Mobile telecommunications witnessed a changing of the guard this summer as T-Mobile stepped out of the shadow of market leader Eurotel and became the No. 1 mobile operator in terms of client numbers. Eurotel has 4.42 million clients, in comparison to T-Mobile's 4.46 million. Roland Mahler, T-Mobile's managing director for the Czech Republic, talked with The Prague Post about how attaining market leadership was just one of the goals on T-Mobile's agenda this year. By year-end, T-Mobile plans to launch the first UMTS network in this country.

1. T-Mobile has become the market leader here in terms of customer numbers. How will this affect your business?

The fact that we are No. 1 is a wonderful confirmation of our strategy and it proves that our team can really make it happen. It gives us the power and confidence to stay No. 1.

2. From 2006, the portability of mobile phone numbers will be launched. Do you think T-Mobile's status as the No. 1 mobile operator could be a psychological tool to win clients from competitors?

We see mobile number portability as a great opportunity to attract new customers, especially now that we serve the most customers in the country. For mobile users this brings clear benefits, not the least of which is cheaper calls because the chance of friends and family using T-Mobile's services will increase.

Furthermore, mobile number portability will bring a breath of fresh air to the business-user sector, which is usually more reluctant to change operators. In the business sector, we still have plenty of room to grow, especially in the medium- and large-enterprise segments.

3. How important is the introduction of mobile phone number portability? Given the fact that T-Mobile now has the largest number of clients on this market, do you think there will be more to lose than gain through number portability?

Fortunately, we can draw on the experiences [of] other T-Mobile markets where mobile number portability has already been introduced. We believe that our bottom line will improve mainly due to the structural changes that number portability brings to our client base. We are confident that we can persuade even more business customers to switch to the better value for the money and acquire the innovative services we offer. Of course, we've already seen a great deal of success in attracting business users: T-Mobile has been the operator of choice for small and midsize businesses for quite some time.

4. From a marketing point of view, how significant was the media attention that T-Mobile had become the market leader in this country?

Before that, news about T-Mobile was in the shadows of Cesky´ Telecom's privatization and the arrival of Vodafone on the market.

Becoming No. 1 was not a marketing exercise — it was a declared business goal that we have now achieved. Two years ago we publicly declared that we would become the No. 1 mobile operator in terms of the number of customers and that in four years we'd be No. 1 in terms of financial indicators as well. We've fulfilled the first half of our promise a bit ahead of schedule and are well on the way to achieving the second part.

As for the 'shadow' that you allude to — we didn't notice it. We are 100 percent focused on being the best mobile operator and we perceive changes on the Czech telecommunications market as a great opportunity. While the new owners of our competitors spend time, effort and resources on the stabilization of their newly acquired companies, we'll be focused on meeting our strategic goals, gaining new customers, and serving our existing customers even better.

5. In light of Telefónica taking over Eurotel and Vodafone purchasing Oskar, how much do you think these two new players will change the market? What are the implications of the arrival of Vodafone and Telefónica and what effect will they have on T-Mobile's market position?

We are delighted to have two such renowned international players as competitors, but we're certainly not afraid of them. In terms of the effect on the market, stronger competition always benefits the end-users. For us, it means we can take a brief pause for reflection and exhale, having reached an important goal. But in no way will we stop our progress. This market is very dynamic and we are going to run with it. Actually, we are running ahead of it. And, by the way, Vodafone in Hungary is still No. 3, after many years of effort!

6. While T-Mobile has just become the market leader in terms of customers, it still ranks behind Eurotel in terms of revenues. Eurotel — your closest rival — did not seem bothered by losing the leadership in client numbers. What matters more in the telecommunications business, the numbers of clients or revenues? Why?

The number of clients is important for end-users. If all of your friends use T-Mobile as well, it means you can call them at a better rate since we, as the operator, do not need to pay interconnection charges, some of which are not set by us and are relatively high. For the shareholders, the financial indicators are of primary concern. The trend of our financial indicators is very positive, whereas Eurotel's financial indicators have stagnated or are in many cases decreasing.

7. Revenues for voice services are now declining. What new services is T-Mobile considering that could boost future revenues?

In our case, we have managed to raise both voice and nonvoice revenues. One reason is fixed and mobile substitution. Our Pevná plus tariff contributes nicely to increasing our revenues. In terms of the long-term outlook, data services are clearly one area in which there is a lot of pent-up demand. T-Mobile was the first operator to launch EDGE technology on the Czech market. EDGE is an integral part of our data strategy, and we aim to offer the best services and the broadest coverage with this technology. We have also announced that the first UMTS network will be launched by the end of the year.

8. The planned launch of UMTS services could revitalize the local telecommunications market. How do you think the Czech market will respond to UMTS? How does T-Mobile intend to compete in this field?

Based on our experience with GPRS and EDGE, the Czech market is more than ready for the right UMTS services — namely, those that are relevant to the Czech market and meet the demand for broadband access to the Internet. Our UMTS network will cover Prague toward the end of the year, and other cities and towns throughout the country thereafter. It is fully compatible with GPRS and EDGE and will enable us to compete head-on with other mobile as well as fixed technologies, such as DSL.

9. In an effort to pursue transparency in the business arena, the government wants to do away with prepaid anonymous phone cards. In fact, it was the huge number of prepaid-card holders that lifted T-Mobile to the top in terms of clients. Given that, how do you view the government's initiative? Are you afraid that the removal of anonymous prepaid cards will knock you out of the leadership position?

Registration of prepaid card owners is an issue that has already been implemented in many countries. It is primarily a security issue, and as the No. 1 operator on the market, we are certainly aware of its importance. We are prepared to work with the government and other players on the market to reach a solution that is acceptable to all sides. I do not see any reason why it should endanger our leadership.

10. If you could call anyone you wish, whom would you call and what would you like to say?

I would call Terry Valeski [former Eurotel CEO] and chat with him about what it feels like to be No. 1.