BMI View: Croatia's mobile market has not been exciting in terms of subscription growth over the lastcouple of years. There is, however, a marked trend towards post-paid subscriptions and minutes of use arerising. The additional competitive momentum provided by the launch of Tele2's 4G network in 2016 augurswell for mobile sector growth prospects over the medium term. Nevertheless, 4G uptake will be a crucialdriver over the five years to 2021. The Croatian Competition Agency's (AZTN) approval of Optima's mergerwith H1 in June 2017 sets the stage for the effective elimination of competition in the Croatian wirelinesector. Wireline incumbent Hrvatski Telekom (HT) holds an equity stake in Optima and has managementcontrol over said operator at least until July 2021, according to an agreement recently approved by theAZTN. This situation could impede the implementation of Croatia's broadband strategy.