HPT Mostar delivers on promise to streamline business

Founded in 1992, HPT Mostar is the telecoms and post company for the Croatian part of the Federation. It covers 18% of the whole BiH territory with 115,000 customers and around 2,000 employees. Each of its five regional centers has its own network group and regional access code. The company is to be divided into separate postal and telecoms departments by 2002 in an action coordinated with PTT in Sarajevo and following steps already taken by Telekom Srpska.

“By separating the post and communications we create a chance for both to develop,” says general manager Stipe Prlic. “This is the inevitable process that took place in Europe ten years ago.” He adds that telecoms is to become privatized and will finance the state-retained post section over the next five years. The government hopes to use the money earned from the sale of telecoms to build up infrastructure and modernize roads, housing, schools and universities. “We have had the opportunity to modernize telecoms through reconstruction,” he continues. “Communications are now 100% digitalized and the main telephone exchanges are interconnected.”
HPT already has some foreign capital from Deutsche Telekom through Croatian Telecom, and the German company holds the same share in the latter and HPT. “Five years ago we were open for foreign investment and DEM 70 million was invested in HPT,” explains Mr. Prlic. “The state still holds 62% in HPT.” The World Bank will lead the sales process through their dealmakers and prepare the sector for the market with the aim of earning the state as much money as possible.

The company recently became the owner of 51% of Eronet shares. “The new ownership is the condition for Eronet to get credits and a GSM license,” says Mr. Prlic. He foresees further increased business growth, especially after market liberalization. “Prices will decrease and we shall have more customers,” he says. “We still have the monopoly in this sector.” Mobile licenses will be of main interest to partners. “We can see five times more revenue from the mobile customer,” he adds. “Investors ought to come here, make arrangements with our government, help this country overcome the crisis and bring us closer to the West,” concludes Mr. Prlic. “HPT is a healthy and profitable business for U.S. investment.”