Hrvatski Telekom dd : Within next year Hrvatski Telekom will provide Internet speeds of at least 20Mbit/s to 1GBit/s

7.9.2018

• The largest project of the new mobile network in the region, worth more than HRK 1 billion, will enable a threefold increase in network capacity and the preconditions for the 5G technology
• By aligning the regulation of the right-of-way with the most developed EU members, in the next four years HT would invest up to HRK 1.4 billion in optics, thus securing a total of 760,000 households with a minimum speed of 100 Mbit/s
• The new M1 residential offer offers speeds of at least 20Mbit/s for HRK 149/month, while the new M1 Business with monthly incentives for the use of digital tools will work as a platform for digitizing small and medium businesses

At the press conference held today in Split, Hrvatski Telekom's Management Board presented plans for investments in network infrastructure and the development of new innovative telecommunication and ICT services in the upcoming period. The study done by The Institute of Economics, Zagreb on analytical guidelines for the right-of-way for electronic communication infrastructure has been presented with concrete recommendations for regulatory alignment with the best European practices of the EU countries leading according to the (DESI index).

HT INFRASTRUCTURE INVESTMENT LEADER

Over the last few years, Hrvatski Telekom has continuously increased its investments, so the realization of capital investments in the first half of this year increased by 8.3 percent compared to the first half of 2017 and totaled HRK 822 million.

'Hrvatski Telekom invests 25 percent of its revenue each year in the latest technology and infrastructure modernization, which is above the industry average at European level. We invest in the new mobile network of the future, develop innovative products, and raise the quality of service for both residential and business customers, but also explore new growth areas that will enrich the lives of customers in the future. Over the next year, we will provide all customers in the Republic of Croatia with Internet access speeds of at least 20Mbit/s up to 1GBits/s', said CEO of HT Davor Tomašković.

HT's NEW MOBILE NETWORK OF THE FUTURE

A large part of this investment is intended to improve network infrastructure, part of which is the largest project of the new mobile network in the whole region which started early this year. Over two years it will cover more than 2000 locations and the investment will exceed HRK 1 billion. Threefold increase in network capacity and the establishment of prerequisites for further deployment of 5G technology and new intelligent services such as the Internet of Things are planned. This is accomplished by the most advanced technological concepts, increasing number of locations, and expanding spectrum. The latest technology concepts include smart antennas, aggregation of available radiofrequency spectrum, and spectral-efficient modulation techniques, making the latest generation of smartphones the fastest and best performing precisely on the HT network. In ​​Istria, where the new network has already been completed before the beginning of the tourist season, there is a noticeable increase in the mobile network performance - users got an increased average access mobile internet speed by up to 2.5 times in the conditions of a triple increase in network load compared to the same period last year. All this even though Croatia still pays the most expensive RF spectrum in Europe, which significantly slows further large investments.

HT INTRODUCES SPECIAL OFFERS

The new fixed and mobile network infrastructure will be the one to provide the highest quality internet services in all parts of Croatia at affordable prices for each Croatian household. The new offer includes fast internet and calls to fixed and mobile networks from HRK 149 in Magenta 1 at a speed of at least 20Mbit/s with even greater availability with 4G and optical network. In the mobile segment, Hrvatski Telekom offers all its M1 users an extensive mobile tariff for HRK 1 for the first 6 months, including 20GB, unlimited minutes and SMSs, Maxtv To Go and one application with unlimited traffic at customer's choice.

The new Magenta 1 Business offer launches in September and will function as a unique platform with all the necessary services and digitalization options for small and medium-sized businesses. It is the only one in the market to offer everything to equip a digital office with the 'turnkey' principle - simplicity, best partners and a special monthly incentive to use digital tools such as data storage, backup, O365, mini CRM, IT equipment. With new business offerings, HT has a plan for further expansion of the NB-IOT network, encouraging Croatian IT companies to develop IoT solutions. It estimates that by 2020, over 30 billion devices worldwide will be connected to the Internet, which will make IoT one of the fastest growing areas. Thanks to the first commercial network in Croatia, HT has positioned itself as the most relevant market player, thanks to its membership in the DT Group, helping its partners break into the EU market.

PARAFISCAL CHARGES MAKE ON HALF OF ALL OWN INVESTMENTS IN TELECOMMUNICATION SECTOR

Maruška Vizek, director of the Institute of Economics - Zagreb

With a better regulatory framework modeled on leading EU countries in terms of digitalization, these investments can be multiple times larger. The recommendations of the Study on Analytical Guidelines for the Right of Way Fee for Electronic Communication Infrastructure (EKI) by the Institute Economics, Zagreb were presented for the first time in Croatia, in which the analysis of the current model of right-of-way fee was made and clear recommendations were made to allow the state to create a more favorable regulatory solution for faster digital development of Croatia. Almost half of the amount of capital investment of the telecommunications sector, i.e. HRK 1.03 billion per year, goes to parafiscal charges, a large part of which goes for the right-of-way fee. Since the study determines that the Croatian model of right-of-way fee significantly deviates from the European practices and since the amount of fee is disproportionate to the value of the land the electronic communication infrastructure (EKI) goes through, the study recommends a significant reduction of the right-of-way fee, free passage (EKI) over publicly owned land, the possibility of paying a one-time fee for the right-of-way for EKI, a unique model for determining the amount and the method of charging the fee and establishing the registry of the recipient of the fee with HAKOM and a centralized system of payment of fees. 'Croatia needs to align the regulation of the right-of-way fee with the best practices of the most developed EU members at the top of the DESI index. By reducing the fee by 75% and directing these funds to the electronic communications infrastructure, over 10 years, additional 15 thousand jobs would have been created and would achieve a GDP growth of 1%', said the director of the Institute of Economics, Zagreb Maruška Vizek, adding that the lost revenue due to reduced right-of-way fee could return to local communities through increased taxes due to increased investment in a new electronic communications infrastructure.