Montenegro has achieved significant progress in telecommunications, with over 88 percent territorial coverage of 5G signal expected by the end of 2025. The extensive network now covers all main roads, marking a notable achievement for the small, mountainous country where connectivity is vital for its tourism-driven economy.
However, a government report highlights a troubling discrepancy: the rapid expansion of network coverage has not been matched by the development of digital services essential for enhancing productivity and innovation. While Montenegro has made strides in establishing 5G infrastructure, it continues to lag in critical areas such as institutional coordination, cybersecurity, data transparency, and service development.
The potential benefits of 5G extend beyond faster mobile internet; they include advancements in smart transportation, digital tourism services, emergency response systems, and industrial automation. Without these applications, 5G remains largely a telecommunications milestone rather than a driver of economic growth.
Montenegro’s action plan for 2025 and 2026 outlines 17 activities, yet implementation has been inconsistent. Of the four initiatives scheduled for completion in 2025, only one was fully executed. Similarly, among seven planned activities to be completed by 2026, three were implemented while the remaining four saw partial or no execution. This uneven progress indicates challenges in administrative execution rather than a complete failure of strategy.
The primary strength lies in network availability, while weaknesses persist in coordinating various stakeholders—ministries, agencies, local governments, and telecom operators—in delivering digital services. This coordination is increasingly crucial as Montenegro seeks EU accession and aims to enhance its economic competitiveness. Digital infrastructure effectiveness is gauged not just by coverage but by citizens’ access to online services and the efficiency of business interactions with government entities.
A significant hurdle remains the adoption of IPv6 across state networks. Although a national body for implementing IPv6 has been established, by the end of 2025, none of the state bodies had made the transition. The goal is to achieve 65 percent implementation by 2026, rising to 85 percent by 2027. This gap raises concerns about the public administration’s capacity to support advanced digital transformation.
The need for IPv6 is critical as it underpins large-scale connectivity and smart-city infrastructure. A country can achieve extensive 5G coverage yet fail to maximize its value if state networks remain outdated. Concerns regarding security and resource constraints have been cited by the Ministry of Public Administration as barriers to transitioning from IPv4 to IPv6.
This situation reflects a common issue in smaller economies where telecom operators often advance faster than government services can adapt. The current state presents an economy with robust connectivity but limited digital productivity opportunities. Missed activities aimed at encouraging local governments and institutions to utilize 5G technologies represent lost opportunities for enhancing public services.
The EU-funded WiFi4WB project aims to provide free public Wi-Fi across 24 municipalities by September 2026, thereby improving local connectivity. However, public Wi-Fi alone cannot replace comprehensive 5G-enabled services necessary for developing smart municipal systems.
A cybersecurity gap also poses risks; training programs for civil servants on electromagnetic radiation and cybersecurity related to 5G networks have not been implemented. As reliance on digital infrastructure grows, so does the need for robust cybersecurity measures to protect critical systems from increasing threats.
Lack of transparency further complicates matters. A planned geoportal that would provide public access to electromagnetic radiation measurements has yet to be established. Such a portal could enhance public trust and reduce misinformation surrounding 5G infrastructure.
The financial execution of projects reveals further challenges; although €30,000 was allocated for specific activities in 2025 and 2026, these funds were not utilized effectively during 2025. Reports indicate that issues such as poor planning and insufficient coordination hinder progress more than financial constraints.
The report identifies frequent organizational changes and inadequate staff levels as contributing factors to these governance challenges. For investors and businesses, this distinction is crucial—while Montenegro possesses a strong telecommunications foundation capable of supporting modern services, slow administrative processes may prevent full realization of its potential economic benefits.
The tourism sector exemplifies this gap; Montenegro’s strategy increasingly relies on digital services that enhance visitor experiences through real-time information and connectivity solutions. However, without coordinated efforts among municipalities and private operators to develop these services, mere coverage will not suffice.
Opportunities also exist within ports and logistics sectors due to Montenegro’s strategic location. High-speed mobile infrastructure could facilitate smart-port applications and improve customs digitization processes. Yet successful implementation requires collaboration among various stakeholders including telecom operators and local governments.
The energy sector stands to benefit similarly from advanced connectivity through smart grids and enhanced monitoring capabilities. However, defining clear use cases and aligning data standards remains essential for effective integration of 5G technology into energy systems.
The public sector’s productivity gains are particularly vital given Montenegro’s limited administrative capacity. Digitalization offers potential efficiencies that could streamline processes and enhance transparency; however, current delays highlight that these benefits are not yet fully realized.
This scenario poses implications for Montenegro’s EU accession process where stronger governance structures are increasingly necessary. A country boasting over 88 percent 5G territorial coverage, yet struggling with slow service implementation risks presenting conflicting images during its integration journey.
The private sector must also play a more defined role in this transformation process. Recommendations highlight the need for enhanced collaboration between private companies and government entities in developing comprehensive digital solutions across municipalities.
A practical model should emerge that standardizes use-case packages across localities while allowing competition among providers under unified technical standards. Such an approach could facilitate successful pilot projects funded by EU resources that may later be scaled nationally.
This shift from merely achieving coverage metrics towards focusing on service delivery metrics is essential for realizing the full benefits of Montenegro’s telecommunications advancements. Key performance indicators should include online service completion rates, municipal smart-service initiatives, IPv6 adoption levels, open datasets accessibility, cybersecurity training completion rates, and overall administrative efficiency improvements.
The current landscape underscores both promise and vulnerability; while Montenegro’s telecommunications framework is commendable, without accompanying service developments it risks losing competitive advantages as infrastructure ages quickly. Effective governance will determine whether connectivity translates into tangible economic growth for citizens and businesses alike.
The report serves as a reminder that while Montenegro has successfully deployed 5G infrastructure, it must now prioritize digital transformation efforts through enhanced coordination among stakeholders within public administration to fully leverage these advancements for broader economic development goals.
