Telekom Srbija plans to enter the U.S. mobile market through an arrangement using AT&T’s nationwide network, expanding its international telecommunications and digital media business without investing in its own American mobile infrastructure.
The Serbian state-controlled operator intends to offer subscriptions priced at approximately €25 per month, combining unlimited calls to Serbia, Montenegro and Bosnia and Herzegovina with access to its television content. The company expects to obtain the necessary U.S. operating authorisation before launching the service, although approval had not been confirmed as granted at the latest reported assessment.
Telekom Srbija has not disclosed the investment amount, subscriber targets, wholesale network charges or projected revenues associated with the American venture.
AT&T Partnership Limits Infrastructure Investment
By using AT&T’s existing mobile network, Telekom Srbija can enter the American market without the substantial expenditure required to build its own infrastructure, acquire spectrum or deploy base stations and transmission equipment. The approach shifts investment towards wholesale connectivity, customer acquisition, billing systems, digital platforms, regulatory compliance and marketing. This could enable the company to develop an international subscription business with lower initial capital requirements than a conventional mobile network rollout.
Lower capital expenditure does not automatically guarantee higher profitability. Operating margins will depend on wholesale network charges, customer acquisition costs, service delivery expenses and subscriber retention. The U.S. mobile market includes established telecommunications operators and lower-cost providers. Telekom Srbija will need to differentiate its offer through international calling, regional television content and services tailored to customers with connections to Southeast Europe.
Western Balkan Diaspora Provides a Potential Customer Base
The proposed packages target Serbian and wider Western Balkan communities in the United States, particularly customers who maintain personal, financial and commercial connections with their home countries. Telekom Srbija already serves international customers through MTEL Global, established by combining GO4YU and MTEL Austria. The group has also previously provided services in the American market, making the planned mobile operation an extension of its existing international activities.
Combining mobile connectivity with regional television programming could attract subscribers seeking access to services from Southeast Europe. The integrated offer could also support cross-selling, higher revenue per customer and improved customer retention. The group’s international media portfolio was strengthened through its acquisition of NET TV Plus, expanding access to regional television content among customers abroad.
The commercial performance of the American service will depend on whether the bundled packages offer sufficient value to attract customers from existing providers. Television rights, geographic content restrictions and service quality will also affect the attractiveness and operating costs of the offer.
Subscriber Numbers Determine Revenue Potential
At the proposed monthly subscription price of €25, the financial contribution of the American operation will depend on the number of paying customers.
- 50,000 subscribers: approximately €15 million in annual gross subscription revenue.
- 100,000 subscribers: approximately €30 million in annual gross subscription revenue.
These are illustrative calculations rather than company forecasts. They assume continuous subscriptions at the advertised price and exclude wholesale network charges, marketing expenditure, taxes, discounts, content costs and customer churn.
Telekom Srbija reported €2.3 billion in consolidated revenue, representing growth of 28.1%, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) reached approximately €1.3 billion, an increase of 51.3%. At 100,000 subscribers, annual gross subscription revenue of €30 million would represent approximately 1.3% of the group’s reported revenue. A more substantial contribution would depend on expanding the customer base while maintaining sustainable margins.
Beyond direct subscription income, the operation could establish an international distribution platform for additional telecommunications and digital products, provided customer acquisition and operating costs remain competitive.
U.S. Expansion Coincides With Financing and 5G Investment
Telekom Srbija’s international expansion is taking place alongside a broader programme of acquisitions, telecommunications infrastructure investment and technological development.
Fitch assigns the group a BB- credit rating with a stable outlook, while Moody’s and S&P maintain ratings of B1 and BB-, respectively. The company has also announced a multi-tranche bond offering intended to refinance existing obligations on more favourable terms rather than increase borrowing. Its financing strategy coincides with investment in domestic 5G infrastructure and the integration of acquired telecommunications and media businesses.
The U.S. Export-Import Bank has granted final approval for financing to support 5G network development in Serbia. This financing concerns domestic network infrastructure and is separate from the planned American mobile service. For lenders and bond investors, the U.S. venture raises questions about capital allocation, international revenue predictability and profitability outside the group’s core markets. A limited initial capital commitment could support attractive returns if customer acquisition costs remain controlled. However, high wholesale charges, sustained marketing expenditure or weak subscriber retention could erode the benefits of the capital-light model.
Artificial Intelligence and Digital Services Support International Ambitions
Telekom Srbija has identified partnerships with American technology companies, particularly in artificial intelligence, as part of its broader international development strategy. The group’s ambitions include expanding digital services and using its international distribution network to reach customers beyond its traditional markets. Potential areas include software, cloud-related products, artificial intelligence applications and other digital services.
These plans have not been accompanied by quantified revenue commitments. Their financial contribution will depend on signed commercial agreements, customer demand, product development costs and the ability to generate recurring income. For the U.S. mobile venture, the immediate priorities are obtaining the necessary operating authorisation, launching the service, attracting subscribers and demonstrating that access to AT&T’s network can support competitive pricing and sustainable operating margins.
