Netia still in the red despite luring substantial subscribers

Netia, Poland's largest private fixed-line telephone operator, attracted zl.314 million in revenue in the first three-quarters of the year. However, the company incurred net losses of zl. 396 million, or zl.31 million less than in the corresponding period last year. Despite having increased its subscribers to 307,200 by the third quarter, Netia still remains in the red, in part due to protracted negotiations with Telekomunikacja Polska S.A. (TP SA) over inter-network connections. The failure to clinch a deal with TP SA has incapacitated the telecom firm's operations on the Warsaw and intercity markets where it has a license to operate. Netia's prospects nonetheless look promising since it has managed to entice a substantial number of corporate clients, the most profitable segment in the telecoms market. To date, Netia has invested zl.2.3 billion into its operations and has zl.1.5 billion readily available for future investment opportunities. Some projects Netia is considering include the creation of a broadband network that would encompass ten of the largest Polish cities. "We aim to commence web hosting, fiber-optic lines and uninterrupted access to the Internet before the end of the year," says Netia president Meir Srebernik. (Puls Biznesu, p.4).