Croatian former monopoly telco T-Hrvatski Telekom (T-HT), a subsidiary of Deutsche Telekom, struggled with the effects of a weak economy and higher taxes in the first half of 2010, posting a 24.7% year-on-year drop in net income to HRK822 million (USD148 million). In the six months to the end of June 2010 T-HT’s revenues, including its integral cellular division T-Mobile Croatia, fell 3.9% y-o-y to HRK4.04 billion and EBITDA tumbled 10.5% to HRK1.72 billion. According to TeleGeography’s GlobalComms Database, on 1 August 2009 the Croatian government imposed a special excise tax of 6% on mobile telephony services as part of attempts to plug holes in the national budget. The incumbent telco’s fixed network customer base continues to grow, but at a rate that is slowing down, with its ADSL broadband internet users numbering 583,500 by end-June 2010, up 14.5% y-o-y and 1.8% quarter-on-quarter. T-HT’s IPTV subscribers reached 257,000 at the same date, up 50.6% y-o-y and 2.4% q-o-q.