Serbian Telecom Sector Report - 2014

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Serbian Telecom Sector Report - 2014

This report covers Serbia’s telecom sector. It discusses statistical data, financial information and major news released in the period December 1, 2013 – October 1, 2014. Market-level data usually refer to 2013. In addition, figures on fixed and mobile traffic are presented for H1 2014, as well as the 2014 survey on the usage of ICTs.

Revenues from telecommunication services in Serbia amounted to EUR 1.55bn in 2013, staying approximately unchanged from 2012. The revenues were equal to 4.85% of the country’s GDP.

Last year, revenue growth in the fixed-line market was positive prior to including revenues from international traffic, but negative after including them. Fixed telephony declined by 12.6% y/y in H1 2014. Fixed number portability has been available since April 1, 2014.

In the mobile market, revenues showed single-digit growth in 2013, after being virtually flat (in euro terms) in 2012. Mobile telephony increased by 13.8% y/y H1 2014.

The solid revenue performance of both the Internet and media content distribution markets continued in 2013 as well.

Key Points:
• The report presents information on the fixed-line, mobile, Internet, media content distribution and broadcasting markets in Serbia.
• The section on leading market players provides updated financial and other data on Telekom Srbija, Telenor Serbia and Vip mobile.
• In September 2014, Telenor Group began offering mobile banking services in Serbia. In addition, its biggest local competitor, Telekom Srbija, appears to be actively pursuing entry in this market as well.

Table of Contents

Serbian telecom sector 2013 revenues roughly flat from 2012 5
Information and communication sector rises by real 5.1% y/y in Q1 2014 5
Fixed-line 6
Fixed telephone services revenues rise 4% in 2013 6
Four new companies register to provide public fixed telephone services in 2013 6
Fixed telephony drops 12.6% y/y in H1 2014 7
Mobile 8
Mobile market revenues up 3% in 2013 8
Three mobile operators were active in Serbia in 2013 8
Mobile telephony rises 13.8% y/y in H1 2014 8
Internet 9
Revenues from Internet service provision continue to rise in 2013 9
Media Content Distribution 10
Revenues in media content distribution keep growing in 2013 10
Broadcasting 10
Usage of ICTs 11
ICTs usage in Serbia’s households rises in 2014 11
100% of Serbian companies use computer in 2014 11
Telekom Srbija 12
Company overview 12
Telenor 13
Company overview 13
Telenor units in Serbia and Montenegro combined H1 operating profit down 9.6% y/y 13
Vip mobile 15
Company overview 15
Vip mobile cuts H1 2014 operating loss to EUR 4.7mn 15
Slovenia’s Nuba to offer for sale Serbian telecom operator Targo at end-2014 16
Serbia, Bosnia, Macedonia, Montenegro sign deal to cut roaming prices to EU levels in 3 years 16
Telenor launches mobile banking in Serbia 17
Transition period for Serbia's radio/TV digitalisation process starts 17
Telekom Austria's Serbian unit completes first two phases of EUR 23mn network upgrade 17
Serbs port over 10,000 fixed telephony numbers since April 1, 2014 service launch 18
Mobile banking could raise Serbia's GDP by USD 2bn by 2020 - consultancy 18
Telekom Srbija files offer to buy majority stake in local Dunav Banka – report 18
Deutsche Telekom reportedly Serb government's favourite for taking over Telekom Srbija 19
Serbia opens tender for equipment/services towards EBRD-funded digital TV switchover project 20
Serb cable operator SBB signs EUR 5mn deal with UniCredit Leasing for Cisco kit 21
Telenor Serbia to invest over EUR 20mn in infrastructure in 2014 21
KKR says closes EUR 1bn acquisition of SBB/Telemach from Mid Europa 21
Belgrade, Pristina agree on Serb mobile/fixed-line telephony, TV signal in Kosovo - report 22
Telekom Srbija pays interim gross dividend of EUR 0.082/share for 2013 22

Table 1 Revenues from fixed telephone services. 6
Table 2 Fixed-line number of main lines, penetration 6
Table 3 Revenues from mobile networks 8
Table 4 Market shares of Serbia’s mobile operators in 2013 (%) 8
Table 5 Internet service revenues 9
Table 6 Internet users of different access technologies 9
Table 7 Media content distribution revenues 10
Table 8 Commercial service broadcasters in Serbia in 2013 10
Table 9 Telenor Serbia and Montenegro financials 14
Table 10 Vip mobile financials 15

Figure 1 Information and communication, real growth, % y/y 5

Number of pages: 22
Release Date: Wed, 08 Oct 2014