Serbs don’t need the broadband internet

by Viktor on April 18, 2007

At least that’s what we can conclude out from the press conference given by Dragana Curcic of Ministry for capital investments couple of days ago. (via Radionica, English short news here).
According to her, we are ahead of Albania when it comes to broadband internet, but behind, well, everybody else in Europe. Why is it like that? Here’s what ms Curcic says:

The reason for not using the internet enough is definately not the price because [in a survey they made] only 9,6 percent of households considers the price of broadband net too high. Most of the households – around 44 percent – say they don’t want the broadband net, don’t need it or don’t know how to use it.

That’s it then, you would say – it’s not the goverment’s fault, the citizens are simply too stupid. Well, before you jump to any such conclusion… let’s look at some of the things ms Curcic forgot to mention:

The average price of a broadband net in Serbia is about 30 EUR/month… for a 512kb flat rate (that’s what i pay, approx).

Now, in France, for that price you get: 20Mb ADSL + one phone line, free phone calls to all stable phones in the country plus to 40 other countries, plus 40 free TV channels – this is what Blogowski says he gets in his rant upon hearing the news.

Average sallary per month in Serbia – 250, 300 EUR1
Average sallary in France – well, you do the math.

Now, what was that again about the cheap internet in Serbia?

Of course, since nobody has the internet, nobody is aware that internet is actually very expensive in Serbia. And Blogowski can’t let anybody know about this over the phone because Serbia is not one of the countries he can call for free.

Hmmm… all the clues seem to be leading directly to one shady organization.

PS Speaking of bad service providers, stay away from Media Temple ISP

1 my sallary is of course much higher because i am paid by the CIA, the Jews, Vatican, NGOs, Cvijus sends me his hard earned money from working as a shaner abroad and Bganon works for the DB so he chips in with a couple of grands every month too

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{ 8 comments… read them below or add one }

Ian Cresswell April 18, 2007 at 7:45 pm

French broadband services are amazing though! Certainly better than in the UK. We are only just starting to get tv services offered down the phone and the fastest you can get is 10Mb on cable. Most were on 1 to 2Mb until the last 6 months with ISP’s offering free upgrades to 8Mb. Cost is anywhere between 15 to 30 euro and tends to include free calls to landlines. There is lots of price competition too. Mine dropped in price by a third 2 months ago. I get 8Mb unlimited downloads, free offpeak landline calls, plus 40 odd tv channels and on demand streaming of BBC and Channel 4 for £17.99. Approx 30 euros.

Here are some figures across europe

http://www.websiteoptimization.com/bw/0609/

What is the Serbian infrastructure like? All copper wire presumably.

Estavisti April 19, 2007 at 12:38 am

“my sallary is of course much higher because i am paid by the CIA, the Jews, Vatican, NGOs, Cvijus sends me his hard earned money from working as a shaner abroad and Bganon works for the DB so he chips in with a couple of grands every month too”

хахаха, царе :)

Ian: Mostly standard phone lines, but cable is quite widespread too, at least in the towns and cities. Regarding the UK, I read in the FT the other day that some report aims for the UK to have widespread 24 Mb broadband by 2012, while Deutsche Telekom is introducing 50 Mb broadband in 50 cities NEXT YEAR. Probably very cheap too, knowing how pointlessly expensive everything is here :(

As for Serbia, I think Telekom Srbija’s monopoly needs to go, now. It formally ended quite a while ago, but for some reason (hint: lobbying by a certain telecoms company) it’s still in place for all intents and purposes. Serbia is falling further and further behind in this field, and it’s so frustrating because there’s no need for it to be happening.

bganon April 19, 2007 at 6:16 pm

Yes I agree – particularly with the last comment. I particularly like flashing my DB id at concerts. Its the best chance of a front row seat – and from that seat I can spy upon the audience as well. Let me know if you are running out of funds Viktor I have a few envelopes stuffed with cash lying around with nothing to do…

But seriously its probably all been said before. This government’s IT (and the previous one – the one before that doesnt count as they didnt even try) strategy has been very poor. So disapointed at the lack of understanding shown by a lot of middle aged politicians who barely understand how to use the internet let alone understand the significance of computers in todays age. Not that the former is necessarily a big problem – middle aged politicians everywhere struggle with new technology but the smart ones recognise the use of the new technology rather than grimly try to hold on to a bygone era that doesnt exist anymore (that is a reference to the dear Prime Minister).

I remember when VAT was introduced to Serbia in Djindjic’s time. Whether they were thinking that changes could be applied later or whether they were just rubbing their hands at filling the state budget the fact is that they did not consider making exemptions or reductions in the level of VAT with regard to the IT industry, with regard to saving in foreign currency or on other forms of investment. This and this kind of conservative thinking has badly affected the investment climate. Do you guys know its easier, slightly cheaper and better (more information available) to invest on the Banja Luka stock exchange than it is to invest in Belgrades BELEX?!

I remember within a year after VAT was brought in a petition was going round the internet pressing the government to reduce the price of home computers through reduction of VAT. I’m afraid to say that although you would think that DS and G17 types would be exactly the kind of people that would support such a move the move found no support from the political parties. No response – stupid because those who signed the petition are likely politically active and therefore likely to vote, stupid because it would help stimulate a neglected area of the economy.

Yes cable is widespread these days in the cities although service isnt what it should be as the main cable operator is acting in more of a monopolistic way than Telekom Srbija. I should also add that TS is the best bet if you live in Serbia and have or want to own a 3rd generation phone as well. There have been no end of problems with Mobtel/Telenor as Telenor havent bothered investing in new software. Its fascinating watching these companies sit back and become lazy. They better watch themselves because when it comes to consumerism I always abandon the worst service provider and spend time persuading other people to do the same. It will take some time for the Serbian people to understand the way to ‘use’ consumerism ie to abandon a brand or company they have always bought from and then abandon it just like that.

Ian the French and their infrastructure has always been the envy of their channel neighbours. Glad to hear you are reaping the benefits!

Cvijus April 19, 2007 at 6:27 pm

“my sallary is of course much higher because i am paid by the CIA, the Jews, Vatican, NGOs, Cvijus sends me his hard earned money from working as a shaner “

Hehehe, V. I’m doin some Armani this week, need some?

Now seriously, Serbia when it comes to Internet is very similar to Greece. Few years ago in Greece most of the people were sceptical abou broadband, however with time it changed and of course prices have fallen rapidly since it has proven itself to be a fruitfull business. For sure in a couple of years time it will happen in Serbia as well, you just need patience and lots of hard work in educating the people in what can their benefits be through the net.

Estavisti April 20, 2007 at 3:18 am

“Do you guys know its easier, slightly cheaper and better (more information available) to invest on the Banja Luka stock exchange than it is to invest in Belgrades BELEX?!”

I agree the situation with BELEX isn’t great, but you didn’t need to frame the issue like that. Banja Luka’s stock exchange is sucessful because it is well run, efficient, open, transparent and they’ve worked hard at it, unlike “our” guys who are never proactive about anything. You seem to think Banja Luka is still in the 90s, when nothing could be further from the truth.

As for our telecom problems, it’s all just a reflection of the fragmented nature of Serbian politics and the lack of visionary politicians. The only two who approach(ed) that status (in different ways) were Koštunica and Đinđić, but even they are/were far from perfect (again in different ways).

bganon April 20, 2007 at 3:21 pm

Estavisti dont jump the gun in that way. I only stated how it is. It is true that they have worked at it and we in Serbia have not.

Your interpretation was quite wrong. My message is that we in Serbia are getting left behind on some issues and those issues should be pointed to. And I think its right to point to our neighbours and former Yug countries for comparison just as I think its right for me to target the blame on Serbian politicians for not doing their jobs properly.

That is nothing to do with 1990’s Banja Luka!

The problems with Belex are apparant. Generally its doing well but when look at Banja Luka, Zagreb or Podgorica where people are investing. And when you take a closer look at BELEX to see how many transactions are made and to note that private individuals barely trade and that some of Serbia’s most sucessful companies are not even on BELEX or you look at how much it costs and the taxes involved. Well its no wonder that some individual Serbians choose to invest in Banja Luka rather than BELEX. That has to change and is yet another failure of this and the previous government. Investment funds are a huge part of the story also but Serbia has been pitifully slow on this. As you know DELTA now offer this (its not particularly cheap) and a Croatian company has also been granted the right to start their fund. Hell, as Blic pointed out this week in Serbia you cant even instruct a broker over the phone because there is no adequate way to identify yourself. So as a private investor I have to go in person to my stockbroker to instruct him to buy or sell…

When you really think about it the last 2 governments obviously have not done their job properly on this. And the irony is that I dont support capitalism particularly and am against neo-liberalism.

Sokobanjac February 28, 2009 at 12:45 am

In Serbia price for 1.2 MBS is only 12 euro and 2MBS is 20 euro. Maximum a private person can get is 30 MBS, and academic institution and other companies can get very high broathband connection for hudge amount of money. Schools in Serbia have free 2 MBS per computer via Telekom donation.

Viktor February 28, 2009 at 12:52 am

Yes, things have changed a bit since I wrote this post, the prices are going slowly down. Also, there’s a rumor that another price reduction is on the way these days.

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