Bulgaria’s Telecoms Drive Investment and Jobs, Outpacing National Average

The three leading telecommunications operators in Bulgaria inject more than 640 million BGN (≈327 million EUR) annually into the development of networks and services, marking an investment intensity nearly three times higher than the national average. The sector supports over 10,000 high-paying jobs, with productivity per employee reaching around 130,000 BGN (≈66,500 EUR), roughly 25% above the average in the ICT industry, according to a report by the Institute for Market Economics for the Alliance of the Technology Industry.

Telecoms in Bulgaria play a dual role: they act as strategic investors and major employers, while also providing critical infrastructure that underpins business operations, public administration, and everyday life for citizens.

Investment and Market Dynamics

In 2024, capital expenditures on electronic communications networks in Bulgaria totaled 676 million BGN, with 97 million BGN allocated to fixed networks and 284 million BGN to mobile networks. Enterprise investments consistently represent more than 2% of all capital expenditures in the national economy, reaching 2.3% in 2024. Within the non-financial services sector, telecoms accounted for 6.9% of total investments. Investment intensity - measured relative to revenues - stood at 18–21% between 2022 and 2024, approximately three times the average for Bulgarian enterprises. Much of this funding is reinvested in networks, software, cloud solutions, digital wallets, and new business services, benefiting both the sector and the broader economy.

Employment and Salaries

The three operators employ over 10,000 people, with staff numbers rising from 9,650 in 2022 to 10,475 in 2024, an increase of more than 8%. Growth has been driven by ongoing investment cycles, including the rollout of 5G and optical networks, expansion of service centers, and development of ICT solutions for businesses. Average annual salaries in the sector reached 37,900 BGN (≈19,400 EUR) in 2023, 56% above the national average. In wireless communications, the average exceeds 42,000 BGN (≈21,500 EUR). High labor productivity is reflected in the added value per employee, more than double the national average of 55,000 BGN (≈28,200 EUR).

Contributions to Public Finances

Telecom operators are significant contributors to public revenue, paying an estimated 626 million BGN (≈320 million EUR) in corporate taxes, social security, income taxes, and local fees between 2022 and 2024. Corporate tax contributions alone increased from 75.9 million BGN in 2022 to 87.9 million BGN in 2024, representing nearly 1.8% of total corporate tax revenues. Income tax payments accounted for approximately 0.7% of total collections.

Market Size and Maturity

The Bulgarian telecommunications market exceeded 4 billion BGN (≈2.05 billion EUR) in 2024, with the three leading operators generating 3.17 billion BGN (≈1.63 billion EUR), up 16% from 2022. However, growth is slowing: after a double-digit surge in 2023, expansion in 2024 was below 5%, signaling a maturing market where new subscriber acquisition is no longer the primary driver. The mobile segment remains the most dynamic, accounting for over two-thirds of revenue (2.18 billion BGN, ≈1.11 billion EUR) and growing more than 8% annually.

Infrastructure Leadership

Bulgaria ranks among Europe’s most advanced countries in terms of digital infrastructure. Fiber-to-the-home coverage reaches 90.4% of households (EU average: 69.2%), while very high-capacity networks cover 90.3% of households (EU average: 82.5%). 5G networks cover more than 80% of households and over 90% of the population. Mobile data traffic has doubled in two years, from 116 PB to 230 PB. Despite heavy investments, telecom services remain affordable: average monthly revenue per mobile subscriber is 19.8 BGN (≈10.1 EUR) in 2024, below the EU averages for mobile (≈14.8 EUR) and fixed internet (≈23.7 EUR). Adjusted for inflation and household purchasing power, real mobile service prices fell 7.3% in 2023 and 7.7% in 2024.

Impact on Daily Life and Civic Engagement

Advanced infrastructure supports a range of digital activities. Approximately 65–70% of Bulgarians use the internet for social connections, over half access news or search for goods and services online, and more than 50% shop online. Around 20% participate in public discussions or polls online, while e-health services are expanding: 40% search for health information online, 18% book appointments digitally, and 20% access electronic medical records and prescriptions.

Challenges and Outlook

Despite a robust infrastructure, Bulgaria faces a challenge in digital literacy, with only 36% of the population possessing basic digital skills compared to the EU average of 56%. Future efforts must focus on education, skill development, and innovation incentives to maximize the value of digital networks for businesses and society. With sustained investment, high-quality employment, and enhanced digital capabilities, the telecommunications sector is poised to remain a key driver of economic growth and improved quality of life in Bulgaria.