Kosovo - Country Commercial Guide
Telecommunications
Last published date:

Overview:

Kosovo’s telecommunications operators have transitioned to 3G and 4G services. In February 2023, the regulatory authority granted 5G frequency allocation licenses to the two main telecom companies.  By 2025, the Kosovan government’s objective is for 50 percent of the population to have 5G coverage, including the coverage of at least one national road. The Government of Kosovo is working to position the country as a regional hub for information technology (IT)-related products and services, building on the strong IT and English-language skills within the workforce. There are a growing number of IT companies focused on outsourcing for European and U.S. companies, and the number of inbound and outbound call centers is growing.  Still, the sector faces considerable challenges. Kosovo Telecom, once the most profitable state-owned enterprise and still the major provider of landline services, is in a crisis state due to political interference, a bloated workforce, inflated wages, and years of mismanagement. The company has come close to bankruptcy, in part due to failure to pay an international arbitration award. IPKO, another leading mobile and broadband operator, was nearly sold by its foreign parent company in 2020 before the transaction was cancelled.

The Regulatory Authority of Electronic and Postal Communications (ARKEP) estimated the total number of fixed and mobile internet users in Kosovo in 2021 was 383,868 and 1,777,859, respectively. These numbers equate to 24.52 and 97.92 percent penetration rates, as some users use both mobile and fixed internet connections or have multiple accounts. ARKEP’s data indicates mobile telephone penetration in Kosovo covers 100 percent of inhabited zones and 94 percent of Kosovo’s territory. Kosovo’s telecommunications sector is one of the least expensive in the region and has similar quality voice services in comparison with other providers in the region. Five main companies – IPKO; Kosovo Telecom (KT); ArtMotion; Kujtesa; and a branch of Serbia’s telecom company, MTS – provide internet service for about 80 percent of Kosovo’s market, while KT, IPKO, and MTS also provide mobile internet (3G and 4G). Kosovo Telecom offers mobile telephone services through its subsidiary Vala and has approximately 50 percent of the market share.

Leading Sub-Sectors:

  • General service mobile (GSM) operator
  • GSM network supplies, equipment, and technology
  • Network management
  • Telecommunications infrastructure development, including WiMax and other municipal wireless internet services.
  • Digitalization of TV broadcasting

Opportunities:

  • Infrastructure development
  • Network upgrades, including a likely 5G roll-out in the coming years

Resources:

Regulatory Authority of Electronic & Postal Communications at http://www.arkep-rks.org/

Independent Media Commission

IPKO Telecommunications, LLC

Kosovo Telecom