1. Conditions for the entry to electronic communications market in Montenegro Pavle Mijušković,B.Sc.E.E. manager for Internet and IP based services SEE Business Forum 22 - 23 November 2012, Istanbul

2. Contents Facts about Montenegro Regulatory framework Overview of electronic communications market Conditions for the entry of new operators 2 SEE Business Forum 22 - 23 November 2012, Istanbul

3. Montenegro Geographic location Background Area : 13,812 km² Population: 620,029 Number of households: 194,795 GDP : 3,234 million €. GDP per capita : 5,211 €. 3 SEE Business Forum 22 - 23 November 2012, Istanbul

4. Regulatory framework Law on electronic communications – Adopted in August 2008 – Aligned with the 2002 EU Regulatory Framework Independent regulatory authority for electronic communications Agency for Electronic Communications and Postal Services Preparation of the new Law on electronic communications – Alignment with the 2009 EU Regulatory framework 4 SEE Business Forum 22 - 23 November 2012, Istanbul

5. Service provision Submission of application before the launch of a service; Free entry to the Registry of Operators; Registered operators: 57 5 SEE Business Forum 22 - 23 November 2012, Istanbul

6. Market revenue Market revenue: – 2009 – 274,817,251 € – 2010 – 275,392,962 € – 2011 – 259,735,951 € Crnogorski Telekom, Telenor and Mtel create 93% revenue 6 SEE Business Forum 22 - 23 November 2012, Istanbul

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8. Fixed network Operators: 2 Number of fixed lines per 100 inhabitants: 27.6; Average in EU-27: 40%; Number of fixed subscriber lines per 100 households: 88. 8 SEE Business Forum 22 - 23 November 2012, Istanbul

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11. Fixed broadband penetration Average EU-27: 27.7% 11 SEE Business Forum 22 - 23 November 2012, Istanbul

12. Mobile network Operators: 3 GSM/UMTS Mobile penetration: 186 %, Average in EU-27: 127% 12 SEE Business Forum 22 - 23 November 2012, Istanbul

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14. Mobile broadband penetration Average in EU-27: 8.1% 14 SEE Business Forum 22 - 23 November 2012, Istanbul

15. Distribution of TV and radio programmes Penetration per household: 63.04% 15 SEE Business Forum 22 - 23 November 2012, Istanbul

16. M-TEL’s case Award of licenses for the provision of mobile services: 21.04.2007 Launch of the service: 21.07.2007. Share in the number of mobile service users at the end of 2007: 26% 16 SEE Business Forum 22 - 23 November 2012, Istanbul

17. Improvement of conditions for the entry of new operators(1) More efficient joint use of infrastructure – Cable ducts – Antenna masts – Buildings/facilities 17 SEE Business Forum 22 - 23 November 2012, Istanbul

18. Improvement of conditions for the entry of new operators (2) Access to local loop – Full access: 3.88 Euro/month (EU27 average = 8.62 € /month) – Shared access: 1.16 Euro/month (EU27 average = 1.82 € /month) Leasing of subscriber lines on wholesale level – Retail price of monthly subscription for PSTN – 5% Service of wholesale broadband Internet access – Retail price of an ADSL package – 42% 18 SEE Business Forum 22 - 23 November 2012, Istanbul

19. Improvement of conditions for the entry of new operators (3) Reduction of price for IP transit of Crnogorski Telekom – Price reduction in the forthcoming three six-month periods by 20 % each Possibility of leased lines resale Price reduction of termination on fixed and mobile networks – Fixed network-single transit: 1.07 €cent/min (EU27: 0.66 €cent/min ) – Mobile network: 7.06 €cent/min (EU27: 4 €cent/min ) 19 SEE Business Forum 22 - 23 November 2012, Istanbul

20. Improvement of conditions for the entry of new operators (4) Number portability – between mobile networks – between fixed networks The facility of Carrier Selection/Carrier Pre-selection National roaming Virtual mobile operators 20 SEE Business Forum 22 - 23 November 2012, Istanbul

21. Availability of RF for new investments Concerning the development of wireless infrastructure in network access segment, the following available resources in Montenegro are radio frequency bands indicated below: 410 - 430 MHz 790 - 862 MHz 2500 – 2690 MHz 3410 - 3600 MHz 3600 – 3800 MHz 21 SEE Business Forum 22 - 23 November 2012, Istanbul

22. Availability of RF for new investments The band of Digital dividend 1 (790-862 MHz) will be available by mid 2015 and in combination with the 2500-2690 MHz band, is an attractive RF resource for the development of LTE/LTE Advanced networks (Long Term Evolution). 3410-3600 MHz and 3600-3800 MHz bands, are allocated for the development of BWA (Broadband Wireless Access) systems. 410-430 MHz band are allocated implementation of CDMA PAMR systems. 22 SEE Business Forum 22 - 23 November 2012, Istanbul

23. Availability of RF for new investments In addition to already mentioned bands, the 3410-3600 MHz band, or 3600-3800 MHz band, are also interesting, and in Montenegro they are allocated for the development of BWA (Broadband Wireless Access) systems. Besides, owing to its propagation characteristics, the available resources in the RF 410-430 MHz band are also attractive for investment and for implementation of CDMA PAMR systems. 23 SEE Business Forum 22 - 23 November 2012, Istanbul

24. Achieve mass acceptance of ICT and the Internet and improve digital inclusion and reach the level of: – use of the Internet of 70% by 2014 and 80% by 2016 – broadband access - of 25% by 2014 and 40% by 2016 Raise the possibility of broadband access that is high-speed access by providing a symmetrical, guaranteed access to broadband (agnostic approach) of at least: – 10Mbps for 50% of the population by 2014 – 10 Mbps for 100% of the population, and 30Mbps for 50% of the population by 2016 Provide wide accessibility to the most used electronic services of public administration, 100 by 2014 and 200 by 2016. SEE Business Forum 22 - 23 November 2012, Istanbul 24 Strategy for the development of Information Society 2012-2016

25. Thank you for attention ! pavle.mijuskovic@ekip.me ekip@ekip.me www.ekip.me pavle.mijuskovic@ekip.me ekip@ekip.me www.ekip.me 25 SEE Business Forum 22 - 23 November 2012, Istanbul