KGHM won't hang up on Dialog

Earning revenues of zł.1 billion and attracting some 500,000 new subscribers are the main goals of a new strategy revealed by Wrocław-based Dialog, the third-largest fixed-line operator in Poland. Only last week KGHM, the copper producer which owns the company, officially announced that it had withdrawn the decision to sell the telecom.

According to Maksymilian Bylicki, deputy president of KGHM, the owner had a choice between selling Dialog now or building its value before selling it. He believes strengthening Dialog now will make it a tastier morsel for investors later.

Dialog aims to become the leader of alternative telecommunication on the market, a position currently occupied by Netia. The company wants to achieve this through a wider range of products, and plans to offer mobile services as a virtual operator as well as internet television (IPTV).

"We are having advanced talks about becoming a virtual operator. Naturally, the talks are with Polkomtel [part-owned by KGHM]. We would like to sign the agreement this year and present the offer next year," says Sławomir Szych, president of Dialog.

The operator has recently bought shares in ATM Grupa, which is implementing the IPTV project and is doing IPTV tests. Next year a triple-play offer, consisting of a fixed telephone line, an internet connection and cable television, will be launched commercially.

Company representatives say Dialog's future success will also depend on acquisitions and consolidation on the market. The company plans to invest some zł.200 million. Its first purchase will include an internet shop.

Currently, Dialog has some 550,000 subscribers. Its H1 2005 sales revenue reached zł.250 million.