Annual report 2012

Risks for other companies

Key risks in the construction and maintenance of facilities (GVO)

  • The risks associated with inappropriate decisions regarding the expansion of the range of existing services are managed by carrying out preliminary analyses regarding market entry and assessing the costs of additional employee training.

Key risks for Soline

  • There is a risk that the rehabilitation of damaged sea walls will not be carried out to the planned extent owing to austerity measures implemented by the Slovenian government. Rehabilitation is a precondition for the European Commission to co-finance the project intended to preserve endangered species and habitats in the Sečovlje Saltpans Regional Park.

Key risks on the Macedonian market

  • The risk of the migration of users to other operators owing to the aggressive approach of the competition.
  • The risk of lower revenues owing to the general economic crisis and the deteriorating domestic economic situation: declining purchasing power, falling prices and declining sales of services.
  • The risk of failure by subscribers to fulfil obligations is managed through improved collection, for which key account managers are also responsible. An additional measure has been proposed to verify the credit ratings of subscribers.
  • Risks associated with digital TV primarily relate to the emergence of new competition in the area of transmitting the digital signal, the adoption of an act on digitalisation and the need to upgrade existing set-top boxes.  
  • The risk of ineffective systems and processes.

Key risks for Kosovo

  • Dependence on external partners in the sales of services and on operators with significant market power, who own the infrastructure, in particular the fibre optic network.
  • The risk of lower revenues owing to the deteriorating economic situation and a decrease in the budget of state institutions, which increases payment indiscipline.
  • Operator credit risk.
  • The risks associated with the functioning and security of ICT networks and services are very high owing to a lack of spare parts for the maintenance of wireless access technologies. Disaster recovery plans are being drafted.
  • The risk of network obsolescence and the resulting limited opportunities to provide services is mitigated by upgrading software for the mobile network and via major investments in the mobile broadband access and hybrid fibre optic-coaxial networks. 
  • Ipko currently has a local system in place to mitigate the risk of abuse (international call termination via “SIM Boxes” and other types of abuse). That system will be replaced by a collective fraud management system (FMS) by 2013, and thus significantly reduce the associated risks.
  • Regulatory risks have diminished, although the inappropriate definition of local loop unbundling and the resulting insufficient regulation could cause difficulties in the leasing of the infrastructure.

Key risks for Aneks

  • Legal risks associated with the placement of equipment are managed by searching for alternative locations.

With the planned introduction of a business continuity programme, the Group will mitigate the risks associated with the malfunctioning of key functions and processes following natural disasters.