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http://www.telekom.hu/investor_relations/strategy |
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As a result of our strategy, Magyar
Telekom has maintained a leading position in its Hungarian fixedline,
mobile, Internet and data businesses in 2010.
The telecommunications industry is
undergoing a major change globally. Worldwide trends are driving towards an
integrated telecommunications, information, media and entertainment market. The
economic crisis has also led to restructuring between market segments.
We expect that the traditional
telecommunications market will no longer deliver sizeable revenue growth in
Hungary. The fixed voice market as a major revenue and profit source is
declining; mobile is no longer able to compensate this decline. However, we
expect that new core segments, especially mobile broadband, broadcasting and IT
services will deliver sizable revenue growth in the coming years. The fixed
market is characterized by 3Play bundles, with TV services becoming a driver
and core element of service offerings, while the mobile market is driven by
fierce competition in broadband. An increasing technology platform-based
competition can be observed in the domestic market, and our competitors are extensively
deploying next-generation countrywide fixed and mobile networks. The battle for
customer contact has pushed prices down. This slower development in the
telecommunications market is likely to lead to consolidation between market
players to increase economies of scale and enable growth.
Our Corporate Strategy was designed in
order to address these global and local market challenges and better exploit
our position as an integrated telecommunications operator with a full range of
services. Our Corporate Strategy - FIX, TRANSFORM, INNOVATE - enables us to exploit
and develop our extended customer base, significantly improve efficiency and
capture growth opportunities. The strategic objective in the short/mid-term is
to fix critical factors within the core business (simplified and focused lean
operation, lower cost structure, end-to-end responsibilities) and to further
strengthen our positions in core connectivity segments (voice, mobile
broadband, TV) that will enable us to shift resources and priorities towards
focused innovation and expansion.
Our new growth areas support conscious
revenue restructuring, i.e., our growth in our new core segments, such as
broadband, broadcasting, IT and content services, is expected to gradually
compensate for lower revenues from traditional telecommunications, while
non-core areas, such as energy, e-health, finance, and insurance services,
support customer retention and the maintenance of high-margin revenues.
In order to continue our transformation
to become a cost-efficient integrated services company in an extended market of
telecommunications and related industries, we have set our strategic priorities
as follows:
1. Slow down voice churn
2. Reach competitive cost structure
3. Secure market leader position in broadband
4. Achieve market leader position on the TV market
5. Stabilize revenues