Karanovic & Partners
  July 15, 2016 - Serbia

EPCG Interested in Entering Montenegrin Telco Market

According to latest news reports, Elektroprivreda Crne Gore (EPCG) has shown significant interest in buying a majority stake of the Montenegrin branch of Telekom Srbija  m:tel – with rumours circulating about the initial talks between the two sides recently being held.

Looking from the perspective of current technological trends, such a move on behalf of EPCG may not come as such a surprise, since by positioning itself in the telecommunications sector, EPCG is making one of the most important moves en route to completing the all-around 'smart home' system of services. It should be noted that the two companies have been strategic partners from earlier, since EPCG has made it possible for m:tel to introduce sets of optical cables in certain parts of its network, meaning that they already enjoy a shared professional background that makes it easier for potential cooperation to be upgraded and further developed in the future.

However, it has also been reported that EPCG's decision makers have been developing a back-up plan of developing their own telecommunications network, in case the purchase of m:tel ultimately proves to be unsuccessful.

On the other hand, m:tel's executives have made it public that they are not allowed to comment on anything related to the story in question since the matter will be dealt with fully by their owners – Telekom Srbija. Nonetheless, the company's executives pointed out that m:tel currently presents a company that's on the rise, with significant potential for further growth, and that as such, it is currently interesting to a number of other investors as well.

It will be interesting to follow the development of this story, especially considering Telekom Srbija's overall situation and the ways in which it can affect all of its regional branches, as well as the regional telecommunications market in general.




Read full article at: https://www.karanovic-nikolic.com/knnews/Pages/2016/07/15/EPCG-Interested-in-Entering-Montenegrin-Telco-Market.aspx