Bite Latvija warns of changes in Latvia's telecom market, says customers could feel effects

Bite Latvija CEO Mindaugs Rakauskas said unfair competition is currently the biggest challenge facing the telecommunications sector. He noted the problem is especially acute when state-owned companies or state-linked entities simultaneously control infrastructure access, influence public procurement, and operate in the end-service market. Rakauskas stressed that state decisions should strengthen an open market rather than create advantages for specific players.

Competition remains intense

Despite these concerns, Rakauskas acknowledged that competition among Latvia's three major mobile operators remains fierce, both for private and business customers. This pushes companies to keep investing in network quality, service development and competitive pricing. However, he said such investment is only possible when all market players operate under equal competitive conditions.

Rakauskas warned that excessive market concentration — where one party controls both infrastructure and end services — could, over time, reduce customer choice, slow innovation, and negatively affect both service quality and prices.

Concerns over possible LMT-Tet merger

Rakauskas specifically addressed the potential merger of LMT and Tet, saying such a deal could significantly alter the competitive landscape in Latvia's telecom and digital services market. Bite Latvija maintains that any such process must be transparent and thoroughly assessed with long-term competition interests in mind, including clarity on who would control critical infrastructure and how equal access for all operators would be guaranteed.

As previously reported, Sweden's Telia signed a memorandum of understanding with Latvenergo and LVRTC regarding the sale of its Tet and LMT shares, after which the involved parties together with a strategic investor could hold around 25% of both companies' capital shares.

Bite Latvija posted revenue of €209.8 million last year, up 14.2% year-on-year, while profit fell 26.7% to €24.7 million. The company, founded in 2005, is owned by Lithuania's Bite group, which is controlled by Providence Equity Partners.