Annual Report 2011 - T-Hrvatski Telekom

10
Corporate Profile
Introduction
At a Glance
The T-HT Group is the leading provider of
telecommunications services in Croatia, offering fixed
and mobile telephony services as well as wholesale,
Internet and data services. As of 1 January 2010, the
Group conducts its business through its Residential
and Business units.
The basic activities of Hrvatski Telekom d.d. and
subsidiary companies comprise the provision of
electronic communications services and the design
and construction of electronic communications
networks within the Republic of Croatia. In addition to
the provision of fixed telephony lines services (fixed
telephony line access and traffic, as well as fixed
network supplementary services), the Group also
provides Internet and ICT services, data transmission
services (lease of lines, Metro-Ethernet, IP/MPLS,
ATM), operating with GSM and UMTS mobile
telephone networks.
History and Incorporation
Hrvatski Telekom d.d. (HT d.d. or the Company) is
a joint stock company majority owned by Deutsche
Telekom AG (DTAG). It was incorporated on 28
December 1998 in the Republic of Croatia, pursuant
to the provisions of the Act on the Separation of
Croatian Post and Telecommunications into Croatian
Post and Croatian Telecommunications, by which
the business operation of the former HPT - Hrvatska
pošta i telekomunikacije (HPT s p.o.) was separated
and transferred into two new joint stock companies,
HT - Hrvatske telekomunikacije d.d. (HT d.d.) and
HP — Hrvatska pošta d.d. (HP d.d.). The Company
commenced its operations on 1 January 1999.
Republic of Croatia transferred 7% of its shares
in HT d.d. to the Fund for Croatian Homeland War
Veterans and Their Families, pursuant to the Law on
Privatization of HT d.d. (Official Gazette No. 65/99 and
8/2001).
In 2002, HT mobilne komunikacije d.o.o. (HTmobile)
was established as a separate legal entity and
subsidiary wholly owned by HT d.d. for the provision
of mobile telecommunication services. HTmobile
commenced its commercial activities on 1 January
2003 and in October 2004, the company name
was officially changed to T-Mobile Croatia d.o.o.
(T-Mobile).
On 1 October 2004, the Company was re-branded
as T-HT, thus becoming a part of the global „T“
family of Deutsche Telekom. The change of identity
at corporate level was followed by the creation of
trade marks for the two separate business units of the
Group: the fixed network operations business unit,
T-Com, which also provided wholesale, Internet and
data services, and the mobile operations business
unit, T-Mobile.
In May 2006, the Group acquired 100% of shares
of Iskon Internet d.d., one of the leading telecom
alternative providers in Croatia.
Pursuant to the provisions of the Law on Privatization
of HT d.d. (Official Gazette No. 65/99 and No. 68/01),
on 5 October 2007, the Republic of Croatia sold
32.5% of T-HT ordinary shares by Initial Public
Offering (IPO). Of the 32.5% of shares, 25% were
sold to Croatian retail investors, while 7.5% were
distributed among Croatian and international
institutional investors.
Pursuant to the terms of the of Law on Privatization
of Hrvatske telekomunikacije d.d. (Official Gazette
No. 65/99 and No. 68/01), on 5 October 1999, the
Republic of Croatia sold a 35% share in HT d.d. to
DTAG, and on 25 October 2001 DTAG purchased a
further 16% share in HT d.d. and thus became the
majority shareholder with a 51% share in ownership.
As of 17 February 2005, the Government of the
Following the sale of shares to present and former
employees of Hrvatski Telekom and Croatian Post in
June 2008, the Government of the Republic of Croatia
reduced its holding from 9.5% to 3.5%, while private
and institutional investors held 38.5%.
In October 2009, an agreement was signed by which
T-Mobile Croatia was merged into HT d.d. The merger
came into effect on 1 January 2010, after which
time the Group was organised into Residential and