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Croatia Telecommunications Report Q1 2008Product Type: Market Research ReportPublished by: Business Monitor International Published: December 2007 Product Code: R302-1830 Description In the second quarter of 2007, the number of Croatian mobile subscribers grew by 3.4%, which meantthat Q207 was a stronger growth quarter than Q107, when the sector grew by just 2.4%. Nevertheless,with the Croatian sector having achieved 5.8% mobile subscriber growth in the first half of 2007, BMIdecided to upgrade its growth predictions for 2007 as a whole. Although we previously suggested that thesector would expand by 9.5% in 2007, we now estimate that mobile subscribers will increase by as muchas 12.5% in 2007, to reach 4.911mn by the end of the year.Croatia’s mobile sector continues to be led by T-Mobile, which had a 48.1% share of the market at theend of June 2007. Despite the dominance of T-Mobile and its closest rival, Vipnet of the TelekomAustria group, both operators appeared to lose market share to third ranked Tele2 Croatia in Q207.Following numerous reports about Tele2 Croatia’s financial difficulties in the early part of 2007, thecountry’s third largest mobile operator appears to have had a comeback, securing 50% of new subscribersin the second quarter of 2007 and increasing its subscriber base to 400,000 by September 2007. By theend of June 2007, Tele2 had boosted its share of the market vis-à-vis T-Mobile and Vipnet. Meanwhile, itwas reported in October 2007 that Tele2’s Swedish parent company had increased its stake in its Croatianmobile business from 51% to 93% via a HRK120mn (US$23mn) recapitalisation. As a result of Tele2’scapital investment, the stake in Tele2 Croatia which previously belonged to Croatian private equity fundQuaestus, has been reduced from 49% to 7%. Table of Contents
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