Telekom Srbija

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Telecom Srbija, the state-owned local telephone operator in Serbia, started to be privatized in June 1997 when a 49% stake was sold for US$880 million (DM1.57 billion) to a Greek-Italian consortium integrated by Italy's Stet International (Telecom Italia) and Greece's OTE. After the transaction Telecom Italia owned 29% of Telecom Srbija, while OTE had the remaining 20%. The proceeds went to pay overdue salaries and pensions, finance export-oriented companies and carry out emergency repairs to Serbia's infrastructure. As part of the agreement, the company was granted an eight year monopoly over fixed phone services. In addition, Telecom Srbija received a 20 year GSM license for which it paid an additional US$70.2 million (DM 125 million). In 1998, Telekom Srbija intended to invest $250 million (YDn1.372 billion), but Telecom Italia and OTE of Greece stalled plans to invest more than US$100 million in April 1998 because of Yugoslavia's worsening economy. The 1998 business plan unveiled an forecasted traffic increase of 4.6 per cent and 90,500 new subscribers. In August 1998, Telekom Srbija launched the country's second mobile telephone network in Belgrade in August. The network was expected to attract 25,000 users by the end of 1998 and the company expected to cover 40% of Serbian market by mid-2000. The project was temporarily stalled because of the Kosovo War, but re-started in March 2000. In December 2002 the Serbian government bought back the 29% stake in Telekom Srbija from Telecom Italia for Euro 195 million (US$204 million) and now controls 80% of the operator through the state-run PTT Srbija. According to the deal, PPT Srbija was expected to pay Telecom Italia Euro 120 million (US$126 million) in 2003 in four equal installments and the remaining Euro 75 million (US$78 million) by July 2008. By the end of 2005, Telekom Srbija provided a range of telecommunications services, including fixed and mobile voice, as well as data communications and Internet access. The company served some 2.7 million fixed line subscribers and 3.5 mobile subscribers. Its networks covered 92% of Serbia's population and 66% of its geographic area. On December 30th, 2011 OTE signed an agreement to sell its entire stake (20%) in Telekom Srbija back to the company/Serbian government. The transaction cleared in mid January 2011, for US$ 527.7 million (380 million euro) subscriber info only for mobile connections capacity info for 2011 has been replaced wih confirmed figure capex for 2012 not available 2013 ibid 2013 capacity - only mobile data available. 2011 and 2012 capacity data - sum of fixed line and mobile users (info from AR2012). 2011 and 2012 CAPEX also specifically for fixed line and mobile segments (from AR2012).