BH Telecom ready for 4G

BH Telecom director Mirsad Zaimović told Al Jazeera that the company is fully prepared to deploy 4G networks, but an obstacle to represent state bodies because of problems with digitization in Bosnia and Herzegovina.

"We are fully prepared to deploy 4G networks. State has yet to allow for stories on the digitization and assignments. And the moment when the country is ready, BH Telecom is completely ready to build a 4G network in this area," said Zaimović.

Earlier it was announced that BH Telecom, after nine years of falling profits, began to grow and so returned to the leading position in the country.

Year 2015. BH Telecom ended in the green, with a gross profit of nearly 46 million, which is 818,000 euros more than the year before.

EBITDA, or profit before interest, taxes, depreciation and amortization, jumped to 107.3 million euros, which is 3.8 million more than in 2014.

Millions of users

Consequently, for the first time since 2006, that is for BH Telecom was the golden years, increased the value of the company for 26.6 million euros.

Last year BH Telecom ended with almost 2.3 million users.

The CRA has asked the telecom operators in Bosnia and Herzegovina to bring down prices of their services, and Zaimović explained that the regulator put forward a number of proposals which should be defined in order to operators in the market of Bosnia and Herzegovina should behave.

BH Telecom said that in the proposal has a number of measures which are acceptable and which should be of benefit to the users, but also to some extent could threaten some of the operators in the market and generally disrupt the telecom market.

"What will the regulator to determine what we will of these measures have to spend I do not know, but whatever measures ordered, we ought to act accordingly. I think that all those measures which are communicated to the public will not be implemented, because the time these weakest be so threatened that it will operate at a loss. BH Telecom will then lose part of their income, but would not be compromised as you would any other factors in the market ".

New services

Zaimović noted that BH Telecom, as well as all the other operators in the world, achieved a certain decline in revenue due to services such as Viber, Skype and WhatsApp.

"As for the new technologies, the so-called OTT technology, they have led inevitably to a fall in revenues in all technologies. We're just on the basis of roaming we fall in revenue of around 15 million marks in the last year, and of course we have a decline in revenue per user in the traditional services , in both fixed and mobile telephony ".

Zaimović added that BH Telecom offers a variety of options to purchase or use mobile Internet, and the operator is trying new services and entering new markets compensate for the loss of revenue with them inevitably carry OTT technology.

BH Telecom has set plans for 2016, which should loose their revenue decline which occurred because of OTT technology, said Zaimović to Al Jazeera, without disclosing details.

Year 2015 was difficult for BH Telecom as it is only in that year the company changed management twice. Nevertheless, as previously stated Zaimović, there has been success.

"Due to the decline of the telecommunications market in the world, thanks to or because of the technology they use, and falling revenue per user, we decided that much more efficiently manage costs and what is the key reason why we have the best result in this sector and again probably in the whole of Bosnia and Herzegovina, "said Zaimović.

BH Telecom is the 90-percent state-owned. In 2006, an estimated the company was worth 933 million euros. 

But with all the turbulence in the market of telecommunications and new technologies and applications used by its customers, the value of the company fell to 724 million euros.

Many argue for its privatization, but in Telecom argue that it would be wrong, because from 2006 to 2014 on the basis of various taxes, donations, contributions and dividend payments company's state and society paid a billion euros. Something that would, according to the company, the new owner could hardly reach.