The market is "hungry" for data, we are ready for 5G

23-04-2024
brano

One year after the launch of the new brand, CEO of "One Albania, Brano Djurovic, shared with Monitor the challenges and achievements of the company, focusing on the integration process of the two predecessor companies, as well as the readiness for the imminent transition in 5G technology.

During the interview, Djurovic also spoke about the future of telecommunications technology in Albania, focusing on initiatives such as the creation of a direct underwater cable line between Albania and Egypt, but also the consolidation of operators due to market saturation and the need to stay in step with the development of technology.

How do you evaluate the company’s results during a year with the new One Albania brand and how is this brand perceived by users?

Considering that One Albania was launched on the market in 2023, it must be admitted that this was a very important year for our brand. There were two important milestones for One Albania during 2023.

From 1st January 2023, we started the process of integrating the companies One Telecommunications and ALBtelecom, which joined forces and created the new company One Albania. On March 14, the new regional brand One was introduced to the market, a special day for all Albanians, as it symbolizes the change of season and the arrival of spring.

Thus, the company's result can be evaluated based on these two major milestones. Demanding transformative processes with the goal to integrate two companies with strong roots in Albanian business environment, two companies who embraced their own way of work and own company cultures, was very demanding task. Development of new brand requires long transformational cycle which usually lasts at least 2-3 years in order development to be completed and that new brand is well accepted on the market. 

Moreover, the technology integration process had its own complexity due to the merging of mobile and fixed networks followed by the parallel activity of supporting the integration of information technology systems. After more than a year of this process, we can say that we are well on our way to transforming into a fully integrated service provider that can guarantee all our mobile, fixed and TV services as a one package.

Naturally, the integration of business and technology requires significant capital investment, which has been provided by our owners, the Hungarian 4iG Group. Such a pro-investment approach from the 4iG Group shows the trust and support they have for One Albania and the Albanian market.

Despite the fact that the company has been significantly focused on internal transformation, we can proudly say that in the first year we improved our position in the market and achieved satisfactory results. One Albania managed not only to maintain, but also to further grow its mobile customer base, focusing mainly on contract subscribers and adding more than 100,000 new contract customers during 2023.

One Albania also became the market leader in the fixed broadband segment, being the operator with the largest fixed broadband customers in Albania and the operator with the largest fiber network, covering almost 7,000 km of fiber throughout the country. In the meantime, we are transitioning our customers from legacy copper/ dsl technology to more advanced fiber alternatives and expanding coverage. We anticipate that by the end of the year we will cover nearly 250,000 homes with a fiber network.

Last, but certainly not least, it is also worth noting that our new brand One had a huge impact on the market and achieved an awareness and recognition of 90% in less than a year.

Do you think that a second rebranding in such a short time (after the one from Telekom to One in 2020) has created difficulties in consumers' perception of the company?

Branding is a very important element for any business and industry, especially for the service industry. Our customers can perceive the impact of the brand at every point of contact with our company. Speaking from a theoretical point of view, it’s not the most ideal of scenarios when a brand changes in a short period of time. Still in our case, considering that we are in constant transformation, it was considered the best solution to integrate two companies under the new One brand. Such an approach brought positive effects, as the newly created company is in much better positions compared to the two independent companies that make it up. The same can be said for the new brand. Keeping the word "One" in the company name ensured an easier transition and customer consistency. We are already part of a regional telecommunications group, and this offers us many opportunities for brand synergy and regional awareness coming from our sister companies in Montenegro and very soon in Hungary.

To sum it up, with the launch of One, we brought freshness and differentiation on the market. We aimed to build the story of our brand, based on some core values, which are honesty, being friendly and transparent. The new visual identity, with purple and yellow colors, guaranteed us clear differentiation in the market.

What are your expectations for the 5G technology expected to be available soon?

The evolution of technology and the generational network change is something that is highly anticipated and exciting for all actors in this industry. I believe that we at One Albania have properly prepared for the "arrival" of 5G, since the internal integration process itself offered us an opportunity to introduce new technology. One Albania is ready and fully committed to upgrade the mobile network to 5G.

In addition to our internal preparations, the Albanian market has evolved a lot and now the businesses themselves are promoting the implementation of the 5G network. Although remaining in low numbers, the penetration of 5G mobile devices has begun, and makes up about 20% of all devices. We expect this transition to continue and happen quickly, as most new devices are 5G-enabled. In a few years I believe that the market will switch to 5G in bulk.

Another element worth noting is the development of the use of mobile data, where we have recorded an increase of almost 100% per year in our network. This is an indication that 5G technology will soon be needed to meet customer demands. It appears that the market remains "hungry" for content that requires mobile data, including online video streaming services and the use of social networks.

Last month AKEP approved new regulatory measures for mobile market operators. What do you think the effects of these new regulatory measures might be?

We fully understand AKEP's effort to create a regulated "environment" aimed at developing the market and improving competition. It is very difficult to predict the complete effects of the latest measures.

My personal view is that mobile service products are very competitive, and the recent measures will not affect new products significantly. Even the demands of the customers themselves are oriented towards the use of mobile data and digital service, rather than the minutes in their packages.

After a year focused on the merging process and the company's new name, what are the main objectives of One Albania for this year?

Our future goals are focused on continuous progress. Right now, the main objective of One Albania is to fully complete the transformation and fulfil the ambition to be an integrated service provider. We will achieve this ambition through the continued development of the mobile network and the introduction of 5G in 2024, supported by the further development of the fixed fiber optic network.

Improving the customer experience is our constant goal. During the transformation process last year, we also learned a lot from customer requests. Our aim is to provide solutions to most of these requests. We are also considering the possibility of digitizing our services and operations. During this year, we will lay the foundations for further digitization.

We are also exploring many opportunities to develop new business-specific alternatives, focusing on synergy with IT companies from the 4iG portfolio. In addition, we will aim to update our offers dedicated to hotel services, providing an opportunity for the growth of this industry.

Another slightly more long-term goal is the international project that we started together with the 4iG group, related to the development of underwater cables between Albania and Egypt. We have signed an agreement with the two governments and the project has entered the planning phase. This project is expected to change our current business model. The extension of intercontinental optical fibers will open new opportunities for the development of telecommunications. If this is achieved, Albania will become an attractive location for global content providers and global data centers. This is a long-term goal and if developed, the effects will be tangible for several years.

How do you expect the provision of integrated mobile and fixed services by telecommunication operators in Albania to be consolidated and further developed?

When I came to Albania last year, I was surprised by the number of fixed telecommunication operators present in the market. The number was very high and varied from 200 to 300. I believe this is a local phenomenon, as it is impossible to find a European country with such a large number of fixed operators. If we consider the number of families and the population trend, it is clear that a consolidation of the market is needed in the coming years.

I think the main reason why the market is like this is related to the type of business, which has led to the development of hundreds of local operators. It will be undoubtedly challenging for most of them to move forward, as they will be faced with the pace of technology development and the need to provide a better quality and Internet-connected service. In order to withstand such market pressure, operators are expected to join forces either through mergers or through consolidation.

On the other hand, we must keep in mind that because of the government's effort to join the European Union, the fight against content piracy and fiscal evasion, will standardize the market for all operators, which will reduce illegal competition organically.