Telecom market liberalisation in SE Europe has led to rapid development of the mobile telephony sector, revealing the shortcomings of the existing fixed telephony infrastructure, while the challenge of fast Internet take up remains. During the 5th SE Europe Regulatory Brainstorming Session, organised by the Southeastern Europe Telecommunications and Informatics Research Institute – INA in collaboration with the Bosnian Communications Regulatory Agency, the Heads of SE Europe National Regulatory Authorities (NRAs) had the opportunity to discuss issues of common interest and exchange opinions on the developments in the electronic communications markets in their countries. The Conference took place in Sarajevo, Bosnia–Herzegovina, on Thursday 24 January 2008 and was attended, among others, by the Regulatory Authorities of Bosnia- Herzegovina, Greece, Montenegro, FYROM and Serbia.

INA President, Vasili N. Takas, opened the Session and thanked the Bosnian Regulatory Authority for hosting the event and for collaborating as INA Academy’s Node in Sarajevo, while he expressed his satisfaction for the strong climate of collaboration among the SEE National Regulatory Authorities that has been developed. INA President briefly described the Institute’s programmed activities for 2008 with regards to training programs in regulatory issues, and distinguished guests addressed the audience with presentations on information & communications’ security issues. The meeting continued with extensive dialogue on the latest developments in the SE European telecom market with interesting conclusions.

Telecom markets’ liberalisation in the region has led to a noticeable penetration of mobile telephony subscribers that exceeds 100% in most countries and helps overcome the shortcomings of the existing fixed telecom infrastructure. Indicatively, according to the Regulator’s data, mobile telephony penetration in Montenegro exceeds 168%, while the percentages in other countries in the region are also very high. In Montenegro, the entry of the third telecom operator (m:tel) and its acquisition of a 24% market share in its few months of operation, played a catalytic role and led to intense competition in the market. The situation is similar in FYROM with the entry of the third mobile operator, while Cosmofon, a subsidiary of Cosmote in Greece, acquired the only 3rd generation (3G) licence in mobile telephony, on Friday 25 January, for the amount of 10 million euros. In Montenegro and Serbia 3G services are spreading at a low pace and broadband penetration throughout the region remains still under 2%. Particularly, in Bosnia there are approximately 40.000 fast internet connections that represent less than 1% of the population. Consequently, it was recognized that investments in new technologies and specifically in broadband development is needed urgently and should be prioritised among authorities and private sector initiatives. The aim is to minimise the digital gap that continues to exist and is becoming steeper through the swift growth of the ICT sector in Western Europe.

In this effort, the exploitation of WiMAX technology is considered a valuable medium-term solution and National Regulatory Authorities have already issued WiMAX licences in Montenegro, Serbia and FYROM, while it is expected that the rest of the countries in the region will proceed in a similar manner during 2008. It is also necessary to accelerate national and international initiatives in covering existing telecom infrastructure deficiencies, which will gradually lead to price reduction in telecom services to the benefit of consumers and fast internet take up. The objective is to confront certain factors that discourage significant private investment, particularly in remote areas, such as the countries’ small size and their economic growth.

The 6th Southeast Europe Regulatory Brainstorming Session will take place in the beginning of June 2008 and will be hosted by the Greek Regulator, after the unanimously accepted proposal of Nikolaos Koulouris, Vice-president of the Greek National Regulatory Authority - EETT, on behalf of its Chairman, Prof. Nikitas Alexandridis.

Southeastern Europe Telecommunications and Informatics Research Institute (INA), has developed during the last few years an important human network under the framework of INA Academy’s initiatives for the telecom and information technology sector in the countries of SE Europe, which has been expanding and aims at facilitating the rapid growth of the regional telecom market in accordance with European Union models. Part of this network is the representatives of the Independent Regulatory Telecommunication Authorities. The parties of this network meet regularly during several events organised by INA either in Greece or in SE European countries, at the local INA Academy Nodes. INA Academy has founded national Nodes to provide training, advisory support and dissemination of best practices in the SEE region in collaboration with the National Regulatory Authorities and other Non-Governmental Organisations. Nodes currently in operation include Thessaloniki, Sofia, Tirana, Skopje, Belgrade, Podgoritsa and Sarajevo.