GTS gets set to snatch market share
GTS Polska is intent on grabbing market share in the voice, data and Internet markets by pushing for regulatory changes, and even vetting the communications sector for acquisitions targets.
Andrzej Gradzi, country manager for the telecom company, which also has operations in Hungary and the Czech Republic, explains his strategy concisely.
"My business must become more and more profitable," he said. "And mergers and acquisitions can simply fit into this." However, he said that the company now has specific acquisition targets and, if possible, it would like to grow organically.
Despite the economy and dominant telecom operator TPSA's de facto monopoly on fixed-line telecommunications, GTS has already shown some success in growing its presence in the country. It posted €24 million in revenue and a €2.1 million Ebitda last year, an improvement on 2001 when it posted Ebitda of €1.6 million.
Gradzi said the company's progress in the country has been hindered by the government and the double standards that the Office for Telecommunication and Post Regulation exhibits when dealing with TPSA or alternative providers.
"I can hardly see anything that has helped us," Gradzi said. "If you say the URTiP is part of the government, then I don't see that the government has helped us. There are many excuses why things cannot happen."
He explained that in the interest of opening up the communications networks currently monopolised by TPSA, GTS is strongly pressing the government and the regulator to strive to put more power in the hands of the alternative providers.
Gradzi declined to go into detail about how GTS would actually foster greater market liberalisation, but he said the concern is a key component "in everything we do."
He compared Poland to other markets.
"In the Czech Republic, we are the number-two telecom player," he said. "The big difference is that in Poland we just built the voice component."
Gradzi added that GTS, formerly Internet Partners, provided Internet services first, while it was trying to break into the TPSA-dominated voice market. Market-entry restrictions here, he said, were more severe than in the Czech Republic.
Nonetheless, this country is crucial for GTS.
"The Polish market is more competitive," Gradzi said, comparing it to other EU-accession nations. "And at the same time there's a greater population."
All that could equal riches for the company if it plays the market correctly, he said. One strategy is to look among the dwindling ranks of competitors for partners.
"Some of the players in our segment are going out of the market," Gradzi said, referring in particular to Internet service providers.
But as market regulations and the overall economy has kneecapped many telecom companies, he said, there is a possibility to look for acquisitions among them.
"We are thinking about it," he said of M&A acvtivities. "We don't have any specific plans."
Gradzi pointed out that there is no urgent need to buy up the market. GTS would rather casually scout out opportunities. At the same time, the company is in the process of investing the €4.6 million (zł. 20 million) it set aside to pump into the country this year.
"We are building a communications backbone from Warsaw to Poznań," Gradzi said. "We want to build a ring around Poland."
Though this new infrastructure will chip away at the company's future operating costs, Gradzi said that GTS would find ways to reduce the costs.
Andrzej Gradzi, country manager for the telecom company, which also has operations in Hungary and the Czech Republic, explains his strategy concisely.
"My business must become more and more profitable," he said. "And mergers and acquisitions can simply fit into this." However, he said that the company now has specific acquisition targets and, if possible, it would like to grow organically.
Despite the economy and dominant telecom operator TPSA's de facto monopoly on fixed-line telecommunications, GTS has already shown some success in growing its presence in the country. It posted €24 million in revenue and a €2.1 million Ebitda last year, an improvement on 2001 when it posted Ebitda of €1.6 million.
Gradzi said the company's progress in the country has been hindered by the government and the double standards that the Office for Telecommunication and Post Regulation exhibits when dealing with TPSA or alternative providers.
"I can hardly see anything that has helped us," Gradzi said. "If you say the URTiP is part of the government, then I don't see that the government has helped us. There are many excuses why things cannot happen."
He explained that in the interest of opening up the communications networks currently monopolised by TPSA, GTS is strongly pressing the government and the regulator to strive to put more power in the hands of the alternative providers.
Gradzi declined to go into detail about how GTS would actually foster greater market liberalisation, but he said the concern is a key component "in everything we do."
He compared Poland to other markets.
"In the Czech Republic, we are the number-two telecom player," he said. "The big difference is that in Poland we just built the voice component."
Gradzi added that GTS, formerly Internet Partners, provided Internet services first, while it was trying to break into the TPSA-dominated voice market. Market-entry restrictions here, he said, were more severe than in the Czech Republic.
Nonetheless, this country is crucial for GTS.
"The Polish market is more competitive," Gradzi said, comparing it to other EU-accession nations. "And at the same time there's a greater population."
All that could equal riches for the company if it plays the market correctly, he said. One strategy is to look among the dwindling ranks of competitors for partners.
"Some of the players in our segment are going out of the market," Gradzi said, referring in particular to Internet service providers.
But as market regulations and the overall economy has kneecapped many telecom companies, he said, there is a possibility to look for acquisitions among them.
"We are thinking about it," he said of M&A acvtivities. "We don't have any specific plans."
Gradzi pointed out that there is no urgent need to buy up the market. GTS would rather casually scout out opportunities. At the same time, the company is in the process of investing the €4.6 million (zł. 20 million) it set aside to pump into the country this year.
"We are building a communications backbone from Warsaw to Poznań," Gradzi said. "We want to build a ring around Poland."
Though this new infrastructure will chip away at the company's future operating costs, Gradzi said that GTS would find ways to reduce the costs.
