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Montenegro - Telecoms IP Networks Digital Media and Forecasts


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

Fibre infrastructure gaining traction

Since independence in 2006 Montenegro has continued its quest to join the EU, signing a Stabilization and Association Agreement which oversees closer integration with the EU and covers commitments to political, economic, trade, or human rights reform in exchange for tariff-free access to some or all EU markets, financial or technical assistance. As part of the EU pre-accession process, the country has received financial aid to build public institutions and improve cross-border co-operation under EU funding mechanism Instrument for Pre-Accession Assistance.

Closer integration with the EU coincided with a period of strong economic growth, with foreign direct investment focused on the construction and finance sectors. However, the ongoing regional financial crisis has significantly impacted Montenegro due to the contraction in the real estate sector and lower demand for exports. Real GDP contracted in 2009 by 5.7%, and though it recovered to show 2.5% growth in both 2010 and 2011 continuing difficulties affecting some of its main trading partners may result in growth of only 0.2% for 2012.

The telecoms industry has not escaped the effects of the financial turmoil, though given that many telecom services as considered essential to most people the sector these difficulties more robustly than others such as construction and retail.

Montenegro’s liberalised telecom sector has been guided by legislation which adopts the regulatory principles found in the EU’s regulatory framework for communications. This was updated in 2010 with the revised regulatory framework.

Fixed broadband services are available via a variety of technology platforms including DSL, cable, leased line and wireless. The fibre sector has shown particularly strong growth since 2010 as the incumbent has invested in infrastructure upgrades, albeit mainly to serve apartment blocks in the main towns. DSL is also strong given the legacy reach of the incumbent’s copper network, coupled with its existing market presence and range of service offerings that include broadband TV.

Mobile penetration is among the highest in Europe, though this is partly due to the significant number of tourists visiting the country seasonally, as also the preponderance of popular prepaid cards WCDMA/HSPA networks have been launched, which has formed the basis for new mobile broadband services.

Montenegro – Key telecom parameters – 2010; 2012
Sector | 2010 | 2012 (e)

Subscribers:

Broadband | 68,000 | 84,000
Mobile | 1,237,000 | 1,110,000
Fixed-line telephony | 170,000 | 169,000
Penetration of services
Broadband | 16% | 21%
SIM penetration (population) | 199% | 178%
Fixed-line telephony | 25% | 24%
(Source: BuddeComm based on industry data)

Market highlights:

Fixed broadband uptake continues to grow due to improving affordability despite adverse economic conditions. Supporting growth is high levels of PC usage for the region.

The transition to digital terrestrial TV is underway, with a tender awarded during 2010 to design the transmission network ahead of analogue switch off by 2013.

A mid-2012 law taxing SIM cards €1 per month may slow the growth in the popular prepaid sector, which accounts for about 38% of all mobile subscribers.

The number of fibred premises more than doubled in 2012, marking operators’ willingness in investing in next-generation services and infrastructure.

Both fixed-line and mobile infrastructure sharing has been encouraged by the regulator to save unnecessary network construction costs. Prices for LLU and shared access to the incumbent’s fixed network were set in mid-2012.

Despite roaming tariff reductions introduced within the EU in mid-2012, MNOs in Montenegro still charge significantly higher rates for calls and SMS services.

In 2012 a Parliamentary Committee of Inquiry began hearing evidence from officials regarding corruption during the 2005 the privatisation of Telekom Montenegro.

Telenor and T-Mobile Montenegro have begun trials of LTE, with the 900MHz and 1800MHz bands available.

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 Montenegro’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 forecasts to 2015;
Broadband market forecasts for selective years to 2020.

Key developments:

LTE trials continue with LTE launch expected by end-2012; tax introduced on SIM cards, cable TV and IPTV services; parliamentary enquiry hears evidence of corruption during 2005 Telecom Montenegro privatisation; includes telcos’ operating and financial data to June 2012; regulator’s market data to September 2012; market developments to late 2012.

Companies covered in this report include:

Crnogorski Telekom, M:tel, Telenor.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Montenegro. 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
3. Telecommunications market
3.1 Overview of Montenegro’s telecom market
3.2 Telecom tax
4. Regulatory environment
4.1 Background
4.2 Regulatory authority
4.2.1 Agency for Electronic Communications and Postal Services (EKIP)
4.3 Telecom sector liberalisation in Montenegro
4.4 Privatisation of Telekom Montenegro
4.5 Interconnect
4.6 Carrier selection/Carrier preselection
4.7 Number portability (NP)
4.8 Access
5. Fixed network operators in Montenegro
5.1 Overview of operators
5.2 Crnogorski Telekom (Telekom Montenegro)
6. Telecommunications infrastructure
6.1 National telecom network
7. Internet market
7.1 Overview
7.2 Internet statistics
8. Fixed broadband market
8.1 Overview
8.2 Broadband statistics
8.3 Asymmetric Digital Subscriber Line (ADSL)
8.4 Cable broadband
8.5 FttX
8.6 Fixed Wireless broadband
8.7 Mobile broadband
9. Digital media
9.1 Overview of broadcasting market
9.2 Digital TV
9.2.1 Broadband TV (IPTV)
9.2.2 Cable TV
9.2.3 Satellite-based digital pay TV developments
9.2.4 Digital Terrestrial TV (DTTV)
10. Mobile communications
10.1 Overview of Montenegro’s mobile market
10.2 Mobile statistics
10.3 Regulatory issues
10.3.1 Third generation (3G) mobile licences awarded
10.3.2 Tender for fourth mobile licence
10.3.3 Roaming
10.4 Mobile technologies
10.4.1 Digital
10.4.2 Third generation (3G) mobile
10.5 Major mobile operators
10.5.1 Telenor
10.5.2 T-Mobile Montenegro
10.5.3 M:tel
10.6 Mobile voice services
10.6.1 Prepaid
10.7 Mobile data services
10.7.1 Short Message Service (SMS)/Multimedia Messaging Service (MMS)
10.7.2 General Packet Radio Service (GPRS)
10.7.3 Enhanced Data for GSM Evolution (EDGE)
10.7.4 Long-term Evolution (LTE)
10.7.5 Mobile broadband
10.8 Mobile content and applications
10.9 Forecasts – fixed broadband subscribers – 2010 - 2013; 2020
10.9.1 Scenario 1 – higher broadband subscriber growth
10.9.2 Scenario 2 – lower broadband subscriber growth
10.10 Notes on scenario forecasts
11. Related reports
List of Tables, Charts and Exhibits
Table 1 – Country statistics Montenegro – 2012 (e)
Table 2 – Telephone network statistics – 2012 (e)
Table 3 – Internet user statistics – 2012 (e)
Table 4 – Broadband statistics – 2012 (e)
Table 5 – Mobile statistics – 2012 (e)
Table 6 – National telecommunications authority
Table 7 – Fixed-lines by operator – 2010 - 2012
Table 8 – Crnogorski Telekom lines in service – 2005 - 2012
Table 9 – Crnogorski Telekom financial data – 2006 - 2012
Table 10 – Crnogorski Telekom revenue by sector – 2009 - 2012
Table 11 – Fixed lines in service and teledensity – 2004 - 2013
Table 12 – Internet users and penetration rate – 2001 - 2013
Table 13 – Fixed broadband subscribers and penetration rate – 2010 - 2013
Table 14 – Broadband market share by platform – 2010 - 2012
Table 15 – Dial-up internet subscribers – 2010 - 2012
Table 16 –DSL subscribers (regulator data) – 2005 - 2012
Table 17 – T-Com ADSL and leased line subscribers – 2005 - 2012
Table 18 – FttX connected premises – 2011 - 2012
Table 19 – FttX connections, by type – 2011 - 2012
Table 20 – WiMAX subscribers – 2007 - 2012
Table 21 – Mobile broadband subscribers – 2010 - 2012
Table 22 – Digital TV subscribers by platform – 2008 - 2012
Table 23 – Digital TV market share by platform – 2010 - 2012
Table 24 – Telekom Montenegro IPTV subscribers – 2007 - 2012
Table 25 – Mobile subscribers and penetration rate – 2004 - 2013
Table 26 – Mobile market share by subscribers – 2004 - 2012
Table 27 – Telenor subscribers – 2004 - 2012
Table 28 – Telenor financial data – 2005 - 2012
Table 29 – Telenor ARPU – 2004 - 2012
Table 30 – Telenor monthly traffic – 2004 - 2012
Table 31 – T-Mobile subscribers – 2005 - 2012
Table 32 – T-Mobile MOU and ARPU – 2005 - 2012
Table 33 – M:tel mobile subscribers (regulator data) – 2008 - 2012
Table 34 – M:tel mobile subscribers – 2008 - 2011
Table 35 – M:tel financial data – 2008 - 2011
Table 36 – Prepaid and contract mobile subscribers – 2004 - 2012
Table 37 – Proportion of prepaid and contract subscribers – 2004 - 2012
Table 38 – Annual SMS messages sent – 2001 - 2008
Table 39 – SMS messages sent – 2004 - 2012
Table 40 – Total mobile broadband capable subscribers – 2007 - 2012
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 – Crnogorski Telekom financial data – 2006 – 2012
Chart 2 – Crnogorski Telekom revenue by sector – 2009 – 2012
Chart 3 – Fixed lines in service and teledensity – 2004 – 2013
Chart 4 – Broadband market share by platform – 2010 – 2012
Chart 5 – Digital TV subscribers by platform – 2008 – 2012
Chart 6 – Digital TV market share by platform – 2010 – 2012
Chart 7 – Mobile subscribers and penetration rate – 2004 – 2013
Chart 8 – Mobile market share by subscribers – 2004 – 2012
Chart 9 – Telenor financial data – 2005 – 2012
Chart 10 – Telenor ARPU – 2004 – 2012
Chart 11 – M:tel financial data – 2008 – 2011
Chart 12 – Prepaid and contract mobile subscribers – 2004 – 2012
Exhibit 1 – Cable TV licences awarded by concession area and licence type – 2007

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