Serbia’s Telecom Market Contracts 3.75% in 2012, Regulator Says

Serbia’s telecommunications market shrank 3.7 percent last year, reflecting the Balkan nation’s second recession in three years, with landline service leading the decline.

The market comprising mobile and fixed lines, media content distribution, voice-over-Internet protocol and Internet services was worth 1.54 billion euros ($1.97 billion), compared with 1.6 billion euros in 2011, according to the report by Serbia’s Agency for Electronic Communications released today. Mobile services remained the biggest part of the market, at 55.2 percent, with revenue rising 0.4 percent to 850 million euros amid a continuing client shift from pre-paid to post-paid.

Revenue from landline services dropped 16.4 percent to 373 million euros, with the number of users falling 1.3 percent to 2.99 million, according to the agency’s preliminary data. A detailed annual report is due in June.

The market shrank for the first time since 2009, even as revenue from media content distribution grew 13.3 percent to 109 million euros, on 8.3 percent more clients than in 2011. Revenue of Internet providers was little changed at 148 million euros.

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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