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Bulgaria Market Overview At the end of 2004 CableTEL (formerly Cable Bulgaria) and Evrotur maintained their positions the number one and two cablers in the territory. The Bulgarian cable sector has continued to show significant levels of growth in recent years, with the number of subscribers increasing to 1,553,000 by the end of 2004. With the total number of homes passed amounting to 2,176,000, this represented a penetration rate of 71.4%. The relatively high level of penetration in Bulgaria is an effect of the widespread practice of over-building. Homes in many urban areas can usually receive services from more than one cable television operator. Bulgaria Market Summary^ 2003 2004 2014 TV Households (000) 3,018 2,991 3,178 Total Homes Passed (000) 1,895 2,008 2,467 Total Basic Subs (000) 1,453 1,553.5 1,916 Cable Penetration (%) 76.7% 71.4% 77.6% Avg. Monthly Cost of Package (€) 6.46 6.14 9.23 Basic Cable Revenue (€ mil.) 108.7 129.0 211.3 Source: '2005 Advanced Television analysis of industry data. All Rights Reserved. ^All Eastern European data includes wire line cable and MMDS services. Homes Passed and CATV Subs as a % of Television Households, 2004 67.1 51.9 0 20 40 60 80 100 TVHH, HP and CATV Subs Percentage (%) Television Households Homes Passed CATV subs
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Bulgaria
Market Overview
At the end of 2004 CableTEL (formerly Cable Bulgaria) and Evrotur maintainedtheir positions the number one and two cablers in the territory.
The Bulgarian cable sector has continued to show significant levels of growth inrecent years, with the number of subscribers increasing to 1,553,000 by the end of2004. With the total number of homes passed amounting to 2,176,000, thisrepresented a penetration rate of 71.4%.
The relatively high level of penetration in Bulgaria is an effect of the widespreadpractice of over-building. Homes in many urban areas can usually receive servicesfrom more than one cable television operator.
Bulgaria Market Summary^
2003 2004 2014TV Households (000) 3,018 2,991 3,178
Total Homes Passed (000) 1,895 2,008 2,467Total Basic Subs (000) 1,453 1,553.5 1,916Cable Penetration (%) 76.7% 71.4% 77.6%
Avg. Monthly Cost of Package (€) 6.46 6.14 9.23Basic Cable Revenue (€ mil.) 108.7 129.0 211.3
Source: '2005 Advanced Television analysis of industry data. All Rights Reserved.^All Eastern European data includes wire line cable and MMDS services.
Homes Passed and CATV Subs as a % ofTelevision Households, 2004
67.151.9
020406080
100
TVHH, HP and CATV Subs
Percentage(%)
Television Households Homes Passed CATV subs
Bulgaria Cable Development^
Year CATV Subs Homes Passed Penetration Subscriber Growth2004 1,553,500 2,008,000 77.4% 6.9%2003 1,453,000 1,895,000 76.7% 7.6%2002 1,350,000 1,760,000 76.7% 14.4%2001 1,180,000 1,585,000 74.4% 17.1%2000 1,008,000 1,411,000 71.4% 26.0%
Source: '2005 Advanced Television analysis of industry data. All Rights Reserved.^All Eastern European data includes wire line cable and MMDS services.
Additional cable services are beginning to progress in Bulgaria. Aside fromtelephony, which made its debut in 2003, and broadband Internet access, twoleading operators — Evrotur Sat TV and MSAT — now also offer digital TVpackages.
Regulations
The Bulgarian cable market was officially opened up to increased competition in1998, in part due to the large number of illegal operators. In 1998 the Post andTelecommunications Ministry promised to treat all cable operators equally whetheror not they had previously held a licence. Once the networks had been inspected tosee that they met certain technical standards, operators were largely allowed toconstruct and operate their networks freely.
Following liberalisation of the telecom sector in 2003 the territory�s cableoperators have gradually introduced cable telephony (VoIP). Three of the leadingones (Evrotur, Eurocom and MSAT) even created a joint venture named BT Netfor this very purpose.
The incumbent Bulgarian telco BTC was finally privatised in 2004 and as of late2005 looked likely to be taken over by a company named Novator.
Market Structure
The Bulgarian cable market remains relatively fragmented, with the territory�sleading operator CableTEL accounting for just 8.4% of the country's estimated1.55 million cable television subscriber total at the end of 2004, followed byEvrotur Sat TV with 7.7%. Behind the two leading cablers, the size of Bulgaria�scable television providers falls away rapidly with the number three and fouroperators taking market shares of 4.5% and 4.2% respectively as the end of 2004.
With no exclusive franchise areas within Bulgaria, over-build is a continuingfeature of the cable sector. As a result, the sum of the homes passed by eachoperator is in excess of the total number of homes passed within Bulgaria due todouble counting. In order to take account of this, the total number of homes passedin Bulgaria has been adjusted by 495,000 to 1,895,000.
Based on 1,553,500 subscribers and 2,185,000 homes passed, there was apenetration rate of 71.1% at the end of 2004.
Digital cable television has yet to make any substantial progress in Bulgaria.Evrotur and MSAT were the only leading operators to offer digital cable televisionon a commercial basis at the end of 2004, claiming a total of 10,500 subscribers.
Cable Market Structure 2004^
Operator CATV Subs Homes Passed Penetration Market shareCableTEL 130,000 500,000 26.0% 8.4%
Evrotur Sat TV 120,000 550,000 21.8% 7.7%Eurocom 70,000 120,000 58.3% 4.5%MSAT 65,000 100,000 65.0% 4.2%Others 1,168,000 1,233,000 82.8% 75.2%
OverbuildAdjustment n/a 495,000 n/a n/a
Total 1,553,500 2,008,000 77.3% 100.0%Source: '2005 Advanced Television analysis of industry data. All Rights Reserved.^All Eastern European data includes wire line cable and MMDS services.
Digital Cable Market Structure 2004^
Operator Digital CATV Subs Homes Passed Penetration Market shareEvrotur 5,500 350,00 1.4% 52.4%MSAT 5,000 100,000 5.0% 47.6%
CableTEL --- --- --- ---Eurocom --- --- --- ---
Others --- --- --- ---Total 10,500 450,000 2.3% 100.0%
Source: '2005 Advanced Television analysis of industry data. All Rights Reserved.^All Eastern European data includes wire line cable and MMDS services.
Other Multichannel Platforms
Although it appears unlikely that the region�s primary provider of pay DTHservices UPC Direct, will launch a service in Bulgaria, the country already has twoDTH platforms of its own. Named Bulsatcom and ITV Partner, they made theirdebuts within months of each other in late 2003/early 2004.
There is at present no DTT service operating in Bulgaria.
Operators' Market Share, 2004
8.4%7.7%
4.5%4.2%
75.2%
CableTEL
Evrotur Sat TVEurocom
MSAT
Others
Network Developments
Additional cable services in Bulgaria took a significant step forward in 2003 withthe launch of BT Net, a consortium of Evrotur, Eurocom and MSAT that providesVoIP. The total number of VoIP subscribers in Bulgaria at the end of 2004 wasestimated to be around 2,500.
Broadband Internet take-up has been more impressive, with the total number ofsubscribers reaching an estimated 31,300 by the end of 2004. This was almost threetimes the figure only 12 months earlier.
The majority of Bulgaria's cablers were reluctant to give details as to theproportion of their networks that upgraded to offer additional services. However,Evrotur did release some figures that might provide an insight into the rapidprogress than has be achieved. At the end of 2001 just 14.3% of Evrotur�s networkcould support broadband Internet. but by the end of Q1 2004 this figure had risento 75.6%.
Bulgaria Cable Internet and Telephony Development (000)^
2000 2001 2002 2003 2004Homes Passed 1,411 1,585 1,760 1,895 2,185
RGUs 1,008 1,181 1,353 1,467 1587.3CATV Subs 1,008 1,180 1,350 1,453 1,553.5
Telephony Subs --- --- --- 1 2.52Broadband Cable
Internet Subs 0.4 1 3 12.5 31.3Source: '2005 Advanced Television analysis of industry data. All Rights Reserved.^All Eastern European data includes wire line cable and MMDS services.
Pay TV Content
The first premium television channel was introduced into Bulgaria in April 2002 byHBO. It has proved a qualified success within the territory, claiming approximately19,000 subscribers at the end of 2003.
Unlike the other HBO services in Central and Eastern Europe, the Bulgarianservice is not specifically prepared and targeted at the local market and instead aBulgarian subtitled version of HBO Romania. Nevertheless the channel stillprovides a range of high quality movies supplied by studios such as Sony,Paramount and Disney, as well as premium sport programming.
Bulgaria Market Projections
The territory's operator profiles begin on the next page followed in turn by themarket projections.
CableTEL15-17, Vasil Levski Blvd.
Sofia 1124Bulgaria
Phone: +359 2 4800707Fax: +359 2 4800748
Email: [email protected]: www.cabletel.bg
Chairman and Chief Executive Officer Ron FinleyChief Networks Officer Brendan QuinnChief Operating Officer Jeff Finley
Ownership Structure Tacaruna 75%Others 25%
Overview
CableTEL is a newly established hi-tech cable & telecom company created from theacquisition of Cable Bulgaria by a group of U.S. investors. It is now also the largestcable operator in Bulgaria and controls the former assets of Cable Bulgaria, which wasitself formed by another group of foreign investors in November 1998 following theacquisition of the operators Union Television and Globo.
Greenbriar Corporation announced in October 2004 that it had acquired two privately-held U.S. corporations in exchange for 31,500 shares of preferred stock. The two U.S.corporations each own an undivided one-half of the equity interests in the Netherlands-based company Tacaruna BV, which in turn owns 75% of CableTel.
The acquisition effectively gave Greenbriar Corporation joint management control ofCableTEL. Greenbriar Corporation subsequently appointed Ron Finley Chairman ofthe Board and Chief Executive Officer.
Throughout 2004 CableTel invested heavily in constructing a national fiber backbone,and by end of June 2005 approximately 95% of the work had been completed.
In order to speed the commercial roll out of this first alternative infrastructure projectCableTel signed an agreement with the gas distribution company Bulgargas to use itsoptic fibre network. In recent years Bulgargas has laid optical cable alongside its gaspipelines, and jointly with cableTEL built a 615km network mainly in southernBulgaria. The new deal has allowed CableTel to complete a backbone ring aroundBulgaria much more quickly and at a lower cost than would otherwise have beenpossible.
CableTel's investment is estimated at around €40 million in the first two years of itsoperation, of which €20 million has been reserved for its fibre-optic backbone project.Once completed, CableTel plans not only to heavily promote its television, telephony
and data services to residential customers, but also offer a wide variety of services tobusiness customers including both national and international leased lines.
In June 2005 CableTel signed a partnership agreement with Cable Partners Europe.This will help fund further investment and help maintain its position as Bulgaria'sleading operator.
Television
The number of cable television subscribers to CableTEL has grown marginally overthe past two years from 114,000 at the end of 2001 to 130,000 at the end of 2004. Atthe same time the number of homes passed increased from 471,000 to 500,000between 2001 and 2003 and remained stable during 2004. In tandem with the increasein subscribers, the rate of penetration has risen by just one percentage point to 26%.
Development of CableTEL Cable TV Subscribers
Year CATV Subs Homes Passed Rate of SubscriberPenetration Growth
2004 130,000 500,000 26.0% 4.0%2003 125,000 500,000 25.0% 6.4%2002 117,500 485,000 24.2% 3.1%2001 114,000 471,000 24.2% ---2000 n/a n/a --- ---
Source: CableTEL.
CableTEL does not currently provide a digital cable television service.
Operator Packages
CableTel offers a simple basic package of television channels and the premium serviceHBO for its customers. The price of these channels varies between the towns and isgenerally in the range of BGN7 to BGN16 a month, with discounts available for theelderly, handicapped and those who pay in advance. Installation fees also varyaccording to location and the type of dwelling, though are usually between BGN10 and30. CableTel offers the channels MTV Hits and Playboy TV exclusively in Bulgaria.
CableTEL Analogue Packages
Package Price(BGN)
Channels
Basic 8.00-16.00 7 Dni, AB Motors, AlexandraTV, Animal Planet, AXN, BBCWorld, BBT, BNT, bTV, Cartoon Networks, Channel 3,Chasse & Peche, CNN, Diema+, Diema2, Discovery Channel,DW, Eurocom Bulgaria, Eurocom Sofia, Euronews,EuropaTV, Eurosport, Eurosport 2, FanTV, Fashion,Hallmark, HBO, Jetix, MAD, MM, MSAT, MTV, MTV Hits,National Geographic, NTV, Pink+, Planeta, Playboy TV,Reality TV, RingTV, Romantica, SKAT, SkFolk, SpicePlatinum, TCM, Veselina TV, VH1, Viasat Explorer, ViasatHistory, Visage, XXL, Best European channels: ERT, France,Mezzo, ORT/ Ukrainian TV, Pro7, RAI1, RAI2, RTL, RTL2,RTP, Sat1, TV5, TVE
Premium ChannelsHBO 8.00-12.00 HBOSource: CableTEL.
Telephony
Although the Bulgarian telecom market was deregulated on January 1, 2003,introduction of telephony service by alternative providers has been partially delayed bythe time taken to agree such steps as interconnection with the incumbent providerBulgaria Telecom (BTC).
However, CableTel introduced a telephony service named CableTel.Phone in late2004. Following the payment of an installation fee of BGN19, from which existingsubscribers of the operator's Internet package CableTel.Net are exempt. Subscribersare offered a choice of three packages, only one of which (CableTelPhoneM) charges amonthly fee. Targeted at low-usage customers, this amounts to BGN5.
Broadband Internet
CableTEL launched broadband cable Internet named CableTel.Net in 2004 by the endof the year it passed 100,000 homes and had approximately 1,300 subscribers.
CableTEL High Speed Cable Subscriber Development^
Year Internet Subs Internet HP Rate of Subscriber Proportion ofPenetration Growth Network
UpgradedQ1 2005 2000 100,000 2.0% 54% 20%
2004 1300 100,000 1.3% n/a 20%2003 n/a n/a --- --- ---2002 n/a n/a --- --- ---2001 n/a n/a --- --- ---2000 n/a n/a --- --- ---
Source: CableTEL.
CableTel offers a wide range of broadband cable services. All rate plans includeunlimited traffic, and speeds vary from 512Kbps to 1,024Kbps.
CableTEL High Speed Cable Internet Price Profile
Package Month(BGN)
InternationalDownload(kbps)
LocalDownload(kbps)
SurchargeThreshold(mb)
Basic 16.00 64 128 UnlimitedBasic II 29.99 64 384 UnlimitedBasic III 49.99 128 512 UnlimitedExtended 119.00 128 512 UnlimitedExtended II 199.00 256 512 UnlimitedExtended III 400.00 512 512 UnlimitedProfessional Package 350.00 128 512 UnlimitedProfessional PackageII
500.00 256 512 Unlimited
Professional PackageIII
1000.00 512 1024 Unlimited
Source: CableTel. All prices inclusive of VAT.
Financial Information
Financial information regarding CableTEL is not available.
Eurocom Cable1 Business Park, Sofia Str.
Building 12 B, Floor 21715 SofiaBulgaria
Phone: +359 2 981 24 27Fax: +359 2 981 33 08
Email: [email protected]: www.ekk.bg
Chief Executive Officer Petyo StaykovChief Financial Officer Dimitar NikolovClients Relations Manager Nevena Milenkova
Ownership Structure Private Investors 100%
Overview
Eurocom was created in 2001 following the merger of 12 cable networks. At the end of2004 the company had 70,000 cable television subscribers, with around half in thecapital, Sofia, where it had a market share of around 70%.
Southeast Europe Equity Fund (SEEF), a U.S. based fund managed by Soros PrivateFunds Management, committed itself in November 2001 to investing $10 milliontowards Eurocom�s development. The operator has also received funding of around$153,000 from E-Commerce Development & Information Technology —TDA for afeasibility study on its expansion.
Although Eurocom would like to focus its efforts on Sofia, the Bulgarian capital is ahighly competitive market also served by three other operators. It is thereforeprioritising the completion of a fibre-optic network and testing a number of servicesincluding video-on-demand, pay-per-view and VoIP.
Although the company wants to focus its efforts for growth on Sofia, it is a highlycompetitive market, with up to four different cablers operating in the city. Eurocom isalso prioritising the completion of a fibre optic ring to connect its major networks andupgrade the coax network to allow for the provision of cable telephony and broadbandcable Internet.
Television
Due to its relatively recent formation, little historical cable subscriber data exists forthe cabler. At the end of 2004 the operator had a total of 70,000 cable televisionsubscribers from approximately 120,000 homes passed, representing an increase in
connections of 1.8% on 12 months earlier. The penetration rate, however, fell by 4.2%over the period to 58.3%.
Development of Eurocom Cable TV Subscribers
Year CATV Subs Homes Passed Rate of SubscriberPenetration Growth
2004 70,000 120,000 58.3% 1.8%2003 68,750 110,000 62.5% 14.6%2002 60,000 100,000 60.0% ---2001 n/a n/a --- ---2000 n/a n/a --- ---
Source: Eurocom.
Eurocom does not currently operate a digital cable television service.
Operator Packages
Eurocom provides a basic cable TV service that consists of over 70 channels in Sofiaand at least 50 in other parts of the country. It also offers the premium channel HBOand Eurocom National Cable channel, a service produced by an affiliate that is,according to Eurocom, the fourth most watched channel in Bulgaria. Installation ofEurocom�s cable TV service is free of charge.
Eurocom Analogue Packages
Package Price(BGN)*
Channels
Basic 14.40 Over 70 channels including: GTV, Channel 2001, MM,NOVA+, FOX Life, Channel 1, Diema +, Eurosport, CartoonNetwork, TCM, TV Bulgaria, Euronews, OPT, TV5, MBC,Fashion TV, BBC World, RAI UNO, Mezzo, SAT1, City TV,CNBC, RTVi, National Geographic Channel, DKTE,Armenia, Discovery Channel, eTV, Animal Planet. Explorer,Spice Platinum, Diema 2, Viasat History, Pink Plus, RTV,CNN, Hallmark, PRO7, MTV, MSAT, AXN, ERT, VH1, ABMotors, XXL, TV Europe, Romantica, Reality TV, TVE,Discovery Science, Discovery Civilisation, Jetix, ESPNClassics, BBT, Alexandra TV
Premium ChannelsHBO $5.00 HBOSource: Eurocom. *Prices from 2003.
Telephony
A cable telephony service is available on Eurocom's network from a company calledBTNet, a joint venture between Eurocom, Evrotur Sat, and M-Sat. The service is
marketed as TV PHONE and allows subscribers to make long distance, mobile andinternational calls at considerably cheaper rates than through the incumbent telco BTC.
The service was launched in the first quarter of 2003 and subscriber data is notavailable. It is based on VoIP technology and requires subscribers to purchase or rent acable modem and telephony adapter from BTNet. Although details were not providedon the cost of local telephone calls using BTNet, the service is primarily aimed at thosewho wish to make long distance domestic and international calls.
Eurocom Cable Telephony Price Profile (BGN)*
National LocalRental Minimum
ChargePeak Off-Peak Peak Off-Peak
20.00 n/a 0.06-0.18 0.06-0.18 n/a N/aSource: Eurocom. *Package and price from 2004.
Broadband Internet
Eurocom launched its broadband Internet service in 2001. Likely to eventually beavailable to between 8-10% of its subscriber base, it offers a range of packages rangingin price from BNG22 and BNG199 a month.
Eurocom High Speed Cable Internet Price Profile
Package Month (BGN)* Download(kbps)
Upload (kbps) SurchargeThreshold(mb)
Minimum 22.00 256 n/a UnlimitedOptimum 35.00 512 n/a UnlimitedMedium 48.00 768 n/a UnlimitedClassic 60.00 1,024 n/a UnlimitedBusiness 99.00 1,536 n/a UnlimitedMaximum 199.00 2560 n/a UnlimitedSource: Eurocom.
Financial Information
Financial information is not available from Eurocom.
Evrotur Sat TV32 Khan Krum Str.
1000 SofiaBulgaria
Phone: +359 2 961 4692Fax: +359 2 960 8851
Email: [email protected]: www.evrotur.net
Chairman Yavor DjidjevChief Executive Officer Dimiter AngelovManaging Director Venelin StaykovMarketing Director Pressian NantchevFinance Director Inga TodorovaHead of Human Resources Georgi NatchevHead of Public Relations Svetlana Pejtcheva
Ownership Structure Dimiter Angelov 34%,Yavor Djidjev 25%,Venelin Staykov 20%TV Group 10%,Albena Angelova 4%,Others 7%
Overview
Formed in 1992 by the current CEO Dimiter Angelov, Yavor Djidjev and VenelinStaykov, Evrotur Sat TV is now the second largest cabler in Bulgaria. It has investedheavily in its network in recent years, culminating in the launch of both broadbandcable Internet and VoIP cable telephony.
Evrotur has also launched digital cable television, having signed a contract withConax, a supplier of conditional access technology, in 2003. Under the agreementEvrotur outsourced its conditional access for digital TV to Conax’s operations centre inNorway. As of March 2004 the service had attracted 3,200 subscribers.
Television
Take up of Evrotur Sat TV�s cable television service has increased steadily, almostdoubling between 2000 and 2004 to an estimated 120,000. The number of homespassed has meanwhile risen by almost threefold from 190,000 to an estimated 550,000over the same period. However, the company refused to give statistics for 2004.
Development of Evrotur Sat TV Cable TV Subscribers
Year CATV Subs Homes Passed Rate of SubscriberPenetration Growth
2004e 120,000 550,000 21.8% 13.2%2003 106,000 430,000 24.7% 21.8%2002 87,000 295,000 29.5% 29.9%2001 67,000 245,000 27.3% 5.2%2000 63,700 190,000 33.5% 24.2%
Source: Evrotur Sat TV.
Back in 2002 Evrotur was the first cable television operator in Bulgaria to beginproviding a digital cable television service. It had 250 subscribers at the end of 2002,rising to 3,200 by the end of March 2004. by the end of 2004 the total was estimated tobe 5,000.
Development of Evrotur Sat TV Digital Cable TV Subscribers
Year Digital CATV Subs Digital Homes Rate of SubscriberPassed Penetration Growth
2004e 5,000 350,000 1.4% 100.0%2003 2,500 250,000 1.0% 900.0%2002 250 60,000 0.4% ---2001 --- --- --- ---2000 --- --- --- ---
Source: Evrotur Sat TV.
Operator Packages
Evrotur Sat TV offers two thematic channel packages, the basic one of which includes20 primarily Bulgarian language television channels at BNG8.90 a month andextended basic 70 television channels at BNG14.90 a month. The extended basicpackage also includes a wide range of Bulgarian and many leading English languagechannels. The most popular premium service is HBO, which can be received forBNG9.60 a month.
Evrotur Sat TV Analogue Packages
Package Price(BNG)
Channels
Basic 8.90 20 Television Channels — Mostly Bulgarian LanguageChannels
Ext Basic 14.90 Over 70 channels including Basic package and: AB Moteurs,Al Jazeera, Animal Planet, BBC Prime, BBC World, CartoonNetwork, Club, Europe, CNN, Deutsche Welle, DiscoveryChannel, Discovery Science, Extreme Sports, Fashion TV,Hallmark, Jetix, Mezzo, MTV, National Geographic Channel,Reality TV, Romantika, Spice Platinum, TCM, TV5, VH-1,Viasat Explorer, Viasat History, XXL
Premium ChannelsHBO 9.60 HBOn/a 2.40 Adult entertainment channelCinemax 7.00 CinemaxSource: Evrotur Sat TV.
Details of the channels available in the digital basic package were not available.
Evrotur Sat TV Digital Packages
Package Price (BNG) ChannelsBasic 5.00 54 TV channels and 1 radio channelPremium ChannelsErotic 2.40 Satisfaction
12.60 HBO, Cinemax and 3 TV programs9.4 Cinemax, Satisfaction and 3 TV programs14.90 HBO, Cinemax, Satisfaction and 3 TV programs
Source: Evrotur Sat TV
Telephony
Telephony is available on Evrotur Sat TV�s network through a joint venture betweenEvrotur Sat, Evrocom and M-Sat called BTNet. The service branded TV PHONEallows subscribers to make long-distance, mobile and international calls considerablycheaper than through BTC.
Development of Evrotur Sat TV Cable Telephony Subscribers
Telephony Subscribers Telephony Lines Telephony
Year Residential Business Residential Business Homes Passed
2004 n/a n/a n/a n/a n/a2003 400 --- n/a n/a 250,0002002 n/a n/a n/a n/a n/a2001 n/a n/a n/a n/a n/a2000 n/a n/a n/a n/a n/a
Source: Evrotur Sat TV.
TV PHONE was launched in the first quarter of 2003 but attracted only 430subscribers in its first year of operation. The service is based on the VoIP technologyand requires subscribers to purchase or rent a cable modem and telephony adapter fromBTNet. Although details were not provided on the cost of local telephone calls usingBTNet, the service is primarily aimed at those who wish to make long distancedomestic and international calls. A telephone and extended cable TV package costsBNG19.90.
Evrotur Sat TV Cable Telephony Price Profile (BNG)
National LocalInstallation Maintenanc
ePeak Off-Peak Peak Off-Peak
20.00 10.00/month 0.06-0.18* 0.06-0.18* n/a N/aSource: Evrotur Sat TV. *Prices from 2004
Broadband Internet
Evrotur Sat TV launched its broadband Internet service in 2000 and by the end of 2004it had an estimated 15,000 subscribers. The number of homes passed at the end of 2004meanwhile stood at 450,000, giving a penetration figure of 3.3%
Development of Evrotur Sat TV High-Speed Cable Internet Subscribers
Year Internet Subs Internet HP Rate of Subscriber Proportion ofPenetration Growth Network
Upgraded
2004e 15,000 450,000 3.3% 87.5% n/a2003e 8,000 280,000 2.9% 247.8% n/a2002 2,300 145,000 1.6% 411.1% 49.2%2001 450 35,000 1.3% --- 14.3%
2000 n/a n/a --- --- ---
Source: Evrotur Sat TV.
In order to provide a low cost entry level service Evrotur offers its broadband servicewith a variety of bandwidth limitations. Users can also choose a range of moreexpensive options with greater usage allowed, up to an unlimited service. Details on aselection of packages are profiled below.
Evrotur Sat TV High Speed Cable Internet Price Profile^
Package Month (€) Download(kbps)
Upload (kbps) SurchargeThreshold (mb)
Minimu, 13.00 32 (256*) n/a n/aPopular 33.00 128 (1,024*) n/a n/aMaximum 105.00 256 (2,048*) n/a n/aSource: Evrotur Sat TV. ^Packages and prices from 2004. *With peering.
Financial Information
Broadband continued to increase its contribution to Evrotur's revenues in 2004,accounting for 19% of the total. Total revenues for 2004 came to BNG30.4 million, oralmost double the figure just a year earlier.
Development of Evrotur Sat TV Revenue (BNG mil.)
2000 2001 2002 2003 2004Cable TV n/a n/a 6.4 11.3 15.5Telephony n/a n/a 0.2 0.8 1.3
Internet n/a n/a 0.9 3.2 5.8Other n/a n/a --- 2.5 7.8Total n/a n/a 7.5 17.8 30.4
Source: Evrotur Sat TV.
MSAT2, Stefan Karadja Str.
1080Sofia
Bulgaria
Phone: + 359 2 98366 66/+359 52 301 301Fax: +359 2 981 41 61/+359 52 301 303
Email: [email protected]: www.m-sat.bg / www.mnet.bg
Chief Executive Officer and Strategic Director Dragomir DoichevAdministrative Director Svetoslav DrakovMarketing Director Ivailo Vangelov
Ownership Structure 100% Private Investors
Overview
MSAT was formed in 1994 and was initially a cable company and before subsequentlyalso becoming the operator of a highly successful television channel. It primarilyoperates in the town of Varna and is owned by a group of private Bulgarian investors.
MSAT has recently launched digital television and broadband cable Internet services.In addition, as part of the BT Net joint venture, it provides voice over Internet protocol(VoIP) cable telephony.
Television
Although MSAT declined to provide total cable television subscriber information, it isestimated that it had 65,000 cable television subscribers and 100,000 homes passed atthe end of 2004.
Development of MSAT Cable TV Subscribers
Year CATV Subs Homes Passed Rate of SubscriberPenetration Growth
2004e 65,000 100,000 65.0% 44.4%2003e 45,000 75,000 60.0% 63.6%2002e 27,500 50,000 55.0% ---2001 n/a n/a --- ---2000 n/a n/a --- ---
Source: MSAT.e=subscriber data is estimated.
MSAT introduced a digital cable television service in 2003. By the end of 2004 theservice is estimated to have passed 100,000 homes and had 5,000 subscribers.
Development of MSAT Digital Cable TV Subscribers
Year Digital CATV Subs Digital Homes Rate of SubscriberPassed Penetration Growth
2004e 5,000 100,000 5.0% 400.0%2003 1,000 75,000 1.3% ---2002 --- 50,000 0.0% ---2001 --- --- --- ---2000 --- --- --- ---
Source: MSAT.
Operator Packages
MSAT provides a basic package and the option of the premium channel HBO. Thebasic package contains a wide range of Bulgarian language channels as well a numberof leading English language channels including CNN and MTV. The HBO premiumchannel was launched in the Bulgarian market in 2002, requires the purchase of a set-top box and costs $5 a month to receive.
MSAT Analogue Packages*
Package Price (BNG)* ChannelsBasic 12.80 Fifty three channels including Eurosport, MCM, Hallmark,
Fashion TV, MTV, VH1, Discovery, Animal Planet, SAT1,RTL, Cartoon Network, CNN, Euro News
Premium ChannelsHBO $5.00 HBOSource: MSAT. *2004 packages with prices from, 2003 prices.
Details of MSAT's digital service are not available.
Telephony
In 2003 MSAT began offering telephony services employing VoIP technology. Theoperator is a member of the BT Net consortium that markets VoIP telephony for anumber of Bulgaria's cablers.
Development of MSAT Cable Telephony Subscribers
Telephony Subscribers Telephony Lines TelephonyYear Residential Business Residential Business Homes Passed2004e 2,000 --- n/a --- 100,0002003 100 --- n/a --- 75,0002002 --- --- --- --- 50,0002001 --- --- --- --- ---2000 --- --- --- --- ---
Source: MSAT.
Although details were not provided on the cost of local telephone calls using BTNet,the service is primarily aimed at those who wish to make long distance domestic andinternational calls.
MSAT Sat TV Cable Telephony Price Profile (BNG)*
National LocalRental Minimum
ChargePeak Off-Peak Peak Off-Peak
20.00 n/a 0.06-0.18 0.06-0.18 n/a N/aSource: Evrotur Sat TV. *2004 package and price
Broadband Internet
Following the launch of broadband cable Internet services by MSAT in 2002, thenumber of subscribers to the service has increased rapidly and at the end of 2004 itstood at an estimated 15,000.
Development of MSAT High-Speed Cable Internet Subscribers
Year Internet Subs Internet HP Rate of Subscriber Proportion ofPenetration Growth Network
Upgraded2004e 15,000 100,000 15.0% 275.0% 100.0%2003 4,000 75,000 5.3% 300.0% 100.0%2002 1,000 50,000 2.0% --- 100.0%2001 --- --- --- --- ---2000 --- --- --- --- ---
Source: MSAT.
MSAT offers three types of Internet connectivity: for homes Internet cafes andbusinesses. Each type is subdivided into another three levels of service, with downloadspeeds 64, 128 and 256Kbps but with several different usage levels bundled. Thecabler does not offer flat rate accounts such services are very hard to deploy in thecurrent Bulgarian market due largely to the high price of Internet connectivity forInternet Service Providers (ISPs).
MSAT High Speed Cable Internet Price Profile
Package Month(BNG)^
Download(kbps)
Upload (kbps) SurchargeThreshold (mb)*
Green 10.50 64 n/a 500Green 19.00 64 n/a 1,000Green 15.00 128 n/a 500Green 22.00 128 n/a 1,000Green 25.00 256 n/a 1,000Green 37.00 256 n/a 2,000Green 29.00 512 n/a 1,000Blue 28.00 64 n/a UnlimitedBlue 33.00 128 n/a UnlimitedBlue 37.00 256 n/a UnlimitedBlue 80.00^ 512 n/a UnlimitedBlue 143.00^ 1024 n/a UnlimitedSource: MSAT. *Additional price per further mb BLV0.03 ^Package for Business usersonly. Higher prices apply for all packages if it is used by a business.
In addition to the standard tariffs outlined above, MSat offers varying speeds up to themaximum levels depending on demand. It also provides a range of services thatguarantee the available speed at increased cost.
Financial Information
Financial information is not available from MSat
Bulgaria 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Population (000) 7,518 7,542 7,516 7,489 7,463 7,437 7,411 7,385 7,360 7,334 7,304 HH (000) 3,133 3,174 3,240 3,256 3,272 3,288 3,305 3,321 3,338 3,355 3,365 TVHH (000) 2,991 3,048 3,063 3,078 3,094 3,109 3,125 3,141 3,156 3,172 3,178 Growth (%) 0.9- 1.9 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.2
CABLEHomes Passed (000) 2,008 2,105 2,185 2,251 2,302 2,343 2,374 2,400 2,424 2,445 2,467 Growth (%) 6.1 4.8 3.8 3.0 2.3 1.8 1.3 1.1 1.0 0.9 0.9 Basic Subs. (000) 1,553 1,618 1,682 1,734 1,776 1,808 1,835 1,859 1,879 1,899 1,916 Growth (%) 7.1 4.2 4.0 3.1 2.4 1.8 1.5 1.3 1.1 1.0 0.9 Penetration of HP (%) 76.8 76.9 77.0 77.1 77.2 77.2 77.3 77.5 77.6 77.7 77.7 Penetration of TVHH (Basic subs) (%) 51.9 53.1 54.9 56.3 57.4 58.1 58.7 59.2 59.5 59.9 60.3 Average Subs (000) 1,502 1,585 1,650 1,708 1,755 1,792 1,821 1,847 1,869 1,889 1,907 Monthly Rate (BLV) 14.02 14.41 14.78 15.15 15.53 15.92 16.31 16.72 17.14 17.57 18.01 Growth (%) 3.0 2.8 2.6 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 Avg Monthly Basic Rate (€) 7.19 7.38 7.58 7.77 7.96 8.16 8.36 8.57 8.79 9.01 9.23 Basic Cable Revenue (€ mil.) 129.5 140.5 150.0 159.1 167.6 175.4 182.8 190.0 197.1 204.2 211.3 Growth (%) 10.5 8.5 6.7 6.1 5.3 4.7 4.2 3.9 3.7 3.6 3.5
PAY CABLEHBO (000) 23 27 30 32 35 37 40 42 44 47 49 Growth (%) 22.6 14.6 10.7 9.0 7.9 7.0 6.4 6.0 5.6 5.3 5.0 Proportion of Total Pay (%) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Total Pay TV Cable Subs. (000) 23 27 30 32 35 37 40 42 44 47 49 Growth (%) 22.6 14.6 10.7 9.0 7.9 7.0 6.4 6.0 5.6 5.3 5.0 Average Subs (000) 21 25 28 31 33 36 38 41 43 45 48 Pay Cable/Basic Cable (%) 1.5 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6 Monthly Rate (BLV) 10.09 10.44 10.81 11.19 11.58 11.99 12.40 12.84 13.29 13.75 14.23 Growth (%) 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 Avg. Monthly Rev./Sub. (€) 5.2 5.4 5.5 5.7 5.9 6.1 6.4 6.6 6.8 7.0 7.3 Pay TV Cable Revenue (€ mil.) 1.3 1.6 1.9 2.1 2.4 2.7 2.9 3.2 3.5 3.8 4.2 Growth (%) 50.9 22.3 16.5 13.7 12.2 11.2 10.4 9.9 9.5 9.1 8.8
ANALOGUE BASIC CABLEAnalogue Basic Subs (000) 1,543 1,599 1,640 1,648 1,616 1,537 1,418 1,264 1,066 854 862 Growth % 6.7 3.7 2.5 0.5 1.9- 4.9- 7.7- 10.9- 15.7- 19.8- 0.9 Penetration of Total Homes Passed % 76.8 76.0 75.0 73.2 70.2 65.6 59.7 52.7 44.0 34.9 34.9 Penetration of Total Basic Cable subs % 99.3 98.9 97.5 95.0 91.0 85.0 77.3 68.0 56.7 45.0 45.0
Bulgaria 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014DIGITAL BASIC CABLEDigital Cable Homes Passed (000) 400 493 631 824 1,057 1,361 1,624 1,829 1,973 2,079 2,097 Growth (%) 14.3 23.1 28.2 30.5 28.3 28.9 19.3 12.6 7.9 5.4 0.9 Proportion of Total Homes Passed (%) 19.9 23.4 28.9 36.6 45.9 58.1 68.4 76.2 81.4 85.0 85.0 Digital Basic Subs. (000) 10 18 42 87 160 271 417 595 814 1,044 1,054 Growth (%) (%) 194.3 79.2 127.8 106.3 84.3 69.7 53.8 42.6 36.8 28.3 0.9 Penetration of Digital Homes Passed (%) 2.6 3.7 6.7 10.5 15.1 19.9 25.7 32.5 41.3 50.2 50.2 Penetration of Total Basic Cable Subs (%) 0.7 1.1 2.5 5.0 9.0 15.0 22.7 32.0 43.3 55.0 55.0
ANALOGUE PAY CABLEHBO (000) 22 25 25 24 21 16 11 6 3 2 2 Total Analogue Pay TV Subs. (000) 22 25 25 24 21 16 11 6 3 2 2 Growth (%) 18.7 11.8 2.2 5.0- 12.3- 23.1- 32.7- 40.9- 54.8- 19.1- 5.0 Average Subs. (000) 20 23 25 24 22 18 13 9 5 3 2 Analogue Pay TV Cable Revenue (€ mil.) 1.3 1.5 1.6 1.7 1.6 1.4 1.0 0.7 0.4 0.2 0.2
DIGITAL PAY CABLEHBO (000) 1 2 4 8 14 21 29 36 41 44 47 Growth (%) 166.9 60.7 108.6 87.3 65.4 52.5 36.2 23.6 16.4 7.0 5.0 Proportion of Total Pay (%) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Total Digital Cable Pay TV Subs (000) 1 2 4 8 14 21 29 36 41 44 47 Growth (%) 166.9 60.7 108.6 87.3 65.4 52.5 36.2 23.6 16.4 7.0 5.0 Average Subs. (000) 1 2 3 6 11 17 25 32 38 43 45 Digital Pay TV Cable Revenue (€ mil.) 0.1 0.1 0.2 0.4 0.8 1.3 1.9 2.5 3.1 3.6 4.0 Penetration of Basic Digital Cable HH (%) 13.0 11.6 10.6 9.7 8.7 7.8 6.9 6.0 5.1 4.2 4.4 Proportion of Pay Cable Subs (%) 5.7 8.0 15.1 26.0 39.9 56.8 72.7 84.8 93.5 95.0 95.0
CABLE TELEPHONYTotal Subscribers (000) 4 11 21 33 45 56 65 73 79 83 83 Growth (%) 300.0 175.0 90.7 56.2 37.4 24.4 16.5 11.4 8.0 5.2 - Average Subs. (000) 3 8 16 27 39 51 61 69 76 81 83 Monthly Rate (BLV) 21.94 22.71 23.50 24.33 25.18 26.06 26.97 27.92 28.89 29.90 30.95 Growth (%) 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 Avg. Monthly Rev./Sub. (€) 11.25 11.64 12.05 12.47 12.91 13.36 13.83 14.31 14.81 15.33 15.87 Telephony revenue (€ mil.) 0.3 1.0 2.3 4.0 6.0 8.1 10.1 11.8 13.4 14.8 15.7 Growth (%) 417.5 210.5 120.7 74.0 49.8 34.5 24.2 17.7 13.4 10.3 6.1
Bulgaria 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014BROADBAND INTERNETEthernet/Cable Internet (000) 33 57 87 98 117 132 146 158 168 179 179 Growth (%) 160.0 76.5 52.3 12.7 18.4 13.3 10.3 8.2 6.9 6.0 - Average Subs. (000) 23 45 72 93 108 124 139 152 163 173 179 Monthly Rate (BLV) 34.86 32.77 31.72 30.91 30.28 29.78 29.36 29.07 28.78 28.49 28.21 Growth (%) 10.0- 6.0- 3.2- 2.6- 2.0- 1.7- 1.4- 1.0- 1.0- 1.0- 1.0- Avg. Monthly Rev./Sub. (€) 17.87 16.80 16.26 15.84 15.52 15.27 15.05 14.90 14.75 14.60 14.46 Internet Revenue (€ mil.) 4.8 9.1 14.1 17.7 20.0 22.8 25.1 27.1 28.9 30.4 31.0 Growth (%) 161.3 87.7 55.9 25.1 13.4 13.7 10.2 8.1 6.4 5.3 1.9
SUMMARYCable SubscribersTotal Cable TV Subscribers (000) 1,553 1,618 1,682 1,734 1,776 1,808 1,835 1,859 1,879 1,899 1,916 Telephony Subscribers (000) 4 11 21 33 45 56 65 73 79 83 83 Internet Subscribers (000) 33 57 87 98 117 132 146 158 168 179 179 Revenue Generating Units (000) 1,590 1,686 1,790 1,865 1,938 1,996 2,046 2,089 2,126 2,160 2,177 Cable RevenuesBasic Cable TV Rev. (€ mil.) 129.5 140.5 150.0 159.1 167.6 175.4 182.8 190.0 197.1 204.2 211.3 Analog Cable Pay-TV Rev. (€ mil.) 1.3 1.5 1.6 1.7 1.6 1.4 1.0 0.7 0.4 0.2 0.2 Digital Cable Pay-TV Rev. (€ mil.) 0.1 0.1 0.2 0.4 0.8 1.3 1.9 2.5 3.1 3.6 4.0 Total Pay TV Cable Rev. (€ mil.) 1.3 1.6 1.9 2.1 2.4 2.7 2.9 3.2 3.5 3.8 4.2 Total Cable TV Revenue (€ mil.) 130.8 142.1 151.8 161.3 170.0 178.1 185.7 193.2 200.6 208.0 215.5 Telephony Rev. (€ mil.) 0.3 1.0 2.3 4.0 6.0 8.1 10.1 11.8 13.4 14.8 15.7 Internet Rev. (€ mil.) 4.8 9.1 14.1 17.7 20.0 22.8 25.1 27.1 28.9 30.4 31.0 Total Non-TV Cable Revenue (€ mil.) 5.2 10.1 16.4 21.7 26.1 30.9 35.2 39.0 42.3 45.2 46.7 Total Cable Revenue (€ mil.) 136.0 152.2 168.3 183.0 196.1 209.0 220.9 232.1 242.9 253.2 262.2 Avg. Monthly Rev/RGU (€/RGU) 7.13 7.52 7.83 8.17 8.43 8.72 9.00 9.26 9.52 9.77 10.04
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2004 Average exchange rate €1 = € 1.951 All Eastern European data includes wire line cable and MMDS services.
Contact List(Country Code: 359)
Regulators
Ministry of Transport andCommunications9 Diakon Ignatiy StrSofia 1000BulgariaPhone: +359 940 9 500/9409 764Fax: +359 987 18 05Email: [email protected]: www.mtc.government.bg
Cable Association
Bulgarian Media Coalition (BMC)Slavianska str. N¡ 29Sofia 1000BulgariaPhone: +359 2 980 5856Fax: +359 2 980 5856Email: [email protected]: www.bmc.bulmedia.com
Operators
CableTel(formerly Cable Bulgaria)Vitosha Business Center49, Bulgaria blvdSofia 1404BulgariaPhone: +359 2 818 0730Fax: +359 2 818 0748Email: [email protected]: www.cabletel.bg
Eurocom3A, 165 StreetFloor 6Izgrev 1797 SofiaBulgariaPhone: +359 32 620790Fax: +359 32 627250Website: www.evrocom.bg
Evrotur Sat TV32 Khan Krum Str.1000 SofiaBulgariaPhone: +359 2 961 4692Fax: +359 2 960 8851Email: [email protected]: www.evrotur.net
MSAT2, Stefan Karadja Str.1080SofiaBulgariaPhone: + 359 2 98366 66/+359 52 301 301Fax: +359 2 981 41 61/+359 52 301 303Email: [email protected]: www.m-sat.bg
Pay TV
HBO BulgariaExpo 2000 Business ParkVaptzarov Blvd.1407 SofiaBulgariaPhone: +359 2 933 1826Fax: +359 2 933 1827
