Page ContentKey strategic policies of the Telekom Slovenije Group for the period 2017 to 2021The Slovenian telecommunications market is comparable to the developed markets of Western Europe, where analysts are predicting a decline in incumbent operators’ revenue and market shares from the core telecommunications business. The telecommunications markets of South-Eastern Europe operator are also reaching maturity, which is already seen as a decline in revenue on the market as a whole. The Telekom Slovenije Group operates on markets where accelerated consolidation is taking place within and between the countries, which is additionally intensifying the competition. The company will counter these trends by focusing on strategic guidelines explained hereinafter.Consolidation on individual markets In the past years Telekom Slovenije Group has already carried out consolidation on the Macedonian market and by purchasing Debitel also on the Slovenian market. In addition, the company has sold its share in the operator Gibtelecom. The consolidation activities will continue in the future on individual markets either by expansion or through disinvestment. Expansion of the fibre-optic access network Telekom Slovenije’s fibre-optic access network provides its users high-speed internet access, the most advanced broadband contents, and a superior user experience in terms of broadband content. Telekom Slovenije will continue investing in the extension, and upgrade of its fibre-optic broadband network in 2017. The modernisation of the Telekom Slovenije fibre-optic access network will mainly be carried out where the highest penetration along with the highest revenues are expected. The company will also fulfil the commitments deriving from the exhibited market interest in the construction of electronic communications broadband networks in the Republic of Slovenia, for which Telekom Slovenije has expressed the intention of building the connections in the period of the next three years based on a tender by the Information society Directorate in the year 2016. Growth in the number of broadband in IPTV connections We will achieve growth in the number of Telekom Slovenije’s IPTV connections by an accelerated expansion of the fibre-optic access network, offering a range of convergent price plans, expanding the sales range outside the core telecommunications business, and in particular by offering the best user experience. New revenue sources By expanding its operations to new businesses and services that are relevant to its users, also outside its core telecommunications business, Telekom Slovenije will strengthen its core business on the one hand, and increase its share in the household and enterprise budgets on the other. Telekom Slovenije will offer its users a broad selection of telecommunications services and solutions in one place and, accompanied by an increase in revenue from ICT services, the company will also expand its business to new areas, such as insurance, financial services, smart home, e-m-health, e-m-citizen, e-m-security and e-m-mobility services, big data, etc. Optimisation of processes and the IT infrastructure Through optimisation of business processes and IT infrastructure, Telekom Slovenije will transform itself into a lean and agile company that will continue to dynamically adapt to the demands of its users with simple, easy-to-understand and easy-to-use solutions. HR restructuring Telekom Slovenije Group will continue to optimise labour costs and ensure the optimal number of employees considering the needs of the work process at individual companies as well as to develop the competences of the employees. Financial stability The financial stability of the Telekom Slovenije Group will be achieved by the following: a suitable structure of its sources of financing, maintenance of sufficient liquidity reserve including long-term reserve credit lines, the fulfilment of its financial commitments, improvement of financial indicators required to increase the company’s credit rating, monitoring and study of trends on financial markets, improved control of the Telekom Slovenije Group’s cash flow for better management of liquidity, maintaining effective corporate governance mechanisms, study and use of alternative sources of financing, and by improved working capital management in all companies of the Group. Quality Quality is and will remain the comparative advantage of services offered by Telekom Slovenije Group companies. We will continue to offer our users a comprehensive range of cutting-edge services and solutions, while maintaining and improving our quality management systems and proven models of business excellence. Social responsibility The Telekom Slovenije Group actively identifies opportunities where it can contribute to the development of the social and economic environment in which it operates, with its expertise as well as with financial and other resources. As the leading national operator in Slovenia and a development and future oriented company, Telekom Slovenije is well aware of its social responsibility. The principles of sustainable development are therefore built into the operations, products, services and content of all Telekom Slovenije Group companies, while we responsibly manage the economic, social and environmental impacts of our operations.