Serbia has finally announced its long-awaited 5G frequency auction, raising questions about potential government revenue and when citizens will gain access to the service, which already reaches 94% of EU households.
5G technology offers much higher data speeds (up to 20 Gbps), increased network capacity, and better overall performance but requires substantial infrastructure, including more base stations and antennas than previous mobile networks.
Compared to the EU, Serbia is significantly behind. Government plans target only 10% 5G coverage by 2026 and 40% by 2027. Economists note the auction could generate substantial revenue, though political factors may influence participation.
Globally, 5G household coverage is highest in South Korea (100%), Japan (99.2%), and the EU average is 94.3%. Neighboring countries like Croatia (94%) and Slovenia (96.7%) are ahead of Serbia, while Romania lags at 46.8%.
The auction, announced by RATEL, sets a starting price of €100 million for the minimum frequency package, with applications due by October 20. Originally planned for 2021, delays were attributed to COVID-19 and economic concerns, with accusations that the state protected Telekom Serbia.
Telekom Serbia’s CEO announced U.S. investment of \$50 million for 5G infrastructure development. Past European auctions exceeded expectations financially: the UK earned €1.6 billion, Italy €6.55 billion, Germany €6.5 billion, and France €2.78 billion. Smaller markets like Croatia raised €339 million.
International politics influence participation. Serbia and Kosovo’s 2020 Washington agreement restricts unverified suppliers, interpreted as blocking Huawei. Officials clarify that Chinese equipment could still be used if verified.
Serbia’s 5G rollout faces challenges of funding, infrastructure, regulatory compliance, and balancing geopolitical considerations, with widespread coverage still years away.
