13 May Interview with Mr. Vladimir Lučić CEO, Telekom Serbia
How would you assess the current state of Serbia’s telecom sector in terms of infrastructure, network and innovation compared to its European peers? What do you see as the biggest challenges and opportunities in the sector today?
Serbia has vast potential in the domain of telecommunications, where Telekom Serbia plays a pivotal role. In recent years, we have invested heavily in our optical internet and mobile networks. These efforts are now bearing fruit in the form of internet and mobile network availability and quality at a similar level to those of leading EU countries. This achievement is reflected in a recent United Nations E-Government Survey report, which reported an infrastructure index of 0.92 for Serbia and noted remarkable progress in Serbia’s telecommunications infrastructure.
Can you give our readers an idea of the significance and contribution of Telekom Serbia in people’s daily lives? What role does it play in catapulting Serbia in the next digital age?
Our primary focus is consolidating Telekom Serbia as the leading telecom provider in the Western Balkans, by building a strong optical fiber network and acquiring cable operators, with the latest acquisition completing this phase. We are also investing in mobile services and content to strengthen our position in these core services, ensuring profitability for further investments in additional services. In the digital future, strong national operators are crucial. Optical fiber and 5G will be key drivers of the digital economy and a robust network is essential.
The European Investment Bank recognizes us as the largest operator in the region, which is why they partnered with us for 5G investments, along with support from the EXIM Bank in the US. This collaboration will not only strengthen Telekom Serbia, but boost the digital economy in the Western Balkans.
How has the company transformed from a traditional telco operator to a full scope digital service provider?
Looking ahead, our focus will shift to online services. We have a venture fund aimed at supporting early-stage startups and developing new digital solutions for global markets. Additionally, we plan to expand into ICT services, starting with cybersecurity. In the Western Balkans cybersecurity is a growing concern and many companies are realizing the potential risks. We aim to become a leading player in this space and enhance our ICT revenue. In addition, we aim to position ourselves as a regional platform similar to Amazon, with a strong focus on telco services. We are investing in production and currently, 65% of premium quality production in Serbia — covering sports, movies, TV series and music — is created by us. This is helping us build a vast content database. In the future, customers will prefer platforms like Amazon, but there will still be a demand for regional content. We want to evolve beyond a classic telco provider to become a leading regional content player, offering services like Amazon or Netflix.
Four years ago, we identified a valuable opportunity among the diaspora. Over 10 million people from this region live abroad in the US, Canada and Western Europe. These people remain connected to their families and remittances sent to Serbia alone totaled €5 billion last year. We have developed a project targeting this diaspora, starting with Austria, Switzerland and Germany and expanding to the US this year. By partnering with AT&T, we will offer SIM cards with no roaming charges and access to 300 channels of content, with over 300,000 customers already in Austria. Our main target remains the diaspora, providing both connectivity and regional content.
Telekom Serbia recently completed the acquisition of NetTV Plus, DTH and Sport Club licenses from United Group for €650 million. How significant a role do acquisitions play in your overall growth strategy?
This acquisition is significant because, over the last seven years, the market has been highly competitive between us and United Group. United Group has now decided to exit the Western Balkans and focus only on EU countries like Croatia, Slovenia, Greece and Bulgaria. As a result, our main competitor is no longer present in the market. This helps to solidify our position as the largest player in the region.
Now, our main competitor is Yettel (PPF) in some areas and Bosnia Telecom and Deutsche Telekom in others. With this acquisition, we will be the only player offering all services and content, completing the consolidation process. I’m proud of this achievement, as it gives us over 60% of the pay TV market share. This move ensures a predictable future, with no major disruptions expected over the next 15-20 years.
What is the current progress of Telekom Serbia’s 5G rollout and what impact will it have on consumers and businesses?
The 5G license will be issued in the first half of this year and we are ready. We have strategic contracts with Ericsson and Nokia, as well as debt financing from the European Western Bank and the EXIM Bank. We have also partnered with Vodafone in digital services, benefiting from their extensive 5G network and digital offerings. We already have 5G in Montenegro, covering all major cities and will expand to major cities in Serbia within a year of receiving the license. We are working on providing advanced 5G services, similar to those available in Europe and the US.
Serbia will host EXPO27. How is Telekom Serbia taking advantage? Which innovations are you aiming to push through?
We see Expo 2027 as a great opportunity to showcase our advanced services to millions of visitors and boost revenue and we are also actively preparing for it. We will focus on artificial intelligence in two ways: through our venture fund and by becoming the largest Serbian company with over 200 young engineers dedicated to AI development over the next three years. We are making significant investments in AI and believe, as a telco operator offering 5G, we can also become a key regional player in this space.
Today, big telcos are facing a critical phase with declining revenues and pressure from the European Commission. Major operators like Vodafone, Deutsche Telekom and Telefónica have asked for help in redirecting some revenue from platforms like Amazon and Netflix. The issue is that telcos didn’t develop global services, focusing only on local customers. Meanwhile, digital platforms like Amazon, Facebook and Netflix created services attractive to a global audience. This shift has left telcos behind, because most of the revenue now goes to digital platforms. To address this, we developed a new strategy for Telekom Serbia, leveraging the diaspora to double or even treble our customer base. We are focusing on digital content and services, aiming to become a global player, much like Amazon. This transformation allows us to move beyond traditional telco models and secure a better future. With our venture fund supporting startups, some of these companies could grow significantly, giving us the chance to become a major operator.
In which key international markets does Telekom Serbia currently operate and which markets do you have in mind for your future expansion?
Telekom Serbia Group’s international footprint has strengthened. Telekom Serbia Group is targeting further growth, both domestically and through a large diaspora. Aside from Serbia, we already operate in Bosnia-Herzegovina, Croatia, Montenegro, North Macedonia and Slovenia, as well as Austria, Belgium, Germany, the Netherlands and Switzerland. We launched new TV packages in Turkey and celebrated our first anniversary of operations in this market in 2024.
As we begin 2025, we are looking forward to the continued growth of our network of international technology and content partners and to a forthcoming launch in the US. Telekom Serbia’s target market in the US is the Serbian diaspora, which will be offered mobile telephony services, media content and digital services, which are being developed in cooperation with the world leader Vodafone.
What is your final message to the readers of USA Today, about Serbia or Telekom Serbia?
Telekom Serbia Group’s highly successful Eurobond issue reinforces the confidence that prestigious investors, including Bank of America, BNP Paribas, Deutsche Bank, Erste Group, MUFG, Raiffeisen bank and UniCredit have in our company’s operations, in Serbia, across the region and internationally. By investing in borderless infrastructure, multimedia and digital services we will increase our competitive edge. Significant investment in high-quality optical and 5G mobile infrastructure, AI, digital media services, as well as plans for strategic IT acquisitions will continue to drive subscriber growth and international reach well into the future.
Telekom Serbia Group also sees opportunities in content acquisition and investment in digital technologies. Its own strategy is based on creating and syndicating world-class TV content, through partnerships with global players such as Amazon, Disney+ and HBO. It is also investing in disruptive digital start-ups through its Corporate Venture Capital fund. Investment in AI will also be a key focus over the next four years. During that period, we will increase our workforce by a factor of ten in this field.
Our AI experts will drive and accelerate AI and its application in our systems. Telekom Serbia Group believes this strategy has the potential to increase subscribers and generate higher income and profitability annually. The business expects the extension of its digital services to Germany and the USA will also significantly increase its income and profitability.