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  • 2017 Corporate Responsibility Report
2017 Corporate Responsibility Report

Hrvatski Telekom d.d.

Why does corporate responsibility matter to our company?

Davor Tomašković, CEO, Hrvatski Telekom

At Hrvatski Telekom we regard sustainability and corporate responsibility as an integral and crucial element of our business. We are key players in an evolving industry and we invest substantial efforts in maximizing our contribution to the wellbeing of society. The company therefore directs its efforts toward enriching daily life in the communities where it is operating. This communicates our corporate values to all our stakeholders.

We want to empower people to use all the advantages associated with today's technology. Our job is also to invest so that our children’s generation will be ready to take advantage of all the opportunities that the future brings.

The communication infrastructure and new products and services are already being developed to prepare Croatia for a new technological wave. This includes investment in the development of smart cities in Croatia, an approach that has gained Europe-wide recognition.

Of course, Croatia does not simply need smart technology. It also has a requirement for smart people. Our world is increasingly driven by technology and it is crucial to have people who know how to make the best use of all the features provided by technology. That is why we are investing in a new generation of young people and experts with an emphasis on the STEM img area. We want to provide young people with opportunities to gain experience that will help them in their future careers. As well as granting scholarships, we open up jobs and provide opportunities for working in an international environment.

We are enhancing the quality of human capital by facilitating communication and making information and new learning methods increasingly accessible. Investment in STEM education for young experts is part of our long-term development strategy, since well-founded and meaningful education for current and future generations is a touchstone for development of the entire society and the economy as a whole.

Davor Tomašković, CEO, Hrvatski Telekom


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Awards and Memberships

  • P3 Best in Test – Hrvatski Telekom provides the best quality of mobile, voice, and data services
  • Employer Partner Certificate for excellence in human resources management for the fourth year in succession
  • Mamforce recertification as a family-friendly company
  • Signatory of Diversity Charter
  • “Sjaj” award for the affirmation of the company's socially responsible business and sustainability
  • Award for the CR initiative of the year for the project “Share the positive, block the negative”
  • The Largest Investment in Digital Technology award 
  • Combis, HT Group member and the leading IT service provider in Croatia, won the Eurocloud award for “Olive Manager”, an IT-solution for oil refineries

Kick-off: Croatia's largest Smart City pilot project

Alongside a broad network of partners, Hrvatski Telekom is the only company in Croatia that provides comprehensive Smart City solutions, commencing from the ground up. They follow the “turnkey principle” from the idea to concrete implementation.

In May 2017, Hrvatski Telekom installed the first smart payphones in the Croatian city of Zadar. The payphones are intended to provide all the local information required by citizens and the increasing number of tourists, while they are simultaneously given a broad range of next-generation innovative ICT img services. The solution provided by the Croatian Postal Bank enables citizens to pay securely using their credit and debit cards.

The City of Rijeka, in partnership with Ericsson Nikola Tesla, Hrvatski Telekom, Smart RI, Autotrolej and Rijeka promet installed two smart bus stops for Rijeka's citizens and numerous tourists. The smart stops offer a range of functionalities for a more efficient and enjoyable experience on city transport. They represent the world's technological breakthrough to the smart cities of the future.

In collaboration with its partner EcoMobile, Hrvatski Telekom kicked-off a pilot-project for a smart electronic record system for municipal waste collection in Velika Gorica. This system will optimize business operations at the Municipal Centre VG Goričanka and bring savings for citizens. It includes an electronic record system for waste collection, Smart Waste sensors tracking the containers’ fill level, and the “Moj Otpad” (My Waste) information and geolocation system. This will be made available to the citizens as a mobile application. The solution will bring savings and optimize operations, since it facilitates billing for waste collection and disposal services based on the number of times the waste is collected or the weight of the waste collected. This means that households will be charged on the basis of their actual habits. Waste collection information is transferred to the application in real time, and data can be accessed 24/7 from any location. The system is fully automated and does not require any additional effort from public utility workers. 

In collaboration with its partner EcoMobile, Hrvatski Telekom has already implemented a smart electronic record system of municipal waste collection in Koprivnica and this has yielded excellent results. The number of tours by garbage trucks has been optimized, and the public utility company “GKP Komunalac” is better able to manage employees’ working hours in real time with a resulting reduction in operational costs. The quality of the solution is also verified by the fact that Koprivnica is the first city in the region to earn the ISO Certificate 37120: Sustainable development – indicators of city services and quality of life, and during the certification process, Hrvatski Telekom and its partner SmartIS company provided consulting services to the City of Koprivnica.

Handset Recycling Project finalized with Primary School Pupils in Sisak

For many years, the international eco primary school in Sisak has been a beacon in its local community for collecting and dealing properly with old mobile phones. Hrvatski Telekom (HT) has a long tradition of proactive collaboration with Croatian schools and helps to teach pupils from an early age about adopting good habits for separate collection of waste, appropriate recovery and recycling. HT has been teaching pupils how to deal effectively with electronic waste, in particular the electronic waste from mobile phones and their accessories. This is an inspiring project within the company since it enables pupils to develop a responsible attitude toward environmental protection and waste management.

In 2017, HT continued its cooperation with the eco primary school in Sisak and celebrated the World Environment Protection Day by awarding all pupils who participated in the project for collecting old handsets. This year the pupils collected 180 obsolete mobile phones, which HT handed over to authorized companies for environment-friendly treatment. Over a period of more than ten years, HT has used this project and other similar environmental projects and initiatives to collect a total of 137,000 old mobile phones and dispose of them in an eco-friendly way.

Our Educational STEM Activities

Hrvatski Telekom is a technology leader and it has identified developments in the labor market, in the economy and in the academic community. The company has launched a STEM img program that raises the popularity of STEM occupations among university students, with elementary and high school students, and also among our employees.

Hrvatski Telekom recognizes the importance of fostering the interest of young people in science, technology, engineering and math (STEM). In 2017, we therefore continued to focus our activities on strengthening this interest.

In 2017, the competition for funding entitled “Together we are Stronger” (Zajedno smo jači) concentrated on projects aimed at the education of school and university students, educators, and on socially responsible innovations. The winner in the category of Youth Education was the "HT Campus" project developed by the Astronomical Society Višnjan. The monetary prize in the category Teacher/Professor education was awarded to the Institute for Youth Development and Innovation for the project entitled "Advanced Internet of Things (IoT) Technologies in Croatian Schools". The project developed by the Zagreb-based Faculty of Mechanical Engineering and Naval Architecture of the University of Zagreb entitled "The First Croatian Hydrogen Refueling Station" was declared the best in the category of Innovations.

The launch of the HT STEM HUB incubator in 2016 was directed toward fostering the development of skills in science, technology, engineering and math. The intention is to create an academic and economic community of young experts, enabling them to realize their professional ambitions in Croatia using the most advanced technology with secured resources. The STEM program of Hrvatski Telekom facilitates inclusion in international projects that are realized within the Deutsche Telekom Group inside Croatia.

Hrvatski Telekom was the first organization to bring together several individual STEM initiatives. This has involved integrating a number of activities to introduce children to interdisciplinary knowledge such as robotics and astronomy. We cooperate with STEM faculties and their students come to us for practice and mentoring. They then have an opportunity to earn a scholarship and excellent associated job opportunities. The students selected for the Faculty of Electrical Engineering receive a monthly scholarship of HRK 3,000.

Collaboration with student associations enables us to participate in competitions relating to the design of business cases, in career fairs, and frequent visits by our specialists to faculties imparting specific practical knowledge to students.

A machine learning workshop held during the year for students of the Faculty of Electrical Engineering and the Faculty of Science was also very successful, and the participants gave favorable feedback. 

We joined forces with hub:raum – Deutsche Telekom’s incubator – to organize the “HACK IT!” hackathon. The hackathon is part of our broader strategy to enhance STEM activities in Croatia. Ten teams competed to develop the best solution in the field of immersive within the space of 24 hours. The main prize was for HRK 30,000 (approx. EUR 4,000). Out of 125 applications submitted from across the region, the 10 best teams have been selected to compete in offering the best and most comprehensive solution for future communication. Virtual and augmented reality, holograms, and artificial intelligence will be included in our future communication

The winning team “Tartle” presented an interactive fairy tale for young children. The solution uses extended reality to communicate with children on smartphones. It "listens" and creates virtual objects and characters to the keywords in the environment. The team gets access to hub:raum programs.

Preventing Stress - Promoting Health

Work-life Balance Matters
In 2017, we continued to implement measures and activities on the basis of the results of the Pulse Survey in order to prevent stress, promote health and encourage a better work-life balance.

  • Kids’ Day: an event organized for more than 1,000 children of our employees at various company locations
  • Paid day-off for parents to accompany first grade children on their first day of school
  • Robotics classes: organized for employees’ children to promote our wide range of STEM img activities
  • Friday in slippers: a work-from-home offer on the last Friday of each month has been continued
  • Various benefits for employees (HT svijet; other savings options) 
  • Members promoting and supporting the work-life balance

Health/Stress Activities

  • Free medical check-ups for all employees, additional discounts for family members, paid day off for medical check-ups
  • HT Olympics: sports games for employees motivating them to engage in sport and positive competition
  • B2B run 2017: popular event in Croatia promoting healthy living and collaboration among employees and the community
  • HT FIT corner: various activities ranging from nutritional advice to exercises for employees at work
  • Recreation: Yoga and Pilates for staff in the company   

Hrvatski Telekom supports Croatian Contemporary Art

Hrvatski Telekom and the Museum of Contemporary Art (MSU) celebrate ten years of collaboration. They used the occasion to launch, the first digital museum in Croatia, displaying all the works previously exhibited under the “HT Award – MSU Zagreb”.

“HT Award – MSU Zagreb” is one of the most successful collaborations organized by the corporate and cultural sector in Croatia. A total of more than 2300 works have been submitted and 335 were exhibited. This 10th jubilee year saw a total of 30 works being awarded and purchased to be included in the HT MSU Collection.

Over the last ten years, Hrvatski Telekom has invested more than HRK 30 million to support and promote the Croatian artistic and cultural scene. A total of more than HRK 12.5 million has been presented in the “HT Award – MSU Zagreb” project.

New Internet Technologies that pave the Way to a Digital Future

Hrvatski Telekom’s customers have been the first people in Croatia to use voice calls over the superfast LTE network. Voice service over the HT LTE network (VoLTE) provides customers with absolutely clear and natural sound, call set-up times at around two seconds, and superfast data transmission while phoning.

Activation and voice services over the HT LTE network will be not be subject to additional charges, while the main prerequisite will be an appropriate tariff plan, a VoLTE-enabled device and the corresponding software version. 

The 4G network has been based on LTE technology and this will give Croatian users the opportunity of making voice calls at extremely high-speed data transmission rates that had previously been made exclusively over 3G img and 2G img networks for the first time. Primarily as a result of the new VoLTE services, customers will witness a significantly higher call quality and shorter call set-up times compared with those made over 3G or 2G networks. Moreover, VoLTE services give customers the opportunity to make calls and browse the Internet simultaneously, while also enjoying extremely high-quality formats (HD/UHD). VoLTE also saves energy and extends the battery life of your mobile device and the services will provide a highly superior customer experience for those passionate about making lots of phone calls.

VoLTE services can be used in any area with HT LTE network signal coverage. This is available throughout almost the entire territory of Croatia.

Employee Development

Our professional education programs “HT Academy” and unlimited availability of digital learning platforms enable all our employees to participate in a rolling program of skill enhancement.

Talent Development
In 2016, we launched our new talent management program “Top Talent” with the aim of retaining and motivating our key people, and high-potential staff. Manager nomination and assessment center results were used to identify 105 talented high-flyers with expert or leadership career potential out of larger pool of employees. The high-flyers participated in targeted development activities over a period of 1.5 years. In 2017, the talent program for the first generation of talents was successfully completed. By the end of 2017, 30% of these top talents had been promoted to a more complex or a managerial role.

Leadership Development
From 2016, all managers in B-1 positions have been involved in a tailor-made leadership program. The program started with assessment center as a quality baseline for identifying skill gaps and continued with seven targeted two-day workshops consisting of a range of self-help activities for attendees.  The program came to an end in November 2017 and the majority of attendees evaluated it as an exceptional opportunity for development of personal skills, experience sharing, and networking.

Frontline managers were also involved in the leadership program comprising a mixture of internal training (HR toolbox) and external workshops. Content was more focused on specific challenges in their area of responsibility.

In 2017, a dedicated development program was set up for mid-level managers concentrated on typical challenges for this target group. The program was launched in Q4 2017.

Skills Development for Various Target Groups
All employees have 24/7 access to digital learning platforms offering each individual a flexible scheme designed to gain any skills required. These digital platforms provide: 1) HT local e-learning aimed at developing knowledge in the areas of health & safety, IT safety, and sales-related specific training sessions, 2) Soft skill platform offering more than 3,000 different training subjects and 3) Learnlight – digital platform for learning the English language.

In 2017, a number of specific training sessions were delivered aiming to close the gap in role-related skills. The sessions covered a range of development topics. These included “future skills” development to promote the key skills required to direct HT strategy: Big data academy, Design Thinking training, Dealing in VUCA environment and digital literacy training.

In cooperation with DTAG, selected HT employees have an opportunity to be part of common learning and development initiatives, e.g. participation in the “Digital learning days” virtual fair, live events in Bonn for talents “Talent summit” and “Telescope”, advanced digital leadership development program “LevelUP”, members in a pilot group of advanced certificated professional IT digital training sessions in “Coursera”, etc.

First Croatian national research on youth internet safety

This research study on youth internet safety has been conducted within the international project EU Kids Online. It provided a comprehensive insight into the behavior of young people from 9 to 17 years of age on the internet.

  • One third of young people become involved in online communication with strangers, while every fourth teenager between 15 and 17 years of age has admitted a real-life meeting with a person they had first met online
  • Project partners, and their front-runners the Association for Communication and Media Culture, the Agency for Electronic Media, and Hrvatski Telekom, are striving to provide a robust background for the creation of education policies.
  • The internet is the main source of information for Croatian youth and also a crucial tool for socialization.  Nevertheless, inadequate education on safe use of the internet means that young people too often become involved in various types of risky online behavior. This is the conclusion of the first comparative research study on the media habits of children conducted at national level within the international project EU Kids Online. This brings together research from 33 European countries.

The research was conducted among young people between the ages of 9 and 17 years of age and their parents. The preliminary results were presented by the partners of the project EU Kids Online, whose front-runners are the Association for Communication and Media Culture (DKMK), the Agency for Electronic Media, and Hrvatski Telekom. The research was also supported by the Ministry of Science and Education and the Ministry for Demography, Family, Youth and Social Policy.

eSIM – the future standard for mobile devices

Hrvatski Telekom was the forerunner of digitalization and digital transformation in Croatia. It is the first company within the Deutsche Telekom Group to offer a GSMA standardized solution for customers and one of the first companies in Europe to provide a commercial solution that has the technical requirements to offer the new and extremely advanced eSIM service.

eSIM is the new standard confirmed by the GSMA (Global System for Mobile Communication Association) at the end of last year. It is an evolution in SIM (Subscriber Identity Module) technology used by telecommunications operators to provide services to customers. It will replace the use of physical SIM cards in mobile devices and enable independent connectivity to devices that have so far lacked such functionality by integrating a chip that will support the eSIM service. The physical SIM card in new generations of mobile devices will be replaced by a chipset that will support the eSIM service and enable adjustment of settings for lines of individual customers by taking over the eSIM profile to the customer's devices. This standard marks important progress in the technology for provision of telecommunications services and is closely linked to the development of services in the Internet of Things (IoT) domain, services for various wearable devices (smartwatches, smart wristbands, etc.), and smart vehicles, which will be the focus of Hrvatski Telekom in the near future. Over the next two years, the number of devices per user is expected to increase and exceed four devices. eSIM technology will make it easier for the user to connect to several devices.

New Greyp electric bicycle connected by HT eSIM technology – the first bicycle of this kind on the European market
Hrvatski Telekom and the Croatian producer of Greyp electric bicycles have launched collaboration on the new model of the Greyp electric bicycle that will be supported by HT's new innovative eSIM service. This represents a huge innovation in the Croatian market, but also within the Deutsche Telekom Group. The launch of the connected electric bicycle in the marketplace is expected next spring.

HT's eSIM profile will enable exchange data traffic between the vehicle itself and the web and mobile applications in the new generation of Greyp electric bicycles without the need for a physical SIM card.

The Greyp bicycle boasts a range of excellent features, such as automatic video recording, monitoring of the cyclist's physical condition, alarm, remote control and exchange of data on social networks. Other features include automatic distress call based on data provided by the G-sensor and gyroscope, display, log-in and control of the motor based on the cyclist's heartbeat rate, collection and display of data on speed, distance travelled, power (Wh) consumed, calories burned, duration of the ride etc.

The largest IT project in Croatia

Hrvatski Telekom, the forerunner of digitalization and digital transformation in Croatia, has launched the largest IT project in Croatia. It will result in a comprehensive business IT transformation of the company. The project's primary goal is to raise service quality and customer experience standards to a new, higher level. HT is investing HRK 210 million in this project.

The HT business IT transformation project will last three years and is part of the company's comprehensive digital transformation process. The project comprises business transformation aimed at optimization of internal processes and simplification and increased modularity of the product portfolio (of the E2E process area Design and Product Portfolio Simplification), as well as IT transformation that will result in implementation of new and most advanced IT systems supporting end customer orientation (Customer Relationship Management, Order Management, Operation Support System, and Billing areas).

About 500 HT experts are engaged in realization of one of the most complex transformation projects in the region. It will enable acquisition of invaluable internal know-how from the area of system integration of the most advanced IT solutions.

The best network in Croatia

Network testing conducted by the company P3 Communications at international level has shown that Hrvatski Telekom provides the best quality of mobile, voice, and data services.

Hrvatski Telekom has achieved the best results since records by P3 began in Croatia

HT currently offers the fastest mobile network speeds up to 350 Mbit/s img, while it is launching a pilot project in Karlovac where users will be given the opportunity to download at a speed of up to 550 Mbit/s. This is the first commercial use of MIMO (multiple antenna) technology that is crucial in 5G networks.

Hrvatski Telekom provides the best quality of mobile data and voice services out of all the networks in Croatia. This has been confirmed by a test conducted by the company P3 Communications, which has awarded HT with P3 "Best in Test" certification, internationally recognized proof of quality assurance.

Certificates awarded by P3 have been widely accepted as impartial, and they provide representative results of mobile network testing due to the fact that they are based on a realistic comparison of all the competitors in a specific market. P3 Communications has tested networks in 65 countries located on 5 continents.

During the testing conducted by P3 from 28 September to 7 October, HT network collected 918 out of the possible 1,000 points. That significantly exceeded the results achieved by direct competitors. This is the best result since records by P3 began in Croatia. HT has therefore demonstrated it provides the best mobile services in Croatia, i.e. the best user experience.

Key facts at a glance

Markets, business Areas and market share  

The T-HT Group is the leading provider of telecommunications services in Croatia. It is the only company to offer the full range of these services, including fixed and mobile telephony, data transmission, internet, and international communications.

The basic activities of Hrvatski Telekom and other subsidiary companies involve the provision of telecommunications services, and the design and construction of telecommunications networks in the Republic of Croatia.

Alongside the provision of fixed telephony services (fixed-line access and traffic, and a fixed network supplementary services), the Group also provides internet services, including IPTV, retail electricity services, data transmission services (lease of lines, Metro-Ethernet, IP/MPLS, ATM img), GSM img, UMTS img, and LTE mobile telephone networks.

Number of customers   938,000 fixed mainlines (retail + wholesale)
2,244,000 mobile subscribers
755,000 broadband access lines (retail + wholesale)
provision of TV services to 417,000 customers
Number of employees   FTE 4,588
Shareholding of Deutsche Telekom AG since   1999
Certifications   Certified to ISO 14001 since 2002 and to OHSAS 18001 img, Hrvatski Telekom established the Integrated Environmental, Health and Safety at Work Management System under the umbrella certificate of the Deutsche Telekom Group and adopted the Environmental, Health and Safety at Work Policy in May 2014. The central internal audit of HT’s Integrated System as part of the Integrated Management System of Deutsche Telekom AG was conducted by DT auditors on 14-15 November 2016 in compliance with the requirements of the specified standards. The positive audit findings again confirmed that environmental care has been integrated in all work processes and that employees are very aware of the importance of environmental protection.
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