Serbia Telecom Market
Serbia is a Fast Grower telecom market in Southern Europe with 3 operators and 9.3 million mobile connections.
mts (Telekom Srbija)
Vip (Telekom Austria)
Following an economically and politically turbulent period during the 1990s, Serbia started the first decade of the new millennium with strong GDP growth until the economic crisis of 2008. GDP growth soon recovered but more recently it has been stymied by the poor performance of Serbia’s principal trading markets, including Italy and Greece.
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Economic difficulties prompted the government to adopt a range of fiscal measures to raise revenue, including a short-term imposition of a 10% tax on telecom services. Similarly, the economic difficulties, compounded by a range of regulatory measures, has seen a steady fall in telecom market revenue suffered due to the recent adverse economic conditions although not all markets were affected equally.
Serbia’s integration with the European Union (EU), formalised by the Stabilisation and Association Agreement in 2008, has encouraged the government and regulator to adopted measures aimed at promoting telecoms reform. The Agreement oversees closer integration with the EU and covers commitments to political, economic, trade, or human rights reform. In addition, as part of the EU pre-accession process, Serbia has received financial aid to build public institutions and improve cross-border co-operation. Serbia has been an official EU candidate country since January 2014.
EU reforms have been fundamental to Serbia’s telecom sector. The EU’s regulatory framework for communications (the NRF), adopted in mid-2010, promotes competition as the most efficient way to offer communications products and services while ensuring universal access. However, the May 2012 election of a new government less inclined to compromise with EU, though still committed to joining the Union, may have implications for telecom sector regulatory measures.