Last updated: 5 Oct 2026 Update History
Report Status: Current
Report Pages: 116
Analyst: Henry Lancaster
The European Union remains Kosovo’s main trading partner and its principal source of foreign direct investment. The economy is significantly driven by trade with Germany and Switzerland, where most expatriates live and work. Remittances from such workers form an important part of household income.
In recent years, Kosovo’s telecommunications sector has undergone a structural transformation centered on 5G, national security-aligned infrastructure ownership, regulatory standardisation, and fixed network consolidation. The government has pivoted away from its historic attempts to privatise Telecom Kosovo, and while treating fibre and mobile assets as critical sovereign infrastructure it has supported the company through providing additional funds to invest in its networks.
Telekom Slovenije’s attempt to sell its entire stake in IPKO stalled after Telekom Srbija submitted the highest bid. This triggered alarm within the Kosovan government, which blocked the deal on national security grounds. Telekom Slovenije has since retained IPKO and invested in its 5G network.
The mobile sector is effectively a duopoly between Vala and IPKO, though there is competition in the fixed broadband segment. Poor telecom infrastructure has meant that fixed-line penetration remains low by European standards.
Broadband penetration in Kosovo is developing slowly. Most connections are via legacy cable and DSL networks, while there has been little progress with the expansion of fibre networks. As a result, fibre had reached only about a third of premises by early 2026, far below the regional average. The recent financial difficulties of the incumbent telco, Telecom Kosovo, have held back its ability to invest in fibre infrastructure.
Telecom Kosovo (Vala), IPKO, Artmotion, Kujtesa; Dukagjini Telecommunications, Dardafon.
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