Vodafone Albania Case Analysis

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After Vodafone and Telecom Albania (formerly AMC) operated on the market for more than a decade, operating at high prices and high profits, the competition was added to the entry of Eagle Mobile (which is part of Albtelecom today) started its activity in 2001 and later on Plus Communication in June 2009. This led to a boosting of the competition between operators and the decline in profits but was accompanied by significant price cuts for consumers.

AMC is present in the Albanian market since 1996. Back then it was the only operator in Albania in the mobile telephony sector. In 2000 the State privatised the company; 85% of the same goes under the control of the Greek group OTE. The remaining 15% was privatised in 2008. The company with more
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The company has invested 260 million euros in Albania and employs 350 people. The presence of this company counts on a penetration rate of 96% on the population and on a territory coverage of 80%. In 2006 the company had 791 thousand users and in 2016 the number of users arrived to over two million users. Until the year 2008 Vodafone shared the whole market together with the AMC.
Vodafone Albania, AMC, Eagle Mobile and Albtelecom are the largest companies in Albania that control a large volume of business and therefore have an important role for the country's economy. All of these are considered by the Albanian State as a major investor both for the amounts invested and for the number of employees. On the other hand, their turnover is always increasing.
Since 2009, a new mobile telephone operator has entered the Albanian market. Already with the entry of the third operator, Eagle Mobile in 2008, the duopoly had ended that gave the two operators a dominant position in the market, translating into very high prices and rates. For this reason, in 2007 a sanctioning action was taken by the Competition Authority against Albtelecom, AMC and Vodafone Albania, which were fined for abusing their dominant position in the
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The existing data are however incomplete because of the existence of an informal economy also in this sector. The number of internet service providers (ISP) active in the Albanian market is impressive, equal to 26 bidders, but most of the market is controlled by the incumbent of the fixed network. The main technology used for access is XDSL. The market share of the incumbent in the internet service sector was about 90% in 2007. The operational solutions are different but the most applied remains the service offer via the fixed telephony network. The number of hosts is equal to 852 and the number of Internet users was 471 thousand people, with a degree of penetration equal to 13% of the

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