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

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

Bosnia-Herzegovina struggling to maintain momentum for EU accession process

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 slowly recovered, though GDP is expected to reach only 0.5% in 2013 following negative growth in 2012. 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 2014 (e)
Penetration of services | Penetration
Fixed-line telephony | 18.0%
Broadband | 16.8%
Mobile phone | 91.0%
(Source: BuddeComm based on industry data)

Market highlights:

The DTTV roll-out is making progress, with the three largest cities covered by mid-2014 and more cities being covered into 2015;
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.
Broadband connection speeds are increasing, with a growing number of lines now offering at least 8Mb/s.
Fixed-line voice revenue has continued to slide, as customers migrate to VoIP and mobile services for voice calls.
BH Telecom has contracted Ericsson to develop an LTE platform.
Kohlberg Kravis Roberts (KKR) completes acquisition of the United Group (SBB/Telemach) from Mid Europa Partners.

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;
Major players, revenues, subscribers, ARPU, MoU;
Internet, VoIP, IPTV;
Mobile voice and data markets;
Broadband (FttP, 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 updates; regulator's market data to September 2014; recent market developments.

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.

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
8.6 Fibre-to-the-Premises (FttP)
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 Long-term Evolution (LTE)
10.6.5 Mobile broadband
10.7 Mobile content and applications
11. Forecasts
11.1 Forecasts fixed broadband subscribers 2013; 2015; 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
Table 1 Country statistics Bosnia-Herzegovina 2014 (e)
Table 2 Telephone network statistics 2014 (e)
Table 3 Internet user statistics 2014 (e)
Table 4 Internet subscriber statistics 2014 (e)
Table 5 Broadband statistics 2014 (e)
Table 6 Mobile statistics 2014 (e)
Table 7 National telecommunications authority
Table 8 Telecoms revenue by sector2005 - 2013
Table 9 Proportion of telecoms revenue by sector 2011 - 2013
Table 10 Fixed number portings 2011 - 2013
Table 11 Direct access, CS and CPS subscribers 2008 - 2014
Table 12 Fixed-telephony subscriber market share by operator 2011 - 2014
Table 13 VoIP subscriptions 2009 - 2013
Table 14 Fixed-line voice revenue 2005 - 2013
Table 15 Fixed-line voice lines by operator 2001 - 2011
Table 16 Telekom Srpske fixed line subscribers 2008 - 2014
Table 17 Telekom Srpske financial data 2010 2014
Table 18 Telekom Srpske domestic revenue by service 2010 2014
Table 19 Historic - Fixed lines in service and teledensity 1999 - 2004
Table 20 Fixed lines in service and teledensity 2005 - 2015
Table 21 Historic - Fixed lines in service per incumbent operator 2001 - 2009
Table 22 Internet users, subscribers and penetration rates 1999 - 2014
Table 23 Dial-up internet subscribers 2007 - 2013
Table 24 Fixed-line broadband subscribers and penetration rate 2002 - 2015
Table 25 Broadband subscribers by access type 2004 - 2015
Table 26 Broadband and dial-up share of internet subscribers 2004 - 2012
Table 27 Broadband share of subscribers by platform 2004 - 2014
Table 28 BH Telecom DSL subscribers 2004 - 2011
Table 29 Telekom Srpske DSL subscribers 2011 2014
Table 30 Telekom Srpske WiMAX subscribers 2011 2012
Table 31 FttP subscribers 2012 - 2014
Table 32 Telekom Srpske IPTV subscribers 2011 2012
Table 33 Historic - Mobile subscribers and penetration rate 1998 2004
Table 34 Mobile subscribers and penetration rate 2005 2015
Table 35 Mobile services revenue 2005 - 2013
Table 36 Mobile subscriber market share by operator 2004 - 2014
Table 37 M:tel mobile subscribers 2008 - 2014
Table 38 Prepaid users by mobile network operator 2003 - 2010
Table 39 Prepaid cards in service 2005 2013
Table 40 Total SMS and MMS messages sent 2003 - 2014
Table 41 GPRS subscribers per operator 2006 - 2010
Table 42 Forecast fixed broadband subscribers higher growth scenario 2013; 2015; 2020
Table 43 Forecast fixed broadband subscribers lower growth scenario 2013; 2015; 2020
Chart 1 Telecoms revenue by sector2005 2013
Chart 2 Direct access, CS and CPS subscribers 2008 2014
Chart 3 Fixed lines in service and teledensity 2005 2015
Chart 4 Broadband subscribers by access type 2004 2015
Chart 5 Mobile subscribers and penetration rate 2005 2015
Chart 6 Mobile subscriber market share by operator 2004 2014
Exhibit 1 Access, the local loop and unbundling an overview

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