1. LATVIAN ACTUALITIES Dr.Andris Virtmanis, Director, Electronic Communications and Post Department ANNUAL MEETING OF BALTIC ELECTRONIC COMMUNICATIONS AND POSTAL REGULATORS Marciena, District of Madona, Latvia 29 August 2013

2. Presentation outline Few elcos market highlights What happens in Latvian electronic communications ? Development of postal sector What is new in SPRK? 2

3. Elcos market highlights 3

4. ELCO REVENUES IN 2012 4

5. INTERNET REVENUES IN 2012 5

6. CHARACTERISTICS OF BB* 6 Digital Agenda for Europe 2020 100% pop. ≥ 30 Mb/s 50% househ. ≥ 100 Mb/s No ServiceLVEC 1Fixed BB access23,40%28,70% (01.2012.) 2NGA lines48 % (11%pop.) 20 % (3%pop.) 3Mobile BB50,50%54,10% 4≤ 30 Mb/s56,60% 85,80% 30 Mb/s ≤ x100 Mb/s 22,90% 11,10% ≥ 100 Mb/s20,50% 3,10% * 01.01.2013.

7. BB BY SPEEDS 7

8. What happens in electronic communications in Latvia? 8

9. 9 KEY ELCO ACTUALITIES IN 2013  Beginning of construction of optical NGN (“pre-last mile”) by LVRTC mile”) by LVRTC  Designation of provider for digital terrestrial TV from 2014 – Lattelecom selected  Merger of CaTV operators Baltcom TV and IZZI  SPRK’s tender of 50 MHz band (TDD) in 2,6 GHz range (on 26 August 2013) – Latvian Mobile Telephone (on 26 August 2013) – Latvian Mobile Telephone  SPRK’s tender for “Digital Dividend” in 800 MHz range (planned on 21 October 2013) (planned on 21 October 2013)  Amendments to ECL and SPRK’s regulations in access markets 4 & 5 (recently passed by EC’s comments)  Further regulations (towards lowering) of MTRs and FTRs – pending, consultation to be launched

10. 10 NoFrequency Band Amount of Spectrum Allocated in Latvia 1800 MHz (DD)60 MHzOct. 2013 2900 MHz70 MHzYes 31800 MHz150 MHzYes 42 GHz120 MHzYes 52,3 GHz70 MHzYes (60 MHz) 62.6 GHz190 MHzYes 73.4-3.6 GHz200 MHzYes 83.6-3.8 GHz200 MHzYes Latvia takes 4 th place after Sweden, Denmark and Lithuania in granting of usage rights in attractive ranges of whole 1200 MHz (2012 INFO: DG CONNECT) Latvia takes 4 th place after Sweden, Denmark and Lithuania in granting of usage rights in attractive ranges of whole 1200 MHz (2012 INFO: DG CONNECT) FREQUENCY ALLOCATION FOR SERVICES

11. Actual from postal sector 11

12. 12 Legal matters  Amended Postal Law (from 24 April 2013)  Actualized SPRK regulations  Cabinet Regulations on universal postal service compensation mechanism – still pending  Designation of universal service provider by SPRK’s tender – to be organized in 2014

13. 13 Letters sent by Latvian Post, th. DomesticCross-border

14. 14 Packages sent by Latvian Post, th. Cross-borderDomestic

15. What is new in SPRK? 15

16. SPRK IN NEW ADDRESS IN RIGA: Ūnijas iela 45 16

17. 17 RE-BRANDING OF SPRK Users Undertakings Government Quality Value Accessibility Reliability Competence Independence

18. 18 STREAMLINING OF SPRK SPRK Enhanced competence SPRK Improved external communication SPRK Simplified procedures Development of public services by balancing interests of undertakings and customers mission Based on IT support

19. 19 NEW SPRK’s WEB-SITE

20. 20 STRUCTURAL CHANGES IN ELECTRONIC COMMUNICATIONS AND POST DEPARTMENT Postal Division + 1 expert = 2 experts Universal Service Division Chief Specialist (CS) on Universal Service matters ECPD: 6 Divisions 22 experts + 1 CS Currently 23 employees

21. Thank you much for attention ! andris.virtmanis@sprk.gov.lv andris.virtmanis@sprk.gov.lv