The toughest competitor

Of all potential newcomers to the Latvian fixed-line telecommunications market after its liberalization in 2003, mobile telephone operator Tele2 looks to be the toughest competitor to current monopolist Lattelekom, said an official from the Latvian Public Utilities Regulatory Commission. The regulatory commission's telecommunications and mail department director Andris Virtmanis told that after expiry of its monopoly Lattelekom was likely to find as its greatest competitor Tele2 that has already applied for a license to provide fixed-line services. Other potential local competitors included Latvian Railway, Latvenergo electricity utility and Latvijas Aeronavigacijas Serviss (Latvian Air Navigation Service) that had the required infrastructure to provide the services, said Virtmanis. The National Information Network Agency will offer mostly lease of infrastructure, suggested the telecommunications expert, and the line rental was likely to go down, taking with it the Internet access prices. Telecommunications market liberalization will begin in Latvia on Jan. 1, 2003, effectively ending Lattelekom's monopoly on fixed-line services.