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EnterNet sees opportunity in crisis downturn

Hungarian internet service provider EnterNet sees tough times ahead, but at the same time great possibilities in the financial crisis from offering a complexity of corporate solutions, Róbert Bauer, head of the company group’s board of directors told BBJ Online.

In 2008, EnterNet began to revise its business strategy so as to put a greater emphasis on providing a complex range of solutions, particularly for business clients, allowing them to completely outsource their IT-related concerns, Bauer said. The approach in conditions such as the current could well pay off, as the crisis will inevitably lead several businesses to reduce their costs in the most obvious way and lay off workers, which they can then substitute with better computerized solutions, he added.

Accordingly, EnterNet will now begin to reshuffle the composition of its clientele, orienting itself towards business partners over household subscribers so as to be able to market more added-value products and solutions that are also more profitable, Bauer said. Over the coming period, the overwhelming part of the company’s turnover should come from corporate sales.

As for the future of the Hungarian telecommunications industry, Bauer noted the announcement of the 450 MHz frequency mobile tender by the Hungarian state - aimed at providing scarcely inhabited regional areas of Hungary with mobile coverage - carries some prospects, particularly for ISPs like EnterNet looking to take advantage of new mobile internet market segments.

However, since the sector is undergoing extremely rapid changes, by the time the necessary infrastructure is in place, which will only come years from now, the situation could change drastically, perhaps making the entire procedure redundant, Bauer said, stressing that it is virtually impossible to make grounded predictions. (BBJ Online)