AN OVERVIEW OF THE ELECTRONIC COMMUNICATIONS

MARKET

IN THE REPUBLIC OF SERBIA

The First Quarter of 2017

The Overview presents the data for the first quarter

The presented data reflect the overall market status for each quarter, including the actual quarterly

data for the fixed and mobile market operators and the leading Internet and media content

distribution providers, which represent 87% of the market in terms of the number of users,

whereas for the remaining 10% of the market were esti

in the annual questionnaires. Therefore, the total quarterly report may show discrepancies with

respect to the data collected in the regular annual questionnaires.

responsible for the correctness of the data submitted by the operators in the quarterly

questionnaires.

Public Fixed Telecommunications Networks and Services

The quarterly indicators for the electronic communications market whi

telephony comprise the data of the operators that make up 99% of the market.

Approximately 2.5 million fixed telephony subscribers generated approximately 1.3 billion minutes

of traffic. The market data include the CDMA subscri

Number of fixed line subscribers (million)

Total fixed telephony traffic (billion minutes)

90% of the fixed telephony subscribers are residential users, i.e. natural entities, and the subscriber

structure remains constant in the

2,54

Q2 2016

1,35

Q2 2016

rview presents the data for the first quarter of 2017 along with comparative data

overall market status for each quarter, including the actual quarterly

data for the fixed and mobile market operators and the leading Internet and media content

distribution providers, which represent 87% of the market in terms of the number of users,

eas for the remaining 10% of the market were estimated based on the data for 2016

in the annual questionnaires. Therefore, the total quarterly report may show discrepancies with

respect to the data collected in the regular annual questionnaires. The Agency shall not be held

responsible for the correctness of the data submitted by the operators in the quarterly

Public Fixed Telecommunications Networks and Services

The quarterly indicators for the electronic communications market which are relevant to the fixed

telephony comprise the data of the operators that make up 99% of the market.

Approximately 2.5 million fixed telephony subscribers generated approximately 1.3 billion minutes

of traffic. The market data include the CDMA subscribers and traffic.

Number of fixed line subscribers (million)

Total fixed telephony traffic (billion minutes)

90% of the fixed telephony subscribers are residential users, i.e. natural entities, and the subscriber

structure remains constant in the analyzed quarters.

2,51 2,55 2,57

Q3 2016 Q4 2016 Q1 2017

1,26

1,34

1,33

Q3 2016 Q4 2016 Q1 2017

of 2017 along with comparative data for 2016.

overall market status for each quarter, including the actual quarterly

data for the fixed and mobile market operators and the leading Internet and media content

distribution providers, which represent 87% of the market in terms of the number of users,

mated based on the data for 2016 collected

in the annual questionnaires. Therefore, the total quarterly report may show discrepancies with

The Agency shall not be held

responsible for the correctness of the data submitted by the operators in the quarterly

Public Fixed Telecommunications Networks and Services

ch are relevant to the fixed

Approximately 2.5 million fixed telephony subscribers generated approximately 1.3 billion minutes

90% of the fixed telephony subscribers are residential users, i.e. natural entities, and the subscriber

The largest share of the fixed telephony traffic is accounted for by the national traffic, with 94% in

Q1 2017.

Fixed telephony subscriber structure

The outgoing telephone calls are mainly directed towards other fixed networks,

international traffic is dominated by incoming calls.

Structure of the national and international traffic in fixed telephony

There were over 15 000 fixed telephony number portings in the first quarter of 2017, which is

approximately 5 thousand per month.

Fixed telephony number portings per quarter

93% 93%

7% 7%

Q2 2016 Q3 2016

92% 92% 92%

7% 7% 7%

1% 1% 1%

Q2 2016 Q3 2016 Q4 2016

To fixed networks

To mobile networks

To shor tcodes and nongeographic numbers

17.243

Q2 2016

The largest share of the fixed telephony traffic is accounted for by the national traffic, with 94% in

Fixed telephony subscriber structure

The outgoing telephone calls are mainly directed towards other fixed networks,

international traffic is dominated by incoming calls.

Structure of the national and international traffic in fixed telephony

There were over 15 000 fixed telephony number portings in the first quarter of 2017, which is

d per month.

Fixed telephony number portings per quarter

94% 94%

6% 6%

Q4 2016 Q1 2017

International traffic

National traffic

93%

6%

1%

Q1 2017

To shor tcodes and nongeographic numbers

29% 31% 29%

71% 69% 71%

Q2 2016 Q3 2016 Q4 2016

Outgoing international traffic

Incoming international traffic

18.484 19.383

15.778

Q3 2016 Q4 2016 Q1 2017

The largest share of the fixed telephony traffic is accounted for by the national traffic, with 94% in

The outgoing telephone calls are mainly directed towards other fixed networks, while the

Structure of the national and international traffic in fixed telephony

There were over 15 000 fixed telephony number portings in the first quarter of 2017, which is

International traffic

National traffic

29%

71%

Q4 2016 Q1 2017

Outgoing international traffic

Incoming international traffic

Public Mobile Telecommunications Networks and Services

The quarterly mobile telephony market indicators include the data submitted by all three

operators, i.e. 100% of the market.

approximately 4 billion minutes of national and international voice traffic and sent approximately

1.8 billion messages quarterly, on average.

Total number of active mobile telephony subscribers (mill

Generated voice and SMS mobile telephony traffic

The number of postpaid subscribers has exceeded the number of prepaid subscribers and

majority of postpaid subscribers are still residential users.

Mobile telephony subscriber structure

9,09

Q2 2016

4,1 4,0

The total outgoing international traffic (bn. minutes)

48% 48% 48%

52% 52% 52%

Q2 2016 Q3 2016 Q4 2016

Prepaid Postpaid

Public Mobile Telecommunications Networks and Services

The quarterly mobile telephony market indicators include the data submitted by all three

operators, i.e. 100% of the market. 9 million active mobile telephony subscribers generated

approximately 4 billion minutes of national and international voice traffic and sent approximately

1.8 billion messages quarterly, on average.

Total number of active mobile telephony subscribers (million)

Generated voice and SMS mobile telephony traffic

The number of postpaid subscribers has exceeded the number of prepaid subscribers and

postpaid subscribers are still residential users.

Mobile telephony subscriber structure

9,20 9,09 8,92

Q3 2016 Q4 2016 Q1 2017

1,9 1,8

4,1

1,9

4,3

1,8

The total outgoing international traffic (bn. minutes) The total of sent text (SMS) messages (bn.)

Q2 2016

Q4 2016

46%

54%

Q1 2017

68% 68% 68%

32% 32% 32%

Q2 2016 Q3 2016 Q4 2016

Private Business

Public Mobile Telecommunications Networks and Services

The quarterly mobile telephony market indicators include the data submitted by all three

telephony subscribers generated

approximately 4 billion minutes of national and international voice traffic and sent approximately

The number of postpaid subscribers has exceeded the number of prepaid subscribers and the

The total of sent text (SMS) messages (bn.)

Q3 2016

Q1 2017

69%

31%

Q1 2017

Most outgoing traffic is generated within the same network. Subscribers of foreign networks

generate more roaming traffic than the subscribers of national networks.

Mobile networks outgoing traffic structure

The number of mobile telephony number portin

almost 10 thousand per month.

Mobile telephony number portings per quarter

There haven’t been any significant changes in market shares in the analyzed year, in terms of the

number of users.

Market share in

70% 70% 69%

27% 27% 28%

3% 3% 3%

Q2 2016 Q3 2016 Q4 2016

Within the same network To other networks

To fixed networks

31.324

Q2 2016

Most outgoing traffic is generated within the same network. Subscribers of foreign networks

generate more roaming traffic than the subscribers of national networks.

Mobile networks outgoing traffic structure

The number of mobile telephony number portings was approximately 29 thousand per quarter, or

Mobile telephony number portings per quarter

There haven’t been any significant changes in market shares in the analyzed year, in terms of the

Market share in terms of the number of users – Q1 2017

68%

29%

4%

Q4 2016 Q1 2017

To other networks

41%54%

39%

59%46%

61%

Q2 2016 Q3 2016 Q4 2016

National network subscribers abroad

Foreign network subscribers

29.562 30.05528.478

Q3 2016 Q4 2016 Q1 2017

46%

31%

23%Telekom Srbija

Telenor

VIP mobile

Most outgoing traffic is generated within the same network. Subscribers of foreign networks

gs was approximately 29 thousand per quarter, or

There haven’t been any significant changes in market shares in the analyzed year, in terms of the

33%

67%

Q4 2016 Q1 2017

National network subscribers abroad

In 2016 two virtual mobile operators were entered in the register of the operators. Only one of

them began with the commercial provision of services in late 2016.

The number of active mobile broadband subscribers in Q1 2017 was approximately 5.3 million.

Number of active mobile broadband subscribers (million)

Data transmission over mobile network in Q1 2017 was approximatly 16 million GB.

Mobile Internet traffic

5,1

Q2 2016

11,8

Q3 2016

In 2016 two virtual mobile operators were entered in the register of the operators. Only one of

them began with the commercial provision of services in late 2016.

The number of active mobile broadband subscribers in Q1 2017 was approximately 5.3 million.

Number of active mobile broadband subscribers (million)

Data transmission over mobile network in Q1 2017 was approximatly 16 million GB.

Mobile Internet traffic (million GB)

5,25,4 5,3

Q3 2016 Q4 2016 Q1 2017

14,0

16,3

Q4 2016 Q1 2017

In 2016 two virtual mobile operators were entered in the register of the operators. Only one of

The number of active mobile broadband subscribers in Q1 2017 was approximately 5.3 million.

Data transmission over mobile network in Q1 2017 was approximatly 16 million GB.

The number of fixed broadband Internet access subscribers was approximately 1.4 million in the

analyzed quarters.

The number of fixed broadband subscribers (million)

The majority of fixed broadband subscribers have

Number of subscribers according to type of access

1,37

Q2 2016

53%

52%

51%

50%

Q2 2016

Q3 2016

Q4 2016

Q1 2017

xDSL Cable

Internet Services

The number of fixed broadband Internet access subscribers was approximately 1.4 million in the

The number of fixed broadband subscribers (million)

The majority of fixed broadband subscribers have xDSL or cable access.

Number of subscribers according to type of access

1,39

1,45 1,46

Q3 2016 Q4 2016 Q1 2017

53%

52%

38%

38%

39%

39%

Cable Wireless FTTx Other (Ethernet LAN, …)

The number of fixed broadband Internet access subscribers was approximately 1.4 million in the

6%

6%

6%

6%

3%

3%

3%

3%

0,5%

1%

1%

1%

The majority of subscribers in all four analyzed quarters

less than 30 Mbit/s.

Number of fixed broadband Internet subscribers according to

There haven’t been any significant changes in the market shares over the analyzed quarters, in

terms of the number of subscribers.

Market share in terms of number of fixed broadband subscribers

1%

1%

1%

0%

10%

9%

9%

7%

Q2 2016

Q3 2016

Q4 2016

Q1 2017

less than 2Mbit/s

from 10Mbit/s to less than 30Mbit/s

26%

4%

2%

2%

2% 2%

2%

1%1%

12%

cribers in all four analyzed quarters had access rates between 10 Mbit/s and

Number of fixed broadband Internet subscribers according to access rate

There haven’t been any significant changes in the market shares over the analyzed quarters, in

terms of the number of subscribers.

Market share in terms of number of fixed broadband subscribers – Q1 2017

63%

61%

60%

60%

27%

29%

30%

33%

less than 2Mbit/s from 2Mbit/s to less than 10Mbit/s

from 10Mbit/s to less than 30Mbit/s more than 30Mbit/s

46%

12%Telekom Srbija

SBB

I.KOM

Radijus Vektor

SAT-TRAKT

Pošta Srbije

Orion Telekom

Orion Telekom TIM

YUNET International

BEOTELNET-ISP

Other

had access rates between 10 Mbit/s and

access rate

There haven’t been any significant changes in the market shares over the analyzed quarters, in

Q1 2017

from 2Mbit/s to less than 10Mbit/s

Media Content Distribution

The number of media content distribution service subscribers was approximately 1.6 million.

The number of media content distribution service subscribers (million)

The majority of subscribers use CATV distribution (more than 50%),

of subscribers use wireless network or Internet content distribution

Media content distribution subscribers by type of distribution

There haven’t been any significant changes in market shares over the three

of the number of subscribers. T

content distribution market.

Market share in terms of the number of subscribers in Q1 2017

1,62

Q2 2016

29%

29%

27%

25%

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Analogue CATV

25%

5%

4%

3%

2%

Media Content Distribution

number of media content distribution service subscribers was approximately 1.6 million.

The number of media content distribution service subscribers (million)

The majority of subscribers use CATV distribution (more than 50%), whereas the smallest number

wireless network or Internet content distribution (1%).

Media content distribution subscribers by type of distribution

There haven’t been any significant changes in market shares over the three-month

of the number of subscribers. The leading operators take up approximately 90% of the media

Market share in terms of the number of subscribers in Q1 2017

1,621,66 1,67

Q3 2016 Q4 2016 Q1 2017

28%

29%

31%

33%

25%

25%

25%

26%

16%

16%

16%

15%

Analogue CATV Digital CATV DTH IPTV Other

48%

25%

5%

4%

2% 13% SBB

Telekom Srbija

Pošta Srbije

I.KOM

Radijus Vektor

SAT-TRAKT

Other

number of media content distribution service subscribers was approximately 1.6 million.

The number of media content distribution service subscribers (million)

whereas the smallest number

month period, in terms

approximately 90% of the media

16%

16%

16%

15%

1%

1%

1%

1%

The number of bundled service subscribers in Q1 2017 was over 1 million.

service were the most used, whereas the least us

telephony.

The number of bundled service

Most subscribers using bundles of

media content distribution, whereas the most popular triple

Internet, fixed telephony and media content distribution.

The number of bundled service users, by t

The most popular bundled service is the Internet access, whereas mobile telephony is generally

purchased as a single service.

The share of bundled and single services purchased

1.029 1.060

Total

129

266

88

122

266

89

Internet + fixed Internet + TV Fixed + TV

35%

65%

Internet Media content

distribution

Bundled Services

subscribers in Q1 2017 was over 1 million. Packages offering two

the most used, whereas the least used were quad-play packages that include mobile

umber of bundled service users (thousands)

Most subscribers using bundles of two services used the packages offering broadband Internet and

, whereas the most popular triple-play package included broadband

Internet, fixed telephony and media content distribution.

The number of bundled service users, by type of service (thousands

The most popular bundled service is the Internet access, whereas mobile telephony is generally

The share of bundled and single services purchased

493

345

191

489

378

191

2 services 3 services 4 services

Q4 2016

Q1 2017

9

292

51

3

89

12

309

64

4

Fixed + TV Fixed + mobile Internet + fixed

+ TV

Internet +

fixed + mobile

Fixed + TV +

mobile

Q4 2016 Q1 2017

48%

69%

97%

52%

31%

3%

Media content

distribution

Fixed telephony Mobile telephony

Bundled

Single

Packages offering two

play packages that include mobile

two services used the packages offering broadband Internet and

play package included broadband

ype of service (thousands)

The most popular bundled service is the Internet access, whereas mobile telephony is generally

191 191

Fixed + TV + Internet + fixed

+ TV + mobile

Q1 2017

Bundled

Single