Sales and marketing activities37

The Group maintained the number of mobile telephony users in Slovenia at the 2013 level, and recorded 10% growth in the number of mobile telephony connections on the markets of South-Eastern Europe in the context of the continuing decline in the number of traditional voice telephony connections. The most significant growth was recorded in Bosnia and Herzegovina, where Blicnet entered the mobile telephony market at the end of 2013.

Telekom Slovenije Group connections and services by type and market38

Broadband connections

Number of retail connections as at 31. 12. 2014 31. 12. 2013 Ind 14/13
Slovenia 199.542 202.158 99
SE Europe 153.445 143.510 107
Macedonia 38.552 39.563 97
Kosovo 90.219 82.427 109
BiH 24.674 21.520 115
Telekom Slovenije Group 352.987 345.668 102

 

Fixed and mobile telephony connections

Number of retail connections as at 31. 12. 2014 31. 12. 2013 Ind 14/13
Slovenia, mobile telephony 1.125.365 1.123.867 100
Slovenia, fixed voice telephony 401.599 421.701 95
SE Europe, mobile telephony:: 1.186.660 1.082.143 110
  • Macedonia
558.090 527.928 106
  • Kosovo
626.817 554.010 113
  • BiH
1.753 205 855
SE Europe, fixed voice telephony 41.068 54.929 75
Telekom Slovenije Group 2.754.692 2.682.640 103
VoIP services      
Slovenia 162.042 153.911 105
SE Europe 36.576 24.927 147
Telekom Slovenije Group 198.618 178.838 111

 

Number of mobile and fixed telephony connections/services

Number of retail connections as at 31. 12. 2014 31. 12. 2013 Ind 14/13
Total mobile telephony 2.312.025 2.206.010 105
Total fixed voice telephony services* 641.285 655.468 98
Telekom Slovenije Group 2.953.310 2.861.478 103

 

* Sum of fixed voice telephony connections and VoIP services.

Net sales revenue of the Telekom Slovenije Group

The Telekom Slovenije Group’s net sales revenue amounted to EUR 756.5 million, down 3% on the figure achieved in 2013.

Breakdown of net sales revenue by company3939

in EUR thousand 31. 12. 2014 31. 12. 2013 Ind 14/13
Telekom Slovenije 643.057 658.493 98
Other companies in Slovenia 54.357 52.409 104
 
TSmedia
9.542 11.083 86
 
Avtenta
7.766 6.759 115
 
GVO
33.598 30.910 109
 
Soline
3.451 3.657 94
Ipko Group - Kosovo 69.465 68.388 102
Companies in Macedonia 75.662 75.468 100
Other companies abroad 21.227 21.266 100
Total - unconsolidated 863.768 876.024 99
Elimination and adjustment –107.314 –96.664 111
Telekom Slovenije Group 756.454 779.360 97

 

Telekom Slovenije’s net sales revenue was down 2% relative to the previous year. The decline in revenues in the retail segment was driven primarily by a decrease in revenues from mobile telephony subscribers and prepaid users, broadband services, traditional voice telephony and data services. Market competition was stiff. We therefore strove at all times to maintain existing customers (loyalty programme) and attract new users in the fixed broadband and mobile segments via various special offers and new, more affordable packages for users. With the aim of increasing revenues, we introduced new products and services such as Deezer, roaming options, HT internet, Mobitel EU Unlimited, the promotion of advanced pay TV functions, etc. The decline in the retail segment was partially offset by growth in wholesale revenues, where primarily revenues from international transit traffic, unbundled access (FTTH and PRD), broadband access and network leasing were up.

TSmedia’s net sales revenue was down 14% relative to the previous year. Revenues from information services have been in decline for several years, as users are using other sources to gather such information. Thus, the number of calls to the 1188 number is in constant decline. The decline in revenues from the marketing of advertising space was driven by declining fees.

Avtenta’s net sales revenue was up 15% on the revenues generated in 2013. The adverse market conditions and the resulting postponement of public administration projects affected both operations and the level of revenues. However, sales of SAP HANA resulted in an increase in revenues. The company achieved growth in revenues on the external market in all key programmes (e-business solutions and SAP), which is an extraordinary achievement given market conditions, as the Slovenian IT market continues to contract. The company’s market share is growing in the e-business solution segment, while its role as an SAP provider outside the Telekom Slovenije Group is strengthening.

The increase in GVO’s revenues is the result of the increased scope of investment works within the Telekom Slovenije Group, and due to the increased scope of maintenance works on account of unfavourable weather conditions in 2014: the repair of damage caused by the ice storm and floods. Growth in revenues is also the result of an increased number of connections on previously constructed open broadband networks (OBNs).

The net sales revenue of Ipko in Kosovo was up by 2% relative to 2013. The company compensated for falling revenues from international traffic due to the increased use of free internet voice applications such as Skype and Viber with higher revenues from the end-user market, in both the mobile and fixed segments (TV and broadband services).

The net sales revenue of companies in Macedonia was at the level recorded in 2013. Revenues were down slightly in the prepaid segment of the mobile market, primarily due to a number of more affordable packages (on/off-net minutes and unlimited call minutes). Revenues from mobile telephony subscribers were higher, resulting in higher total revenues in the mobile segment. Lower revenues in the fixed segment were the result of falling revenues from traditional fixed telephony services, which is a typical trend given current technological development. A reduction in termination prices and the introduction of symmetry at the end of 2013 has resulted in a decline in revenues in the wholesale segment.

The net sales revenue of Blicnet was up considerably on the previous year, by 10%. Both markets – the enduser and wholesale market – recorded growth, primarily due to an increase in the number of users in all main segments of telecommunication services and on account of growth in revenues from transit traffic.

Sales and marketing activities on the Slovenian market

Fixed voice telephony services

We offered users several new features in the area of traditional telephony:

  • cross-selling with options for the more favourable use of mobile services for residential users (valid for TDM subscribers);
  • a range of subscriber packages with included call minutes;
  • a new range of options – we updated and supplemented call options; and
  • cross-selling of mobile telephony and internet access services.

Mobile voice services

Telekom Slovenije updated certain subscriber packages that it uses to reach users and provide users the freedom of communication. We also:

  • added unlimited call minutes and messages to packages, which provides the user worry-free communication; and
  • cross-selling of mobile telephony and internet access services.

Internet and multimedia services (broadband services)

We upgraded the range of fixed and mobile packages on all networks where we market internet and multimedia services.

Fixed internet services::

  • Telekom Slovenije was one of the first operators to offer gigabit internet services.
  • We offered the Secure Internet, an advanced service for managing and protecting internet traffic. We supplemented and updated our range of security services for protecting users’ computers, data servers and mobile communication devices with the Android operating system (for tablets, PDAs, mobile telephones, etc.).
  • We were one of the first operators in the world to offer IPV6 internet services.

Mobile internet services:

  • We introduced a wireless internet subscriber package intended for users at locations where fixed broadband access is currently unavailable or under construction, thus providing a 3G or LTE mobile signal to these users.40
  • We connected the first base station to the LTE Advanced technology, which represents the next step in the development of the fourth generation of mobile technology (4G) and provides users even higher and more stable data transfer speeds. operaterji na svetu ponudili internetne storitve IPV6 (internetni protokol).

Points of sale and agent network

Telekom Slovenije sped up the continuing process of renovating points of sale during the year, when four renovated centres were opened. We introduced a new feature at Telekom centres – the Waiting Room. Receptionists use this tool to set visitors to Telekom centre in order and guide them to free advisers at numbered counters. The application is also used to process data regarding activities carried out at Telekom centres. A D2D (door-to-door) sales team began working in the field in December in areas where investments in the network have been completed, resulting in additional or new sales opportunities. The agent network was consolidated in parallel with the renovation of points of sale.

Premium services

The trend of growth in payments via mobile phones continued. The Moneta system was upgraded with new functionalities and improvements:

  • We improved Moneta mTerminal solutions, and simplified operations for the providers of Moneta Internet and Moneta SMS services for the quick and simple receipt of remote payments.
  • We introduced membership fees for the users of Moneta services.
  • We offered numerous benefits to users in cooperation with major service providers.

Management services for business users

Management services include the product portfolio of communication, application and convergent services.

We offered the following to large business users:

  • the migration from traditional voice services to advanced VoIP/video communication (videoconferencing) services and integration with cloud computing services;
  • the development of additional business functionalities (e.g. a prepayment system, control of usage and integrated clients); and
  • new information security services.

We offered the following to small and medium-sized business users:

  • the adaption of the range of products and services to the needs of users or the segment;
  • benefits for new subscribers;
  • cross-sales of business packages with ICT services; and
  • a comprehensive range of cloud computing services (XaaS services) and connectivity.

Integrated solutions

In terms of security services, we focused primarily on stabilising the platform for IP Infranet services, which will facilitate the more successful transition to the new technology. Securities solutions in 2015 will include the launch of a new video surveillance service. In the area of telecare, we are planning to update products and business models with the aim of increasing the number of subscribers in the context of more aggressive market communication.

Inter-operator segment (wholesale)

We recorded an increase in revenues from broadband services for operators, in particular from unbundled access. We carried out several marketing activities with the aim of including new broadband connections and preventing a downward trend in terms of the utilisation of Telekom Slovenije’s network capacities.

 

International wholesale services

Through proactive personal sales and participation in specialised events for international operators, we increased the presence and recognisability of Telekom Slovenije as a regional provider of telecommunication services, and recorded exceptionally high growth in revenues from international wholesale services.

ICT-standardised solutions

We continued to expand our portfolio of Customised Office services in 2014. We added the ERP service Pantheon Roaming (business information system), which was very well received on the market. In terms of demand for Customised Office services, we provided a free domain and additional discounts on selected services from the portfolio to business users who subscribed to a business package.

TSmedia

Via the Planet Siol.net digital media outlet, we introduced the most advanced format for sharing content – multimedia stories enhanced by text, photos, video and sound. We also launched the Mali junaki Slovenije (Young Slovenian Heroes) project..

We updated the access point to the Slovenian web (najdi.si) which, through a more transparent offer, provides an improved user experience and more opportunities for advertisers.

Updating the online Slovenian telephone directory resulted in the first true yellow pages in Slovenia. Easier searching for telephone numbers and other contact data with the most advanced advertising possibilities offers advertisers more opportunities.41

We introduced outdoor digital advertising screens at elite and high-traffic locations in Ljubljana, and at service stations.

Avtenta – upravljanje poslovnih vsebin in odnosov

 

Sales activities supported the established range of products and services (e.g. SAP maintenance, general CRM solutions, DMS for corporate entities and public administration), and were also aimed at new solutions adapted to substantive verticals (e.g. insurance, banking, health care, energy sector, etc.). The following objectives were achieved in 2014:

  • SAP solutions: Avtenta became the first certified SAP HANA Support Partner in Slovenia, thereby providing expert consultancy services and support for HANA systems in accordance with strict SAP standards.
  • We attracted new users for the introduction and maintenance of SAP systems, and significantly increased revenues generated by such services on the Slovenian market.
  • Management systems were re-accredited according to the ISO 9001 and ISO 27001 systems, while the Si.Hramba was also re-accredited. We are thus continuing to verify processes and systems, including after a change in the scope of operations and the adaption of the work method to new conditions.
  • We continued to adapt Avtenta’s mode of operation and the business strategy of the smaller company, which will facilitate its sustainable development going forward.

GVO

 

 

Sales and marketing activities on the markets of South-Eastern Europe

In Macedonia, One introduced promotional tariff models (Select PROMO, SMART and ONE promo) in the mobile segment, as well as specialised tariff models for iPhone users. It presented 4G/LTE packages at the end of the year. In the fixed segment, the company offered new SMART packages that include telephony, internet and TV services enriched with unlimited calls in One’s network for lower tariffs and unlimited calls and data transfer for higher tariffs. It also offered subscribers exclusive packages to TV channels as part of the monthly subscription fee, attractive tablet and laptop computers for minimal monthly payments, and free tablet computers as part of the most expensive triple play packages. One also enhanced its TV programme scheme with Fox, HBO and Cinestar. The company added three cloud computing services to its range of services: Virtual Private Server (VPS), eArhivaCloud and eCRMCloud.

Ipko in Kosovo was the first to introduce 3G technology, as well as a 4G network at the end of 2014. The latter will facilitate the fastest data transfer for users. The company presented new mobile broadband data packages. At the end of September it entered the mobile telephony market with the new Zog Mobile sub-brand, which currently offers users the most affordable basic services (calls and SMS). In cooperation with Apple, the company was the exclusive supplier of iPhone 5 and iPhone 6 mobile phones. In the fixed segment, Ipko offered a special digital TV package with no connection fee in certain rural areas. It continued to expand its programme schemes and introduce new set-top box functions, including recording, video-on-demand and a video library. Fixed VoIP telephony now facilitates free calls within Ipko’s fixed network. The company offered users the special 2015 MB New Year’s package for EUR 2.15 and the Ipko Junior New Year’s promotional package, as we well as promotional discounts on its TV and Ipko Duo Plus packages. Ipko became the first operator with a loyalty programme, which was expanded to new partners.

Blicnet in Bosnia and Herzegovina offers users comprehensive telecommunications solutions: analogue and digital TV, internet, and fixed and mobile telephony. The company achieved several significant milestones in 2014. Blicnet expanded its geographical coverage to five new cities in the north-western part of Bosnia and Herzegovina. The company became the only official distributor of Apple iPhone 5s and iPhone 6 mobile phones. In the area that it covers, the company increased internet speeds on the cable infrastructure significantly, and thus became the most competitive operator. With the new TViN service, the company facilitates the receipt of TV programmes on various devices (computers, tablets and smart phones), while also facilitating 5 GB of cloud storage.

37 GRI PA4
38 GRI G4-9
39 GRI G4-EC1
40 GRI PA1
41 GRI TA2