Montenegro’s 5G leap: how Swedish export finance is helping Mtel meet a tourism-driven data surge

Seasonal tourism pressures are pushing Montenegro’s mobile networks to the limit — and accelerating investment in next-generation infrastructure.

Addressing the growing strain on mobile networks during peak season

From dramatic mountain ranges and deep river canyons to the sun-drenched Adriatic coastline, Montenegro has become one of Europe’s fastest-growing tourist destinations. Yet the country’s spectacular geography also creates a uniquely demanding environment for telecom operators.

Every summer, the population of just 630,000 swells dramatically as around 2.7 million visitors descend on Montenegro’s beaches, resorts and historic coastal towns. The result is one of Europe’s most pronounced seasonal spikes in mobile traffic — and a growing need for resilient, high-capacity networks.

To stay ahead of demand, leading operator Mtel is accelerating its 5G rollout with technology from Ericsson, supported by financing backed by Sweden’s export credit system.

5G expansion targets rising tourism-driven mobile demand

Montenegro’s tourism boom has helped drive mobile penetration to around 180 per cent*, reflecting the substantial influx of seasonal visitors and roaming users during peak summer months.

For mobile operators, the challenge extends far beyond conventional capacity planning. During the tourist season, networks must handle sharp increases in:

• data traffic and video streaming
• international roaming services
• temporary network densification in coastal areas
• reliable high-speed connectivity across geographically complex terrain

Mtel’s latest investment in Ericsson equipment — valued at EUR 5.3 million and financed over ten years — was arranged by Swedish Export Credit Corporation (SEK), provided at a fixed CIRR rate and guaranteed by EKN.

At Mtel, CEO Zoran Milovanović says the rationale for expanding the 5G network is clear.

“The amount of user traffic is increasing significantly every year. Regulatory requirements for mobile signal coverage are strict, and the number of tourists visiting the Montenegrin coast continues to grow. It is necessary to increase network capacity during the summer season.”

Swedish export finance enables telecom investment in smaller markets

The transaction also illustrates how export credit support can unlock financing in markets and for deal sizes that may fall outside the appetite of commercial banks.
Marica Bixo, Director of Export & Project Finance at SEK, explains that SEK was able to finance the transaction directly.

“A transaction of this scale does not often attract interest from a commercial bank, but SEK remains committed to support Ericsson, in line with one of SEK’s missions. Thanks to the EKN guarantee and access to comprehensive credit and country-risk analysis, we were able to act as sole arranger and lender.”

At EKN, Senior Underwriter Katarina Hirsch stresses the agency’s broad mandate.

“No transaction is too small or too large for EKN to consider.”

Montenegro’s EU ambitions strengthen investor confidence

Country risk remains a central consideration in export financing, influencing both guarantees and premium levels. In 2024, Montenegro was upgraded from OECD country risk category 7 to 6 — a sign of improving economic stability.

Following meetings with representatives from Montenegro’s central bank, EKN Senior Country Analyst Johan Dahl says the country is moving in a positive direction.

“Montenegro is on track towards continued growth, with a more diversified economy and reduced debt-to-GDP ratios from previously high levels. The country is first in line to join the EU and is working actively to comply with membership requirements.”

This trajectory is helping to strengthen long-term confidence among lenders and exporters alike.

Ericsson technology helps future-proof Montenegro’s telecom infrastructure

For Ericsson, export credit support remains essential in markets where international financing options may be limited.

Alexander Khromov at Ericsson Credit says the cooperation with EKN and SEK plays a crucial role.

“EKN/SEK financing is extremely important for us, particularly in markets where international banks have limited interest.”

He points out that tourism-driven data spikes place enormous pressure on network performance.

“If thousands of people on the same beach want to stream a football match simultaneously, that requires significant capacity. Nobody wants a lagging sports experience.”

Fortunately, beachgoers in Montenegro are unlikely to run out of space anytime soon. The country is home to Velika Plaža, often described as Europe’s longest sandy beach.

Mtel positions itself beyond traditional telecom

For Mtel, the 5G investment represents more than a network upgrade. According to Milovanovic, it reflects a broader strategic transformation.

“We have moved beyond the traditional borders of telecom and into digital infrastructure, financial technology, cyber resilience and talent development. In a region moving towards a smarter and safer digital economy, Mtel is no longer following the curve — it is helping to shape it.”

He also underlines the strategic value of export credit financing.

“It enables favourable and secure financing conditions, reduces financial risks and allows us to plan long-term network development while investing in modern technologies.”

Sweden’s export credit ecosystem supports digital connectivity growth

The project highlights the increasingly important role of export credit agencies in supporting digital infrastructure investments globally — particularly in smaller or rapidly developing markets where private financing alone may be insufficient.

As tourism, streaming services and data consumption continue to grow, Montenegro’s mobile networks are entering a new era of demand. With 5G expansion underway and long-term financing secured, Mtel is positioning itself to meet that future at full speed.