2. CURRENT TRENDS OF ITT MARKET IN LITHUANIA Vytautas Vitkauskas President Infobalt association 2006 Vilnius

3. ITT Market (1 st half 2006) Source: Communication Regulatory Authority report of electronics communications sector activities 2 nd quarter, 2006

5. Internet market (1 st half, 2006) 1.Penetration – 41 % (increase +126%); 2.Total amount of users – 1.4 mln; Type of Internet access technology 1.Mobile networks – 79 % of users (increase +146%); 2.DSL – 9.3 %; 3.Cable TV – 4 % 4.LAN – 3.86 %; 5.Optic cables – 1.07 %; 6.Conducted lines – 1.15 %; 7.Fixed wireless – 1.51 %

6. Mobile ITT market Share of the market (5.9 mln subscribers) 1.By subscribers a). Omnitel – 37.13 %; b). Tele 2 – 34.3 %; c). BITĖ – 27% 2.By income a). Omnitel – 48.7 %; b). Tele 2 – 21 %; c). BITĖ – 27,4 % Share of prepaid subscribers by income – 20.7 %

7. Share of the calls by type 1.Calls using one operators network ~ 75 %; 2.Calls using more than one operator networks ~ 20 %; 3.Calls to fixed lines customer ~ 2.7 %; 4.International calls ~ 1.5 % Total increase of mobile calls in comparison with 2005 went up to 39.5 %

8. Duration of calls (per month)

9. 3G Services Launched in February 2006 (Omnitel) Coverage: 2006 – 25 %, 2007 – 50 %, 2008 – 75 % of the territory; Speed of data (down line) – 384 Kb/sec (2006), 3.6 Mb/sec (2007); Technology - HSDPA Prognoses of investment for next 10 years ~ 300 mln EUR per operator

10. Top3 services (by income, 1 st half, 2006) 1.Air Tickets – 29 mln EUR; 2.Tickets for culture performances (cinemas, theatres, concerts) – 3.5 mln EUR; 3.Books selling – 0.8 mln EUR

11. Source: Usage of information technologies in households in 1 st quarter 2006 by Department of Statistics to the Government of the Republic of Lithuania

20. Infobalt EU projects Previous PHARE BSP Business Support project for CEE associations, 2000 – 2002 PHARE project Business Support Programme (BSP-2) ELECTRANET, 2003-2004 PHARE project of Strengthening the Office of Copyright and Related Rights, 2000-2001 EU IST project TELEBALT Promotion of telework and other information society development programs in Baltic States, (IST-2001-33041) (2001-2003) PHARE project Promotion and awareness of e-commerce for SMEs, 2000

21. Infobalt EU projects Running EU IST project IST4Balt, "Information Society Promotion in Baltic States (IST) Priority of the Sixth Framework Programme (FP6) (2004-2006) EU IST project StarNET (2005-2007) EU IST Project PRO_NMS (Proactive actions for new member states, 2005-2007) EU eTEN program project INNOVALL (negotiations with EC currently), 2007-

22. Thanks! http://www.infobalt.lt http://2006.infobalt.lt