Many factors keep the Czech telecommunications sector busy: the rebranding of market leader Telefónica O2; the slowdown in the UMTS network expansion; and the expected launch of "triple play" packages featuring cable television, high-speed Internet and telephone services. Stuart Evers, chief sales officer of telecommunications company GTS Central Europe, talks with The Prague Post about the role of alternative providers in the rapidly expanding market. Evers also reveals his secret passion — writing spy novels with plots revolving around telecommunications traffic.

This summer, GTS Novera completed the consolidation of its three companies into one and declared its intention to become a serious competitor to dominant fixed-line provider Telefónica O2. Is the merger a message to other alternative providers in the region that there is no room for small players?

While mergers and acquisitions [M&A] activity sends messages to competitors, the market and customers, I think this is a mere byproduct. The activity is really only directly related to a company's strategy and its financial strength. A key point (and one not picked up by many analysts) about GTS's acquisitions in the Czech Republic ... is that unlike most acquisitions ... GTS acquired companies that it was competing directly against, in the same market, and for the same business. So if our M&A activity sends out any message to other telecom companies, I would say it's one of GTS's success and growth, rather than any comment on their limitations or market position.

ň Many alternative providers still rely on fixed lines. Isn't it likely, however, that the ongoing substitution of fixed lines for mobile networks will soon make fixed lines virtually obsolete?

When commercial aviation became viable, many people predicted the death of train travel, yet more people travel by train now than ever before. The same has been predicted for fixed-voice telephony, but it remains strong and will continue to be a viable product in the near future. That said, the nature of fixed products and services is changing, and there are myriad exciting developments that are transforming fixed telecoms — and GTS is at the cutting edge of such development, so we are very confident for the future.

Ă You're focusing on Central Europe [CE]. Which telecommunications market in this region has the most growth potential?

The least-developed markets, such as Romania, offer the best opportunity for market penetration, while the more-advanced markets, such as the Czech Republic, provide the best prospect for technological penetration. For example, our regional MPLS network is hosted in Prague. However, one key point about GTS's unique Central European network footprint is our ability to provide seamless solutions across disparate markets and to bridge technology gaps. When you can do that, it transforms market dynamics, easily allowing you to bring opportunities and strengths from one market to another.

Ő In the Czech Republic, the market seems fully saturated and providers can no longer grow by acquiring new subscribers. What then are other viable sources of revenue growth for telecommunications providers in such markets?

Market penetration figures are only as relevant as your latest product: If you launch a new product, you set the clock back to zero. Everyone thought the hi-fi market was saturated, and then Sony launched the Walkman; then we thought that market was saturated, and Apple launched the iPod. So it's not about providing more of the same — it's about providing more of what the markets want. So the plan is simple: new services, new customers, new revenues. An example includes fixed-mobile hybrid products, IP-based services, MPLS networks, etc. These, among others, all have huge revenue potential.

ΠSpeaking of revenue growth, the UMTS network was expected to become an ace in the hole for mobile telecommunications companies. However, Vodafone was recently forced to suspend the development of its UMTS network, citing low customer response. Do you think that the regional markets have not yet matured to the stage of UMTS?

I cannot comment on Vodafone's activities or on other mobile operators' UMTS strategies. I have no insight into these, so my comments would be mere speculation. However, it could be said that, from a worldwide perspective, mobile operators are perhaps victims of their own success in that the portfolio of services available on current networks is so good and so vast that customers may not see the need to upgrade — at least not right now.

œ If you were to compare the telecommunications markets in Western Europe and Central Europe, what is the time lag between the two markets in terms of development? Are development trends identical, or can you see different regional trends?

Well the CE region has markets at very different stages of development, with vast differences between markets such as the Czech and Romanian ones. Consequently, the time lag fluctuates greatly. I think the Czech market is almost on a par with many West European markets, while Romania is, say, five-plus years behind. The key development trend that differs is mobile penetration [versus fixed penetration]. That throws up market dynamics significantly different to West European markets.

– It's little known that apart from working as a sales manager in the telecommunications field, you're also a novelist. How did you get to that?

Well, strange as it may seem, when I was a kid, I didn't dream about becoming a telecom manager. I have always had a passion for writing for as long as I can remember, and I won a few competitions when I was younger and continued writing through secondary school and university. So it's not something I started one day; it's something I've always done. That said, I find I have less and less time to write these days, but I am writing a third book in my spare time ... fingers crossed!

— You write under the pseudonym of Tom Connery? Why?

Well, my surname is not Irish, and my publisher thought it might seem a bit alien to Irish readers, so they suggested something more familiar, perhaps something people might even feel they already knew. So, one night in a small Dublin pub, and after a few cozy pints of Guinness, my publisher came up with idea of combining Sean Connery and Tom Clancy's names ... and, hey, presto, we had Tom Connery. By the way, if any of your readers are looking for a pseudonym, I believe Sean Clancy is still available.

" Were you afraid that publishing under your real name could conflict with your business interests?

At the time I started writing, my business interests consisted of a student loan, an overdraft and a 50 percent share in a bicycle (the other 50 percent being owned by Bank of Ireland), so it didn't really cross my mind at the time.

" If you were to write a novel based on the telecommunications field, how would it read and what would it be about?

Actually, my last novel was based on the telecommunications sector — it was called Point Of Presence. I write spy novels, so I created a plot revolving around telecommunications traffic and how it can be used for national and industrial espionage. Coincidentally, a lot of it is set in the Czech Republic, both in Prague and in Kutná Hora.