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Telenor and fixed telephony

February 1, 2011 - Telenor signed its first commercial contract on January 20, whereby the formal condition from the Licence on the start of service provision in fixed telephony has been fulfilled.
 
However, in Serbia conditions are still lacking for the introduction of competition in the fixed telephony segment and the negotiations on access to Telekom infrastructure, which is an absolute precondition for providing the fixed telephony services, have taken unexpectedly long and did not produce expected results. At this moment some regulatory, legal and technical issues remain open, greatly slowing down Telenor’s entry on the market with commercial services in this sector. Satisfactory market regulation remains blocked as long as Telekom lawsuits against most decisions of the Republican Electronic Communications Agency (Ratel), exist.
 
Telenor see the Licence for Providing the Services in Fixed Telephony primarily as a possibility to expand the broadband network, which is crucial for the growth and development of telecommunications, and as an additional product in the strategic growth in Serbia.
 
Conditions for market regulation need to be created. Until then, Telenor will continue with major investments, some of which were directly triggered by the acquisition of the Licence for Fixed Telephony.
 
Until the remaining issues are still open, Telenor is continuing to work on the laying of optic infrastructure along the main routes in Serbia and to upgrade mobile network so as to make access to broadband Internet easier and quicker for a larger number of citizens of Serbia.