Montenegro has made significant strides in telecommunications, achieving over 88 percent territorial coverage with 5G signal by the end of 2025. The rollout includes coverage along all main roads, marking a notable infrastructure milestone for the small, mountainous nation. This progress is particularly relevant for an economy that relies heavily on tourism and connectivity.
However, a recent government report highlights a critical disparity between network coverage and the development of digital services essential for enhancing productivity and efficiency. While the physical infrastructure of 5G is advancing, Montenegro is lagging in implementing the necessary institutional frameworks, cybersecurity measures, and data transparency protocols that would maximize the economic benefits of this technology.
The true potential of 5G extends beyond faster mobile internet; it encompasses smart transport systems, digital tourism services, connected public administration, and various Internet of Things applications. Without these applications, the benefits of 5G may remain largely confined to telecommunications achievements rather than contributing to broader economic productivity.
Montenegro’s action plan for 2025 and 2026 outlined 17 activities, but implementation has been inconsistent. Of the four activities set for completion in 2025, only one was fully executed. The remaining initiatives faced partial implementation or were categorized as ongoing efforts. This uneven progress raises concerns about administrative effectiveness.
The report indicates that while network availability has improved, there are significant challenges in coordinating efforts among ministries, agencies, local governments, and telecom operators to deliver digital services effectively. This coordination is increasingly vital as Montenegro seeks to enhance its EU accession prospects and overall economic competitiveness.
A major bottleneck identified is the slow adoption of IPv6 within state networks. Despite forming a national body to oversee this transition, no state bodies had implemented IPv6 by the end of 2025, against a target of 65 percent by 2026. This shortfall raises questions about public administration’s capacity to support advanced digital transformation.
The transition to IPv6 is crucial for enabling large-scale device connectivity and smart-city infrastructure. Concerns from the Ministry of Public Administration regarding security risks and technical limitations underscore the institutional challenges that Montenegro faces in its digital evolution.
The gap between robust connectivity and limited digital productivity is evident across various sectors. For instance, missed opportunities to encourage local governments to develop modern ICT solutions based on 5G capabilities were noted. Initiatives such as public competitions for innovative solutions have not been realized, hindering potential advancements in smart municipal services.
On a positive note, the WiFi4WB project aims to provide free public Wi-Fi in 24 municipalities by September 2026, enhancing local connectivity. However, basic connectivity alone does not equate to advanced digital services that can drive economic growth.
The cybersecurity landscape also presents challenges. Planned training for civil servants on 5G network security was not executed, raising concerns about increasing cyber risks as more sectors become interconnected through digital infrastructure. Effective cybersecurity measures are essential as public services and businesses become more reliant on digital systems.
Lack of transparency further complicates matters. The establishment of a geoportal for electromagnetic radiation measurements remains pending. Such a portal would allow citizens easy access to relevant data and foster public trust regarding 5G infrastructure deployment.
The financial execution of planned activities reveals deeper issues within Montenegro’s governance framework. Although €30,000 was allocated for selected initiatives in 2025 and 2026, these funds went unspent due to inadequate planning and coordination among institutions.
The report identifies frequent organizational changes, staff shortages, poor inter-agency coordination, and unclear responsibilities as key obstacles hindering effective governance. These challenges suggest that digital transformation is being treated as an administrative task rather than a central economic development priority.
This distinction is crucial for investors and businesses operating in Montenegro. While the telecommunications infrastructure can support modern services across sectors like tourism and logistics, slow administrative processes may prevent the economy from fully capitalizing on these advancements.
The tourism sector exemplifies this gap; Montenegro’s strategy increasingly relies on digital services for enhancing visitor experiences. However, without coordinated efforts from municipalities and private operators to develop these services, robust 5G coverage alone will not suffice.
Similarly, opportunities exist within ports and logistics due to Montenegro’s strategic location. Smart-port applications require collaboration among various stakeholders to leverage high-speed mobile infrastructure effectively.
The energy sector also stands to benefit from enhanced connectivity through smart grids and monitoring systems. However, it requires clearly defined use cases and investment in relevant technologies to ensure that 5G contributes meaningfully to its transformation.
The public sector’s productivity gains are critical as Montenegro navigates its EU accession process. Digitalization could streamline administrative procedures significantly; however, delays in implementing essential components like IPv6 and cybersecurity training hinder these efforts.
The report emphasizes that Montenegro must shift its focus from mere coverage metrics to service delivery metrics that reflect real progress in digital transformation. Key performance indicators should include online service accessibility, successful pilot programs in municipalities, operational IPv6 networks among state bodies, open datasets, completed cybersecurity training sessions, and utilization rates of 5G-enabled solutions.
This approach would provide a clearer picture of progress beyond just telecommunications coverage. Ultimately, while Montenegro has achieved substantial milestones in its 5G deployment, realizing its full potential will require concerted efforts towards improving digital services and governance structures that support sustainable economic growth.
