www.ratel.rs REPUBLIC OF SERBIA REPUBLIC AGENCY FOR ELECTRONIC COMMUNICATIONS AN OVERVIEW OF TELECOM MARKET IN THE REPUBLIC OF SERBIA IN 2013 AN OVERVIEW OF TELECOM MARKET IN THE REPUBLIC OF SERBIA IN 2013 Belgrade, 2014 3 CONTENTS An Overview of Telecom Market A WORD OF INTRODUCTION 5 in the Republic of Serbia 1. RATEL’S ACTIVITIES IN 2013 8 in 2013 2. ELECTRONIC COMMUNICATIONS MARKET ANALYSIS 28 3. PUBLIC FIXED TELECOMMUNICATIONS NETWORKS AND SERVICES 51 4. PUBLIC MOBILE TELECOMMUNICATIONS NETWORKS AND SERVICES 62 5. INTERNET SERVICES 75 6. ICT USAGE IN SERBIA 82 7. MEDIA CONTENT DISTRIBUTION 93 8. BROADCASTING 98 9. RF SPECTRUM MONITORING AND QUALITY CONTROL 101 10. TELECOMMUNICATIONS NETWORKS OF PUBLIC ENTERPRISES 115 11. LIST OF BYLAWS 138 Title: Design and prepress: An Overview of Telecom Market MaxNova d.o.o. in the Republic of Serbia in 2013 Takovska 45/6, 11000 Beograd Authors: Printed by: dr Milan Janković, Nenad Mitić, Sanja Vukčević- PARAGON Vajs, Aleksandar Utješinović, Zorana Vujović, Zlatiborska 32b, 11080 Zemun Dragan Lukić, Duško Kostić, Aleksandar Mitrović, Dejan Vakanjac, Snežana Jovičić, ISSN: Milosav Grubović, Vesna Krzman, Aleksandra 1820-8738 Stefanović, Zorana Nedić, Duško Kodžić, mr Vesna Tintor, Aleksandra Malinić Copyright © 2014 RATEL All rights reserved. 9th year Print run: 500 copies Published by: Republic Agency for Electronic Communications (RATEL) Višnjićeva 8, 11000 Belgrade Telephone: 011/3242-673 Fax: 011/3232-537 www.ratel.rs A WORD OF INTRODUCTION A WORD OF INTRODUCTION 5 An Overview of Telecom Market Based on the legal and strategic documents setting out the tasks and objectives of the in the Republic of Serbia regulatory activities of the Republic Agency for Electronic Communications, in the 2013 Action in 2013 Plan, the Managing Board pointed out the Agency goals, which reflect the need to ensure optimal conditions for a further development and application of the information communication systems and new services, thereby taking advantage of all benefits offered by the modern developed information society, a knowledge-based society focusing on success and progress, in line with the Digital Agenda of the Republic of Serbia and the United Nations Declaration. Accordingly, the Agency activities need to provide the conditions for the further development of electronic communication, enabling a uniform development of the telecommunications sector on the entire territory of the Republic of Serbia and ensuring the conditions for a level-playing field for all market players, both in technological and economic terms. Further development of the electronic communications market needs to be achieved through mechanisms that stimulate competition and, when necessary, by applying market regulation instruments. One of the priorities is an overall protection of interests of all market participants, in particular the interests of end-users who should be offered new services of higher quality at a lower price. Another priority is, indeed, optimal and rational usage of all national resources. In line with the mentioned goals, in 2013 the Agency primarily focused on: • Increasing broadband penetration rate, by providing necessary level of data transmission rates, based on fixed and wireless access infrastructure, according to the relevant strategic documents. • Increasing the investments in fixed-line infrastructure, by stimulating competition and by applying the general authorization regime to electronic communication activities on fixed networks. A WORD OF INTRODUCTION 6 • Increasing investments in wireless infrastructure, by initiating tender procedures for An Overview frequency assignment in order to introduce new operators in the frequency bands of Telecom Market available in 2013 and to create conditions necessary for continuing the process the in the Republic of Serbia next year. in 2013 • Ensuring level-playing field for all market players, both in terms of technological- neutrality and business conditions. Each year, the Agency publishes An Overview of Telecom Market in the Republic of Serbia, presenting the data for the previous year. This year’s Overview analyzes each segment of the telecom market. The analysis includes comparative overview of the key market parameters in the past years. Last year showed a moderate growth trend in revenues in all market segments. Electronic communications networks and services market remained mainly unchanged when it comes to fixed and mobile networks, both in terms of the number of users and the revenues made. Growth was seen in the Internet services and broadband access markets, as well as in the number of users of the media content distribution services. The broadcasting sector was, however, affected by the economic crisis. The important development in the broadcasting sector was the beginning of operation of the initial digital TV network of the Broadcasting Equipment and Communications (ETV), Public Enterprise. The relevant indicators show that, regardless of economic crisis which marked the previous year, telecom sector business remained stable enabling further market development. The development of the broadband access market and Internet usage is particularly significant. The technological development and ICT usage or information society development level is measured by the ICT Development Index (IDI). Last year, according to this index, Serbia was among the top 50 countries, based on the ITU data. The work of the Agency during the past years provided for the creation of open and fair market in all its segments. Indeed, the Agency will continue to fulfill its duties stipulated under the Law, in line with the new technological development trends and the EU regulations affecting telecom market regulation, in order to perform the entrusted tasks. A dynamic development of ICTs, in particular of the services, asks for a constant introduction 7 of new regulations. In May 2012 RATEL has been granted observer status in the Body of An Overview European Regulators for Electronic Communications (BEREC) and since September 2012 it of Telecom Market has been a member of the Independent Regulators Group (IRG), which is a recognition of the in the Republic of Serbia successful regulation of the Serbian telecom market. The membership also involves new in 2013 responsabilities and require attending the meetings organized by BEREC and IRG, as well as actve participation in the work of all work groups. RATEL is also actively involved as a regulator in the work of the International Telecommunication Union (ITU), European Conference of Postal and Telecommunications Administrations (CEPT) and European Telecommunications Standards Institute (ETSI). The participation in the work of these international organizations requires intensive and direct cooperation with the regulatory authorities and other institutions of the neighbouring countries and the EU, which involves bilateral and multilateral meetings with the NRAs from the EU and the region, in addition to the joint work in the international institutions. Chair of the Managing Board Professor Dr Jovan Radunović 1. RATEL’S ACTIVITIES IN 2013 8 1. RATEL’S ACTIVITIES IN 2013 An Overview of Telecom Market The Republic Agency for Electronic Communications (RATEL) is a national, independent in the Republic of Serbia regulatory authority for electronic communication, whose position in the legal system of in 2013 the Republic of Serbia is defined under the provision of Article 137 paragraph 3 of the Constitution. RATEL is functionally and financially independent from the state authori- ties, organizations and persons performing the activity of electronic communications. RATEL’s work is not financed from the budgetary assets and the manner of financing as stipulated by the law regulating electronic communication is a mechanism ensuring RATEL’s financial independence and RATEL’s revenues stipulated by the law are not budgetary assets by their legal nature. RATEL was established pursuant to the Law on Electronic Communications (Official Ga- zette of RS, nos. 44/10 and 60/13-CC Dec., hereinafter: Law), as an autonomous organ- ization independent of state authorities, separate from the existing state administration structure, precisely in order to ensure a higher level of autonomy and independence in performing the entrusted public competencies. The purpose was to ensure a greater level of efficiency and the necessary distance from any political influence. RATEL has been performing the regulatory function since August 2005. Pursuant to the main principles laid down under the Law, strategic documents and relevant regulations, in 2013 RATEL kept the focus of the regulatory activity on providing conditions for: a bal- anced and stable development of the electronic communications in the territory of the Republic of Serbia, business predictability and equal treatment of the operators, as well as the maximum benefit for the users of electronic communications services, in terms of choice, price and quality of the services offered. The objective of the regulatory activity is a liberalized and open electronic communications market, mainly through creation of a stable and predictable regulatory environment, in order to stimulate the sector develop- ment, investments, innovative services, new market entrants, promotion of competition and protection of users’ interests. RATEL’s activities accomplished in the period from 1 January to 31 December 2013, 9 which were the result of activities and tasks defined under the regulations pertinent to An