Telecommunications 2024

TELECOMMUNICATIONS & e-COMMERCE

Jelena Jovanović

Zorana Milidrag

Dejan Đukić

Yanis Varoufakis

Zoran Perović

CHASING E-GDP GROWTH

While Western Europe maintains e-commerce dominance, Eastern Europe, including Serbia, presents growth opportunities that require concerted digitalisation and infrastructure development efforts to bridge existing disparities

The recently released European E-commerce Report 2023 provides insights into the landscape of B2C e-commerce turnover in Europe. It reveals Western Europe’s sustained dominance, commanding over 67% of the total turnover, while Southern Europe has steadily increased its share to 16%. This dominance is underscored by Western Europe’s leading E-GDP figure at 5.2%. Conversely, Eastern Europe, including Serbia, presents a growing digital economy, offering ample opportunities for e-commerce players to thrive and contribute to E-GDP growth. However, significant disparities persist in internet penetration and online shopping conduct across European countries. While nations like Iceland, Norway and Switzerland boast near-universal internet

access, Serbia lags behind with 84% internet penetration, impacting its online shopping landscape. Nonetheless, ongoing broadband internet infrastructure developments, particularly in less developed regions of Serbia, hold the promise of swift progress. Moreover, upcoming 5G network introduction is poised to further boost communications infrastructure, serving as a catalyst for the country’s digital transition.

Indeed, the evolution of e-commerce is heavily dependent on the readiness of businesses to offer e-services and the readiness of consumers to embrace online shopping, alongside broader digitalisation efforts. Varying metrics across Europe underscore the diversity of economic development and infrastructure investments, emphasising the need for robust procedures.

In an effort to bridge these gaps, particularly in the Western Balkans, the Digital Agenda for the Western Balkans 2021–2026 aims to align the countries of the region with the EU’s Digital Single Market,

THE TELECOMMUNICATIONS SECTOR IS INSTRUMENTAL IN ENHANCING SERVICE QUALITY, INTRODUCING INNOVATIONS AND DRIVING ECONOMIC GROWTH THROUGH IMPROVED CONNECTIVITY

AND COMMUNICATIONS INFRASTRUCTURE

thus propelling the region into a digital economy. This initiative promises to yield accelerated economic growth, increased job opportunities and improved service delivery, ultimately shaping both citizens’ purchasing power and the e-commerce landscape.

Digitalisation represents a cornerstone priority in the Western Balkans, with EU support driving economic growth. The Digital Agenda has galvanised efforts across the region, fostering the establishment of e-government portals and enhancing digital literacy among citizens that recognise it as the new standard for future generations. Economic operators stand to benefit from streamlined processes and reduced costs, contributing to overall economic progress.

Underpinning these advancements is a robust telecommunications sector, where both state and private enterprises play vital roles in improving service quality. Their collective efforts introduce innovative solutions that redefine work practices, business operations and entertainment experiences.

In essence, as we circle back to our initial starting point, Eastern Europe emerges as a burgeoning hub of digital innovation, offering fertile ground for the expansion of e-commerce and the elevation of E-GDP figures.

JELENA JOVANOVIĆ

Secretary of the Chamber of Commerce and Industry of Serbia’s Association of Electronic Communications and Information Society

BROADBAND INTERNET CONTRIBUTES TO NEW INVESTMENTS

All the services that we provide in an electronic format are conceived to provide entrepreneurs/ business owners with simpler and swifter access to documents issued by the CCIS on the basis of public authorisation

TDigital Single Market (DSM) creates new opportunities by eliminating differences between the online and offline worlds, breaking down barriers to cross-border internet activities.”

The Digital Single Market Strategy was adopted on 6th May 2015 and is one of the European Commission’s 10 policy priorities. It comprises three pillars, the first of which relates to improving access to digital goods and services, followed by the environment in which digital networks and services can prosper, and the digital aspect as a driver of growth aimed at maximising the growth potential of Europe’s digital economy.

How far has Serbia advanced in that process?

— Businesspeople have recognised priorities like improving cross-border e-commerce and electronic exchanges of business documents. On the other hand, it is necessary for there to be more information security education and more educational programmes to improve employees’ digital skills.

The Government of the Republic of Serbia recently announced plans to adopt a Law on Artificial Intelligence based on the EU model. In which ways has the CCIS been included to date in the adopting of the strategy for artificial intelligence and meeting the goals stipulated in action plans?

he EU recently passed a large raft of legislation aimed at regulating the digital single market: Digital Services Act (DSA), Digital Markets Act (DMA), AI Act, B2C rules etc. This prompted us to start this interview by asking the Secretary of the CCIS Association of Electronic Communications and Information Society, Jelena Jovanović, how aligned the country’s

legislative framework is with the EU’s Digital Single Market Strategy, and what business leaders have recognised as priorities.

“Digital technologies, and the internet in particular, are transforming our world, and the European Commission wants to prepare the European Single Market for the digital age – by transitioning from 28 national digital markets to one,” explains our interlocutor. “The

— Serbia adopted its first Strategy for the Development of Artificial Intelligence in 2019, covering the period from 2020 to 2025, becoming the first country to do so in Southeast Europe and the 26th worldwide. Given AI’s development over the previous year, it became essential to improve the strategy, which is why the development of a new one was launched and will cover the period up to 2030.

Together with its members, the CCIS is itself a member of the WorkINTERVIEW

ing Group for Implementation of the Artificial Intelligence Development Strategy, and we encourage development of an AI ecosystem in Serbia via our Centre for Digital Transformation (CDT), as well as by implementing a support programme for the implementation of AI-based digital business solutions.

On the basis of analysis of the current state of the IT sector ecosystem, especially the AI ecosystem, and the availability of AIbased software solutions, CDT made the strategic decision to establish a new support programme aimed at the IT community and dealing with the development of innovative AI-based software solutions. This programme aims to help SMEs operating in Serbia

WE ENCOURAGE

The project to develop broadband communication infrastructure in Serbia’s isolated rural areas is introducing high-speed internet to 700 rural communities and villages and will include almost 120,000 households and 700 schools, with 4,700 kilometres of fibreoptic cables installed.

According to World Bank analysis, every 10% increase in highspeed internet coverage on the territory of a country causes a 1.31.4% increase in gross domestic product. Considering that highspeed internet coverage in our country stands at 75%, and that the competent ministry plans for it to be 99%, we can expect a significant GDP increase of around 3.2-3.3%.

DEVELOPMENT OF AN AI ECOSYSTEM IN SERBIA, AS WELL AS IMPLEMENTING A SUPPORT PROGRAMME FOR THE

IMPLEMENTATION OF AI-BASED DIGITAL BUSINESS SOLUTIONS

implement business intelligence through the automation of business operations and the provision of support in the strategic, business decision-making and planning phases. This programme should ultimately contribute to increasing the efficiency, productivity, profitability and competitiveness of Serbian SMEs on the local market, but particularly on the international market.

High-quality internet signal coverage for all parts of Serbia is a prerequisite for automating processes and applying artificial intelligence. Do you think the extending of broadband internet coverage to less developed parts of Serbia will contribute to domestic and foreign investors redirecting their investments to these parts of the country?

ture tenants of the BIO4 campus are the faculties of Biology, Pharmaceuticals, Chemicals, Medicine, Agriculture, Technology and Metallurgy, as well as the Faculty of Sports and Physical Education, the Institute of Molecular Genetics and Genetic Engineering, the Institute for Multidisciplinary Research, the Institute for the Application of Nuclear Energy, the Institute for Medical research, the Institute for Biological Research, the Institute for Artificial Intelligence Research and Development, the Institute of Chemistry, Technology and Metallurgy, the Institute for Cardiovascular Diseases and the BioSense Institute.

BIO4 is actually a collaboration platform. The fact that its tenants will include seven university faculties, nine institutes, the research and development centres of major domestic and international companies, a business park for development and start-up communities testifies to how essential it is to connect science and the economy in order to achieve top results.

DIVIDE

Expanding broadband internet coverage to less developed parts of Serbia contributes to reducing the digital divide between rural and urban areas

Expanding broadband internet coverage to less developed parts of Serbia contributes to reducing the digital divide between rural and urban areas by providing citizens with access to all e-services, both those of the state and those of companies. It also enables companies to apply new technologies in their daily operations and thus increase productivity.

The Government of Serbia was previously acknowledged for its outstanding successes in the digital transformation domain, the development of the IT sector and the laying of the foundations of the BIO4 Campus. How are these efforts being supported by the CCIS?

— BIO4 comes from the four ‘bio’s: biomedicine, biotechnology, bioinformatics and biodiversity. The fu-

What has the CCIS done to make its services available to business leaders in an electronic format? — All the services that we provide in an electronic format are conceived to provide entrepreneurs/business owners with simpler and swifter access to documents issued by the CCIS on the basis of public authorisation. The CCIS e-Services portal enables requests for the issuance of documents to be carried out entirely electronically. Accessing formal assurances, confirmations and opinions requires just a few clicks. The same applies to the issuance or certification of import-export documents, and the CCIS is also an issuer of qualified electronic certificates.

We enable our members to access the Inno-Verse platform, which is fully AI-based, while businesses can also take advantage of BizChat CCIS, a virtual AI assistant that offers answers to numerous questions that are important for doing business.

ADVANTAGES

Businesspeople have recognised priorities like improving crossborder e-commerce and electronic exchanges of business documents SERVICES

All e-services we provide are conceived to provide business owners with simpler and swifter access to documents issued by the CCIS on the basis of public authorisation

ZORANA MILIDRAG

Co-Founder of the eCommerce Association of Serbia

When a company enters into digital operations, all its weaknesses and strengths are brought to the fore. That’s why the eCommerce Association of Serbia strives to provide its members with support, encouragement and a pathway to develop e-commerce. However, this isn’t a story in which retailers are the only actors. Far from it.

“Advancing e-commerce requires development on two sides: on the one side are retailers/merchants and all participants in the digital

OUR MAIN PROBLEM

IS ONE OF SIZE

Our market is very small, which is why it would be extremely important for us to open up to the region. This would bring increased competitiveness and create space for the entry of new players, but would also enable Serbian merchants to enter new markets in a digital format

If the customer fails to see the benefit of buying online compared to a physical outlet, they won’t even give you an opportunity, explains our interlocutor.

But trust requires much more than showing an opportunity. “It’s like a Swiss watch: the mechanism mustn’t fail in either a cheaper watch or one costing a million euros, but those offering some additional experience and value will be the ones everyone wants and trusts,” says Mildrag.

It is crucial to understand that the digital ecosystem is a complex mechanism of marketing, sales, logistics, procurement and analyt-

THE DIGITAL ECOSYSTEM IS A COMPLEX MECHANISM OF MARKETING, SALES, LOGISTICS, PROCUREMENT AND ANALYTICS, AND IF THE PROCESSES

ecosystem, while on the other side is the development of trust gained among customers,” says Zorana Milidrag, co-founder of the eCommerce Association of Serbia.

In order for the customer to have trust in the benefits of shopping online, it is essential that the other party provides a flawless experience.

ics, and if the processes aren’t improved and “lubricated” constantly, the mechanism starts to fail, explains our interviewee. “That’s why people dealing with e-commerce have to be creative problem solvers, i.e. prepared to constantly educate and reexamine themselves.”

You aren’t only constantly “open” and exposed, but all the shortcomings in the operations of a company also come to the fore when it enters into digital business, warns Milidrag. “That’s why it’s necessary to have experts who are ready to make serious decisions quickly and analytically, and thereby take responsibility in real time.”

How do the awards that the association has established contribute to this goal?

— I am very proud of the Hot Spot eCommerce Award that the eCommerce Association of Serbia is awarding for the third consecutive year, representing the votes of customers and renowned experts from the business world. The HSA represents a combining of the opinions of customers confirming the quality of a brand/company, i.e., the trust they’ve succeeded in building with customers, as well as the assessment of a jury that examines a brand/company’s business parameters and achievements. It thus not only encourages online retailers to improve their services and become recognised by customers and the community, but also everyone doing business digitally. I find it interesting to observe how participants have started exerting additional efforts to win votes and awards and

are thus simultaneously also working to generate the customer trust that is the key to success.

To what extent does the expansion of the eCommerce Association’s membership reflect this industry’s growth in Serbia?

— The eCommerce Association is oriented towards its goals of advancing the digital ecosystem in Serbia and the region, such that the benefits of the Association’s actions are recognised by both our members and the entire market. The ECS works to provide its members with additional benefits, but first and foremost with education, though our members are also aware that the entire market must be at a high level in order for consumers to have trust and confidence in this type of purchase. Apart from regular members, the ECS also has partners that have been with us since our inception and that understand the importance of the functioning of this kind of association. Alongside our partners, there’s also the ECS Management Board, which serves to raise the engagement of the eCommerce Association of Serbia to a higher level. We are all struggling for our common good together, and primarily for higher standards for the customer, which is all that’s possible in the digital world.

The EU recently adopted several important pieces of legislation (Digital Services Act, Digital Markets Act, Artificial Intelligence Act, Data Act, and Platform to Business Regulation) that regulate the operations of digital platforms as business entities and pave the way for the full development of a digital single market. What could Serbia gain by harmonising with Europe’s digital single market?

— Serbia strives to legislatively keep pace with the acts that are passed by the EU and we aren’t lagging behind the standard in that respect. Following numerous surveys conducted on our market, it is clear that the law isn’t a barrier to the development of e-commerce in Serbia. A problem arises when it comes to the market being closed to the European Single Market, which should actually be the essence of e-commerce (cross border sales), because, regardless of the harmonisation of some laws, we face difficulties in making sales, i.e. exports and imports. Some companies make sales abroad, but logistics procedures are more complicated and expensive, which leads to a lack of competitiveness. On the other hand, we also have great potential in opening up cross-border sales for the CEFTA markets and thus expanding the market and enabling

e-commerce to experience at least slightly more success than is provided by the domestic market. This isn’t yet possible due to customs procedures, but it is certainly a step closer to the European Single Market.

As an association, how would you rate the level of competition on the market and its openness to the entry of new players?

— The Serbian market is very small, which also represents one of the biggest barriers to development and investments in operations. E-commerce is one segment of our country’s trade and we must observe it as an integral part of the total trade in Serbia, so the competitors of an online store in Serbia aren’t only represented by other online stores, but rather also physical shops. Alongside this, ever-more people are following online competitors based beyond the borders of our country and are thereby informed regarding price ranges. New players, especially foreign ones, don’t see the potential of such a closed market. That’s why opening up to the region would be good when it comes to increasing competitiveness on the market and encouraging the entry of new players, but also for Serbian retailers to open up to the region in a much faster way than traditionally entering a new market.

ENCOURAGEMENT

The Hot Spot eCommerce Award encourages everyone doing business digitally to improve their services and become recognised by customers and the community

BARRIERS

Our problem is the market being closed to the European Single Market, which is contrary to the essence of e-commerce (cross border sales), as we face difficulties in making sales, i.e. exports and imports

SURVIVAL

The digital economy has brought us many opportunities, but has also accelerated all processes and raised expectations. Now companies either keep pace with such demands or disappear slowly

IDirector of the Serbian National Internet Domain Registry Foundation (RNIDS)

n the dynamic landscape of global business, the internet serves as the nexus connecting enterprises worldwide. However, in the midst of this digital interconnectedness, the significance of truly multilingual internet cannot be overstated. With approximately 6,500 living languages spoken worldwide, catering to diverse linguistic preferences is imperative for businesses that aim to

CORPORATE

UNIVERSAL ACCEPTANCE

Empowering Global Development and Digital Inclusion

face barriers to widespread adoption. Only 151 IDNs currently represent 37 languages and 23 scripts, a fraction of the linguistic diversity worldwide.

The recent Universal Acceptance (UA) Day 2024, hosted in Belgrade, underscored the pivotal role of UA in creating a truly multilingual and digitally inclusive internet. At the heart of UA lies the imperative to bridge the digital divide. For businesses operating in diverse markets, embracing UA is not just a matter of inclusivity, but rather a strategic imperative, as enterprises can ensure their digital presence resonates with local audiences, transcending linguistic barriers and fostering deeper engagement.

The Serbian National Internet Domain Registry Foundation (RNIDS) had the honour of hosting

UNIVERSAL ACCEPTANCE IS A FOUNDATIONAL REQUIREMENT FOR A TRULY MULTILINGUAL INTERNET, ONE IN WHICH USERS WORLDWIDE CAN NAVIGATE ENTIRELY IN LOCAL LANGUAGES

expand their global footprint. But how often do we encounter online content beyond English or our native tongue serving our local needs?

Consider the domain landscape, where English alphabet domains dominate. Despite efforts to promote Internationalised Domain Names (IDNs), local scripts

the keystone UA Day event, while Belgrade served as an exemplary host city, an intersection of cultural heritage and technological innovation. The event, organised globally by ICANN (Internet Corporation for Assigned Names and Numbers) and the volunteer UASG (Universal Acceptance Steering Group), brought together internet

experts from China, Armenia, Russia, Ghana, Pakistan, Thailand, India and Morocco, representatives from the European Union market, ICANN communities, UNESCO and other important international organisations. Speaking at the conference, experts shared their experiences and identified obstacles for IDNs to overcome and new generic top-level domains (new gTLDs) to reach their full potential.

But what does UA stand for and why is UA readiness still a work in progress?

Universal Acceptance is a foundational requirement for a truly multilingual internet, one in which users worldwide can navigate entirely in local languages. It is also the key to unlocking the potential of new gTLDs to foster competition, consumer choice and innovation in the domain name industry. In order to achieve Universal Acceptance, internet apps and systems must treat all TLDs in a consistent manner, including new gTLDs and internationalised TLDs. Specifically, they must accept, validate, store, process and display all domain names.

The issue of Universal Acceptance is largely a technical one. Although protocols enabling it have existed for years, they are rarely implemented. That’s why joint efforts among various stakeholders are needed to implement IDNs and new gTLDs in order to bridge the multilingual gap and for the benefits of a more inclusive internet to be enjoyed by all.

NEW CHAPTER FOR SERBIAN E-COMMERCE AND INTERNATIONAL DELIVERIES

Potential cooperation between Post of Serbia and leading global companies like UPS (United Parcel Service), USPS (United States Postal Service) and Amazon could mark a turning point for Serbia’s logistics sector, but also for local e-commerce

International postal service cooperation would have a deep impact on the way goods are shipped, distributed and delivered to end users. The strategic partnership with DHL, which has already been established in many countries and includes the potential for cooperation with Serbian postal service enterprise Post of Serbia, could also serve as a significant factor in facilitating and improving negotiations and operations with U.S. companies.

Advantages and Opportunities

Global reach, local presence: Integrating Post of Serbia services with those of UPS, USPS and Amazon would enable a global reach with a local presence, enabling Serbian products to more easily reach international markets, while at the same time making global products available to the local market faster and more efficiently.

Technological advances: This cooperation would also bring Post of Serbia significant technological improvements, with the use of the advanced technologies and logistics solutions that are already being applied by these global companies. This would encompass advances in parcel tracking and the automation of sorting processes, as well as improvements in delivery speed and efficiency.

E-commerce: Direct cooperation with Amazon would change the landscape of e-commerce in Serbia significantly, by providing local entrepreneurs with opportunities to easily sell their products at the global level and securing access to a wider range of products for domestic consumers.

Economic growth: This kind of cooperation could impact the country’s entire economy positively, encouraging exports, increasing employment levels and improving Serbia’s competitiveness as a trade partner.

Impact of the Post of Serbia-DHL Strategic Partnership

The strategic partnership between Post of Serbia and DHL could serve to ease negotiations with U.S. companies, for various reasons:

1. Reliability and Credibility:

Having a partnership with a renowned company like DHL enhances Post of Serbia’s reputation as a reliable partner from the perspective of UPS, USPS and Amazon.

2. Experience and Expertise: The experience gained through cooperation with DHL in areas like global logistics, supply chain management and e-commerce could be utilised to ensure cooperation with U.S. companies runs smoothly and efficiently.

3. Technological synergies: Tech solutions and innovations developed in partnership with

DHL could provide the basis for integration with UPS, USPS and Amazon systems, enabling fast and efficient exchanges of data and information.

4. Improved international credibility: This partnership could also serve to demonstrate Post of Serbia’s capabilities in managing complex international logistics and delivery operations, thereby increasing its capacity to represent a key player in the global context. In conclusion, potential cooperation between Post of Serbia and UPS, USPS and Amazon, supported by the strategic partnership with DHL, could transform both the local e-commerce market and international logistics. This kind of cooperation would not only optimise delivery and logistics processes within Serbia, but would also open new avenues for Serbian exports, providing a new boost to domestic entrepreneurs and the economy as a whole.

ARTICLE AUTHORED BY ZORAN ÐORĐEVIĆ Director of Public Enterprise Post

of Serbia

oday, the site internet-prodaja-guma.com, together with auto parts site prodajadelova. rs, comprises the e-commerce platform within the framework of the Inspira Group, which is also a leader in the e-advertising niche. Milenko Jarić has been with the company for seven years and today works as product manager, together with his team, on improving the customer experience in online tyre sales.

TTyres are easiest for courier services

In the first few years after its establishment, IPG was among the rare e-commerce portals in the country. Customers weren’t accustomed to buying anything online, particularly tyres. But it is now evident that tyres are ideal for this form of commerce – the product can be tossed around and won’t be damaged in transport.

Another important factor in e-commerce is logistics; in the previous period, express postal services had only just begun being directed towards the B2C sector. Online retail sales of any product wasn’t possible without an importer and wholesaler, who are important factors in the e-commerce chain.

Nevertheless, the most important element was the readiness for changes and technological advancements, which in our case played an important role in the dig-

IPG IS A PARTICIPANT IN THE DIGITAL TRANSFORMATION OF CONSUMER HABITS

Back in 2009, Internet Prodaja Guma (IPG) was the first online sales platform for tyres in Serbia. When it joined the Infostud Group in 2011, the site became part of Serbia’s most renowned digital company

MILENKO JARIĆ

Product Manager, IPG

italisation and automation of work, but also the complete e-commerce ecosystem.

All of us spreading awareness of e-commerce is perhaps the most important factor in creating awareness among users and in setting expectations, and in helping us to now strive to be a step ahead of the wishes of consumers.

Digital sales, analogue data processing

IPG is a seasonal business that sells a product that even has its use regulated by law, and the biggest leap in sales is always recorded during the winter season. Looking back to 2009, the first orders received by the system appeared unreal. However, observing the process of handling orders we can say that it was almost completely analogue, despite the business being digital.

The number of orders grew gradually over time, leading to a need to change something in the handling process. The first time we received 100 orders in a single day during the winter season served as a kind of stress test that showed us our limits. Something had to be changed, so we started slowly revising each process one at a time. This is how we ended up with a fully autonomous and automated system that processes twothirds of the orders independently and submits the ordered goods for shipping.

The previous year saw the setting of an absolute record with over 600 orders re-

ceived in a single day. The system that we established proved successful in eliminating almost all human labour and, most importantly, saved both the time and energy of people in the team, enabling them to deal with other sales activities.

Just like the automation system that we’ve integrated, our experience suggests that AI should find applications specifically in increasing efficiency through the replacing of repetitive human work that requires little knowhow and is conducted according to a template.

The average tyre consumer in Serbia

Our statistics show that the IPG website sells, on average, 70% budget tyres, 20% “value” tyres and around 10% premium tyres, which provides a clear picture of our average website user, but also of the market generally.

When asked why consumers should buy tyres online, we respond as follows:

•Choice of delivery location (home or tyre shop)

•Complementary Atlas roadside assistance package

•Discount on spare parts

•Discount on technical service,

•Discounts on trye services at selected tyre shops.

And our call centre is still staffed by human beings ��

TECHNOLOGY IN THE SERVICE OF GOOD

A1 Serbia is part of the A1 Group, a leader in digital services and communications solutions in Southeast Europe that has been present on the Serbian market for 17 years. Having launched its operations in Serbia as the largest greenfield investment in the country, it has to date invested more than a billion euros

Continuous investment in network infrastructure has resulted in significant progress in terms of improving network quality, as confirmed by numerous certificates awarded by independent institutions. With the intensification of the construction of its optical network, aimed at also providing users with fixed services, this international operator is fully prepared for the arrival of 5G technology.

At the same time, according to the reports of Ratel, Serbia’s Regulatory Authority for Electronic Communications

AS

AND

and Postal Services, A1 Serbia is ranked number one for the third consecutive year when it comes to users wanting to transfer their number to another network.

Providing access to leading streaming services like Netflix, as well as other services that extend beyond the standard company framework, continues to strengthen the A1 offer in the entertainment segment, and enables users to access a wide range of relevant personalised content. Netflix is also the first step towards creating the unique offer of high-quality entertainment content that

will form the backbone of this operator’s future offer in the fibre-optic internet and television segment.

As an internet and digital solutions provider, A1 provides its users with a full-coverage and secure space in the virtual world, via various services for cybersecurity, advanced connectivity, data storage and machine-to-machine communication. Along with launching its modern solutions for business users, and in line with its strategic commitment to develop relevant services and educate the public on information security, the company opened the first cybersecurity escape room in Belgrade, which was visited by over 4,000 people, including users of all ages and representatives of companies.

In the CSR segment, A1 Serbia has been working through the Bezbedni Klinci [Safe Kids] project over the past five years to help educate a new generation of parents and contribute to improving their digital literacy. Over the course of last year, digital literacy education was received by more than 9,000 school children, parents and teachers.

Applying advanced ESG criteria in its operations, A1 Serbia invests continuously in achieving climate neutrality by increasing the contribution of solar energy in supplying its base station network, improving the energy efficiency of its operations and respecting circular economy principles. A1 Serbia has accordingly so far installed close to 6,000 solar panels on its base stations, generating enough energy to power as many as 750 households.

Apart from investing in prevention, A1 Serbia also considers it essential to address preexisting climate change risks. With the “Niklo kao ja” [Sprouted like me] project, A1 works in collaboration with the Faculty of Forestry and local communities to create rain gardens nationwide across Serbia that are aimed at permanently preventing floods and landslides in urban areas.

COMMUNICATION, COLLABORATION, COOPERATION

SOX is a good example of a successful internet start-up that’s recognised by global internet giants and local and regional ICT companies for its quality ZORAN

emphasises our interlocutor, who is a co-founder and current CEO of Serbian Open eXchange.

For nearly 15 years, SOX has existed for all those who live for the Internet and with the Internet. Has your company and your business changed in the same way the global network has changed during the previous years?

— SOX is a collaborative effort in its essence. It is a good example of cooperation of ICT companies, supporting a startup company, but also good example of a Serbian company internationally recognized by Internet giants. dr Nenad Krajnović, and myself are founders of the company, but the success was in ability to promote joint efforts as stipulated in the Title of this article! Customer needs are in focus of all our activities, and a guideline which is a moving target. Our experience and knowledge is built in every business, technology, and organizational aspect of SOX, supported by our former, current employees, and contractors. Serbian legal framework categorized SOX as critical ICT infrastructure, and as such we have additional duties, goals, and reports. Availability and security are our main concerns.

We at SOX are fully devoted to increase quality, availability, and performance of entire Serbian Internet, and not just one single network! Adapting to changes, and adopting changes are essential in SOX pivotal activities.

It is often noted that SOX is a distinct B2B platform. For whom is it intended and what services do you offer?

We are critical ICT infrastructure company in Serbia, and we provide only bespoke solutions to very specific, and very large ICT companies. We go further, and deeper in availability, security and performance of Internet services in Serbia, and South East Europe,”

— SOX is a niche market player in ICT market of wider SEE region, but our niche is rather complicated, important, and financially demanding, giving us opportunity to handle requests far above, and beyond services offered by other operators, enabling SOX to be not a competitor, but an enabler to other

companies. SOX provides IP Peering, DDoS protection, Advanced analytics, VLAN between Datacentres, using carrier grade equipment produced by Juniper, Cisco, Dell, HP, and others. Maybe the most important ingredient of SOX’s success is the knowledge of founders, and partners EURO-IX, RIPE, DNS-OARC, RNIDS, Shadowserver, Team-Cymru, PCH, incorporated in all aspects of SOX existence.

Over the past few years, we have witnessed an extremely intense development of service digitalisation. What is your role in this, apart from providing strong support to your clients?

— SOX is first and foremost, an infrastructure, and as such it has to be stable, scalable, and open. Fast to deploy, on cutting edge technology.

SOX is one of the first users of National, state Datacentre, and provider of services to many business customers, and public companies.

Does the existing ICT development strategy enable optimal use of the sector’s potential? And is enough work simultaneously being done to develop digital infrastructure?

— We all witness fast and tectonic changes in ICT market in Serbia, and we are inclined to think SOX gave significant contribution in positive development of the market, supporting different network deployment projects, and helped improve stability, security, and performance of the whole Serbian ICT landscape.

Investment in the SOX company are already above 3 million EUROs, but our backbone is one of the biggest in Serbia, and very important in SEE region.

Maybe the biggest investment is the one made in intangible assets. Our commitment, our energy, knowledge, experience, and laser sharp focus, are our secret ingredients…

Timeline of connecting the biggest SOX customers

Users of SOX services

ICT companies: Telekom Srbija, CETIN (Yettel), A1, SBB, Orion, Sattrakt, BeotelNET, NINET, Univerzitet u Nišu, DCT-Državni Datacentar, JKP Informatika Novi Sad, Mainstream, mCloud, Comtrade, Unicom-Telecom, NETOPS (www.unlimited.rs), SoftNET, Stelkom, Inspira (Infostud), Gama Electronics (www.beograd.com), RTS, Pošta Srbije, SpaceAdmins, ZelenDATA-Vršac, RNIDS, Supernova, Ingram Micro.

SOX partners

CDNs: Meta, NETFLIX, Valve (Steam), Google, AKAMAI, AWS, CDN77, CloudFlare, G-CORE, EDGIO (Limelight), PCH, M247

Global ROOT-DNS SYSTEM operators: ICANN, Verisign, NETNOD, ISC, RIPE, NASA, University of Maryland.

Tier-1 ISPs: Cogent, Hurricane Electric, Arelion, Colt, Voxility.

Annual income Internet tra c

Hosted in SOX network

Internet quality measurement systems: RATEL Nettest, Ookla Speedtest, NPERF, Librespeed, Meter.net, Fireprobe, Openspeedtest, RIPE Atlas Anchor, RIPE RIS, deSEC, CodeBGP, BGP.tools, MLABS, DNSPerf, ARK CAIDA, AS112, RouteViews, Catchpoint. 934K€

LINUX mirrors: Ubuntu, Rocky, OpenBSD, Alma, Arch, CentOS, Debian, EPEL, Fedora, Gentoo, Kali, Manjaro, Mint, openSUSE, Parrot, Raspbian, Slackware.

2014. 2017. 2023. 2020.

2011. 2014. 2017. 2023. 2020.

2011. 2014. 2017. 2023. 2020.

Broj korisnika

CORPORATE

INSPIRING AND INNOVATIVE PARTNER

Unicom Telecom is a systems integrator that focuses on developing solutions and services. This is a company that nurtures a culture of innovation and invests in its employees’ continuous development

Decades of experience and a proven track record across diverse industries have honed our ability to adapt swiftly. Understanding and addressing the specific needs of each client is paramount to our approach, because they can count on us as trusted partners ~ says Aleksandar Šarović.

Your company is a leading systems integrator in Serbia. What constitutes your service portfolio?

— We have about 50 qualified experts who are dedicated to quality and customer satisfaction, combining youth and experience. Unicom Telecom is a partner with a service portfolio that spans networks, security, digital transformations and advanced technological solutions. We provide enterprise and in-provider solutions in the network segment, ensuring stability and efficiency. Our expertise extends to digital transformations, utilising advanced technologies like AI and machine learning. We don’t only implement, but also develop our own solutions like the Hawkeye system, UniTF, digital and qualified signature, and innovative automations in Wi-Fi network solutions. Moreover,

our dedication to quality and security is reflected in our comprehensive cybersecurity services.

We stand out not only for our technological expertise, but also for our commitment to continuously improve our employees’ skills and obtain a wide range of certificates that are essential for developing various customised vendor solutions. In essence, Unicom Telecom is not just a systems integrator - we are a partner that inspires, innovates and ensures that your business infrastructure stays a step ahead.

You aren’t advocates of one-sizefits-all solutions, because you provide services that meet your customers’ specific, individual

needs. Would this even be possible without decades of experience and successfully executed projects across various fields? — Absolutely not. We firmly believe in the power of customisation tailored to our client’s unique requirements. Decades of experience and a proven track record across diverse industries have honed our ability to adapt swiftly. Understanding and addressing the specific needs of each client is paramount to our approach. This agility allows us to craft innovative, efficient solutions that not only meet immediate needs, but also anticipate future challenges. Our expertise in technology and business processes, coupled with a robust portfolio of successful projects, underscores our commitment to delivering personalised services that yield tangible results. Clients can count on us as trusted partners dedicated to realising their business objectives. Furthermore, our commitment to excellence is underscored by our strategic partnerships with leading global vendors like Juniper, Cisco, Oracle, IBM, Radware and many others. These partnerships enable us to leverage technologies and solutions, ensuring that we can address our clients’ needs efficiently.

Digitisation and the introduction of digital services have massively reduced the numbers of citi-

OUR DIGITAL

SIGNATURE SOLUTION

ENABLES USERS OF TELECOMMUNICATIONS SERVICES TO SIGN CONTRACTS SIMPLY AND EFFICIENTLY, REDUCING THE NUMBER OF REQUIRED SIGNATURES

zens visiting counters in recent years. Serbia is achieving great results in this field, in both the public and state sectors. — Digitisation has indeed changed the way citizens conduct their daily tasks. Over recent years, the implementation of digital services has resulted in a significant reduction in the number of visits to counters by a factor of several million. Serbia has achieved impressive results in this regard, both in the public and state sectors, and this transformation has not only changed the way citizens interact with various institutions, but has also improved service delivery efficiency and transparency. Digitisation has enabled faster access to information, streamlined processes, reduced bureaucracy and contributed to a better citizen experience. Serbia continues to progress in this domain, implementing new technological innovations and adapting to the needs of its citizens. This initiative represents a crucial step towards modernising society and creating a digitally-oriented community that is open to the future.

You recently delivered a solution to one telecommunications company in Serbia that enables the paperless signing of contracts and other documentation. What are the advantages of this approach to doing business?

— It marks a significant shift in the way contracts are signed in Serbia. As pioneers in introducing paperless contract and documentation signing, we’ve set new standards in the industry. Our digital signature solution enables users of telecommunications services to sign contracts simply and efficiently, reducing the number of required signatures and concluding agreement faster and easier.

Beyond revolutionising the speed of contract execution, this innovation also brings substantial savings on paper. Instead of piles of paper documentation, users can now complete all formalities in a digital format, not only easing their

experience, but also representing a significant stride in terms of preserving the environment.

The project that we’ve implemented isn’t merely technologically advanced, but rather also holds deeper ecological significance. By raising awareness of the importance of preserving green spaces, this project stands as a prime example of how digital transformation can benefit not just businesses, but also the planet. With our solutions, we’ve enabled our client to emerge as a leader of innovation in their industry, setting benchmarks for other companies in Serbia.

OUR COMMITMENT TO EXCELLENCE IS UNDERSCORED BY OUR STRATEGIC PARTNERSHIPS WITH LEADING GLOBAL VENDORS LIKE JUNIPER, CISCO, ORACLE, IBM, RADWARE AND MANY OTHERS

Implementation of a new automated system for import, export and customs decisions for the Customs Administration is currently underway. Unicom Telecom is part of the consortium working on the new import application. What will this bring us?

— This development will help Serbia in many aspects and it is our pleasure to be part of this major project. The implementation of this innovative automated system marks a pivotal juncture in our import processes, propelling us forward with efficiency, while minimising errors. This milestone not only ensures that our operations run smoother, but also demonstrates Serbia’s strong commitment to matching European Union standards. Inspired by EU customs systems, we carefully adjusted our approach to protect Serbia’s unique business needs and priorities. It’s truly an honour to lead this transformative initiative, one that holds profound implications for our nation’s prosperity and integration into the global economy.

BY YANIS VAROUFAKIS

OPINION

BIG TECH CANNOT BE REGULATED

Big Tech is so profoundly different from other industries that it cannot be regulated like the trusts, cartels, or conglomerates of the past. After all, if regulators tried to break up Facebook or TikTok, they would be confronted by enraged users for whom the universal nature of these platforms is the reason they use them

Modern societies have had to deal with exorbitant market power for more than a century. But is Big Tech’s power over us novel? Is Google, Amazon, or Meta inherently different from Standard Oil in the 1920s, IBM in the 1970s, or Walmart more recently?

If not, then perhaps we can regulate Big Tech by means of legislation harking back to the United States’ 1890 Sherman Antitrust Act. Lina Khan, the chairperson of the US Federal Trade Commission, is valiantly trying to do just that. Sadly, it won’t work. Big Tech is so profoundly different that it cannot be regulated like any of

the trusts, cartels, or conglomerates we have hitherto encountered.

Adam Smith’s portrait of capitalism as a market town where family-run butcheries, bakeries, and breweries promote the public interest through open-ended, morally grounded competition bears no resemblance to modern economies. Virtually every industry –from railways, energy, and telecommunications to soap powder, cars, and pharmaceuticals – is a cartel of gargantuan conglomerates whose stranglehold is only occasionally loosened when politicians muster the will to enact and enforce antitrust legislation, even at times using it to break them up.

Why can’t the same be done to Big Tech? What makes it unique?

Antitrust regulation was originally designed to prevent price gouging by megafirms that restricted supply until the price hit a level maximising their monopoly profit, at the expense of consumers and workers (whose employment falls alongside output). Obviously, this is irrelevant in the case of Big Tech’s services, which

are free of charge and free of supply constraints.

When US President Theodore Roosevelt led the charge to break up Standard Oil, it was technically simple, even if politically courageous. But how does one break up Amazon, Facebook, Paypal, or, indeed, Airbnb, Tesla, or Starlink? If the government tried, it would be confronted by enraged users for whom the universal nature of these platforms is the reason they use them.

Free services mean that users are not the customers; that role is reserved for the businesses that need to use Big Tech’s algorithms to reach the services’ users. When Amazon or Facebook charges sellers an arm and a leg for the privilege (thus extracting from them a form of cloud rent), regulators face an impossible political conundrum: they must sail against the winds of public opinion (the millions of users whom Big Tech enlists to its cause) to protect capitalists from these techno-feudal lords, or cloudalists, as I call them in my recent book Technofeudalism: What Killed Capitalism. That’s a huge ask. Moreover, it is not even the main reason behind Big Tech’s exceptional power.

Big Tech must not be confused with High Tech. Industrial robot manufacturers such as ABB, Kuka, Kawasaki, and Yaskawa produce splendid technological miracles but do not have Big Tech’s power over us. In the 1960s and 1970s, IBM’s computers had a stranglehold over government and the private sector, supplying them cutting-edge (for the time) machines. AT&T too had a virtual monopoly over telephone services, until it was broken up in 1984. But neither IBM nor AT&T had anything like Big Tech’s control over us.

One reason is that internet-based platforms like WhatsApp and TikTok benefit from massive network effects: with every new user they attract, the services they offer become more valuable to ex-

isting users. AT&T’s network effects depended on charging more for calls to other telecom companies’ customers – an advantage that the regulator easily eliminated by banning carriers from charging more for calls to other companies’ customers.

But how can regulators cancel X’s or Facebook’s network effects? Interoperability would mean enabling you to take all your posts, photos, videos, friends, and followers from X and Facebook seamlessly to another platform (say, Mastodon) – a virtually impossible technical feat, unlike the simple task of letting AT&T customers call Verizon customers at no extra charge.

Even the difficulty of imposing interoperability is not Big Tech’s greatest source of power. In the early 1970s, IBM monopolised the means of computation in a manner that differed little from Standard Oil’s energy dominance or Detroit’s near-monopoly of private transportation.

What made Big Tech different from IBM was a stupendous singularity. No, its machines did not become sentient, Terminator-style. They did something more interesting: they transformed themselves, with the help of snazzy algorithms, from produced means of computation to produced means of behavioural modification.

In our capacity as consumers, Big Tech’s cloud capital (such as Alexa, Siri, Google Assistant) trains us to train it to offer us good recommendations of what to buy. Once cloud capital has our trust, it sells the stuff it selects for us directly to us, bypassing all markets.

Cloud capital’s owners, the cloudalists, charge these vassal producers cloud rents while we, the users, work for free – with every scroll, like, share, or review – to replenish their cloud capital. As for the proletarians in the factories and warehouses, they, too, are hooked into the same cloud capital, with hand-held or wrist-mount-

ed devices that drive them, like robots, to work faster under the algorithm’s watchful eye.

Under techno-feudalism, regulators can do little for us, because we have forfeited full ownership of our minds. Every proletarian is turning into a cloud-prole during

UNDER TECHNO-FEUDALISM, REGULATORS CAN DO LITTLE FOR US, BECAUSE WE HAVE FORFEITED FULL OWNERSHIP OF OUR MINDS. EVERY PROLETARIAN IS TURNING INTO A CLOUD-PROLE DURING

WORKING HOURS AND INTO A CLOUDSERF THE REST OF THE TIME

working hours and into a cloudserf the rest of the time. Every self-employed struggler mutates into a cloud-vassal and a cloudserf. While private capital strips all physical assets around us, cloud capital goes about the business of stripping our mental assets.

So, what must we do? To own our minds individually, we must own cloud capital collectively. It’s the only way we can turn cloud capital from a produced means of behavioural modification into a produced means of human collaboration and emancipation. It may sound pie-in-the-sky, but it is less utopian than putting our hopes in government regulation of Big Tech.

E-COMMERCE POPULARITY GROWING THANKS TO AI AND

CHATBOTS

The 2023 E-Commerce Report showed that the previous year was one of rationalisation and stagnation in online operations, and that we are awaited this year by important developments in the use of advanced technologies, such as artificial intelligence and chatbots in online retail. These trends hint at a new development direction and an ever-greater emphasis on adapting the offer to the individual needs of customers and improving the user experience.

Some categories continue to be among the most popular –such as electronics with 33%, fashion with 25% and home and garden products with 22% -- and it is an interesting fact that although domestic shopping remains dominant, the share of purchases from abroad has increased from 24 to 30 per cent since 2022. Mobile devices play a leading role in the shopping process, given that as many as 70% of offers searched and 58% of total revenue is generated via smartphones, showing the constant adaptation of technology and online platforms to the needs of modern consumers.

TELFOR REGISTRATION UNDERWAY

This year’s 32nd Telecommunications Forum, TELFOR, representing an international gathering of experts in the telecommunications and IT fields, will take place on 26th and 27th November at Belgrade’s Crowne Plaza Hotel. As in previous years, participants will mainly include telecommunications engineers, economists, lawyers, managers, operators and other experts who will consider all relevant technical, development, regulatory and economic issues related to telecommunications, the production of equipment, services and system functionality.

This event’s significance among telecommunications professionals grows year on year, with the average TELFOR hosting around 2,000 visitors and accepting between 300 and 500 works with 700 to 900 authors and co-authors.

Global giants like Agilent, Alcatel, Cisco, Ericsson, HP, Huawei, IBM, Intracom, Juniper, Microsoft, Motorola, Rohde &

SERBIA CALLS 5G NETWORK AUCTION IN 2024

Almost the entire territory of Serbia will have 5G network coverage by 2027, while the state is set to allocate additional 5G frequency bands at the end of this year. Serbia’s 5G network auction will be called later this year, with a slight delay due to the lack of regulations governing electronic communications, but also due to the existing 4G network having met the needs of users. The plan is for the entire country to have 5G network coverage by the time of the staging of the 2027 EXPO, which should enable the use of autonomous vehicles within the scope of this international exhibition.

“That requires extremely good 5G network coverage and sensors. And then a vehicle can steer itself on the basis of artificial intelligence and communication with sensors via 5G. The generations to come, in about 15 years, will definitely view steering wheel control and gear changing as an old-fashioned way of driving, and they won’t even require a driving licence,” says Telekom Srbija CEO Vladimir Lučić.

Schwarz, Siemens and others have also had their own TELFOR presentations, usually made together with local partners, as well as around 50 domestic and international donor organisations and participants.

SERBIAN SMART CITIES ROAD MAP PROJECT LAUNCHED

The city of Kragujevac hosted the launch of the project entitled A Journey to a Smarter Future: Establishing Smarter and More Sustainable Communities in Serbia, which is being organised by the Nordic Business Alliance, in cooperation with the Serbian embassies of Denmark, Finland, Norway and Sweden. A conference and two workshops presented solutions that make cities “smarter” in terms of infrastructure, utility services and the natural environment, as well as presenting the role of innovation and business in this process. Local project partners include the National Alliance for Local Economic Development (NALED) and the Standing Conference of Towns and Municipalities (SCTM), while support is also being provided by the Ministry of Information and Telecommunications and the Ministry of Public Administration and Local Self-Government.

Kragujevac was selected for the launch of the project due to it being the home of Serbia’s State Data Centre and one of the cities transformed from a technological development backwater into the Serbian Silicon Valley thanks to the state’s investments to date in digital transformation and industrialisation.

TELEKOM SRBIJA GROUP OFFICIALLY PENETRATES GERMAN MARKET

Company MTEL Germany provides mobile telephone (prepaid and postpaid) and television services to users at its newly opened points of sale. MTEL users receive access to a mobile internet highway that offers high-speed data transfers and has a sufficient capacity to handle digital daily life. Thanks to the continuous expansion of its network, Vodafone’s LTE network is available to more than 99% of people. The carefully created offer for users who hail from our region but live and work in Germany is characterised by the German quality to which they are accustomed, while it also provides numerous benefits that bring better connections with their homeland to their homes and daily lives.

In the domain of mobile telephony, MTEL Germany users won’t need to change their existing number, while conversa-

SERBIAN ICT SECTOR EXPORTS CONTINUE TO RISE

The National Bank of Serbia, Serbia’s central bank, has published data on exports of ICT sector services for the first two months of 2024, with the main assessment being that exports are continuing to rise intensively, which marks an excellent result given that this sector also experienced growth during the previous year. Exports were up 22% compared to the same period of last year and had a total value of 609 million euros. This compares to the total value of exports of ICT services for 2015 that stood at 611 million euros, or slightly more than the total for the first two months of this year.

The ICT sector is among Serbia’s fastest growing economic branches and is achieving a significant surplus in the export of services, which for the first two months of this year amounted to 494 million euros, representing growth of 20% compared to the same period of last year. The Serbian state is continuing to support the country’s economy, talents and experts, as well as the intensive development of the ICT sector.

tions with relatives and friends in MTEL networks in Germany, Switzerland, Austria, Bosnia and Herzegovina, Montenegro and North Macedonia, as well as in Serbia’s mts network, will be free of charge within a selected package for those who become part of the unique MTEL zone.