Vivacom is one of our most important innovation hubs, says Željko Batistic, United Group Vice President Technology
– What are the main technological trends in the telecommunications sector in the region? How is United Group positioned in this regard?
– United Group is present in eight regional markets. In Greece, Slovenia, Croatia and Bulgaria it offers mobile and fixed services, and in Serbia, Bosnia and Herzegovina, Montenegro and North Macedonia mainly fixed services. Each market has different dynamics, but there are general trends that outline the technological map of the region.
The daily life of telecom users has changed a lot over the years, leading to accelerated investments in 5G and fiber networks, as well as the launch of 5G high-speed home internet (5G FWA) in places without fiber connectivity. This happened despite challenges in the financial markets and this trend is irreversible.
Another trend in the region is market consolidation and technological standardization of consolidated networks to gigabit (Gbps) speeds. Investments in consolidating different telecommunications networks aim to provide higher speeds and a significantly faster and more stable connection for businesses and consumers. Technology standardization, in turn, ensures that the various components and technologies used in consolidated networks are compatible and thus provide the same user experience across the network.
There is also an accelerated rate of migration of IT services to the cloud (applications, data storage platforms and computing power). More and more large US technology companies are establishing a strong presence in the region by building large data centers connected to fiber optic networks in Western Europe and the Middle East.
Two more global trends are finding their way to development in the region: artificial intelligence and sustainable technologies.
AI is already a factor in telecommunications with many applications: product creation, support, cost optimization, expansion of IoT in all segments, especially in public services, implementation of cybersecurity solutions in threat detection, incident response methods and methods of protecting telcos and our increasingly digitized customers from cyber attacks. The telecom sector is also increasing its focus on sustainability, introducing technologies that aim to reduce environmental impact.
All these trends cause the so-called explosion of data traffic, which is a real challenge for the sector, but allows the development of innovative products and solutions. It is no coincidence that investment in innovation is a strategic priority for United Group. We continuously follow global trends and strive to develop convergence between our telecommunications and media businesses.
– Against this background, how is the business in Bulgaria positioned?
– United Group’s business in Bulgaria is represented by two leading companies in their sectors – Vivacom and Nova Broadcasting Group. Vivacom is not only the leader of the local telecommunications market, but it also deservedly occupies one of the leading positions at the European level. In 2022, the telecom reported a revenue growth of 9%, which exceeded the indicators of the entire market, and Nova TV consolidated its leading position in viewership. Since United Group entered the Bulgarian market in 2020, we have invested more than 350 million euros in networks, products and services and in the acquisition of several Internet service providers. We have expanded the coverage of our optical network to the customer’s home by 15% and to date reach nearly 1.5 million households, offering them gigabit speeds (with GPON and XGS PON 10/10 Gbps technology). Thus, we enable them to have a more stable connection and a higher data transfer speed.
We recently acquired two new operators – Telnet, a regional Internet and TV provider in North-Eastern Bulgaria, and Networx, one of the leading providers of fixed services in Northern Bulgaria. As a next step, we will invest in upgrading their networks. Standardization of services will help us offer the same user experience to our customers. Thanks to all our efforts we provide some of the best products and services in the market with a growing trend of our customers switching to more and more services from Vivacom both mobile and landline. We are also a reliable partner to TV channels and satellite broadband providers, extending high-speed Internet coverage beyond the reach of mobile and fixed networks with our world-renowned Plana ground station. Because of our achievements in this field, Vivacom is now number one not only in the local market, but also globally. It was honored as the fastest growing operator of satellite services for business customers in the 2022 annual ranking of the World Teleport Association (WTA).
– What is your approach and understanding when it comes to sustainability?
– Our responsibility to businesses and consumers extends beyond the products and services we offer. At the beginning of this year, we announced the Group’s firm position to achieve ambitious climate neutrality goals. We have committed to becoming a Net Zero company by 2040, and we are taking incremental but impactful steps to achieve this.
Our goal is to switch completely to renewable energy sources by 2027 and thus ensure the use of 100% green energy. We are also committed to achieving carbon neutrality for our operational footprint by 2030.
Our commitment to this as a group also extends to the development and acquisition of products that stand out not only in terms of content and prices, but also in terms of energy efficiency and sustainability goals. As one of the largest providers of telecommunication services for businesses in Bulgaria, we are deeply committed to enforcing sustainable practices in the sector.
Our focus extends to digitization of business processes, cloud services, artificial intelligence, cyber security solutions and the Internet of Things (IoT). These efforts contribute to our commitment to promoting sustainability while offering innovative solutions to our customers.
– United Group has announced significant investments over the next 3 years. What are the priority areas?
– We are focused on investments that will improve the customer experience of users at every single touch point while using our services. Our priority areas for development in the next 3 years are: the modernization of the radio network with the aim of significantly improving energy efficiency; upgrading the mobile backbone network; continued expansion of 5G coverage with a focus on C-Band technology, which provides gigabit speeds for urban and rural areas without fiber connectivity; increasing the coverage of the optical network to a new 200,000 households and availability of EON TV in all our networks, as well as the ability to watch through the networks of an external provider.
– At what stage of development is your optical network in the region and in Bulgaria? Are your developments in this area meeting or ahead of current demand?
– As I mentioned earlier, we are committed to providing every household in Bulgaria with access to a next-generation network, because we believe that this is the way to help the country and its residents climb the Digital Economy and Society Index of EU (DESI) and to increase the overall competitiveness of the Bulgarian economy. With the entry of United Group into the market, the growth of our 10GIGA optical network has made significant progress. In just two years, it already covers over 500,000 households in Bulgaria. We continue to invest, confirming our plan to bring gigabit speeds to 1.8 million households by the end of 2026.
– You are also making significant investments in 5G. What are your next goals for 5G coverage? Which technology do you think will prevail in the long run?
– The expansion of 5G network coverage will provide better and more reliable connectivity, enabling seamless communication and thereby improving the overall quality of service and experience for business customers and consumers. In remote and sparsely populated areas, better 5G coverage will provide access to high-speed Internet and stimulate their development. This will improve learning, entertainment and remote work opportunities. The 5G network is also key to remote health services (telemedicine), thereby reducing the opportunity gap for people in urban and rural areas.
The development of 5G technology has gained significant speed. Studies indicate that by the end of the year, 5G subscribers worldwide will reach 1.5 billion, and in 2028 they will exceed 5 billion.
5G is also the faster way to provide high-speed broadband connectivity in areas without optical networks. Like any future mobile technology, such as 6G for example, it will be a complementary technology to the fixed optical network (FTTx) which will continue to be the most secure and reliable for all connectivity requirements. Following global trends, we continue to invest in the expansion of Vivacom’s 5G network, which is the largest in the country – with coverage of over 83% of the population*. Our goal is to provide over 90% coverage by the end of 2026.
– Are there innovations launched by Vivacom on the Bulgarian market, which were then implemented in other countries in the region?
– Yes, Vivacom is one of our most important innovation hubs as it has very strong engineering and development teams. There are several large-scale projects that were developed here and then implemented in other markets. One example is the overall preparation and launch of 5G High Speed Home Internet (5G FWA), which has received an extremely positive response from customers and employees. Thanks to this new product, our customers can now count on super fast home internet and watch EON in perfect quality even in areas where there is no optical network. In addition, Vivacom engineers developed one of the features of the EON service over 5G FWA. It saves a significant amount of energy and network resources. In 2022, we introduced new functionalities in the mobile access network, which led to a decrease in electricity costs by nearly 20%.
– What are the biggest challenges you face in Bulgaria and the region in terms of technological innovation?
– Characteristic of the telecom business is the need for constant technological changes and innovations. To stay on top, Vivacom must retain its motivated and loyal engineering team. I am proud that our Bulgarian team is very strong and focused on the company, innovation and good results. Technology is not a challenge, it is important to always have the best team of professionals and keep attracting new talent.
* Largest coverage of 5G network after comparison according to publicly available information as of 05/19/2023 for operator coverage by number of settlements and resorts. More at vivacom.bg
Alek Vuchkov. The material was published in issue 8/23 of “Manager” magazine, which you will find in the distribution network, as well as in the digital application ZinZin
2023-09-17 17:39:33
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