1Lt;
Monthly fee for unlimited Internet use – 149Lt (43 Euro)
Laptop subsidies started in September,2005
Mobile Internet connection is becoming
essential to the laptop as a SIM card is
for a mobile phone
Source: Omnitel451 000 Omnitel Mobile Internet users at the end of 2005 ( 200% annual growth )
Just in one quarter after starting to sell Omni Connect powered HP Laptops, Omnitel
became No 2 HP distributor in Baltic States
2006 2007 2008
7.47.4 1001001414
2009
HSDPAEtapas 3HSDPAEtapas 3
3.6 3.6 0.3840.384
WCDMAWCDMA
Super 3GSuper 3G
HSDPAEtapas 2HSDPAEtapas 2
HSDPAEtapas 1HSDPAEtapas 1
Speed Mbit/s
2012Metai:
Mobile internet speed development
Šaltinis: Informa
IP Migration trend
Fixed voice Mobile voice Fixed voiceover IP Mobile voice over IP
0%10%20%30%40%50%60%70%80%90%
100%
Source: ADL Global Broadband Update 2005
Pokalbių minutės skirtinguose tinkluose
From vertically integrated networks towards all IP services ecosystem
TomorrowTomorrowHorizontal networks Horizontal networks
((a lot of servicesa lot of services))
Content
Access
Access Access
Content
Services
ServicesEnvironment
IP Multi-Servicesnetwork
Transport, Switching & Access Networks
TodayTodayVertically integrated networks Vertically integrated networks
((one serviceone service))
Mo
bil
e M
ob
ile
Fix
ed D
ata
Net
Fix
ed D
ata
Net
WL
AN
WL
AN
Services
Fix
ed T
elep
ho
ny
Share of Korean mobile phones sold in Omnitel network
2002 - 2.2%
2003 - 11.4%
2004 - 14.7%
2005 - 19.4%
2006 - 23.4% ( january - april )
Can Lithuania repeat the Ireland story?
?
Thank you!
