Bosnia’s Internet Problem Is Bigger Than Slow Speeds: 3 Telecom Empires, Weak Competition, No 5G

Bosnia and Herzegovina's internet situation has long been a matter of frustration, with slow speeds and inconsistent coverage being the norm. This is not simply due to the country's smaller size or technological limitations, but also because of its telecommunications market structure. The market is composed of three established telecom ecosystems: BH Telecom, m:tel, and HT Eronet.

While on paper, this should create healthy competition, in practice, these operators often maintain their traditional territories and seem content with the status quo.

Each of these operators has historically dominated specific regions based on ethnic composition. BH Telecom is strongest in Bosniak-majority areas of the Federation of Bosnia and Herzegovina, HT Eronet has a stronghold in Croat-majority regions, and m:tel dominates Republika Srpska. This historical and political division has led to a market that, while national on paper, often behaves like three separate zones.

The situation is particularly concerning in Republika Srpska, where m:tel is controlled by Telekom Srbija, a Serbian telecommunications company. This control raises questions about the independence and autonomy of Bosnia's telecommunications infrastructure. The competition authorities have approved many of these transactions, but the real question is whether these changes have led to better prices, rural coverage, upgrades, and customer freedom. Or have they merely made it harder for competitors to challenge the dominant provider?

Bosnia joined the 4G era in 2019, a significant delay considering 4G was not new technology by then. Other developed markets were already testing and deploying 5G years before Bosnia celebrated its 4G rollout. This delay is not due to a lack of infrastructure or customer demand, but rather the nature of Bosnia's telecommunications market.