Telenor is one of the largest foreign investors in the country and has been present on the Serbian market since 2006. For more than 15 years now we have cultivated an outstanding business reputation with our customers and citizens of Serbia, and we have also been recognized as a leader in social responsibility.
As one of the leading mobile operators, we have a firm ambition to expand our business by entering the market for broadband internet access and TV content distribution services.
On April 22, 2021, the Commission for Protection of Competition, after a comprehensive legal and economic analysis of the Agreement on the Right to Use FIber Optics and the Ethernet Bitstream Service Agreement that the company signed with Telekom Srbija, made a positive decision related to the request for exemption of restrictive agreements from prohibition. Such decision confirmed that Telenor’s entry into the market for media content distribution and fixed broadband internet supports further development of competition in this market segment.
We remind you that we have entered into a commercial agreement with Telekom for lease of infrastructure to strengthen and provide the necessary capacities in order to provide a seamless service in the market. This is a legal and common business practice, with prices subject to and result of negotiations between partners. We would like to point out that in addition to Telekom, Telenor cooperates with SBB, from whom we also lease infrastructure. Cooperation between operators in the telecommunications market, broadband internet access and TV content distribution services is a common business practice, which was confirmed by the decision of the Commission for Protection of Competition.
Creating of services
We are now committed to developing an innovative and attractive offer that we will launch by the end of the year. We want to stand out in this segment with quality, as we have done in mobile services.
Our success in the mobile telephony market, high standards of customer experience, our expertise, entrepreneurial spirit, as well as strong company culture make us confident that we can successfully implement good practices and modern trends in other areas, in the interest of end users and market development.
Telenor enters the media content distribution market independently, complying with the rules of fair market competition with other content providers, including SBB and Telekom. As one of the largest foreign investors in Serbia since 2006, Telenor Serbia plans to invest almost 300 million euros in the next five years, which is a confirmation of the company's long-term commitment to the development of the Serbian telecommunications market.
We believe that Serbia is ready for another strong service provider in TV content distribution market. This promotes healthy competition and brings new investments, which is something everyone can benefit from: primarily customers, but also the telecommunications market and the society as a whole.
More choice for customers
We are guided by the belief that our current and future customers should have access to the greatest possible choice of media content. Negotiations with most content providers and other partners, including the United Group, are coming to an end.
We still do not have a license for the distribution of content produced by United Group or to which it owns rights, such as N1, Nova S, Sport Club and others, a total of 22 channels. We regret that United Group made such a decision, and we remain open to further negotiations on distribution of channels, convinced that they will recognize the importance of this cooperation for everyone - the citizens of Serbia, companies operating in the same segment and the society as a whole.
Our ambition is purely business-related and very clear — we want to offer more choice in the market and bring customers exclusively more value. This confirms that Telenor's decisions are purely business-related and that they do not threaten media freedom.
Telenor is a company that operates without any political interests or interference in politics, in full compliance with the laws. Telecommunications market in Serbia is strongly regulated, and for the past 15 years we have been proving over and over again that we see regulatory bodies as partners in the development of this market.
During the development of the new business area, we will hire new staff and apply the best experiences and practices from the PPF Group, in order to bring customers improved experience in speed and quality of service, channel selection, ease of use and quality of customer support.