The Shifting Sands of Connectivity in Latvia

Latvia’s digital communications sector is undergoing a meaningful transformation, marked by a decline in customary fixed-line voice services and a massive surge in mobile data consumption. Recent data compiled by the Public Utilities Commission (PUC) from registered electronic communications companies reveals a dynamic shift in how Latvians connect and communicate.

Revenue Growth Driven by Mobile Services

In 2024, the electronic communications industry generated revenues of EUR 603 million, a 2.4% increase compared to the previous year. Mobile network services constitute the lion’s share of this revenue, accounting for 64% of the total – a 4% increase as 2020. Retail trade, specifically end-user payments for electronic communications services, remains the primary revenue source, contributing 88% of the total. Voice communications and Internet services make up 80% of this retail revenue, with television, data transmission, and text messaging comprising the remainder.

Key Trends: Data Consumption Skyrockets

Analysis of revenue, connection, and service usage reveals a clear trend: the diminishing importance of fixed voice services alongside declining revenue from interconnection and leased lines. conversely, demand for Internet and television services continues to climb. the most striking trend is the exponential growth in mobile data consumption. While the volume of voice minutes and text messages sent via mobile networks decreases annually, data usage is exploding. In 2024, the average Latvian consumed 57 GB of data per month, a significant jump from 48 GB in 2023. This surge reflects the increasing reliance on data-intensive applications like video streaming, social media, and cloud-based services.

“The mobile network is reduced each year by the amount of minutes and the number of text messages sent, but the amount of Internet consumed is rapidly increasing.”

Public Utilities Commission (PUC)

This trend mirrors global patterns. According to a recent report by Ericsson, global mobile data traffic is projected to grow by roughly 25 percent annually through 2029, driven by increased smartphone adoption and the proliferation of 5G networks.

Household Connectivity: A Mixed Bag

The data indicates near-ubiquitous mobile connectivity in Latvia, with virtually every resident having at least one mobile connection offering both voice and Internet services.Fixed internet connections are prevalent in approximately half of all households, while television services are used by 7 out of 10 households. However, fixed voice connections are becoming increasingly rare, retained by only about 3% of households.

Optical Internet Dominance and Speed Advancements

The expansion of optical internet connections continues apace, now representing 79% of all fixed network internet connections. This service is currently accessible to 62% of households across Latvia. Furthermore, significant strides have been made in internet speed, with 43% of connections now offering access speeds exceeding 1 Gbit/s, a ample increase from just 6% in 2023. This rapid deployment of high-speed internet infrastructure is crucial for supporting the growing demand for bandwidth-intensive applications and services.

Looking Ahead

The Latvian electronic communications sector is clearly adapting to the evolving needs of it’s consumers. The shift towards mobile data and high-speed internet reflects a broader global trend towards digital-first lifestyles. As Latvia continues to invest in its digital infrastructure, it is well-positioned to capitalize on the opportunities presented by the digital economy. For more detailed data,the PUC provides interactive infographics and data on electronic communications service indicators from 2020-2024 on the SPRK website.