Bulgaria's Telecom Growth Relies on Broadband-Based Services

Fixed broadband subscriptions are expected to almost double over the next five years to 2.1 million, with fixed broadband services presenting a USD 1.9 billion revenue opportunity in the 2010-2015 period, says the Pyramid Research, as cited by Telecom Pap

Broadband-based services will drive Bulgaria's telecommunication market growth over the next five years, with mobile data and broadband internet expected to experience a double-digit growth, according to a study.

Fixed broadband subscriptions are expected to almost double over the next five years to 2.1 million, with fixed broadband services presenting a USD 1.9 billion revenue opportunity in the 2010-2015 period, says the Pyramid Research, as cited by Telecom Paper.

The drivers behind this growth are the continuous investment in extending and upgrading broadband networks, a more favourable regulatory environment and the adoption of a National Broadband Strategy by the government, which aims for 100 percent broadband coverage.

Accompanying broadband adoption growth, IPTV and VoIP will grow at a double-digit CAGR of 46.4% and 38.7%, respectively, between 2010 and 2015.

As of this year, Bulgaria's telecommunication service revenue is dominated by voice, accounting for 81% of the total,

However, Pyramid expects this segment to lose 16 % by 2015 because it will bear the brunt of EU regulation with regard to mobile termination rates (MTR), number portability, and the pervasive trends of fixed-line disconnection and lower pricing of services.

Data revenue, currently 19% of total service revenue, will grow at a CAGR of 20.8% over the next five years to reach 34% in 2015, primarily driven by increasing fixed and mobile internet penetration facilitated by recent initiatives from operators and the CRC, as well as by subsidies offered on computing devices.

As the effect of MTR-focused EU regulation takes hold, operators will focus more on the mobile data segment, which represents a cumulative revenue opportunity of USD 2.1 billion across the forecast period, says Pyramid.

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