Overview
Kosovo’s telecommunications operators have partially transitioned from 4G to 5G services. In February 2023, the regulatory authority granted 5G frequency allocation licenses to the two main telecom companies. By the end of 2024, 5G coverage in Kosovo reached 60 percent of the population; Kosovan government and telecommunication regulatory officials anticipate further increasing this coverage rate in 2025. The Government of Kosovo is working to position the country as a regional hub for 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, remains 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 2025 was 393,379 and over 1.9 million, respectively. These numbers equate to 24.55 and 103.4 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. Kosovo Telecom offers mobile telephone services through its subsidiary Vala and has approximately 44 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
IPKO Telecommunications, LLC