Crnogorski Telekom is continuing its upward trajectory and has significant potential to maintain its leading position and achieve further long-term growth, says CEO Stjepan Udovičić with pride
How does a company remain at the top on a small market that has four operators? And how can the knowledge and experience of Deutsche Telekom Group be best leveraged? Here the CEO of Crnogorski Telekom reveals all of this and more, as we discuss the expansion of 4G, 5G, and fixed fibre-optic networks, investments, innovations and services that are always created to satisfy customer needs.
Since October 2021, when you took the helm of the company, it has achieved growth in almost all business segments, along with excellent financial results. Congratulations! We believe that there were many challenges, but you’ve nonetheless succeeded…
— I would avoid saying “I’ve succeeded”, as it implies a finality of activities. Crnogorski Telekom is still undergoing significant transformation – both technologically, where we are overhauling critical internal systems, and in terms of personnel, where we are witnessing a generational shift, with younger people taking the lead at the company.
Despite macroeconomic challenges and market saturation, Telekom has maintained an upward trend for the third consecutive year, with significant potential for long-term leadership and continued growth in upcoming business cycles.
In terms of financial stability, Telekom saw revenue and operational profit growth in the first half of 2024 compared to the same period of last year, with a constant increase in EBITDA, affirming our discipline in cost management.
The largest and fastest 5G and 4G mobile networks, gigabit fibre-optic internet, a new advanced TV platform and innovative digital solutions… are these the developments that have made Telekom the dominant player?
— At Telekom, we aren’t focused on market dominance, but on innovation and customer satisfaction. We are currently in the midst of a robust investment cycle, with a balanced focus on both fixed and mobile networks, innovation and the development of new, technologically-advanced services that meet the needs of our customers. Our unique advantage lies in our access to the knowledge and experience of Deutsche Telekom Group.
Our 5G signal coverage is around 84%, while 4G coverage stands at 97%, with 230 5G sites. This makes Telekom’s mobile network the largest in Montenegro, and considering the country’s geomorphological structure, any further adjustments are aimed at enhancing the infrastructure rather than indicating stagnation.
With 5G coverage at 84% and 4G at 97%, supported by 230 5G sites, Crnogorski Telekom has the largest mobile network in the country
Our benchmark is represented by developed EU countries, and our 5G coverage levels align with the most advanced EU nations, with comparable transmission speeds. The spectrum acquired in the 700 MHz, 3.6 GHz, and 26 GHz ranges – crucial for the expansion of 5G and the enhancement of 4G networks – including the spectrum freed up by the phasing out of obsolete 3G technology, ensures Telekom’s leading position in the 5G and 4G network sectors over the coming years.
The shutdown of 3G technology serves as a strong indicator of the development and reliability of Telekom’s 5G and 4G networks in Montenegro, reflecting a trend that’s followed by the most advanced telecommunications companies globally. Of course, we are not neglecting the fixed network either: Telekom’s priority remains expanding the fixed fibre-optic network, and I can state proudly that we are on the verge of achieving our goal of covering around 70% of households across Montenegro with Telekom’s fibre optic network.
You offer services that the Montenegrin market has not yet experienced. Additionally, your company has been the market leader in customer satisfaction for six consecutive months, representing the best result achieved to date. Do customer needs drive your technological advancements?
— We are focused on providing services that not only meet our customers’ expectations, but exceed them. During the launch of VoLTE and VoWiFi technologies, or eTrust, these services were a novelty even at the European level. They are today standard in developed countries and are gradually being adopted by the local market. Our customers already have the unique opportunity to use the most advanced internet connection equipment, and we are keeping pace with the latest technological trends.
WiFi 7 is the next generation on the horizon, which will deliver significant enhancements to the user experience, such as speeds of up to 200% faster on fibre networks, and I believe that, as always, we will be the first in the country to introduce these cutting-edge trends in equipment.
MagentaTV already holds a dominant position on the Montenegrin market in terms of technology and, with automatic updates to functionalities launched at the Deutsche Telekom Group level, it possesses significant potential for further improvement in the future. Our customers reward our investment- innovation focus, while a seamless customer experience has become a powerful brand component and part of the identity of Crnogorski Telekom.
Our dedication to excellent service and advanced solutions is reflected in the €20 million we are investing in the network, platforms and customer experience in 2024. Crnogorski Telekom is also the only telecoms provider in Montenegro to have been recognised by global customer review platform TrustPilot. In this regard, we are fully globally integrated and offer services to domestic and international customers at a level of quality that we believe is competitive globally.
How would you assess the regulatory environment? Are there any particular challenges?
— The regulator for the telecommunications industry in Montenegro employs a significant number of highly competent people, including excellent engineers, which we appreciate and support. Montenegro’s regulatory environment largely relies on EU countries, including Croatia, as many solutions have been adopted with some sensible modifications. We also appreciate that our suggestions and opinions regarding regulatory improvements are valued, and we strive to be a constructive partner in this regard.
One area that deserves special attention is the development of regulations concerning the sharing of our network and IT systems with operators from the EU. The EU is not just a political and economic union, but also a union of security and trust. If the EU is trusted in terms of sharing intelligenceoperational data, then there should also be trust in its ability to professionally safeguard certain network and IT elements. This is the direction in which the EU is moving, and it is part of the common market.
Our dedication to excellent service and advanced solutions is evidenced by the 20 million euros that we’re investing in the network, platforms and customer experience in 2024
Therefore, when Montenegro joins the EU and allows the free movement of people, labour and capital, it will not be sustainable in the long term for local decisions to block the sharing of software and hardware systems within the EU, especially for groups like ours, which are international. Such local blocks, especially from smaller countries, could result in technological lag (as the latest technologies are not introduced in these countries due to their reliance on certain Public Cloud technologies). We understand this is a complex and long-term process, and we will participate in it actively, consultatively and constructively.
Moreover, in the IT sector and other fields that require highly qualified professionals, where staff migration is commonplace, there are limited opportunities to showcase talent and achieve excellence. Our strategic goal is to establish a more favourable and stimulating working environment for employees, especially those who excel in their skills and abilities. However, given the current legal solutions in place, achieving this goal represents a significant challenge that requires considered labour law reform and adaptation to the specific needs of the labour market.
Crnogorski Telekom has invested around €10 million in upgrading fibre optics and equipment over the past few years. What are your priorities for the future? Do you have the potential, knowledge and boldness to achieve ambitious goals?
— In addition to the company’s aforementioned strategic guidelines, we are strongly focused on the welfare of the community. Telekom is already established as a company that invests significantly in the ESG concept of sustainable business, which covers key factors in the areas of environmental protection, social responsibility and corporate governance.
Additionally, with the recent launch of the Magenta Home campaign, we are focusing on intensive education and the market positioning of a unique service in the Montenegrin telecommunications environment, aimed at the safety of children and young people online. It promotes constructive use and protects against malicious attacks. The next important segment relates to the growing need for comprehensive protection, especially for business users, given the continuous evolution of cyber threats.
Finally, Crnogorski Telekom doesn’t forget its employees and shareholders, which is why we plan to develop the company’s value through a long-term stable dividend policy.
As for Telekom as an employer, I would highlight that Deutsche Telekom, along with all its subsidiaries, including Crnogorski Telekom, has been awarded the “Leading Employers” certificate for the third consecutive year, and at the global level for the first time, for 2024-2025. We believe that our employees are our key resource for successful market competition.
This post was originally published on here
