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Maravedis Interview with Ivo Saluoks, Member of the Board, Data Communications - Norby Telecom
In-Depth Interview of Norby Telecom conducted by Maravedis
By Basharat H. Ashai, Market Analyst - Asia
Contact the author at Basharat@maravedis-bwa.com
Maravedis: Can you please provide me with a brief overview of Norby Telecom as a WiMAX operator?
We are a Pan-Baltic company. We are operating in three markets: Estonia, Latvia and Lithuania. As a WiMAX operator we are active in Estonia only. We have not launched any WiMAX services in Latvia and Lithuania.
Maravedis: What are your WiMAX plans for Latvia and Lithuania?
For Latvia and Lithuania we are looking at how the mobile WiMAX equipment will evolve. We are analyzing how the mobile WiMAX equipment performance and Capex can deliver the parameters that we need.
Maravedis: Are you currently trialing the mobile WiMAX in Latvia?
We have had some trials last spring in Latvia. But it was little too early for us to start the trial. The equipment was in an early phase. We are looking at what will happen in the second quarter of 2008 to possibly look at some new mobile WiMAX trials.
Maravedis: Are you going to trial the mobile WiMAX in Estonia as well?
We have not decided that yet.
Maravedis: Which areas have you covered so far with the fixed WiMAX in Estonia?
We have covered Harjumaa, Raplamaa, Läänemaa, Pärnumaa, Hiiumaa, Saaremaa, Viljandimaa, Valgamaa, Võrumaa, Põlvamaa, Tartumaa, Lääne-Virumaa, Ida-Virumaa, Jõgevamaa and Järvamaa.
Maravedis: Who are your WiMAX competitors in Estonia?
The number one competitor for us is the incumbent, Elion. Elion is building the residential WiMAX network in the suburban and rural areas. Like us, Elion also provides the fixed WiMAX. The number of WiMAX residential customers they have is approximately three times higher than that of Norby. Their coverage is pretty much in the same areas as Norby. We also face competition from Baltmax.
Maravedis: What are the prospects for a technology like WiMAX in the Baltic States?
All the three states-- Estonia, Latvia, and Lithuania-- taken separately are rather small markets. The population of Estonia is only 1.32 million. Latvia is about 2.3 million, while Lithuania is about 3.6 million. So taken separately these are small markets and it is hard to build a business case for one market only. But if we look at them together then it is approximately 8 million people and that is already a serious market. That is the number one reason why we operate in the Baltic States.
Maravedis: What is the current state of DSL market in Estonia? How big a threat is that to the WiMAX market?
The DSL market in Estonia is actually quite well advanced. Elion, the incumbent, is doing IPTV over ADSL2 in most of the largest cities in Estonia.
The DSL market is not a serious threat to the fixed WiMAX market because both Norby and Elion are building the fixed WiMAX network for the residential customers in areas where there are no DSL connections today. It is unlikely that in the next 5 to 10 years DSL connections will advance to these territories. So I do not consider DSL as a threat to WiMAX in Estonia because where DSL exists today, WiMAX cannot compete because of the higher price of CPEs. But where there is no DSL, WiMAX is a good solution
Maravedis: What sort of timeframe are we talking about for the fixed WiMAX market to really pick up in the Baltic States?
The fixed WiMAX will continue to evolve over the next three to four years. Most of the possible growth of fixed WiMAX will be achieved in five to six years.
Maravedis: And mobile WiMAX?
I would say not earlier than 2009.
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The complete version of the interview is available to wimaxcounts subscribers only. The details include spectrum info, WiMAX subscribers number, subscriber split (residential & enterprise), revenue split, ARPU, WiMAX equipment deployed-total base stations deployed along with vendor breakdown, total CPEs deployed along with vendor breakdown, competitive advantage, and loads of information.
For more information you can contact the author. Basharat@maravedis-bwa.com
Copyright © 2007 by Maravedis Inc. All Rights Reserved.
No reproduction without consent.
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