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Communication services in Albania cost more than the EU average

Communication services in Albania cost more than the EU average

Communication services in Albania are more expensive compared to the European Union. According to comparative statistics from Eurostat, the price index for communication services last year was 2.7% higher compared to the European Union average.

These data confirm the upward trend in communication prices in Albania, particularly related to the mobile services segment.

The mobile phone market in Albania has now returned to the same structure as in 2008, with only two operators in the market. The entry into the market of the third operator Eagle Mobile (Albtelecom) and then of the fourth operator, Plus Communication, brought increased competition and a significant reduction in communication tariffs. However, these two operators never managed to be profitable.

Plus Communication exited the market in 2018, while Albtelecom was sold last year to the Hungarian group 4iG, which in parallel also acquired the other operator, ONE.

The reduction in the number of mobile operators in the country has already started to affect the increase in the cost of communication packages. Mobile operators have increased prices for basic prepaid communication packages by 100-200 lek in the last two years, but have also reduced the communication units included in them, as a way to encourage users to move towards higher-priced packages.

On the other hand, the transition to 5G technology and ongoing technology needs have fueled even more upward pressure on mobile operator prices in the country.

According to the latest data from the Electronic and Postal Communications Authority (AKEP), for 2023 the average spending of Albanians on mobile services increased by about 16% compared to the previous year and reached approximately 7900 lek per year. This value is based on the indicator of average revenue per user of mobile operators (ARPU) and is calculated as the ratio of revenue from retail services to the total number of active users.

The average spending of Albanians on mobile services increased for the third consecutive year.

Also, the average Albanian spend per minute on mobile calls last year increased to 4.78 lekë per minute, up 27% from the previous year. This value is based on the average revenue per minute (ARPM) indicator, which is calculated as the ratio of retail revenue to outgoing minutes and indicates the entrepreneur's income per minute.

Based on information reported to AKEP, the two mobile operators earned a total of 619 million lek in 2023, while 2022 closed with a net loss of 499 million lek. / Monitor

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