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Zsolt Georgieff, CEO of HFC Technics, evaluates the business year 2010

In last December, we celebrated the 10th anniversary of establishing our company, which is a good occasion to overview the period behind us and to make plans for the future. In the history of the company there were, of course, more difficult as well as easier periods, years full of expectations and ones bringing success.

In addition to the fast growth after starting apparently from scratch, we became known in the Hungarian cable television market quickly, and I am proud to say that we are not only a known, but also a recognized player in this profession. Our success is due to the hard work of our wholehearted team, as well as the support of our suppliers, but most of all to the confidence the cable television profession has in us.
The past two years, full of economic hardship, urge us to keep working hard at this moment of celebration, as the position we have won was not only difficult to attain, it is also difficult to keep.
In connection with the year 2010, we focused first of all on looking for new possibilities and safeguarding our stability. The trend of decreasing turnover that we saw in 2009, has been reversed, slowly but surely, in this year. So, however our 2010 turnover was lower than the peak of previous years, it enabled us not only to keep our stability, but also to implement some developments.

 

The effects of the crisis caused a considerable slowing down of the realization of our goals, but this may even have advantages as the demand and expectations of the market served by us show uncertainty and a decrease of demand as well. We continuously review our development and strategic directions, we try to anticipate on trends, but of course, we try to minimize our risks.


In this year, the merging of companies in the cable television segment has accelerated, which is rather a disadvantage than an advantage for us: unfortunately the patience of small and medium operators is finite, which is quite natural with the current conditions of operation. In spite of all this, we remain confident in the viability of the market segment, and, at the same time, we compensate for the narrowing effects of the Hungarian market by considerably increasing our export activities.

Our company strengthens further its already successful line of software development, and we see several directions of expanding our software design activities. IP-based digital imaging technologies provide many opportunities in the fields of both content and service technologies. In this field, there may be possibilities even in such a closed market segment.

For this, however subscriber needs and demand have to increase. We are confident that the decrease of demand seen as a result of the crisis will be reversed and start increasing in the next year. The situation of today is unfortunately different, and even, as a result of the extra tax on telecommunications activities some investments had been halted or delayed, which decreases our planned sales.

On the supplier's side the biggest challenge is the dragging-on of the digital breakthrough as analog services and packet filtering are still dominant, which result in a digital penetration of about 10 percent. This process slows down developments, the spreading of FttH just as well as state-of-the-art, high standard digital cable network investments. Of course the developments are not only hindered by the current structure of content distribution, but also by the offer of services at pressed price level.

We continuously develop the digital distribution platform created as a joint effort of CATV operators, although its considerable spreading is limited not only by what I have mentioned above, but also by the regionally different pricing and availability of national optical infrastructures. New technologies and directions of development however provide new possibilities for the operators involved, so the service solution we have created is absolutely viable for the future.
 
At the same time, the increasing of bandwidth of internet services and the spreading of telephone services on cable television networks are unbroken. This also projects the possibility of introducing new types of contents and service platforms in the near future.

The basic strategic goals of our company remain the same, so we intend to keep acting as a leading supplier of reliable state-of-the-art systems and innovative solutions in the markets of Hungary and the neighboring countries.

 

2011-01-10 - Zsolt Georgieff

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