The Telecommunication sector is undergoing a huge transformation in most market places, driven by changing consumer behavior, technological change, regulation, and M&A activity. Increasing competition and falling tariffs for traditional services, reduced network investments and the rise of digital media and mobile technology mean that telecom operators need to revisit their business models and service offerings to adapt.

Macedonia's mobile market is served by a biopoly  of mobile network operators, both of  which benefit from the technical know-how and financial resources of parent companies Deutsche Telekom and Telekom Austria. Macedonia's goal for EU candidacy since 2005 has allowed for close economic ties with the Union, resulting in increased development to the telecom sector as it prepares for the competitive environment encouraged in the EU. Subsequently, the telecom market accounts for 7% of the country's GDP, which is well above the EU average, making it a strategic decision for the new virtual mobile Lycamobile to take advantage of such a growing market and to enter on the Macedonian market.

Mobile data services are also available and this market is also expected to become increasingly important as new subscriber additions fade in the maturing mobile voice market. With WCDMA/HSPA networks in place, the focus for mobile data has shifted to mobile broadband offerings. 

All these challenges, however, bring some exciting opportunities: exploring Big Data to promote digital marketing strategies and create new revenue streams; diversifying product portfolios and capitalising on bundled offerings; exploiting existing infrastructure and distribution networks to enhance cross-selling activities; joint ventures; and “Digital Dividend" which will drive innovation even further.

KPMG provides services to the telecommunication operators in Macedonia. With an experienced team of professionals who have in-depth knowledge of the industry trends and regulatory requirements coupled with substantial practical experience, KPMG can offer a range of professional services to support clients' business needs and help them address their specific issues in the challenging market environment.

How can we help?

KPMG's Telecommunications experts support clients by:

• Helping with cost reduction through focused efficiency and optimisation initiatives 
• Advising on outsourcing of non-core operations to reduce costs
• Enhancing customer value management
• Due diligence on potential acquisitions
• Advising on tax implications of specific activities 
• Regulatory compliance services  
• Revenue assurance services  
• Operational processes optimisation 
• Asset life cycle management software solutions implementation