Invest in an extensive fiber optic network that stretches from the backbone to home throughout an underdeveloped telecom marketThe Business
The Company was established in 2009 to build a contemporary optical fiber network in Serbia – one of the last remaining underdeveloped telecommunications markets in Europe. The business is now fully operational as a licensed telecommunications carrier. It consists of three elements: the Backbone network, Metronet (last mile) and FTTH (Fiber-to-the-Home), all developed with an investment of almost €30 million. The optical backbone network project was the largest infrastructure investment in Serbia in 2010. It connects five countries and currently offers capacity to nine large telecommunications operators and global carriers.
The Company believes it can exploit the growing demand for high-quality telecommunication services to establish itself as the alternative telecommunications operator in Serbia. According to survey conducted by a well-known market research firm, 60% of the existing subscribers stated that they would be willing to change their provider and switch to new technology from the Company. The Company also intends to be an innovative data transmitter, and provider of entertainment content and value-added services in Serbia.
Market
The Serbian information society is well below the European average, so there is tremendous growth potential in all fields of telecommunication services. With a population of 7.3 million, the Serbian market is among the largest in the region. Information and communications technology (ICT) revenue in Serbia had annual growth of 20% from 2005 to 2008.
The Company is currently using the resources of its principal investor to finish the FTTH element, but it is a seeking strategic/financial partner to accelerate growth, which would require €20 million to complete the residential FTTH network.
Sector: TelecomSegment: Fiber to HomeRegion: Central/Eastern EuropeFinancing Size: $5m to $20mContact: Matic Urek
Company: KPMG AdvisoryTelephone: +386 1 23 64 332 Email: [email protected]