|Serbia And Montenegro Telecommunications Research|
Serbia - Telecoms, Mobile, Broadband and Forecasts
Following an economically and politically turbulent period during the 1990s, Serbia has concluded the first decade of the new millennium as a period of strong and stable real GDP growth until 2009 when it was impacted by the global economic crisis, prompting fiscal measures such as the introduction of a tax on telecom services. Serbia is expected to record positive real GDP growth for 2010 and 2011.
Recognising the potential socio-economic advantages of integration with the European Union, Serbia signed a Stabilisation and Association Agreement with the EU in April 2008, a concrete step towards joining the EU. The Stabilisation and Association Agreement oversees closer integration with the EU and covers commitments to political, economic, trade, or human rights reform in a country in exchange for tariff-free access to some or all EU markets, financial or technical assistance. As part of the EU pre-accession process, Serbia 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, Serbia is expected to receive €198.7 million during 2010, €202.7 million during 2011 and €206.8 million during 2012.
EU reforms have found their way into Serbia's telecom industry, adopting in mid-2010 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. Total telecom market revenue suffered due to the recent adverse economic conditions although not all markets were affected equally.
A considerable amount of network investment has been undertaken by incumbent and alternative operators to offer broadband services, which is available via DSL, fibre, cable and wireless. Internet usage in Serbia is growing due to rising income levels and improved affordability, with broadband representing the majority of Internet connections.
Serbia boasts an extensive broadcasting market, with programming available via radio and TV programme distribution via cable, wireless cable, terrestrial free-to-air and broadband TV. An analogue switch off (ASO) plan has been adopted and digital TV is widely available.
Serbia's mobile market boasts penetration levels indicative of saturation although multiple SIM card ownership is high. A relatively new market entrant is gaining market share and the focus for the mobile industry is shifting to improving ARPU levels by encouraging prepaid subscribers to migrate to postpaid plans as well as promoting increased spending on mobile broadband/content services, which are supported by widely accessible 3G/HSDPA networks.
A new Communications Law adopted in mid-2010 transposes the EU's 2003 regulatory framework for communications into national law, promising improved market prospects for competitors.
All sectors of the communications market with the exception of mobile recorded annual growth despite adverse economic conditions, highlighting the resiliency of communications spending.
Broadband accounts for over 75% of total Internet subscriptions, with this figure expected to rise due to increased competition. DSL represents the majority of fixed broadband subscriptions, with high fixed telephony penetration the basis for future growth in 2010/11.
Growing usage of e-commerce, e-government and e-education services by both individuals and businesses characterises the nascent information society in Serbia. Future growth will depend significantly on user friendly and useful applications as well as fast broadband connectivity.
Competition in the mobile market will improve following the planned introduction of mobile number portability, overcoming a key barrier for end users wishing to switch service providers. Future mobile market growth in the short to medium term will be primarily derived from uptake of mobile broadband services, which currently represents approximately 10% of total mobile connections.Serbia broadband and telecoms statistics - 2007 - 2010
Fixed broadband subscribers258470691850
Fixed broadband penetration rate3%6%9%12%
Subscribers to Telecoms Services (thousand)
Fixed-line telephone subscribers2,8503,0803,1063,200
Mobile phone subscribers8,8009,70010,40010,400
(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;
Major players, revenues, subscribers, ARPU, MOU;
Mobile voice and data markets;
Broadband (FttH, DSL, cable TV, wireless);
Last Update: 10 Jun 2011 Number of Pages: 39
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