Abstract
Executive summary
Kosovo declared its independence from Serbia in February 2008 when the Kosovo
Assembly adopted a resolution which declares Kosovo to be independent. This
was followed by a Constitution that came into force in June 2008. Kosovo has
been under the interim administration of the United Nations Mission in Kosovo
(UNMIK) since 1999 although since December 2008 its role has been minor.
Considered a potential EU candidate, Kosovo commenced in November 2002 the
EU' s Stabilisation Tracking Mechanism (STM), a mirror instrument of the
Stabilisation and Association Process (SAP) used to integrate potential EU
candidate countries with the EU. The process aims at building an
institutional, legislative, economic and social framework directed by the
values and models subscribed to by the EU, as well as at promoting the
transition to a market economy.
As part of the EU pre-accession process, Kosovo has received financial aid to
build public institutions and improve cross-border co-operation under EU
funding mechanism Instrument for Pre-Accession Assistance. Under the IPA,
Kosovo is expected to receive € 106.1 million during 2009, € 67.3
million during 2010, € 68.7 million during 2011 and € 70.0 million
during 2012. The EU is the main trading partner of Kosovo as well its main
source of foreign direct investment, with the country' s economy transitioning
to a market-based economy. Despite the latest global economic turmoil Kosovo
sustained relatively strong economic growth during 2008 on the back of
sustained donor activity, overseas worker remittances and increased public
investment although remittances may decline during 2009 as Europe contends
with recession.
Kosovo' s telecom industry has been liberalised and legislation has been
introduced that adopts regulatory principles found in the EU' s regulatory
framework for communications, which promotes competition as the most efficient
way to offer communications products and services while ensuring universal
access.
Prior to independence Kosovo operated its own telecom industry, with a
separate ministry, regulator, network operators and service providers. As
Kosovo' s international status has not been finalised it is yet to receive a
country code from the ITU. Hence network operators in Kosovo at present use
one of three country codes: Monaco (+377), Slovenia (+386) and Serbia (381).
Low Internet penetration in Kosovo has been attributed to the lack of economic
development, resulting in low purchasing power and consequent low PC
penetration and take up of Internet subscriptions. Internet service
availability is expanding as network operators build out networks. The
government has launched a number of Initiatives to improve Internet usage,
such as providing PCs and broadband Internet connections for schools.
Broadband access services are offered by the incumbent as well as a number of
competing operators. As of January 2009 a total of 10 ISPs were licensed to
offer Internet access services.
Kosovo' s mobile market is serviced by two mobile networks operators and two
MVNOs. Mobile services are marketed via postpaid and prepaid tariff options,
with the latter instrumental in popularising mobile voice services due to its
inherent flexibility and affordability. Mobile data services such as SMS, MMS
and GPRS are also available and will become increasingly important as a source
of new revenue as growth opportunities from new subscriber additions disappear
in the maturing mobile voice market.
Key highlights:
- Kosovo boasts a developing telecoms network as the incumbent and
alternative operators deploy network infrastructure to expand availability of
telecom services. Having previously focused on modernisation, which included
swapping out analogue switches with NGN equivalents, the incumbent is now
focused on network expansion; during April 2009 the incumbent reported it was
deploying FttH networks, with plans to connect all schools and state
institutions to fibre access networks by 2010.
- Broadband Internet access is available from the incumbent and a number of
competing operators, with xDSL, cable and wireless used to deliver services.
Despite its third place ranking in the market the incumbent' s market share
increased by 10 percentage points during 2008, with a similar gain likely in
2009 as the incumbent puts its weight behind marketing broadband services to
offset falling revenue from traditional services.
- Recognising the need to improve broadband penetration, particularly in
rural areas, the regulator has released a draft strategy on implementing
broadband wireless access nationally in the 3.5GHz frequency band, with the
expectation of up to four operators will be licensed to offer wireless
broadband services.
- Competition will intensify in the once monopolistic mobile market; a
second mobile network operator and two MVNOs commenced operation during 2008,
helping mobile subscriber levels grow by 60% and resulting in the incumbent' s
share of total mobile subscribers falling to 80%, with this figure likely to
trend downwards during 2009.
This report covers trends and developments in telecommunications, mobile, Internet, broadband, digital TV. Subjects include:
- Market and industry analyses, trends and developments;
- Facts, figures and statistics;
- Industry and regulatory issues;
- Infrastructure;
- Major Players, Revenues, Subscribers;
- Mobile Voice and Data Markets;
- Broadband (DSL, cable TV, wireless);
- Broadcasting market.
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