Montenegro’s telecommunications sector has become a competition between Telekom Srbija, Deutsche Telekom and Hungary’s 4iG, with each group controlling a major operator in a market of fewer than one million permanent residents. The structure gives Montenegro’s telecom industry an international ownership profile and links its operators to larger regional balance sheets, procurement networks and technology partnerships.
M:tel becomes Montenegro’s mobile leader
M:tel, controlled by Telekom Srbija, entered Montenegro in 2007 and has expanded from a challenger into the country’s largest mobile operator, while also developing broadband, television and fixed-line operations. At the end of 2025, M:tel held approximately 41.4% of mobile subscriptions, compared with 36.2% for Crnogorski Telekom and 22.5% for One Montenegro. Montenegro had around 1.48 million mobile connections, equivalent to approximately 240% penetration. Multiple SIM ownership contributes to that figure, while tourism substantially increases the number of telecom users during the summer. M:tel reported approximately €183 million in revenue in 2025 and EBITDA of around €82 million. Accounting differences mean competitor figures are not directly comparable. The company has become an important part of Telekom Srbija’s regional business and its wider capital structure.
Telekom Srbija expands its regional platform
Telekom Srbija has expanded through network investment, content, acquisitions and regional diversification, increasingly using international debt markets.
Its approximately $900 million international bond issue in 2024 was followed by a transaction of roughly €1.95 billion equivalent in 2026. For investors assessing Telekom Srbija, M:tel provides exposure beyond Serbia through a profitable Montenegro operation with euro-denominated revenues. The wider group also has operations in Bosnia and Herzegovina and businesses covering media, content and diaspora services. Montenegro uses the euro despite remaining outside the EU, providing euro-denominated operating exposure and removing domestic currency risk from mobile, broadband and television revenues.
Crnogorski Telekom maintains a strong position
Crnogorski Telekom remains a major player, particularly in fixed infrastructure. Its majority owner, HT Holding, is part of Hrvatski Telekom and therefore ultimately connected to Deutsche Telekom. The company generated approximately €93.4 million of revenue in 2025, adjusted EBITDA after leases of around €33.7 million and net profit of approximately €7.7 million.
Capital expenditure was close to €18 million, compared with roughly €20 million in the previous year, as the company continued investing in fibre and mobile networks. Crnogorski Telekom retains more than half of Montenegro’s traditional fixed-telephony connections, although M:tel has narrowed the gap and become the second major fixed operator. The market has consequently developed into a two-pole infrastructure competition between Deutsche Telekom-backed Crnogorski Telekom and Telekom Srbija-backed M:tel.
4iG adds a third regional capital group
The mobile market also includes One Montenegro, controlled by Hungarian technology and telecommunications group 4iG. The former Telenor operation generated approximately €70 million in 2025 revenue, with EBITDA of around €13 million, according to available company figures.
One Montenegro’s mobile share is below those of M:tel and Crnogorski Telekom, but 4iG’s regional strategy extends beyond mobile communications into digital infrastructure, IT, satellite communications and defence technology. Montenegro therefore forms part of 4iG’s broader regional investment strategy.
Infrastructure investment raises capital requirements
The expansion of fibre, 5G, cloud infrastructure, cybersecurity and data centres is increasing investment requirements across the sector. Telecom operators are increasingly supporting corporate IT, government digitalisation and data-intensive services alongside traditional mobile and broadband operations. Their ability to invest is closely linked to the financial resources of their international parent groups. M:tel benefits from Telekom Srbija’s financing capacity, Crnogorski Telekom from the Deutsche Telekom ecosystem and One Montenegro from 4iG’s regional capital structure.
Gulf investors could enter through regional structures
Gulf capital has already entered the telecommunications markets of Central and Eastern Europe. Abu Dhabi-based e& established exposure to operators in Serbia, Bulgaria, Hungary and Slovakia through its partnership with PPF. Its subsequent acquisition of SBB’s Serbian telecommunications operations further expanded its presence in the Western Balkans. There is no disclosed process indicating that e&, another Gulf telecom operator or a sovereign fund is preparing to acquire a Montenegrin telecom operator.
The existing regional transactions nevertheless demonstrate that Gulf investors have considered Balkan telecommunications infrastructure when assets can form part of larger platforms. A direct acquisition in Montenegro would face the existing ownership structures. M:tel is integrated with Telekom Srbija, Crnogorski Telekom belongs to the Deutsche Telekom-Hrvatski Telekom structure, while One Montenegro is part of 4iG’s regional strategy. A more likely route would therefore involve parent-level equity or infrastructure partnerships.
Telecom towers provide an infrastructure model
Telekom Srbija has already separated part of its infrastructure through a transaction with an Actis-led consortium. The deal transferred approximately 1,800 telecommunications towers across Serbia, Bosnia and Herzegovina and Montenegro to an independent infrastructure platform. Around 107 sites were located in Montenegro, while Telekom Srbija remained the anchor tenant under long-term agreements.
The transaction demonstrates how passive infrastructure can be separated from consumer telecom operations.
Towers, fibre networks and data centres can potentially be placed in infrastructure vehicles backed by long-term contracts with telecom operators, allowing operators to invest without carrying the entire infrastructure requirement on their own balance sheets. For infrastructure investors, these assets can offer a different proposition from acquiring a customer-facing telecom operator because infrastructure revenues can be supported by several tenants.
Montenegro offers euro revenues and seasonal demand
Montenegro’s relatively small permanent population is offset by the scale of its tourism sector. Operators must maintain networks capable of handling seasonal demand concentrated around Podgorica and the Adriatic coast. Roaming, prepaid services and growing data consumption increase infrastructure utilisation during the tourism season.
This gives Montenegro’s telecom infrastructure an economic scale that population figures alone do not capture. The country’s domestic banking sector is liquid and profitable, but its size is limited compared with the financing requirements of multinational telecommunications groups. The operators therefore rely significantly on the international financing capacity of their parent companies.
Competition increasingly depends on financial capacity
The competition between the three operators is not limited to subscribers and technology. The ability to finance spectrum, fibre, 5G, content rights, customer subsidies and bundled services can influence competitive positioning. M:tel’s expansion illustrates the importance of parent-level financial backing. Telekom Srbija entered Montenegro in 2007 as a challenger and subsequently built a business holding more than 40% of mobile subscriptions alongside significant fixed-market operations.
That expansion has also increased the regional importance of Montenegro within Telekom Srbija.
The group’s Serbian operations remain its largest earnings contributor, while Montenegro provides geographic diversification, euro revenues and strong operating economics. Bosnia and Herzegovina adds another telecom business, while international television and diaspora services broaden the group’s addressable market Telekom Srbija is consequently developing into a Western Balkan telecom and media holding company, rather than operating solely as a Serbian national incumbent.
Its capital structure has not fully reflected that regional expansion. Banks and international bond markets have financed much of the growth, but further investment in fibre, 5G, cloud and digital infrastructure increases the relevance of permanent equity capital. A minority investment at Telekom Srbija level could provide additional balance-sheet capacity while preserving control. M:tel Montenegro would provide exposure to a profitable euro-denominated operation with a leading mobile position and a tourism-driven market that expands beyond its resident population. Montenegro’s telecom market therefore brings together Telekom Srbija, Deutsche Telekom and 4iG in a small but internationally connected market, while potential Gulf participation could emerge through infrastructure assets or the regional parent companies rather than through direct purchases of individual Montenegrin operators.
