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Government Establishes Telecom with HEP and HAC

The government is moving forward with the establishment of a new telecom that is expected to provide broadband, fast, and affordable internet throughout Croatia.

As reported by 21st Century, the new company will take over the management of the free optical network of state-owned enterprises such as Croatian Highways, HEP, Plinacro, Janaf, and the Rijeka-Zagreb Highway, which built the network for their own needs, but most of the capacity is not commercially utilized.

A decision on this model is expected at this week’s or next week’s government session, and it has been emphasized that the new company would not operate as an operator itself and interfere in the market of various services, but would provide equal conditions for infrastructure leasing to all up to a certain point. Until now, each state company has built optical infrastructure for itself. There are at least 3,000 kilometers of infrastructure, of which a smaller part is used, and the state has been paying private operators 250 million kuna annually for its needs.

While VIP has generally welcomed this idea, HT has expressed concerns about market competition disruption.