Executive summary
Telecoms fight on in Montenegro
Since independence in 2006 Montenegro has progressed in its quest in joining the EU, signing a Stabilization and Association Agreement which oversees closer integration with the EU and covers commitments to political, economic, trade, or human rights reform in exchange for tariff-free access to some or all EU markets, financial or technical assistance. As part of the EU pre-accession process, Montenegro has received financial aid to build public institutions and improve cross-border co-operation under EU funding mechanism Instrument for Pre-Accession Assistance. Under the funding scheme, Montenegro is expected to receive €34.0 million during 2010, €34.7 million during 2011 and €35.4 million during 2012.
Closer integration with the EU coincided with a period of strong economic growth, with foreign direct investment focused on the construction and finance sectors. The recent global financial crisis significantly impacted Montenegro due to the contraction in the booming real estate industry, concerns about contagion and the stability of its banking system. Real GDP contracted in 2009 by an estimated 6.6%, with a smaller 1.8% contraction forecasted for 2010 by the International Monetary Fund.
The telecoms industry did not entirely escape the effects of the recent global financial turmoil as noted by the contraction in mobile SIM card penetration. However the utility nature of most telecom services means the industry was largely unaffected.
Montenegro’s telecom industry has been liberalised and legislation introduced that adopts regulatory principles found in the EU’s regulatory framework for communications, which promotes competition as the most efficient way to offer communications products and services while ensuring universal access. Despite liberalisation the incumbent continues to dominate the fixed-line market although the situation is likely to change following introduction of legislation giving stronger powers to the regulator to improve competition.
Fixed broadband services are available in Montenegro through a variety of technology platforms including DSL, cable, leased line and wireless. ADSL is a popular choice given the reach of the incumbent’s network coupled with its existing market presence and range of service offerings that include broadband TV.
Mobile penetration levels are among the highest in Eastern Europe although subscriber levels are artificially inflated by the significant number of tourists that visit Montenegro annually. WCDMA/HSDPA networks have been launched, which has formed the basis for new mobile broadband services.
Market highlights:
- Fixed broadband uptake continues to grow due to improving affordability despite adverse economic conditions. Supporting growth is high levels of PC usage for the region.
- The transition to digital terrestrial TV is underway, with a tender awarded during 2010 to design the transmission network ahead of analogue switch off by 2013.
- 3G coverage is widely available with speeds of up to 21.5Mb/s available. Mobile broadband offerings present a new growth opportunity for mobile network operators given existing broadband penetration levels and increasingly affordable tariffs.
Montenegro broadband and telecoms statistics – 2010
Sector
| 2010
| 2011
|
|---|
Broadband (thousand)
|
|---|
Fixed broadband penetration
| 18%
| 20%
|
Mobile broadband penetration
| 190%
| 170%
|
Subscribers to telecoms services (million)
|
|---|
Fixed-line telephone subscribers
| 160
| 150
|
Mobile phone subscribers
| 1,110
| 1,100
|
(Source: BuddeComm based on industry data)
This report covers trends and developments in telecommunications, mobile, Internet, broadband, digital TV. Subjects include:
- Market and industry analyses, trends and developments;
- Facts, figures and statistics;
- Industry and regulatory issues;
- Infrastructure;
- Major players, revenues, subscribers, ARPU, MOU;
- Mobile voice and data markets;
- Broadband (FttH, DSL, cable TV, wireless);
- Digital media.
