Telecoms operator rises to the challenge
OVERCOMING THE OBSTACLES OF A MOUNTAINOUS TERRAIN, AN UNDERDEVELOPED INFRASTRUCTURE AND A LACK OF INVESTMENT, PROMONTE GSM HAS BECOME THE DOMINANT MOBILE OPERATOR IN MONTENEGRO

Promonte GSM is an example of a highly successful joint venture triumphing in what initially looked to be an unpromising climate for foreign investment.
It was back at the beginning of 1996 that a Greek-Norwegian consortium and public company PTT decided to take the leap and create Montenegro’s first privately-owned mobile phone network.
Given the republic’s rugged topography, underdeveloped infrastructure, not to mention its delicate political situation, Promonte was prepared for a challenging task if they wanted Montenegro to become part of the global telecommunications network.

Takis Dagoulis CEO of Promonte GSM

But the speed of success ended up astonishing everyone as CEO Takis Dagoulis explains. “It was a very risky time to invest and nobody knew how it would work out. In the original business plan we were expecting 30,000 subscribers by the tenth year of operation, but we achieved that number after just two, and we now have 150,000 active accounts–about a quarter of the population.”
Despite the entry of rival operators in the market, Promonte is the dominant mobile phone provider, with its network covering some 86% of Montenegrin territory.
With the mobile phone market still in its infancy in the republic, the company envisages significant growth in the near future.

A DATE WITH THE FUTURE Promonte’s commitment to investing in new technology and customer services, as well as its dominant market position, make it a leading player in the Montenegrin telecoms sector.

Promonte attributes its success to a well-planned and detailed business strategy, its commitment to keeping pace with the latest technological developments, the know-how and modern business methods of its staff, and above all, the quality of the service it offers.
The company is aware that its dominant market position will come under attack from its rivals, but in a more competitive environment, the company sees its flexibility and commitment to customer service as its trump card.
The company found its way around problems, such as the unreliable delivery of bills to customers’ homes, by providing a fax inquiry service and by providing direct print-outs at 59 Montenegrin Post outlets.

It has also introduced a series of special tariff packages, including a ‘friends and family’ discount scheme and a pre-paid service. A 24-hour call center has been in operation since June and customers can also access sport
results using a special direct number.
In August 1997, Promonte teamed up with Serbian operator Mobtel as its first roaming partner and by the end of last year, they had 81 roaming agreements with other companies in 53 countries around the world.
Promonte committed itself to Montenegro when many other companies had steered clear of the region, and it believes its mission is to pay back the trust it enjoyed from its customers by getting involved in social care activities.

The company sponsors numerous cultural, sporting and humanitarian programs and spent 620,000 German marks last year. Promonte has also invested large sums in the training and education of its employees.
Mr. Dagoulis believes that Promonte’s experience provides an example of just what can be achieved with well-targeted and determined investment in Montenegro.
He highlights banking as another sector ripe for foreign investment, with industrial companies following right behind. His advice to other potential investors looking to establish joint ventures in the republic is to make sure they find the right partners.
“If you can strike up a good relationship with the people you are going to deal with, things become a lot easier. Local firms know the legislation and the bureaucratic requirements and that can save a huge amount of time and trouble.”