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Zsolt Georgieff, managing director of HFC Technics, evaluates the business year 2009

HFC Technics achieved considerable success along with a very dynamic growth in the Hungarian cable television market. Following an outstanding business year, considerable infrastructural investments, we started the business year 2009 at our new company premises and with a stable sphere of customers.

Although the turnover of our company did not increase in the past year, we could still close a successful business year, which was first of all about making investments that will yield in the future. We continued to make investments required for increasing both the quality and the quantity of digital services; we have launched an independent software development program for making our services more cost-effective and more flexible. We strengthened our company`s sales force by hiring experienced and and recognized staff, and opened a new business area dealing in the markets of neighboring countries. Last, but not least, our technical and product support staff has participated in many trainings organized by manufacturers during the year, increasing their experience in the application of leading edge technologies.

The economic crisis – although we believed for a long time that we could escape its consequences – has hardened the life of our company, too.
In the first four months of the year, the ailment of the Hungarian Forint, than the decrease in the willingness to make investments and the unbelievable increase of delays of payment have upset our nerves. As a strategy for managing the crisis, our company chose to make developments. Instead of cutting down on staff number and costs, we have widened our service portfolio, developed our professional expertise and introduced technologies of the future, which has proved to be a good decision until now.

Among the largest service providers, the merger of the T group, as well as the DTH service launched by it, FTTH investments and re-selling of IPTV services have triggered a new process of restructuring once again. The launching of the interactive digital TV services of UPC Magyarország Kft., and the introduction into the market of Docsis 3.0 under the name of fiberpower, were a considerable and determinant event. On the other hand, low-priced services intended to satisfy mass demand, together with the current solvency, visibly slow down the fast spreading of products integrated with digital and interactive additional services. To sum up, in spite of the uncertainty and the crisis, the race of increasing bandwidth for data communications could not be stopped, thereby new technologies came into the market and began to conquer. In our company`s relationship with Arris, the past year has brought a determinant development in the market: in addition to the world leading DOCSIS-based systems, HFC Technics now deals in the trading of traditional HFC products known as C-COR, as well as newly developed GePON, RfoG and CORWave technologies, under the homogeneous trademark of Arris™.

We continuously developed the technological background of DigiHead and independent DTV services, as a result of which the scope of CaTV operators served by our company increased in a slow but sure way. We have considerably increased the success in Hungary of AppearTV`s new generation IP based head station system with 20 pieces of DC1000 series regional head stations delivered to UPC Magyarország Kft. We successfully introduced Teleste`s new IP based digital head station system bearing the fantasy name Luminato, which opens up new perspectives in regional EdgeQAM application even in DigiHead solutions due to its very favorable price-value ratio. Last but not least, we were the first to sell and install a EuroDOCSIS 3.0 Internet head station at Cellkábel, a medium-sized CaTV operator. Thanks to our experience gained in this project, as well as the launching of market leading C4® I-CMTS technology of Arris and the new compact EuroDOCSIS 3.0 Internet head station, we have received orders for EuroDOCSIS 3.0 system delivery in a quantity exceeding our expectations.

We first of all expect that the new year will bring the consolidation of our financial stability. We do not count on explosive changes to occur in 2010, based on our experiences of the past year, but the world of digital technologies yields newer and newer forms and opportunities of services in a way that cannot be stopped. Digital convergence is not a mystical marketing buzz word any more, it has a real content, and we believe that all this can be made a marketable service, as a real, novel and interactive solution. We do not lack plans and ideas, but implementation, and first of all the sale of new services requires a stable economic background and solvent demand. This is endorsed by the relative failure of the HD format so far, which proves that only real premium content and services can be sold at a premium price. Our most important strategy, in addition to the sale of equipment, is to provide competitive technologies as well as complex services to small, medium and large CaTV operators. The reliable background of this is the fact that our company represents in the Hungarian market stable, renowned, world leading manufacturers. Our company continues to be committed to innovation, so I hope that in the next year we can increase our competitive edge by expanding our sphere of customers, maybe causing a little surprise.


2010-01-18 - Gerogieff Zsolt

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