Telekom Srbija plans to enter the US mobile telecommunications market with packages priced at $29 per month, equivalent to approximately €25, using network infrastructure provided by AT&T. The move would expand the Serbian state-controlled operator’s international business beyond its traditional Balkan markets.
Chief Executive Vladimir Lučić said the company expects to obtain the necessary US regulatory authorisation before launching commercial operations. The market entry remains conditional on regulatory approval. The proposed package will include unlimited calls to Serbia, Montenegro and Bosnia and Herzegovina, alongside access to Telekom Srbija’s television content. The initiative forms part of a wider strategy to increase international revenue from mobile communications, digital services and content distribution.
AT&T Partnership Limits Infrastructure Costs
Telekom Srbija intends to use AT&T’s existing US network, avoiding the need to build and maintain its own nationwide mobile infrastructure. Constructing a proprietary network would require substantial investment in radio equipment, transmission systems, spectrum rights and network operations. Under the wholesale-access model, the company’s commercial performance will depend more heavily on network-access charges, pricing, customer acquisition and subscriber management.
The financial terms of the AT&T agreement have not been disclosed. Although using an established network can reduce initial capital requirements, profitability will depend on the cost of connectivity purchased from the US operator. Subscription revenue must cover wholesale network charges, marketing, customer support, technology platforms, regulatory compliance and general operating expenses. The advertised monthly price alone does not establish the service’s potential margins.
Regional Calling and Television Target Specific Customers
The package is designed to appeal to US customers with personal or business connections to southeastern Europe. Unlimited calls to Serbia, Montenegro and Bosnia and Herzegovina could attract expatriate communities and other customers who regularly communicate with those markets. The inclusion of television services gives Telekom an additional way to distinguish its offer from mobile packages focused primarily on connectivity and data allowances. Combining mobile access with regional media content could support customer acquisition through community networks, digital channels and commercial partnerships.
The size of the diaspora does not automatically translate into paying subscribers. Demand will also depend on existing mobile contracts, competing international calling services, network quality, customer support and alternative digital products. Internet-based messaging and calling applications already provide low-cost international communication. The television component will also depend on content availability, customer demand and applicable distribution rights.
Subscriber Economics Will Determine Profitability
At approximately €25 per month, each subscriber would generate around €300 in annual gross subscription revenue, before discounts, taxes and operating expenses.
Illustrative scenarios indicate the potential scale of the business:
- 50,000 paying subscribers: approximately €15 million in annualised gross subscription revenue.
- 100,000 paying subscribers: approximately €30 million in annualised gross subscription revenue.
These are illustrative calculations, not published Telekom forecasts, and do not represent profit.
The financial outcome will depend on how much subscription revenue remains after wholesale network charges and other operating costs. Marketing expenditure, distribution commissions, introductory discounts, support systems and customer retention programmes could weigh on margins during the launch phase. Subscriber churn will also be important, particularly if customers view the service as a temporary alternative to existing mobile packages rather than a long-term subscription.
Key performance measures include average revenue per user, gross margin per subscriber, customer acquisition costs, customer lifetime value and the time required to recover launch expenditure. Sustainable growth will require recurring revenue to increase without a proportional rise in fixed costs.
US Expansion Coincides With Domestic 5G Development
The US initiative forms part of Telekom Srbija’s broader strategy, which also includes expansion in European markets, development of Serbia’s domestic 5G network and potential cooperation with American technology companies in artificial intelligence. These activities have different financial requirements. Domestic 5G deployment involves network development, equipment procurement and infrastructure upgrades, while mobile services delivered through partner networks rely more heavily on commercial distribution, digital platforms and customer management.
Artificial-intelligence applications could support network optimisation, customer service and content delivery, although their financial contribution will depend on commercial implementation. For the state-controlled operator, these initiatives offer opportunities to diversify revenue while increasing the importance of capital allocation and assessing returns against existing financial commitments.
Digital Services Form Part of Telekom’s Export Strategy
The planned US operation represents an attempt by a Serbian company to generate international revenue through telecommunications, media and digital services rather than relying solely on its domestic business. Regulatory authorisation, access to AT&T’s network and the proposed package are the initial requirements. Longer-term performance will depend on subscriber numbers, recurring revenue, operating margins and the cost of expanding the customer base.
The expansion would extend Telekom Srbija’s reach into one of the world’s most competitive telecommunications markets. Its financial performance will ultimately depend on whether the company can convert market entry into sustainable cash flow without creating disproportionate operating and financing obligations.
