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Bosnia-Herzegovina - Telecoms, IP Networks, Digital Media and Forecasts


Attention: There is an updated edition available for this report.

1. Executive summary
2. Key statistics
2.1 Country overview
3. Telecommunications market
3.1 Overview of Bosnia-Herzegovina’s telecom market
4. Regulatory environment
4.1 Background
4.2 Telecom sector liberalisation in Bosnia-Herzegovina
4.3 Regulatory authority
4.3.1 Communications Regulatory Agency (CRA)
4.4 Interconnection
4.5 Access
4.6 Number portability (NP)
4.7 Carrier Selection/Carrier Preselection
4.8 Tariff rebalancing
4.9 Privatisation
4.9.1 BH Telecom
4.9.2 HT Mostar
4.9.3 Telekom Srpske
5. Fixed network operators in Bosnia-Herzegovina
5.1 Overview of operators
5.2 BH Telecom
5.3 HT Mostar
5.4 Telekom Srpske
6. Telecommunications infrastructure
6.1 National telecom network
7. Internet market
7.1 Overview
7.1.1 Internet statistics
7.2 Information society
7.3 ISP market
8. Broadband market
8.1 Overview
8.2 Broadband statistics
8.3 Asymmetrical Digital Subscriber Line (ADSL)
8.4 Cable broadband
8.5 Wireless broadband
9. Overview of broadcasting market
9.1 Digital TV
9.1.1 Broadband TV (IPTV)
9.1.2 Cable TV (CATV)
9.1.3 Digital Terrestrial TV (DTTV)
10. Mobile communications
10.1 Overview of Bosnia-Herzegovina’s mobile market
10.1.1 Mobile statistics
10.2 Regulatory issues
10.2.1 National licences
10.2.2 National roaming
10.2.3 3G mobile licenses
10.2.4 Mobile Number Portability (MNP)
10.3 Mobile technologies
10.3.1 Digital
10.3.2 Third generation mobile
10.4 Mobile operators
10.4.1 Overview of operators
10.4.2 GSM BiH
10.4.3 Mobilna Srpske (m:tel)
10.4.4 HT Mobile (Eronet)
10.4.5 BH Mobile
10.5 Mobile voice services
10.5.1 Prepaid cards
10.6 Mobile data services
10.6.1 Short Message Service (SMS)/Multimedia Messaging Service (MMS)
10.6.2 General Packet Radio Service (GPRS)
10.6.3 Enhanced Data for GSM Evolution (EDGE)
10.6.4 Mobile broadband
10.7 Mobile content and applications
11. Forecasts
11.1 Forecasts – fixed broadband subscribers – 2010 - 2013; 2020
11.1.1 Scenario 1 – higher broadband subscriber growth
11.1.2 Scenario 2 – lower broadband subscriber growth
11.2 Notes on scenario forecasts
12. Related reports
List of Tables, Charts and Exhibits
Table 1 – Country statistics Bosnia-Herzegovina – 2012 (e)
Table 2 – Telephone network statistics – 2012 (e)
Table 3 – Internet user statistics – 2012 (e)
Table 4 – Internet subscriber statistics – 2012 (e)
Table 5 – Broadband statistics – 2012 (e)
Table 6 – Mobile statistics – 2012 (e)
Table 7 – National telecommunications authority
Table 8 – Telecoms sector investment –2005 - 2007
Table 9 – Telecoms revenue by sector–2005 - 2012
Table 10 – Proportion of telecoms revenue by sector– 2011
Table 11 – Access rates by operator (KM) – 2007 - 2012
Table 12 – Direct access, CS and CPS subscribers – 2008 - 2012
Table 13 – Fixed-telephony subscriber market share by operator – 2011
Table 14 – Fixed-telephony market share of revenue by operator – 2011
Table 15 – VoIP subscriptions –2009 - 2012
Table 16 – Fixed-line voice revenue –2005 - 2012
Table 17 – Telekom Srpske fixed line subscribers – 2008 - 2011
Table 18 – Telekom Srpske domestic revenue by sector – H1 2010 – H1 2011
Table 19 – Telekom Srpske financial data – 2010 – 2011
Table 20 – Fixed lines in service and teledensity – 1999 - 2012
Table 21 – Fixed lines in service per incumbent operator – 2001 - 2010
Table 22 – Internet users, subscribers and penetration rates – 1999 - 2012
Table 23 – Dial-up internet subscribers – 2007 - 2013
Table 24 – Broadband subscribers and penetration rate – 2002 - 2012
Table 25 – Broadband subscribers by access type – 2004 - 2011
Table 26 – Broadband and dial-up share of internet subscribers – 2004 - 2011
Table 27 – Broadband share of subscribers by platform – 2004 - 2011
Table 28 – BH Telecom DSL subscribers– 2004 - 2011
Table 29 – Mobile subscribers and penetration rate – 1998 – 2015
Table 30 – Mobile Termination Rates – 2009
Table 31 – Mobile services revenue –2005 - 2012
Table 32 – Mobile subscriber market share by operator –2004 - 2011
Table 33 – 3G subscribers– 2009 - 2012
Table 34 – Mobile market share by operator – 2008 - 2011
Table 35 – M:tel mobile subscribers – 2008 - 2011
Table 36 – M:tel financial data – 2010 – 2011
Table 37 – Prepaid users by mobile network operator – 2003 - 2010
Table 38 – Prepaid cards in service – 2005 – 2012
Table 39 – Total SMS and MMS messages sent – 2003 - 2012
Table 40 – GPRS subscribers per operator – 2006 - 2010
Table 41 – Forecast fixed broadband subscribers – higher growth scenario – 2010 - 2013; 2020
Table 42 – Forecast fixed broadband subscribers – lower growth scenario – 2010 - 2013; 2020
Chart 1 – Telecoms revenue by sector–2005 – 2012
Chart 2 – Direct access, CS and CPS subscribers – 2008 – 2012
Chart 3 – Broadband subscribers by access type – 2004 – 2011
Chart 4 – Mobile subscribers and penetration rate – 2004 – 2015
Chart 5 – Mobile subscriber market share by operator –2004 – 2011
Chart 6 – Mobile market share by operator – 2008 – 2011
Exhibit 1 – Access, the local loop and unbundling – an overview

Economic malaise risks telecom sector recovery

Bosnia-Herzegovina made remarkable economic progress since emerging from war in the 1990s to the financial turmoil of 2009. Since then the country’s economy has recovered, with GDP expected to reach at least 2.2% in 2011. Future economic prosperity relies to a great extent on the country’s integration with the European Union. In preparation for eventual membership, the country has sought closer integration with the EU and adopted a range of commitments to political, economic, trade, and human rights reform. It has also aligned its telecom policies and regulatory measures to prepare it to compete effectively within the EU.

The market has been liberalised and a regulatory framework created based on the EU’s regulatory framework for communications, promoting competition as the most efficient way to offer communications products and services. Ongoing introduction of secondary legislation by the regulator is slowly improving the regulatory environment. To this end, the regulator has promoted fixed-line and mobile number portability, reduced interconnection tariffs and allowed the three incumbent operators to provide services outside their original concession areas.

Although a number of fixed-line operators offer services the market is dominated by the three incumbent operators, which hold a combined market share of 99%. All three incumbents are subject to specific obligations designed to improve competition.

Internet services are available through the incumbents and alternative operators. Internet usage in Bosnia-Herzegovina is showing signs of significant growth on the back of competition and the improved availability of services.

The three mobile network operators (MNOs), each affiliated with one of the incumbent fixed-line operators, provide near-national coverage. Their networks, being upgraded to support services based on HSPA technology; will in coming years support broadband in rural areas where fixed-line infrastructure is insufficient. In addition, mobile data and mobile broadband offers will provide future revenue growth given the limited potential of mobile voice services.

Bosnia-Herzegovina telecoms statistics – 2010; 2012
Sector | 2010 | 2012 (e)
Subscribers to telecoms services (thousand)
Fixed-line telephone subscribers | 989 | 950
Broadband subscribers | 360 | 480
Mobile phone subscribers | 3,013 | 3,190
Telecom penetration by service
Fixed-line telephony | 26% | 23%
Broadband | 9.5% | 13.5%
Mobile phone | 83% | 85%
(Source: BuddeComm based on industry data)

Market highlights:

The mobile market makes up more than half of all revenue, with the fixed-line sector declining as customers adopt mobile-centric telecoms solutions.

In late 2011 the regulator reduced licence fees for licence holders by 50% with the aim of encouraging further development in the telecom and broadcasting sectors. The reduction in fees is also expected to impact prices for telecom services for end-users.

In late 2012 the regulator held a public consultation on draft rules to rebalance voice telephony services in Bosnia and Herzegovina to 2015. The rules are intended to establish price caps for providers of voice services with SMP.

Connections speeds remain low, with the majority of lines offering data at up to 2Mb/s, and about 100,000 offering data at up to 4Mb/s. The number of 8Mb/s lines was only about 8,000 in early 2012.

In late 2012 M:tel launched its Open Start line of multi-play packages which include IPTV, internet and landline telephony.

Fixed-line voice revenue has continued to slide, as customers migrate to VoIP and mobile services for voice calls.

GDP in 2011 reached about 1.7% but is expected to show zero growth in 2012, partly caused by the ongoing economic difficulties of its key trading partners.Henry Lancaster October 2012

Data in this report is the latest available at the time of preparation and may not be for the current year.

This report provides a comprehensive overview of trends and developments in Bosnia--Herzegovina’s telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors.

Subjects include:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Infrastructure;
Major players, revenues, subscribers, ARPU, MoU;
Internet, VoIP, IPTV;
Mobile voice and data markets;
Broadband (FttH, DSL, cable TV, wireless);
Convergence and digital media;
3G subscriber and mobile ARPU data;
Broadband market forecasts for selective years to 2020.

Key developments:

Includes operator data; regulator’s 2011 market report, market developments to October 2012.

Companies covered in this report include:

BH Telecom, HT Mostar, Telekom Sprske

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Iceland.

It provides further information on:

Market liberalisation and regulatory issues;
The impact of the global economic crisis;
Telecoms operators – privatisation, acquisitions, new licences;
Mobile data market developments in coming years in light of spectrum auctions and new license awards;
3G developments, regulatory issues and technologies including HSPA and LTE;
Broadband migration to an FttH architecture;
Historical and current subscriber statistics and forecasts;
ARPU statistics and forecasts.


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