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Bosnia-Herzegovina made remarkable economic progress since emerging from war in the 1990s to the financial turmoil of 2009. Since then the country’s economy has slowly recovered, though GDP is expected to reach only 0.5% in 2013 following negative growth in 2012. Future economic prosperity relies to a great extent on the country’s integration with the European Union. In preparation for eventual membership, the country has sought closer integration with the EU and adopted a range of commitments to political, economic, trade, and human rights reform. It has also aligned its telecom policies and regulatory measures to prepare it to compete effectively within the EU.
The market has been liberalised and a regulatory framework created based on the EU’s regulatory framework for communications, promoting competition as the most efficient way to offer communications products and services. Ongoing introduction of secondary legislation by the regulator is slowly improving the regulatory environment. To this end, the regulator has promoted fixed-line and mobile number portability, reduced interconnection tariffs and allowed the three incumbent operators to provide services outside their original concession areas.
Although a number of fixed-line operators offer services the market is dominated by the three incumbent operators, which hold a combined market share of 99%. All three incumbents are subject to specific obligations designed to improve competition.
Internet services are available through the incumbents and alternative operators. Internet usage in Bosnia-Herzegovina is showing signs of significant growth on the back of competition and the improved availability of services.
The three mobile network operators (MNOs), each affiliated with one of the incumbent fixed-line operators, provide near-national coverage. Their networks, being upgraded to support services based on HSPA technology; will in coming years support broadband in rural areas where fixed-line infrastructure is insufficient. In addition, mobile data and mobile broadband offers will provide future revenue growth given the limited potential of mobile voice services.
Bosnia-Herzegovina telecoms statistics – 2014 (e)
Penetration of services
(Source: BuddeComm based on industry data)
The DTTV roll-out is making progress, with the three largest cities covered by mid-2014 and more cities being covered into 2015;
In late 2011 the regulator reduced licence fees for licence holders by 50% with the aim of encouraging further development in the telecom and broadcasting sectors. The reduction in fees is also expected to impact prices for telecom services for end-users.
Broadband connection speeds are increasing, with a growing number of lines now offering at least 8Mb/s.
Fixed-line voice revenue has continued to slide, as customers migrate to VoIP and mobile services for voice calls.
BH Telecom has contracted Ericsson to develop an LTE platform.
Kohlberg Kravis Roberts (KKR) completes acquisition of the United Group (SBB/Telemach) from Mid Europa Partners.
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 Bosnia--Herzegovina’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;
Major players, revenues, subscribers, ARPU, MoU;
Internet, VoIP, IPTV;
Mobile voice and data markets;
Broadband (FttP, DSL, cable TV, wireless);
Convergence and digital media;
3G subscriber and mobile ARPU data;
Broadband market forecasts for selective years to 2020.
Includes operator data updates; regulator’s market data to September 2014; recent market developments.
Companies covered in this report include:
BH Telecom, HT Mostar, Telekom Sprske