CZECH REPUBLIC

In the Heart of Europe


Mr. VRATISLAV KULHÁNEK

Interview with

MR. NIHAD HUREM
General Manager of STROM TELECOM

STROM TELECOM CZECH REPUBLIC

Contacts:

STROM telecom, s.r.o.
Doubravice 80
Dobrejovice
251 70 Praha - Východ
Ceská republika
Phone + 420 323 629 111
Fax + 420 323 637 966/7
Email: office@strom.cz
Web Page: http://www.strom.cz
The history of STROM telecom has developed very rapidly during the last 2 years, could you summarise the most important changes for this period of time?
First of all I would like to underline that we have finished one of the most serious development programs we have ever undertaken. It is the development of a very complicated and concise switching platform that is used not only for voice switching but also for data transfer. We have also improved our equipment and the systems we use, primarily because we wanted it to be in accordance with the EU norms. The result of all this work has been the approval of the quality of our products by the EU's corresponding institutions. We have also received positive results from the Interoperability test and practically that means that the doors are now open to the EU markets and that is something that is included in our future plans. Our products have also been tested by one of the first-rate EU's Telecom and they were approved and accepted, which is a very good sign and it is also a great reference for the future.

You used to be more interested in the eastern markets and the CIS countries, does that mean that you are going to change your foreign market orientation?

When you work in this business you have a very limited number of opportunities. Basically your clients are only Telecom operators and as you know there are usually two or three of them in a country. What we can offer them is a strong support team and very good hardware-software solutions. We are really listening to our clients, we are adapting our products and services to their needs. Regarding our orientation, there is going to be a change. We decided to make a shift in our business orientation and try to penetrate the Western European markets. This is going to be easier now, with the reference that we have from German alternative telecom operator. We would like to decrease our dependence on the CIS market and to increase revenues coming from Western Europe. This Year we will already have only 30 to 40% of our revenues coming from CIS market and it will further decrease.

The number of your subsidiary companies has also grown a lot, what are the developments?

I want to emphasise the fact that the company has grown also in its size. We have 550 employees working for STROM and 15 subsidiary companies. We have bought additional land around the territory where we are situated now and we are going to develop more in our size.

How has that increase contributed to the financial turnover of the company?

The company has been steadily growing since its establishment and we had an average increase of turnover of 15 to 20% per year. The telecom business has not been performing very well in the last years and everybody is kind of expecting something really revolutionary and big that would get the sector going again. We are always using the latest technology that enables us to create products according to the latest criteria and to lower the production costs. In spite of our dramatical growth we remain very flexible, so we can adjust our products to the needs of the market. Our platform and systems are all based on plain open decisions and they provide complete network solutions.

As I understand you already work with Germany, what has been your most important project there?

Yes, we are definitely working in Germany. Moreover, we have installed there a complete network of our switches in the 15 biggest cities of the country and the network is now run by us entirely. Our network management system has enormous ability for remote on line monitoring and control the whole network and every elements of it, this means that this network is managed from our office in the Czech Republic. So, our customer does not need recruit, train and keep personnel for network operating and maintaining.

What other countries have shown an interest in your products?

You know, we have such interest from almost all over world, but inquiries which we got from Western European countries, especially Great Britain, United States and Asian region are much important for us, and that is why we are more active in these regions.

One of the major differences between you and your competitors is the approach that you have to your clients, how has that helped you develop your business?

Yes. I would say that this is the major difference between them and us. Of course I don't want to compare STROM telecom to Ericsson or Nokia, because those are huge companies with a tremendous financial and intellectual potential, but they are very slow. If you look at our business, there are these big companies and there is nobody behind them, there are no medium size companies that could fill the gap. That is our aim, to become one of these medium size companies and we are succeeding. Our strength is our size, we can adapt easily and we are flexible in choosing our direction of development. When we established ourselves here in the Czech Republic, we bought one of the Tesla manufacturing. It was a good start because that brand was very well known in the world for its good quality products, but they were without any program. So after we bought them we implemented our production programme and it worked very well. Now our factory, Tesla Tech is one of the biggest production lines in Central Europe. Production capacity of our pick and place machines is 1 million electronic components per day and currently we use for our own needs 40% of this capacity, 60% of it is going for world-wide sales to the markets that I have mentioned before.

What would be the latest products developed by the company?

One of the latest products is called AGNES, Advanced -Generation Network Solutions. It is a packet-switched network solution designed universally for voice and the new broadband services.
For today we have fully complete pre-production sample in our laboratory and all technical and technological items of its development and manufacturing are clear for us and under our control. The market for this product is huge and very serious, and by it's size exceed STROM's current opportunities. Marketing and sales - our main task for the near future. To fulfil it we have designed our partnership program. And, who knows may be among your readers there are some that will be interested in it.

The choice of the location was a coincidence, nevertheless it turned out to be the right choice, how has been your experience working here?

This experience has been great. The Czech Republic is a great place to make business. All the ministries and all the officials were very friendly and helpful. The country is very suitable because it is very stable and they are able to have a good production here. Regarding our personnel, they are great people. They are really good specialists and 90% of my success is thanks to them. I always say, that the combination of foreign management and local specialists is the best, because I have the approach of a businessman and they are doing a great job with the research and technical details. This is why 10 years ago we chose Tesla Votice to be our main production site, people here are used to work with technology, they have a tradition to work, and they are very responsible and most importantly they are very able in the technical field. I would also mention that Prague is a beautiful place to live and it is one of the most beautiful places in Europe.
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