Internet Use from Mobile Phones Increased by 30.5%
Internet usage by mobile networks set a new record in the second quarter of the year. According to data from the Electronic and Postal Communications Authority (AKEP), each user of mobile services consumed an average of 7.77 GB of internet per month, this figure is 7.5% higher compared to the average of the first quarter and 30.5% higher compared to the same period last year.
Total Internet traffic generated on mobile networks during the second quarter reached a total of about 49 million GB, a figure 33.4% higher compared to the same period a year ago. According to AKEP, at the end of the second quarter there were 2.1 million broadband Internet users from mobile networks, 2.1% more compared to a year ago.
This quarter is also confirming the rapid trend of mobile phone usage towards internet service. The Internet is replacing to a large extent the classic communication services directly via the network, such as voice calls or text messages. OTT-type communication applications are bringing a steady decline in these services. According to AKEP, for quarter II, it fell to 1.3 million minutes, 8.1% less compared to the same period last year. Average monthly call usage per user decreased to 167 minutes, 13.3% less compared to Q2 2021.
The number of SMS sent also decreased to 134 million, down 3.2% compared to the same period a year ago. Average monthly usage also fell to 17 SMS per month, 8.8% less compared to the same period a year ago.
AKEP data provides information on the segmentation of the broadband Internet service market by number of users only. The third quarter data confirmed a fast growing trend of the operator ONE, with 9.3% compared to the same period a year ago. Meanwhile, Vodafone Albania and Albtelecom Mobile experienced a decrease in broadband subscribers in this quarter as well, respectively by 1.7% and 5.1%.
However, Vodafone continues to have the largest market share measured in terms of number of users, with 45%, followed by ONE, with 41% and Albtelecom Mobile with 14%.
The global trend of shifting the use of mobile networks to the Internet is also becoming a determining factor in the way the market develops and in business strategies. Providing a quality internet service, which is already becoming the main competitive element, requires significant and continuous investments from operators. This development makes it more difficult for the smaller operators to survive in the market, as evidenced by the sale of the Albtelecom company and its merger with the largest mobile operator, ONE.
The need for investment and increased efficiency will become even more important with the imminent transition to 5G technology. AKEP commissioned a study on the transition to 5G technology to the company Jones Group International.
The document approved by AKEP acknowledges the challenges presented by the process and highlights that the implementation of the 5G architecture mainly depends on the deployment capabilities of small cells and their interconnection with the core system, using a high-bandwidth network infrastructure based on the technology of optical fibers. This process is currently difficult due to the various complications that arise in finding sites for new base stations, obtaining permits for their placement, and the procedures that must be followed when installing the cable network infrastructure.
From this point of view, the analysis of AKEP and the consultant Jones Group International evidences that it is necessary to offer relief to operators, in the procedures of granting permits for the placement of towers, stations, but also to reduce the costs of setting up the network infrastructure, recommending that new facilities must be built with a mandatory fiber optic infrastructure installed. More specifically, the analysis suggests legal interventions to simplify procedures and enable quick and easy approvals for the construction of the new 5G network.
The frequency tendering process has not officially started yet, but, also due to these problems, mobile operators in the country have expressed pessimism about the possibility of the rapid implementation of 5G technology.
According to them, investment in 5G cannot begin before 2023 and it may take at least 12 months to enable the full construction of the network, even for the country's important cities.
The operators have predicted the period 2022-2023 for technical trials and marketing studies, while significant investments in 5G technology are mainly expected in the period 2024-2025. They estimate that the process will take time. 5G, being investment intensive and changing current technology, will likely need more time to deploy than the 4G network.
(Source: Monitor)