The Evolution of the Market of Landline and Mobile Telephony Services in the Republic of Moldova

Abstract

The paper presents a brief overview of the current development of the market of fixed and mobile telephony services in the Republic of Moldova. The topicality of the research is determined by the changes in the behavior of consumers of mobile telecommunications services in the last 5-6 years, during the Covid and post-Covid period. The main purpose of the research is to highlight the main characteristic trends in the development of the market of landline telephony and mobile telephony services in the Republic of Moldova. For this purpose, mathematical methods were used for the comparative analysis of official statistical data. The statistical data of the National Regulatory Agency in Electronic Communications and Information Technology (ANRCETI), published in the period 2018-2023, were analyzed. Key trends and issues facing this market are highlighted and discussed. Following the analysis of the evolution of the landline services market, it was found that this market shows a downward trend, with the number of subscribers (telephone lines) decreasing in the last 6 years by almost 260.8 thousand consumers (-23.53%). The volume of traffic in landline networks decreased by 2.11 times in the last 6 years, and the revenues from this service decreased by 2.5 times (from 556.9 million MDL in 2018 to 222.4 million MDL in 2023). This evolution has largely been influenced by the evolution of mobile phone services and mobile internet. In the last 6 years, the number of active SIM cards increased by 373.9 thousand (+10.28%). However, the volume of voice traffic in mobile networks shows a downward trend, the exception being the period of the Covid pandemic (2020-2021). Likewise, a continuous annual decrease of SMS messages was noted (from 1088.4 million in 2018 to 744.5 million in 2023). The changes that have taken place in consumer preferences are highlighted and analyzed, and aspects related to the prospects for the development of the market of fixed and mobile telephony services in the Republic of Moldova are examined. UDC: [338.46:621.395](478); JEL: L96.