Annual report 2012

Sales and marketing activities on the Slovenian market

Fixed voice telephony services

Net sales revenues from fixed services totalled EUR 208.6 million at Slovenian companies of the Telekom Slovenije Group, down 6.9 % on the previous year. The drop in revenues, in particular from traditional telephony services, was expected, as the migration to IP telephony and fixed-mobile substitutes has been a trend for several years for the majority of European operators. The number of fixed voice telephony connections was down 6 % at the end of December 2012 relative to the previous year. Outgoing traffic per user was also down owing to a decline in the number of calls in domestic and international traffic, in traffic from the fixed network to other fixed networks and in traffic in the mobile network. Business users still opt for traditional Centrex services, sales of which were well above expectations.

The Group continues to upgrade its range of traditional voice telephony services with the aim of improving profitability and maintaining existing subscribers until the transition to new services. To that end, the Group takes care to ensure that the characteristics do not affect the sales of newer services. Among the benefits we offered to private subscribers was the possibility of purchasing additional call options that facilitate lower prices for international calls. Owing to market saturation, declining interest due to current economic situation and the establishment of IP telephony, sales of traditional voice telephony connections will continue to be low in the future.


Mobile voice services

Revenues from mobile telephony services for the end market were down 9 %, although the number of users of such services has not changed significantly. The reasons lie primarily in a decline in the number of call minutes and an increase in the proportion of subscriber packages with pre-purchased quantities (bundle packages). Revenues from international end-user roaming were down, in part as a reflection of the deteriorating living standard.


Internet and multimedia services (broadband services)

The importance of broadband services continues to grow. The proportion of net sales revenues accounted for by broadband services was up 1 percentage point relative to 2011 to reach 14.6 %. The Group also recorded high growth in users of the Instant Internet, the number of which increased by more than one half over a one year period. The reason can be found in the broad range of packages and the Group’s high-quality mobile network, which facilitates high data transfer speeds. The mobile internet is also growing in importance, as the ever widening reach of mobile devices also increases user mobility.

Telekom sales centres continued to be an important sales channel. The renovated centres are becoming showrooms for the entire range of services offered to users. We have also organised business corners, while at the same time enhancing marketing activities for business packages and sets for smaller and medium-sized business users. We have set up two automated machines to make it easier for customers to pay their monthly invoices. Due to the positive response of users, we will expand the network of automated machines to all sales centres. We also carried out a sales campaign in the field of broadband and fixed services aimed at private users.

Innovations in the fixed broadband services segment focused on services that facilitate user mobility and the adaptation to the user’s needs, and include:  

  • the SiOL TViN service, which facilitates the viewing of TV programmes over the internet, on laptop and tablet computers and on smart phones;
  • the SiOL Football service, which allows users to select which UEFA Champions League matches they want to watch;
  • the inclusion of new, attractive programmes in the programme scheme, including exclusive broadcasts of Champions League matches on SiOL TV in HD quality;
  • the Ogled nazaj (Look Back) service, which facilitates the viewing of a missed programme up to 48 hours back;
  • the expansion of the triple play offer with the TopTrio MINI package;
  • the SiOL Začetek – Penzion (SiOL Beginner – Pensioner) package for older users, which includes free instruction; and
  • a mobile internet package, together with favourably priced devices and content (unlimited access to TViN and the viewing of Champions League matches until the end of the season).

In the mobile internet services segment, the Group:

  • offered users the new Instant Internet Period package and increased volumes included in existing packages;
  • introduced the right-of-use principle in all packages, which provides for a decrease in data transfer speed if a threshold is exceeded, thus limiting the costs of use;
  • offered new mobile internet packages with doubled quantities and a lower data transfer price when included quantities are exceeded. 


Value added services

Similar to other EU countries, the number of payments with mobile phones has also risen in Slovenia. The Group’s Moneta system was upgraded with new functionalities and improvements. Moneta mTerminal is a new channel that facilitates the rapid and simple acceptance of payments with Moneta. Operating terms and conditions were updated with the aim of better informing and protecting end users. In cooperation with the energy company Petrol, we developed the new Moneta Zvestoba (Moneta Loyalty) service and developed a Moneta application with Nokia.

We also upgraded the M:Vrata (M:Portal) media, which facilitates various solutions for the business use of mobile telephony services (payable numbers, prize games, notification, etc.). Via the M:Sporočanje (M:Notification) service, we linked M:Vrata (M:Portal) to Facebook, included it in the TSstartup project and began to intensify the search for solutions for its use in telemedicine and security.


Management services for business users

Management services include a product portfolio of communication, application and convergent services for business users. We offered business users, in particular small and medium-sized enterprises (SMEs), solutions relating to local data network management (LNM), the leasing of space in data centres (data centre as a service – DCaaS) and data communications.

We developed multimedia telephony services, with which the Group is following trends in standardised communications and providing business users state-of-the-art communication functionalities. Key innovations include the e-fax service and a new range of video conference solutions, which companies can use to lower travel costs while reducing their carbon footprint. With the complementary services Monitor and Snemalnik (Recorder), the Group has upgraded its IP Centrex offer, while the Komunikator (Communicator) was offered as an application for smart phones.

Business packages and sets were adapted to the needs of SMEs. They include a range of services that cover the majority of new communication and information needs. We are thus converging fixed and mobile infrastructure services with commercial cloud applications. We offered the market several new business packages and enhanced Pisarna po meri (Customised Office) services.


Comprehensive solutions

There has been a notable increase in the usefulness of security services recently. By adapting the network for the transmission of alarm signals to infranet communications, as required by alarm control centres, we have begun to cover the technical security of ATMs. We have also developed a software upgrade for alarm control centres.

In the area of telecare, we have set up a national call-control centre in cooperation with external partners from the fields of health care and social services. The service is known as SOS Doma (SOS Home). We also supplemented the offer with SOS Mobilni (SOS Mobile) mobile services and, together with an external partner, developed the SOS Zdravnik (SOS Doctor) solution. Pilot projects were carried out in the field of telemedicine. The first results of the projects are expected during the second half of 2013.


Wholesale services (inter-operator segment)

In 2012 the Group recorded growth in revenues from international operator services and broadband operator services, and in particular from unbundled access and FTTH RUO.

In the area of broadband access with bitstream services (BRO), we noted a large number of migrations by end users between various operators and various sales models. The proportion of broadband connections via independent access (i.e. without PSTN/ISDN BA) was 65 %. The number of connections with IP telephony services is the same.

Several market activities were carried out with the aim of increasing the inclusion of new broadband connections and preventing the trend of falling network capacity at Telekom Slovenije. We offered operators the possibility of purchasing virtual private network services (VPN L2) to end users via copper SHDSL and fibre optic access connections and Telekom Slovenije’s core network. The Group expects a similar trend of growth in the number of unbundled access and broadband xDSL connections in 2013.


TSmedia

TSmedia continued to develop digital media as part of its strategic Digimedia project. The project is highly market-oriented, as it will ensure new or additional revenue sources from advertising and sales of digital content and services.

The most important project of the year was the establishment of the Group’s own TV channel, which was launched in full in November. The broadcasting of Champions League matches began in September 2012. The Group received broadcast rights for the next three years from the European Football Association.

Also completed was an important project to set up outdoor screens (digital-out-of-home – DOOH) in retail centres and areas where large numbers of people gather. 

The mobile Zemljevid (Map) application for Android and iOS was produced in the scope of the Info točka (Info Point) project during the first half of the year. All results will be available in the first half of 2013.

The comprehensive SiOL TViN system, which allows users to watch TV on all mobile devices, was introduced. The system was upgraded with additional support for the SiOL Football service, which facilitates the viewing of all Champions League matches.

The Bizi.si business information web portal and the telephone directory on the itis.si website were upgraded and are now also accessible on mobile devices.   


Systems integration and cloud computing 

Avtenta continued with its planned strategy to increase its market share outside the Telekom Slovenije Group in the area of systems integration and business solutions, with an emphasis on the development of cloud services. Its position as an expert in ICT solutions on the Slovenian market was confirmed by its presence in the media, through internally organised professional marketing events and its participation in major industry events organised by others. 

Sales activities in previous years and the building of long-term relationships with customers have facilitated the achievement of established objectives despite slowing development on the IT market. The marketing of own services included the following:

  • Infrastructure solutions : continued growth, and maintaining existing and attracting new customers and transactions, the majority of which were concluded with the signing of maintenance agreements.
  • The SAP department attracted two new customers outside the Telekom Slovenije Group for the maintenance of the SAP system. The team also successfully completed and placed a project into production abroad.
  • With regard to networks , we completed a project to establish a contact centre and network. The project was a reflection of the synergy effects of the sales and implementation work of Avtenta and Telekom Slovenije.
  • In the area of document management , the company took on and successfully completed several important projects and became a leading provider of such solutions on the Slovenian market.

The company established its own network of sales partners for the sale of services under the Avtenta.now brand, and exceeded 100 sales agreements with 63 customers from the market segment of small enterprises.

The Avtenta.iqt education and test centre remains a widely recognised element of the company’s range of services. Demand for training has gradually diminished due to limited funds for that purpose. As a response to the situation, the programme of courses has been adapted more to the needs of customers, who were offered shorter and less expensive courses. A total of 68 different training courses from the field of information technology were carried out, with the number of participants up 10 % compared with 2011. For that reason, the company expects to receive the title of best Microsoft training centre in Slovenia in 2012.

All activities are reflected in a positive trend in operations and in an increase in revenues generated outside the Telekom Slovenije Group. The value of services sold was up 7 %, while the value of goods sold was down 5 %.


Construction and maintenance of networks

GVO’s net sales revenues in 2012 were up one quarter on the previous year. A particularly positive development was an increase in the proportion of sales on the market and a reduction in the scope of work within the Telekom Slovenije Group, which is one of the company’s key operational objectives. The volume of maintenance works was at the level of previous years, while the scope of investment engineering for the parent company was down.

A large portion of revenues from market sales was generated by projects to build open broadband networks (OBN II projects), which the company completed for the most part in 2012. Sales on foreign markets also contributed to growth in revenues. In Germany, the company began implementing its first projects to build an FTTH distribution network. These projects are of particular importance as a reference for additional work on the German market, as significantly more work is already envisaged for 2013.

Worthy of note among transactions concluded on the domestic market are the construction of solar power stations (photovoltaics), geodetic works on Slovenian motorways and electrical installation works at petrol stations.