1. IT (hardware, software, internet services and e-commerce)
context: what are the possibilities of cooperation, how big is the market, also show us what is the state of mind in the country are people use to IT in everyday life or is it still something new to be discovered.
When describing the market please use USD (or note when otherwise)
When listing biggest companies please refer to revenue (or note when otherwise)
1
Montenegro’s telecom industry has been liberalized and legislation 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.
Despite liberalization the incumbent continues to dominate the fixed-line market although the situation is likely to change following introduction of legislation giving stronger powers to the regulator to improve competition.
Fixed broadband services are available in Montenegro through a variety of technology platforms including DSL, cable, leased line and wireless. ADSL is a popular choice given the reach of the incumbent’s network coupled with its existing market presence and range of service offerings that include broadband TV.
Mobile penetration levels are among the highest in Eastern Europe although subscriber levels are artificially inflated by the significant number of tourists that visit Montenegro annually. WCDMA/HSDPA networks have been launched, which has formed the basis for new mobile broadband services.
Market highlights:
Fixed broadband uptake continues to grow due. Supporting growth is high levels of PC usage for the region.
The transition to digital terrestrial TV is underway and it should be done by the end of 2012.
3G coverage is widely available with speeds of up to 21.5Mb/s available.
Montenegro broadband and telecoms statistics – 20102
Sector
|
2010
|
2011
|
Broadband
|
Fixed broadband penetration
|
18%
|
20%
|
Mobile broadband penetration
|
190%
|
170%
|
Subscribers to telecoms services (thousand)
|
Fixed-line telephone subscribers
|
160
|
150
|
Mobile phone subscribers
|
1,110
|
1,100
|
Montenegro's IT market contracted by 14.8% year on year in 2010 to $40.38 million. Measured in local currency, the market shrank by 10.6% compared with the previous year, due to the appreciation of the U.S. dollar3.
According to a recent report by market research company IDC, the IT market contraction reflected shrinking demand, especially from the telecom and finance sectors and, to a lesser extent, from the government sector and consumer/home segment.
ICT market is primarily based on telecommunications, hardware and partially on software, while expansion on web services recently started.
According to Atila Madai, IDC's country manager in Serbia "Montenegro's modest economic recovery from the financial crisis was not robust enough to put the IT market back on a positive path, and until the local economy fully recovers, Montenegro's IT market will have to rely on EU funding and FDI.4"
In 2010 IT services and packaged software deliveries declined 1.2% and 2.6%, respectively, while PC shipments fell 1.0% and HCP slid 1.1%. Server systems shipments increased 35.7%, albeit from a low base, driven by several major projects in the government sector. The IT services category increased its value share of the total IT market to 12.8%, as compared with 11.0% in 2009. Packaged software increased its share to 14.4% from 12.6% in 2009, while hardware's share decreased to 72.8% from 76.4%.
Personal and family spending on IT should be expected to stay low for as long as disposable income levels stay relatively low in Montenegro. Improvement will only occur if the Montenegrin government makes progress towards allowing the economy to improve.
Legislative framework5
Montenegro has largely aligned its information society legislation with the acquis. The EU 2003 regulatory framework has been transposed by the new electronic communications law, which was adopted in 2008. Montenegro was the first country of the region to transpose the Audiovisual Media Services Directive in 2010.
Electronic communications law
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Electronic commerce law
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Electronic signature law
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Cybercrime legislation
|
E-government legislation
|
2008
|
2004
|
2003
|
✔
|
2008
|
NRA
|
NRA appeals
|
Government
|
Other
|
State ownership
|
Agency for Electronic Communications and Postal Services (EKIP) is legally independent of operators.
|
Appeals against regulatory decisions may be filed to the ministry.
Decisions of the ministry can be appealed to the Supreme Administrative Court.
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At the end of 2010, competencies were moved from the Ministry of Maritime Affairs, Transportation and Telecommunica-tions to the Ministry for Information Society and Telecommuni-cations
|
Directorate for Protection of Competition (since 2007)
Broadcasting Agency (since 2003)
|
The state does not hold any shares of operators.
In 2005, government sold its 76.53% of fixed incumbent Crnogorski Telekom.
|
Market access conditions:
Montenegro formally liberalised its telecommunications markets at the beginning of 2004, but the high licensing fees created a barrier to entry until 2007. General authorisation for all electronic communications networks and services was introduced in 2008.
Local market:
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