T-HT’s strategy

The market is experiencing a shift in value from traditional commodity services such as voice calls to newer services such as content and ICT. This is why our strategic focus remains on building a robust broadband network, developing value-added services and providing ICT products and services on top of our core telco offerings.

Our strategy is based on three main pillars:

FIX – TRANSFORM - INNOVATE

The "Fix – Transform – Innovate" strategy has a dual focus: the first focus involves developing and expanding new segments of growth by exploiting new consumer and technological trends built around Internet, media and ICT services. The second involves continued focus on protecting the Company's traditional fixed and mobile business.

To achieve its targets, Hrvatski Telekom has defined the following key areas of action in its strategic program:

Connected Life across all screens

The Group is focusing on broadband and broadband-related products such as IPTV, value-added services (VAS) and other content for growth. Encouraged by the success of MAXadsl, MAXtv and tportal, Hrvatski Telekom intends to further shape and lead the Croatian Internet and PayTV markets.

Connected Work with unique ICT solutions

Information and Communications Technologies represent a natural extension of the Group’s existing telecommunications businesses. In the second quarter of 2010, the Group acquired Combis, the leading Croatian systems integrator, to augment the Group’s portfolio, enabling it to offer a broader and more compelling array of products and services right across its customer base. At the same time, it will strengthen T-HT’s competitive position against other telco companies and also against ICT companies looking to provide telco services. The Group is committed to expanding its ICT offerings in the coming years.

Build networks and processes for the Gigabit Society

We are witnessing an exponential growth in average bandwidth usage per customer, the trend which is expected to intensify even more in the upcoming years. Following up with this trend is not possible without significant infrastructural and technological investments.

Therefore, HT continues to modernize its fixed and mobile networks by investing in new, all-IP core and optical-access networks to enable all future bandwidth-heavy services, such as MAXtv, rich content and mobile internet.

Cost Management

Hrvatski Telekom is continuously improving the quality and efficiency of its operations by transforming its operations and benchmarking its cost structure, while at the same time reviewing capital expenditure needs to support future growth opportunities. Together, these initiatives are intended to optimize Group operating costs and protect margins in an increasingly competitive environment

Talent Management

Recognizing that knowledge rapidly becomes obsolete and that service-focused employees are its key asset, Hrvatski Telekom invests in talent management, education and training of staff. In this way, we are able to attract and retain first-rate people with whom we build our business.

Regional expansion

The Group continues to monitor and evaluate expansion opportunities and in September 2010 applied for pre-qualification in the privatization of PTK in Kosovo.