Latvia, Markets and Companies, Telecomunications

On the other hand, the company's earnings before interest, taxes, depreciation and amortization grew by 2%. In 2009 Lattelecom Group plans to turn over LVL 141 million altogether.

The company's investments so far this year have already surpassed LVL 13 million and by the end of the year they will reach LVL 28 million, writes LETA.

"Taking in consideration the tough economic situation in the country, we have managed to conclude the first half of the year with relatively good results," Gulbis said, adding that, comparing with the overall situation in the telecommunications sector, Lattelecom results in the first half-year are very good. Earnings from fixed telephony have been falling, but at the same time, there is a growing demand for the new services of Lattelecom – broadband internet, interactive and terrestrial television, which help to ensure a balanced and profitable product portfolio.

Gulbis admits that decreasing demand for fixed telephony services is inevitable, therefore Lattelecom is focusing on the development of television services and broadband internet. The company has launched the development of a major optic infrastructure project in Riga neighborhoods, which will provide 10-50 times faster internet connection than previously.

According to Gulbis, Lattelecom has 571,000 fixed telephone line customers, 190,000 broadband internet users, 30,000 subscribers for the digital television services and over 3,000 households using the Lattelecom terrestrial television.

There is a huge demand for the digital terrestrial television services offered by the telecommunications company Lattelecom, the chairman of the enterprise's board, Juris Gulbis, says in an interview to the newspaper Dienas Bizness.

Over 3,000 households are already using the service now, only one month after it was introduced.

Currently, terrestrial television is available within a radius of 70 kilometers around Riga; as of the beginning of 2010, digital terrestrial broadcasting will be available in all the territory of Latvia, Gulbis informed.

By the end of this year, Lattelecom investments in developing its terrestrial television services will surpass two million lats.

As Gulbis explains, Lattelecom is hopeful that large part of the 300,000 households which currently use the analogue television, could switch over to using the digital terrestrial television.

Lattelecom has around 40% share of the broadband internet market in Latvia; it services 94% of fixed telephone lines and has conquered around five% of the pay television market.

The company exports around 7% of its services, mostly to Lithuania, Estonia and Germany.

The Lattelecom group includes Lattelecom, Lattelecom Technology and its subsidiary Baltijas datoru akademija, Lattelecom BPO and Citrus Solutions.

49% of shares in Lattelecom belong to the Scandinavian concern TeliaSonera, 51% is owned by the state of Latvia.