Clik here to view.
American Times with Makedonski Telekom CEO: Mr. Thilo Kusch
A former SOE, Makedonski Telekom (MK Telekom), operating through its parent company Deutche Telekom Group (DTG) since 2001 and under the umbrella of the T brand since 2006, has become not only the largest telecommunications provider in Macedonia but also its largest company. The acquisition of Makedonski Telekom, a €362.5 million venture, holds the position of the single largest direct investment in the country to date. Since then, the company has invested around €650 million in new state of the art fixed and mobile networks, systems and services; which now provides the fastest and most reliable connections available in Macedonia.
The socio-economic significance of such an investment in a country the size of Macedonia cannot be understated. By default this makes their work critical to the overall economic development of the entire nation, a responsibility deeply understood and perfectly reflected by Makedonski Telekom’s new CEO, Mr. Thilo Kusch, “The Company has a key role in modernizing the telecom market in Macedonia. By developing innovative products and services, we promote the personal and social networking among the people; which in the end makes us the major national engineer of the information society in the country.”
Taking the position of CEO for Makedonski Telekom and President of the Board of Directors for T-Mobile Macedonia in April of this year, Mr. Kusch, represents the endeavored spirit that is required to direct and comprehend the impact of his actions in his new post. Having held the post of CFO under Magyar Telekom Hungary (which Deutche Telekom obtains majority ownership), Mr. Kusch, a German national, has the portfolio and experience within the European marketplace to speak deeply about Macedonia’s potential as an emerging nation and the importance of Makedonski Telekom to Magyar Telekom Group and the entire Deutche Telekom Group.
We sat down with Mr. Kusch to learn more about their ambitions for the future and the overall ease of doing business in Macedonia.
AMT: We understand that MK Telekom has had some very recent successes in implementing new services and technologies in Macedonia. What is the significance of these services?
Mr. Kusch: One important implication as well as recent investment is our modernization of the fixed telecom network. The company invested €13.7 million in the re-structuring of the traditional network into a fully fixed IP network for all our services, known as IMS (IP Multimedia Sub-system). This will make Macedonia an innovation pioneer in Europe, as the first nation to offer this framework. This will be a great opportunity and source of pride for the country going forward when we finish implementation at the end of 2013.
Image may be NSFW.
Clik here to view.
Additionally, as of June this year (2013) we launched our mobile payment service. Again, we were not only the first in Macedonia to do so, but the first in the region as well. The mobile payments system was interesting in a separate way due to the fact that it tends to be a difficult process to implement because the service crosses industry borders.
…we have a world class infrastructure and there is high unemployment amongst university graduates. That combination along with the pro-business and secure legal environment, I think offers ICT companies looking to establish a regional facility or relocate, a tremendous investment opportunity.
AMT: Were there any bureaucratic obstacles in realizing these achievements?
Mr. Kusch: Traditionally you have the banking industry solely dealing with payments and of course we are a Telecom company…when you have a service like this that lies somewhere in the middle, things need to change on both sides from a legislative point of view and nothing happens for years. It’s one of the most difficult services to implement; I say this from experience while working in other countries.
In order for the mobile payment service to be realized it required an extension of a particular piece of legislation within the appropriate ministries and the changes were made quite quickly. It’s a flexible country with a government that isn’t dogmatic in its approach in recognizing legislative concerns. In fact, not only are high-level officials accessible but there is a willingness to engage with the business community.
AMT: So, overall you have been satisfied with the government’s ability to develop a sustainable legal and business framework?
Mr. Kusch: I think a lot of the government’s initiatives are aimed at making Macedonia a world class destination to invest. From the ease of doing business processes to protection of physical and intellectual property, as well as a wealth of new laws in recent years. All of this has definitely led to an increase in certainty from an investors perspective in doing business here.
AMT: You are in a high-tech business. Are you able to source the employees needed in the local marketplace to develop your future growth plans?
Mr. Kusch: Our strong market position and brand reputation in the market not only attracts customers but also attracts talent. What you’ll see in Macedonia is that the quality of education is very high; whether you need business skills, finance or engineering expertise, it’s all here. This fact is proven simply: Macedonia would not be the pilot market for IMS the entire Deutche Telecom Group. You can only do that if you have local talent, no one is flying in from Germany to handle sophisticated development. It is all done locally.
Perception of the country is different from what Macedonia really is.
AMT: Where are growth opportunities for the company?
Mr. Kusch: Our target is to strongly push the B2B segment, particularly in ICT and Cloud services. We are already recognized as an attractive partner to the local IT companies.
We have a strong chance to develop Macedonia’s reputation in the region as a destination with a very solid telecommunications infrastructure. Especially when we consider our parental synergies where DTG considers Macedonia a great test market for new products. We have taken the opportunity to be the spearhead for leading technologies in the market for our parent company, in my opinion; this will automatically help local companies to become established. I am not saying Silicon Valley should come here, but we have a world class infrastructure and there is high unemployment amongst university graduates. That combination along with the pro-business and secure legal environment, I think offers ICT companies looking to establish a regional facility or relocate, a tremendous investment opportunity.
We actually want to have partners that can help us establish new services probably more than other telecom operators. We establish things quickly. We already work with companies that have developed to offer internet based services. I think that can be even furthered with international participation.
AMT: As a new expat, please offer your personal perspective of life in Macedonia.
Mr. Kusch: Perception of the country is different from what Macedonia really is. Firstly, not much is known. It’s got great food, great people and it’s a beautiful country with a lot of history. Which you will not know about unless you’ve been here. I meet other expats who leave the country but not because they want too, in fact they want to stay, which is also a great sign of the quality of life.
AMT: As an experienced businessman, please offer your professional perspective on why Macedonia may make sense.
Mr. Kusch: It’s quite exciting to be here right now! You can see the potential through the speed in which the government is promoting the country, developing the infrastructures and their openness in making reforms. They have the potential at the rate they are growing to certainly surpass some other countries in the region. They are poised to do something great.