Slovak Telecom profits down on fixed-to-mobile substitution

15 Aug 2005

Slovak Telecom is feeling the effects of customers migrating to mobile alternatives, with group sales for the first half of the year down to SKK14.3 billion (EUR367 million), and operating costs reaching SKK7 billion (EUR180 million). The incumbent’s fixed line operations reported sales of SKK8 billion for the six-month period, while turnover from mobile operations at T-Mobile Slovensko reached SKK6.9 billion. Slovak Telecom has ramped up its investments to SKK2.3 billion (EUR59 million) to speed up the provision of broadband services.

Slovak Telecom is also facing the prospect of increasing competition in its domestic fixed line voice market. Following sector liberalisation, new market entrants are reported to be offering peak time rates at a third less than the incumbent. To date, three companies – eTel, Amtel and Dial Telecom – have interconnected with Slovak Telecom, while two more, Nextra and Slovanet, are said to be poised to enter the landline market in the near future.

Slovakia, Slovak Telekom (ST, incl. T-Mobile, DIGI)