The telecom sector has been liberalised. New regulations are aimed at fostering competition and encouraging the entry of new players in the market. Unlike most markets, the fixed-line broadband sector is dominated by newer companies, mainly subsidiaries of Slovenian telecoms. The mobile sector accounts for most telecom lines for voice services, as well as most of telecom revenue. Two MNOs dominate the sector. Broadband penetration in Kosovo is developing slowly. There is competition between the main cable and DSL operators, but progress is scarce in relation to the expansion of fibre networks. The Independent Media Commission (IMC) is responsible for the regulation of the broadcasting frequency spectrum in the Republic of Kosovo.
Kosovo’s citizens are the second poorest in Europe, with a per capita GDP (PPP) of $10,400 in 2017. Most of Kosovo’s population lives in rural towns outside of the capital, Pristina. Inefficient, near-subsistence farming is common – the result of small plots, limited mechanization, and a lack of technical expertise. Kosovo enjoys lower labor costs than the rest of the region. However, high levels of corruption, little contract enforcement, and unreliable electricity supply have discouraged potential investors. The official currency of Kosovo is the euro, but the Serbian dinar is also used illegally in Serb majority communities. Kosovo’s tie to the euro has helped keep core inflation low. While Kosovo’s economy continued to make progress, unemployment has not been reduced, nor living standards raised, due to lack of economic reforms and investment.