Montenegro - Telecoms IP Networks Digital Media and Forecasts
DTTV gaining momentum and a greater market share of TV viewing
Montenegro has made steady progress in its ambition to join the EU, with negotiations on two of 12 areas having been concluded by late 2014. 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. The telecom sector has also been aligned with norms, which has opened up the market to competition and guided the development of elements such as access and tariff structures. Montenegro's liberalised telecom sector has been guided by legislation which adopts a range of regulatory principles found in the EU's regulatory framework for communications. This was updated in 2010 with the revised regulatory framework.
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 resulted in negative growth of 2.5% for 2012. Nevertheless, the economy recovered swiftly, with GDP growth of 3.4% in 2013 and an anticipated 2.8% for 2014.
Fixed broadband services are available via a variety of technology platforms including DSL, cable, leased line, fibre 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 Networks based on WCDMA/HSPA and LTE technologies have been launched. This has formed the basis for new and expanding mobile broadband services.
Montenegro Key telecom parameters 2014
Sector | Penetration
Broadband | 25%
SIM penetration (population) | 163%
Fixed-line telephony | 22%
(Source: BuddeComm based on industry data)
The Agency for Electronic Media (AEM) awarded three FTA licences to broadcasters on the MUX 1, which provides 85% population coverage. The MUX has remaining capacity for an additional six TV channels.
T-Mobile Montenegro has invested in network infrastructure, expanding LTE coverage to about two-thirds of the population by early 2015.
The regulator in late 2014 ordered Crnogorski Telekom to reduce internet charges by 35%, and has since contemplated setting up its own ISP in a bid to offer cheaper internet access.
The telecom regulators of Montenegro and Albania have signed agreements to coordinate the use of frequencies in the 880MHz-915MHz, 925MHz-960MHz, 1710MHz-1785MHz and 1805MHz-1880MHz bands. The arrangement will facilitate the functional operation of mobile networks without interference from network operators in neighbouring countries.
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.
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 (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.
LTE network coverage reaches two-thirds of the population, DTTV expands with additional licences to commercial FTA channels; tax introduced on SIM cards, cable TV and IPTV services; report update includes telcos' operating and financial data to Q3 2014; regulator's market data to December 2014; recent market developments.
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.