Montenegro - Telecoms, IP Networks and Digital Media
Regulator reduces MTRs, placing strain on mobile revenue
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)
Key developments:
Crnogorski Telekom invests 7.4 million in FttP, connects 37,000 residential premises to its network;
Regulator sets reduced roaming charges to 2017;
LTE networks providing two-thirds population coverage;
DTTV expands with additional licences to commercial FTA channels;
Tax introduced on SIM cards,
Agency for Electronic Media (AEM) awarded three FTA licences to broadcasters on the MUX 1;
Regulator orders Crnogorski Telekom to reduce internet charges by 35%;
Telecom regulators of Montenegro and Albania sign agreements to coordinate the use of frequencies in the 880MHz-915MHz, 925MHz-960MHz, 1710MHz-1785MHz and 1805MHz-1880MHz bands;
Report update includes telcos' operating and financial data to Q3 2014; regulator's market data to December 2014; recent market developments.
Companies mentioned in this report:
Crnogorski Telekom (Telekom Montenegro), M:tel, Telenor.
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 developments;
Major Players, Revenues, Subscribers, ARPU, MoU;
Internet, VoIP, IPTV;
Mobile Voice and Data Markets;
Broadband (FttP, DSL, cable, wireless);
Convergence and Digital Media;
3G subscriber and mobile ARPU forecasts to 2015;
Broadband market forecasts for selective years to 2020.
Government policies affecting the telecoms industry;
Market liberalisation and industry issues;
Telecoms operators privatisation, IPOs, acquisitions, new licences;
Mobile technologies (GSM; 3G, HSPA, LTE).
- 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 2013; 2015; 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
- Table 1 Country statistics Montenegro 2014 (e)
- Table 2 Telephone network statistics 2014
- Table 3 Internet user statistics 2014 (Jun)
- Table 4 Broadband statistics 2014
- Table 5 Mobile statistics 2014
- Table 6 National telecommunications authority
- Table 7 Penetration of devices by household 2012 - 2014
- Table 8 Fixed-lines by operator 2010 - 2014
- Table 9 Crnogorski Telekom fixed-line voice customers 2005 - 2014
- Table 10 Crnogorski Telekom financial data 2006 - 2014
- Table 11 Crnogorski Telekom revenue by sector 2009 - 2014
- Table 12 Fixed lines in service and teledensity 2004 - 2015
- Table 13 Internet users and penetration rate 2001 - 2015
- Table 14 Fixed broadband subscribers and penetration rate 2010 - 2015
- Table 15 Broadband market share by platform 2010 - 2014
- Table 16 Dial-up internet subscribers 2010 - 2015
- Table 17 DSL subscribers (regulator data) 2005 - 2015
- Table 18 T-Com ADSL and leased line subscribers 2005 - 2014
- Table 19 Cable broadband subscribers 2012 - 2015
- Table 20 FttX subscribers 2011 - 2014
- Table 21 Installed FttX connections 2011 - 2014
- Table 22 Proportion of FttX subscribers by type 2011 - 2014
- Table 23 WiMAX subscribers 2007 - 2014
- Table 24 Mobile broadband subscribers 2010 - 2014
- Table 25 Digital TV subscribers by platform 2008 - 2014
- Table 26 Digital TV market share by platform 2010 - 2014
- Table 27 Telekom Montenegro IPTV subscribers 2007 - 2014
- Table 28 Mobile subscribers and penetration rate 2004 - 2015
- Table 29 Mobile market share by subscribers 2004 - 2014
- Table 30 European wholesale roaming charges 2007 - 2014
- Table 31 Telenor subscribers 2004 - 2014
- Table 32 Telenor financial data 2005 - 2014
- Table 33 Telenor ARPU 2004 - 2014
- Table 34 Telenor monthly traffic 2004 - 2012
- Table 35 T-Mobile subscribers 2005 - 2014
- Table 36 T-Mobile MOU and ARPU 2005 - 2014
- Table 37 T-Mobile mobile revenue 2005 - 2014
- Table 38 M:tel mobile subscribers (regulator data) 2008 - 2012
- Table 39 M:tel mobile subscribers by type (company data) 2008 - 2014
- Table 40 M:tel financial data (historic) 2008 - 2011
- Table 41 Prepaid and contract mobile subscribers 2004 - 2014
- Table 42 Proportion of prepaid and contract subscribers 2004 - 2014
- Table 43 Annual SMS messages sent 2001 - 2008
- Table 44 MMS messages sent 2004 - 2011
- Table 45 Total mobile broadband capable subscribers 2007 - 2012
- Table 46 Forecast fixed broadband subscribers higher growth scenario 2013; 2015; 2020
- Table 47 Forecast fixed broadband subscribers higher growth scenario 2013; 2015; 2020
- Chart 1 Crnogorski Telekom financial data 2006 2014
- Chart 2 Crnogorski Telekom revenue by sector 2009 2014
- Chart 3 Fixed lines in service and teledensity 2004 2015
- Chart 4 Broadband market share by platform 2010 2014
- Chart 5 Digital TV subscribers by platform 2008 2014
- Chart 6 Digital TV market share by platform 2010 2014
- Chart 7 Mobile subscribers and penetration rate 2004 2015
- Chart 8 Mobile market share by subscribers 2004 2014
- Chart 9 Telenor financial data 2005 2014
- Chart 10 Telenor ARPU 2004 2014
- Chart 11 Prepaid and contract mobile subscribers 2004 2014
- Exhibit 1 Cable TV licences awarded by concession area and licence type 2007