Abstract
The electronic communications sector is very important sector of a national economy. It provides an opportunity for facilitating business activities and it is a good area for investment. A small number of operators and a large number of users operate in most markets of the electronic communications sector. The conditions under which electronic communications services are available to users in different countries diverge, among other things, due to the degree of liberalization of individual markets in these countries. The Republic of Serbia has significantly liberalized this sector of economic activity by adjusting it according to the regulations of the European Union. However, certain entry barriers have remained, primarily related to the licenses that operators need to obtain to operate in the Serbian market. The paper aims to investigate the level of concentration in selected markets of the electronic communications sector, namely: mobile telecommunication networks and services, broadband Internet services and media content distribution. The research showed a high level of concentration measured by the Herfindahl-Hirschman index in all three markets. A further increase in concentration is expected in all analyzed markets in the short term. These research results require more attention from regulatory bodies because they increase the possibility of some form of non-competitive behaviour by undertakings.
Highlights
It turns out that this type of service provides support for the permanent development of other economic sectors
In accordance with the goal set for this paper, the conducted research relates to the level of concentration and dynamics of changes in selected markets of the electronic communications sector of the Republic of Serbia
The OECD recommendation is to use the Concentration Ratio (CR) and the Herfindahl-Hirschman index to determine the level of market concentration (OECD, 1993, p. 24–25)
Summary
It turns out that this type of service provides support for the permanent development of other economic sectors. Western Balkans countries have entered the process of liberalization of the electronic services sector following the example of developed European countries due to the importance of this sector and their ambition to join the European Union. The liberalization process implies the introduction of free competition in this sector and free entry of new participants onto the market. The liberalization process of the electronic communications services market in the Republic of Serbia has begun with the adoption of the Law on Telecommunications in 2003, when the Republic Telecommunications Agency was established, which is the Regulatory Agency for Electronic Communications and Postal Services (RATEL)
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