Serbia’s potential integration with the European Union (EU), formalised by the Stabilisation and Association Agreement in 2008, has encouraged the government and regulator to adopted measures aimed at promoting telecoms reform. The Agreement oversees closer integration with the EU and covers commitments to political, economic, trade, or human rights reform. In addition, as part of the EU pre-accession process, Serbia has received financial aid to build public institutions and improve cross-border co-operation. EU reforms have been fundamental to Serbia’s telecom industry. The EU’s regulatory framework for communications (the NRF), adopted in mid-2010, promotes competition as the most efficient way to offer communications products and services while ensuring universal access.
Serbia had an Internet penetration rate of 66.2% by the end of 2014. DSL accounts for the majority of fixed broadband subscriptions. Fibre developments remain disappointingly low. Serbia’s high mobile penetration, being the result of extensive use of SIM cards, has experienced lower revenue in recent years, placing further pressure on operators to develop business models which encourage consumer use of mobile data services.