November 4 (SeeNews) - United Group, a multi-play telecommunications and media services provider, said it will invest 230 million euro ($270 million) in its unit Tele2 Croatia, which it renamed to Telemach Hrvatska.
In the next five years, United Group plans to spend up to 130 million euro on Telemach Hrvatska’s mobile network, with a focus on expanding its network coverage, improving the overall quality and creating a 5G mobile network as of 2021, it said in a statement late on Tuesday.
In addition, United Group will also invest up to 100 million euro in the construction of a state-of-the-art fiber optic network able to deliver ultrafast broadband at speeds of up to 10 gigabits to business and residential subscribers.
“With this investment Telemach Hrvatska will soon provide the best of future mobile network quality and new mobile services that will come together with the best fixed network available in Croatia," Telemach Hrvatska CEO Viktor Pavlinic was quoted as saying in the statement.
In June 2019, United Group agreed to buy the Croatian business of Swedish telecommunications group Tele2 for 220 million euro. The deal closed in March.
United Group said on Tuesday that with the latest announced investments it will become one of the largest investors in Croatia.
"Our investment demonstrates United Group’s commitment to the Croatian market and to further strengthening our leadership position in the region. Operating in both the telecom and media sectors, as well as in e-commerce, our platform combines the leading operators and best content producers in Southeast Europe," United Group CEO Victoriya Boklag said in the statement.
Telemach Hrvatska will continue to offer products and services under the Tele2 brand until the first half of 2021 when its new visual identity will be introduced.
In Croatia, a market of around 4.3 million people, Telemach Hrvatska competes with the local arm of A1 Telekom Austria Group - A1 Hrvatska, and with the wireless arm of Hrvatski Telekom, controlled by Deutsche Telekom.
($=0.8531 euro)