The CEO of Telekom Srbija, Vladimir Lučić, stated that yesterday marked a significant day for the company due to a major acquisition of part of United Group. He emphasized that this transaction, worth €1.5 billion, is one of the largest in Serbia’s history and demonstrates the country’s attractiveness as a destination for foreign investments.
He explained that the acquisition is a key business move for Telekom Srbija, confirming the success of the strategy launched in 2018.
“When other cable operators controlled nearly 70% of the market, Telekom succeeded in turning the market balance around. With this move, the company now controls over 60% of the market, creating an entirely new ecosystem in the telecommunications sector,” Lučić said in an interview with Euronews Serbia.
The last seven years have seen intense competition between two major regional players—Telekom Srbija and United Group. However, with United Group exiting the Western Balkans market and focusing on European markets, Telekom Srbija has now become the dominant force in the region. Although new players, such as Etisalat, are emerging, this market shift signals a new era for the telecommunications sector in the region, Lučić added.
Telekom Srbija’s development strategy, which began in mid-2018, has produced exceptional results, allowing the company to achieve unprecedented growth, even on an international level. Lučić noted that Telekom managed to double its revenue on the highly competitive Serbian market, now exceeding €2 billion.
“This success gives the company the strength to continue growing and expanding throughout the Western Balkans and the diaspora. Focusing on markets with large Serbian communities has enabled us to export local services and content effectively. As a result, Telekom Srbija has transitioned from a regional to a global company, generating even 8% of its revenue outside the former Yugoslavia,” he said.
Lučić also highlighted the company’s success with innovative business models, such as virtual mobile networks and the distribution of premium TV channels, which have driven revenue growth in international markets. By continuing at this pace, Telekom Srbija is laying the groundwork for an even stronger position in the global telecommunications industry.
He reassured that the transaction would not disrupt the company’s liquidity.
The financial stability of Telekom Srbija enabled this significant transaction to be carried out without jeopardizing liquidity or debt relations. As the first company from the Western Balkans to be listed on the stock exchange, Telekom has been expanding across Europe for years, now present in Austria with 240,000 users, Switzerland, and entering the German market through the acquisition of Net TV, Lučić pointed out.
This acquisition represents a crucial step in strengthening Telekom’s global position, especially within the diaspora. Net TV, as the oldest project of its kind, has over 100,000 loyal users worldwide, including in the United States and Australia. This makes Telekom the exclusive regional content provider, aiming to reach over 2 million users in the diaspora. In addition to Serbian channels, Telekom offers Bosnian, Croatian, and now Albanian channels, positioning itself as a true regional leader with the potential to reach over 20 million users globally.
Lučić also commented on the importance of acquiring Sportklub, a key investment for the company, as Arena takes over all sports content.
“This change brings a revolution for sports fans in the Western Balkans. With the acquisition of Sportklub, Arena has become the dominant regional sports channel, alongside Eurosport and national channels. By expanding availability across all networks, Arena is shifting its business model from a competitor to a profit center with substantial revenue from operators and marketing,” Lučić said.
According to him, this transaction will not only significantly increase Arena’s revenue but also drastically reduce the cost of acquiring sports rights, which has been a budget burden for years.
“For viewers in Serbia, this means that all live sports content will be available, regardless of the cable operator. As the only specialized sports channel in the region, Arena now has a stronger negotiating position, which will significantly lower the costs of sports rights, just as is the case in the rest of Europe,” Lučić added.
Currently, Telekom Srbija invests around €30 million annually in film and series production, but as savings are made in other segments, the company will likely increase these investments further.
Lučić noted the immense progress of domestic production over the last decade, thanks not only to Telekom Srbija but also to the Film Center of Serbia and state support.
“Twenty years ago, domestic series were a rarity on national channels, dominated by Turkish and South American shows. Today, it has become entirely natural for domestic content to be available on international platforms like HBO. This is a huge step forward for domestic production, and we are proud that Telekom Srbija has made a significant contribution to that development,” Lučić said.
He expects Telekom Srbija to soon form significant partnerships with major global productions.
“Serbia has proven to be an extremely attractive destination for global production companies, thanks to state subsidies, relatively low costs, and highly qualified professionals. Additionally, Telekom Srbija, as a co-producer, will further strengthen the industry, attracting even bigger players and enabling the realization of globally significant projects,” he concluded.
In the second half of the year, the 5G network will arrive in Serbia, and Telekom Srbija is already preparing to ensure top-quality and fast implementation, Lučić said.
“I must emphasize—anyone who travels abroad can verify this—that Serbia already has exceptionally high-quality mobile networks. Our operators are seriously preparing for 5G technology. We are already purchasing and installing 5G base stations, so we won’t invest in 4G in the era of 5G. As soon as we receive the license, a certain number of stations will be put into operation immediately, and then we will quickly cover the main cities. We expect the 5G network to be available across the country by the end of the year,” Lučić said.
The goal, he added, is full readiness for Expo 2027, where telecommunications companies will play a key role in connecting participants and visitors throughout the event.
When asked about the benefits of the 5G network, Lučić explained, “5G is not just faster internet—it’s a technological leap that allows almost instant device connection.”
“While there may not yet be enough services for users to immediately experience the full potential, this network will be crucial for the development of robotics, sensors, and artificial intelligence. Fast and reliable communication between machines will open the door to full automation in industries, healthcare, and transportation. AI and 5G together will change the way we live. Of course, there are challenges, like high energy consumption, but the world is quickly working on solutions to remove these barriers,” Lučić concluded.
