situation in broadband market case study of montenegro

Agency for Electronic Communication and Postal Services

Situation in Broadband Market‐Case Study of Montenegro

Ivona Marić Regional Conference for Europe

28 ‐ 29 September 2015Budva, Montenegro


Fixed broadband access• ADSL• Cable• FTTx• WiMAX• Other (WiFi, internet LL, MPLS, satellite...)

ADSL 64.0%

FTTx 13.6%

Cable6.0%

WiMAX 6.6%

Other9.8%


ADSL 64% of internet users are ADSL users Service availability ‐ 99.88% of fixed connections of Crnogorski Telekom

Residential users

89.52%

Business users

10.48%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 june2015

Trends of ADSL users


Access networks with fiber‐optic cables (FTTx) Installed 50,000 In operation 15,000 internet connestions

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2011 2012 2013 2014 june 2015

Trends of FTTx users


Cable distribution systems

0

2,000

4,000

6,000

8,000

10,000

12,000

2008 2009 2010 2011 2012 2013 2014 June2015

Trends of Cable users


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 June 2015

Shares of technologies in the total number of connections

Other

WiMAX

Cable

FTTx

ADSL


Primary Internet access at a fixed location is provided via fixed technologies (ADSL, FTTx, Cable ...) FTTx have had rapid growth

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Fixed broadband subscriptions ‐ technology market shares at EU level, January 2006 ‐ January 2015

Source: Communications Committee

DSL (VDSL included) Cable (DOCSIS 3.0 included) FTTH/B

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 june2015

Fixed broadband subscriptions‐technology market , January 2006 ‐ June 2015

Montenegro

ADSL Cable FTTx


Penetration of fixed broadband access in Montenegro and the EU

0

10

20

30

40

50

60

2008 2009 2010 2011 2012 2013 2014

Households in Montenegro having a (fixed) broadband subscription, 2008 - 2014

0

10

20

30

40

50

60

70

80

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Households in EU having a (fixed) broadband subscription, 2004 - 2014

Source: Eurostat


Penetration of fixed broadband access‐different penetration in municipalities and regions

0%

20%

40%

60%

80%

100%

120%

Budv

aKotor

Tivat

Herceg Nov

iUlcinj

Podg

orica

Bar

Plav

Cetinje

Nikšić

Dan

ilovg

rad

Rožaje

Bijelo Polje

Žabljak

Berane

Pljevlja

Mojko

vac

Kolašin

Pluž

ine

And

rijevica

Šavn

ik

Households in Montenegro having a fixed broadband subscription by municipalities

0%

10%

20%

30%

40%

50%

60%

70%

Coastalregion

Centralregion

Northernregion

Households in Montenegro having a fixed broadband subscription by region


Number of fixed broadband users per access speed• most users use the 2‐4 Mb/s package (30,50%)• still a small number of users for 10Mb/s packages 10%

EU: 2% use packages whose speed is less than 2Mb/sover 70% of users use packages of at least 10Mb/s

0%

10%

20%

30%

40%

50%

60%

70%

80%

Jan‐08 Jan‐09 Jan‐10 Jan‐11 Jan‐12 Jan‐13 Jan‐14 Jan‐15

144 Kbps - 2 Mbps 2-10Mbps >=10 Mbps

Fixed broadband subscriptions by headline speed at EU level,

Source: Communications C itt

7.14%

25.19%

30.50%

23.48%

3.71% 9.99%

The number of Internet users in Montenegro by access speed

144 Kb/s ‐ 1Mb/s

1‐2 Mb/s

2‐4 Mb/s

4‐8 Mb/s

8‐10 Mb/s

Over 10 Mb/s


o Mobile broadband access ‐ coverage by 3G/4G signal

0%10%20%30%40%50%60%70%80%90%100%

2012 2013 2014 septembar2015

Mobile broadband coverage in Montenegro

3G 4G

0%10%20%30%40%50%60%70%80%90%100%

2011 2012 2013 2014

4G (LTE) Advanced 3G (HSPA)

Mobile broadband coverage in the EU, 2011-2014

Source: IHS,VVA and Point Topic


oMontenegro: 61 active mobile broadband SIM cards per 100people in Montenegro

oEU:72 active mobile broadband SIM cards per 100people in EU

0%

10%

20%

30%

40%

50%

60%

70%

2010 2011 2012 2013 2014 2015

Mobile broadband penetration at Montenegro

0%

10%

20%

30%

40%

50%

60%

70%

80%

Jan‐09 Jan‐10 Jan‐11 Jan‐12 Jan‐13 Jan‐14 Jan‐15

Mobile broadband penetration at EU level, January 2009 -January 2015

Source: Communications Committee

Penetration of mobile broadband access


PricesBy order of the Agency Crnogorski Telekom decreased ADSL prices in December 2014 by an average of 35.78%

Fl@t 2Mb/s = 16.66€ Optika 20=20.33€ Fl@t 5Mb/s = 21.90€ Optika 30=25.42€ Fl@t 7Mb/s = 25.59€ Optika 40=45.76€

0

5

10

15

20

25

30

35

40

45

2009 2011 2012 2013 2014 2015

12Mbps-30Mbps 30Mbps-100Mbps

Broadband retail prices (EUR PPP) – Standalone offers, 2009‐2015

Source: Van Dijk, Broadband Internet Access Cost (BIAC)

05101520253035404550

2Mb/s 5Mb/s 7Mb/s 20Mb/s 30Mb/s 40Mb/s

Prices of Internet package of Crnogorski Telekom

ADSL Optika


Measures to improve broadband access:• Spatial planning documents contain recommendations for the construction of optical access

networks• Changing the construction of installations in residential and commercial buildings• Transition to IMS• Enhancing joint use of electronic communications infrastructure• Enabling the use of the necessary radio‐frequency spectrum• Monitoring the quality of Internet access services• Further reducing the price of broadband Internet access through enhancing competition• Regulatory price control of SMP operators (Crnogorski Telekom) in the retail market of Internet

access

Thank you!

situation in broadband market case study of montenegro

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