THE FIRST SEVEN YEARS

 

MARKETING AND SERVICE DEVELOPMENT

MARKETING - THE NEW FORMULA OF BTC plc SUCCESS

Six exclusively dynamic and saturated of changes years have passed from the establishment of BTC plc until now, a period when the company has succeeded in overcoming the haughty attitude towards the customers and has imposed the understanding that its future depends on their satisfaction. It was not an easy and fast process. It is very easy to talk about changes, but it is very difficult to succeed in changing the thinking, culture and stereotype of behaviour of so many employees. The transition to market-oriented style of management has lead to the following:

- Offering of competitive services - access to INTERNET, e-mail, paging, telematic services and national videotext. - Extending the range of services provided on the basis of the new technological facilities:
- provision of leased IBS type satellite lines,
- implementation of the ISDN (Integrated Services Digital Network) service - which integrates all types of telecommunications services by exchanging telephony (voice), fax, data and video images - and ensuring user-to-user digital connectivity throughout the whole network.
Flexible pricing policy in accordance with the cost-oriented approach principles and gradual limitation of the cross-subsidising (subsidising the non-profitable services from the profitable ones).
Improving the interrelations with the customers, increasing the quality of service and establishing a better system for reporting their satisfaction.
Development of the relations with licensed telecommunications networks operators and value-added services operators applying the principles of equal positions in access to the network and transparency in the commercial conditions.

 

Subscriber lines number (thousand) Year Residential Business Total 1996 2 230  415  2 645  1997 2 276  404  2 680  1998 2 337  406  2 743

Subscriber lines number (thousand) Year Residential Business Total 1996 2 160  150  2 310  1997 2 239  144  2 383  1998 2 327  230  2 557

INFORMATION TECHNOLOGIES

The development of the BTC plc strategy and programmes in the information technologies area, assignment, coordination and control on the performance of the activities for their realisation is accomplished by the Information Technologies Directorate at the BTC plc Headquarters.
The units performing the activities for information technologies development and implementation are the Centre for Information Technologies in Telecommunications (CITT), the Centre for Telematic Services (CTS) and the Regional Centres for Electronic Data Processing (RCEDP).

BTC plc INTRANET
In 1995 a bid was announced and as a result from it the implementation of a project financed by the World Bank called "Infrastructure for data processing and management information systems of BTC plc" started in the very beginning of 1997 and in the mid-1999 it will be completed.
This project main objective is building BTC plc INTRANET corporate computer network and implementation of information technologies covering the whole company intended for support and realisation of all management and operation activities in BTC plc.
Within the project frame CITT is developing and implementing in RCEDPs the following integrated automated systems as of general importance for BTC plc:
1. Information systems for management of economic and administrative activities in BTC plc. Under the general name of Management Information System (MIS) the following important subsystems are included:
- Information system for executive management;
- Finances control system;
- Labour & Salaries and personnel control information system;
- Logistics control information system;
- International accounting information system;
- Investment planning and control;
- Automation of administrative activity in BTC plc Headquarters and departments administrations.
2. Customer Care Integrated System (CCIS) unifying the following subsystems
- Applications and subscriber lines changes;
- Recording the automatic telephone traffic;
- Charging subscribers for services used;
- Reception and tracking payments;
- Claims servicing;
- Liquidation cardex, i.e. subscribers under particular observation;
- Telephone inquiries and directories.
3. Network Servicing Information Systems (NSIS) including the following subsystems:
- Data sheet of telecommunications sites and cadastre;
- Subscriber and junction lines administration;
- Fault location and reparation;
- Traffic information collection;
- Network operational management;
- Repairs planning and management.
These systems operation is performed in the Regional Centres for Electronic Data Processing (RCEDP), while the applications for the management and strategic level are operated in CITT.

BTC plc INTERNET services

On the basis of self financing and with the decisive participation of CTS and the Institute for Scientific Research in Telecommunications (ISRT) BTC plc has built advanced INTERNET node and has accomplished reengineering of the BULPAC Data Transmission Network for IP and Frame Relay traffic and for transformation of the INFOTEL videotext service into INTERNET service.
In March 1998 this new INTERNET NODE was commissioned. It uses Hewlett Packard UNIX servers, Netscape and Oracle software products and 3Com and Cisco communication equipment. This node offers all INTERNET applications, as well as a range of information services, including BTC plc Web server, access to the national telephone directory of the company's subscribers through INTERNET and to legal, economic and other relevant information through the INFOTEL information resources.
In 1998 the BTC plc established its own international connectivity to INTERNET and quickly approved itself as one of the main players on the INTERNET services market in Bulgaria. Specialized INTERNET infrastructure has been built and is under development through which INTERNET access and services are provided both to other providers in the country and to end users.
The BTC plc specialised INTERNET infrastructure includes:
- High speed international INTERNET connectivity;
- BTC plc INTERNET node providing network and information services;
- BTC plc INTERNET network in the country;
- Regional points for dedicated access to INTERNET;
- A single telephone code for the country for dial-up access to INTERNET;
- Management and 24 hours servicing system for the customers.

The BTC plc international INTERNET connectivity has a total capacity over 10 Mb/s, including:
on terrestrial optical links:
to Deutsche Telecom - 6 Mb/s;
to Teleglobe - Canada - 2 Mb/s.
via satellite links:
to Cable & Wireless (MCI) - 2 Mb/s;
through GUCIS to Sprint -512 Kb/s.
The international connectivity provided by the BTC plc is used by most of the big INTERNET providers in the country and by company's end users.

The BTC INTERNET network is built on the basis of the data transmission network BULPAC and the Access Network to Business Services and is developed as multiprotocol network based on ATM in the backbone layer and Frame Relay, HDLC, PPP and X.25 protocols in the access layer.
In 1998 on the whole territory of 9 of the 11 Regional Telecommunications Divisions the dial-up access service to INTERNET is provided by a national telephone code 0134100 using the digital transmission media. In Sofia ISDN access to INTERNET is realised.
In March 1998 a new BTC INTERNET node was commissioned. It uses Hewlett Packard UNIX servers, Netscape and Oracle range of software products and 3Com and Cisco communication equipment. This node provides all INTERNET applications, as well as a number of information services, including BTC Web server, access through INTERNET to the National telephone directory of company's subscribers and through the INFOTEL information resources - access to legal, economic and other up-to-date information.

The development of these services will continue in 1999 by increasing their geographical scope, expanding their subscriber capacity and experimenting new forms of their provision.

NETWORK DEVELOPMENT AND IMPLEMENTATION

Building of advanced telecommunications infrastructure in Bulgaria during the transition from industrial to information society is a key factor for its integration with the European telecommunications networks. The process of digitalisation of the national telecommunications network in our country started in 1993 with the building of the digital overlay network - the DON project.

DON PROJECT (1993 - 1997)
In 1992 together with the consultancy companies A. D. Little and Nepostel a detailed investigation of the telecommunications status in the country is made and an investment plan is laid down for telecommunications development in Bulgaria. This plan envisages total modernisation of the network, improving the quality and extending the range of the services provided in long-term aspect with the ultimate objective full digitalisation of the telecommunications network.
After approving the Investment plan, agreements were concluded with the World Bank, the European Bank for Reconstruction and Development and the European Investment Bank which provide BTC plc with loans for the construction of a digital overlay network (the DON project) on the territory of the country. The total value of the project amounts to about 300 million US dollars. About 150 million of them are provided by the banks and the remaining funds are provided by BTC plc.
This project's main objectives are:
- Implementation of digital overlay transit network;
- Digitalisation of the international network;
- Automation of the long-distance and international dialling;
- Provision of higher quality services and increasing the number of business consumers with direct access to the digital network.
Through the DON project realisation it was built the backbone of the national digital telecommunications network:
- The major digital transmission highways - two optical rings and digital microwave links on the basis of SDH technology (originally STM-1 system);
- 12 long-distance digital exchanges located in 11 of the biggest cities of the country;
- Digital subscriber capacity to local and combined digital exchanges satisfying part of the business subscribers' needs of advanced subscriber services;
- New international digital exchange and earth satellite station aiming at modernisation and extension of the international connections;
- Control systems for transmission system and for digital exchanges at a network element level.
The starting capacity of the DON network is about 70 000 trunks and 106 000 subscriber lines. The digital overlay network is designed to carry about 70 % of the total long-distance and international traffic of the country. At this stage it works in parallel with the existing analogue long-distance network forming a common national automatic long-distance network. This creates prerequisites for a full national automation of the telephone connections, i.e. provision of a possibility for automatic long-distance and international access for all subscribers.

THE DIGIITAL NETWORK BY THE END OF 1998
By the end of 1998 the digital telecommunications infrastructure of the country is built in general outlines: over 2 000 km fibre optical cable lines, about 2 000 km digital microwave network, 2 earth space stations, 27 digital exchanges in total at all telecommunications network levels. The subscriber capacity installed reaches about 230 000 digital lines. The fibre optical junction networks of the big cities are developed using SDH/STM-4 and STM-16 transmission systems. A highly reliable international connectivity is built based on SDH technology on digital microwave lines, optical terrestrial and submarine cable systems. The sharp growth of the needs of leased lines provision and ensuring the international transit traffic imposed a accelerated expansion of the national highway optical network by means of STM-16.
The advanced infrastructure allows for provision of various telecommunications and information services.
Priorities in the telecommunications network development in 1999
- Implementation of access network (n x 64 kbit/s) for business services (including Internet).
- Building a National network management centre and a corporate information network (Intranet).
- Expansion of the international connectivity and attracting international transit traffic through:
- participation in building a new submarine fibre optical cable system in Black Sea - the BSFOCS project;
- building fibre optical cable highway Sofia - Petrich - the Greek border on the basis of SDH technology and STM-16 system;
- speeded-up digitalisation of the big local networks;
- the realisation of all projects will result in rise of the digital network capacity by the end of 1999 to about 380 000 subscriber lines and 160 000 junction lines.

TRENDS IN THE TELECOMMUNICATIONS NETWORK DEVELOPMENT
The technological renewal of the fixed telecommunications network through implementation of new digital switching and transmission infrastructure represents a strategic objective in its development. From this standpoint in a short-term aspect the construction of the transit level of the national telecommunications network should be completed: building intraregional fibre optical ring structures and new digital combined exchanges (with possibilities for provision of ISDN services).
Thus in the conditions of a liberalised and competitive market BTC plc will be able to provide its customers with a broad range of narrowband and broadband services and to integrate its network in the European and global structure.
Having in mind the convergence of the telecommunications and information technologies as well as the contemporary trends in the market study and the new technologies, it is necessary to take efforts allowing for:
- Quick reaction in the ever changing market conditions and at the same time keeping reasonable long-term horizon of the planning;
- Establishment of an architectural model on the basis of separation the infrastructure from the services and their interconnection via an open interface. This will ensure transparency of the infrastructure for the services and independence of the services from the infrastructure features.
The separation of the services from the infrastructure will allow diversification of the services provided notwithstanding the technology used and at the same time it will allow to implement technologies supporting the already implemented services. To a great extent it could be achieved if together with the SDH technology the new IP, ATM and WDM technologies are implemented and their optimum interaction with the network is assured.
The availability of a contemporary and effective telecommunications infrastructure is one of the most important factors for market economy development in Bulgaria and for our integration in the European Union.

INTERNATIONAL CONNECTIVITY OF BTC plc TELECOMMUNICATIONS NETWORK

In 1998 an optimal usage and loading of the capacitities bought by the company in international submarine systems and terrestrial optical cable systems as TEL/TET and TBL was accomplished.
New satellite antenna has been commissioned allowing for coverage in the Indian and Pacific Ocean region. Through this antenna a direct connectivity was established with the main telecommunications operators of the countries in this region - Japan, China, India, South Korea, Singapore, etc.
During the year a harmonic development of the international connectivity of the company has been achieved and reliability and quality servicing has been ensured of the increasing outgoing and incoming telephone traffic.
The needs for private international dedicated lines were satisfied, as well as the provision and introduction of new telecommunications services - INTERNET and ISDN - for the company's customers.
Capacities of the submarine cable systems COLUMBUS II and COLUMBUS III have been ordered and agreed and thus in 1999 an optical cable connectivity of the BTC telecommunications network with the American operators AT & T and MCI Worldcom will be attained. In 1998 the last stage of the preparation for the realisation of the Black Sea submarine optical cable system (BSFOCS) was completed. This system connects Bulgaria, Ukraine and Russia with state-of-art telecommunications system. Having BSFOCS in year 2000, the BTC will become a basic international telecommunications centre in the Black Sea region.

OPERATION

PLANNING AND INVESTMENT

In the period 1993 - 1998 the major part (about 80 %) of the BTC plc investment is destined for digitalisation of the National telecommunications system.
In 1993 the invested capital was directed to preparation of the National telecommunications system for the start of the DON project realisation. This preparation included the documents for carrying the international bid for equipment delivery and the preparation of the respective premises, cable ducts, local telephone cable networks and other related sites that adapt the existing environment to the digital network.
The start of this project was in 1994. Its construction was secured in priority with the necessary financial resources during the years to its completion in 1998.
The invested capital in this period guarantees the project's implementation depending on the construction phases.
Various digital sites beyond the scope of the DON project are set up - digital exchanges, fibre optical cables, digital microwave links, ATM network, access network for business subscribers, STM-16 national transmission system, STM-16, STM-4 and STM-1 local transmission systems.
Setting up conventional sites continues along with the digitalisation and their average annual number is over 300. Resources are invested for local telephone networks, radio and TV transmitters, measurement equipment for digital and analogue systems, buildings started before 1993 are under completion, etc.
A novelty in the telecommunications system is the establishment of a National Network Management Centre representing new technology for control and management of the telecommunications system.

Table 1 illustrates the invested capital spent and the long-term fixed assets per years for the period 1993 - 1998.
Table 2 shows the capacities put into operation for the same period.

Table 1

HUMAN RESOURCES

PERSONNEL MANAGEMENT

For the last ten years the personnel management has been developed, looking for its place in the telecommunications activity management, and reached its establishment in stand-alone structural units in all hierarchical levels that directly manage the company’s working force. Starting from a full decentralisation of the labour organisation with a lot of different-direction solutions for problems of the same kind, in 1997 a single type structure of management was imposed for all regional telecommunications divisions. The universal management structure allowed for a single approach in the company’s personnel management and its adaptation to the telecommunications services market dynamics.
On the other hand, in this period the working force remained relatively constant and the personnel was secured with permanent employment. Table 1 shows the number of the personnel employed.

Table 1

In the same period some significant changes are witnessed in the personnel management and namely in the labour remuneration. Some of them are related to changes in the national legislation, while other result from negotiations with trade-union organisations: - 1991 – transition to coming into contracting of the salary between employees and employer specifying the labour remuneration;
- 1993 - quality changes of the Labour Code leading to possibility for negotiation of the leaves amount, the extra payments to the labour remuneration, compensations and other items related to working force provision;
- 1995 - signing a Collective Labour Agreement defending the workers’ and employees’ interests in their relationship with the employer;
- 1996 - introduction of unified for the whole company “Salary Rules” with a related “List of the Positions Used in BTC plc”. They set specific requirements to the working force quality necessary for the company and regulate the workers’ and employees’ labour remuneration.

During the stated period the salary structure has been changed and the share of the additional payments against the share of the basic salaries has been increasing gradually. The specific data are shown in Table 2.

Table 1

Table 2

	1992	1993	1994	1995	1996	1997	1998
Basic salary in %	79.91	75.81	76.38	71.48	65.67	70.21	68.43
Add. remunerations in %	20.09	24.19	23.62	28.52	34.33	29.79	31.57

TELECOMMUNICATIONS AND POSTS COLLEGE

By National Assembly decision the Telecommunications and Posts College becomes a higher school giving professional qualification and assuring training for a education qualification degree “Specialist on …” with a three year training duration.
The training includes the following specialities: - Communications engineering and technologies
- Radio and TV engineering
- Telecommunications economy

TRADITIONS
1923 - The Telegraph & Postal School was established by a Royal Decree
1948 - The Telegraph & Postal School was transformed into a Telecommunications Semi-Higher School by a law
1953 - A lectures training system was introduced
1997 - The Telecommunications Semi-Higher School was transformed into a higher school - Telecommunications and Posts College

TRAINING QUALITY
The extensive theoretical training of the students allows for fast and quality mastering of the new information technologies for the forthcoming advanced telecommunications structure.
The training of the students is performed by highly qualified lecturers in modern well-equipped laboratories and halls with working equipment.
The practical orientation of the training ensures a successful adaptation of the graduated specialists to the telecommunications systems in the conditions of transition to market economy.

CONTEMPORARY EDUCATIONAL MEANS - A plentiful library - over 24 000 books specialised technical and economic literature, including textbooks, training aids and periodic issues
- A modern well-equipped computer hall with INTERNET access
- Own student hostels where all students who wish so are accommodated

ADVANTAGES
The most short-term training for acquiring a higher education in the telecommunications and telecommunications economy areas.
Successful realisation in: - companies in the National telecommunications system
- public and private radio and TV stations, import companies, distribution and servicing of communication, audio and video devices
- telecommunications and other companies as economists, accountants and managers
- co-operation with DEUTSCHE TELEKOM higher schools

SOCIAL POLICY

The development of the BTC plc social policy in that period is submitted to the realisation of the strategic objective for the telecommunications system - carrying out a reform in three aspects: structural, technological and economic with provision of effective activity of the company in the market economy conditions as an expected result.
The main aim is increasing the standing of the workers in the telecommunications company and ensuring their social protection.
Its achievement is accomplished by performing the following tasks:
1. Reaching a higher level of the workers’ and employees’ social minimum.
2. Increasing the social activity leading to increase of the labour productivity.
3. Improvement of the labour environment and labour conditions.
The company’s social policy is realised in conditions of dynamic change of the national financial and tax legislation and conforming with the Labour Code requirements.
Making the personnel management stand-alone and equal-position, organisational prerequisites were created for forming company’s own social policy with possibilities for standing for it at the collective labour bargaining.
There is a drive for the social policy to be cleared from the “equal-amount-for-all” mechanism for distribution of the funds for social expenses in order to become a means for motivational management of the personnel.
With signing a Field collective labour agreement in 1993 and a Branch collective labour agreement in 1994 it was established the start for solution of the social nature problems by entering into dialogues with the two major trade-unions in the telecommunications system - the Trade-union Communications Federation and the Communications Federation “Podkrepa”.
In 1998 a new scheme of the social activities management was introduced. A Meeting of the authorised representatives of the company’s workers and employees was organised.
The company’s social policy is being oriented to:
- encompassing the workers in feeding in canteens and making the food cheaper;
- ensuring bases for long-term and short-term rest, sport, clubs;
- medical servicing and support in case of need from treatment in the country and abroad;
- transport servicing from the place of living to the place of working and vice versa.
Satisfying specific personal needs realised with collective efforts is performed by:
- providing dwellings for the workers and employees and their families;
- providing free working and uniform clothing;
- using the social bases by the workers’ and employees’ children and the retired people in the telecommunications company;
- paying scholarships to students.
For the period considered the company’s social acquisitions are as follows:

1. Resting houses 2. Beds in own resting base 3. Dwellings provided

- 56 - 1783 - 165

The distribution of the social expenses per years and per directions of the payments is as follows:

Relative share per years
	1994	1995	1996	1997	1998
Maintenance of holiday houses, sport and training bases, canteens, cafes	27	20	22	18	24
Transport, rents, scholarships	2	3	1	2	1.4
Medical care, medicines	6	5	7	4	3
Increase of qualification, exchange of experience	2	2
Reduction of food costs			32	51	51
Telephone charges	10	10	8		2
Social benefits for:
- Paid annual leave	14	38	21	21	14
- Maternity leave	2	2	1	1.2	1
- Professional holiday	2	4			0.5
- Pensioners	6	6	3	0.1	1.1
- Blood-donation, marriage, birth, death	7	3	2	0.4	0.5
- In case of labor accidents and treatment	3	1	2	2	1.2
Others	19	6	1	0.3	0.3
%	100	100	100	100	100

Note - The statistical data in the table are from the moment of BTC plc separation as stand-alone company.

HEALTH AND SECURE LABOUR CONDITIONS

STATUS OF THE LABOUR TRAUMATOLOGY FOR BTC plc FOR THE PERIOD 1993 - 1998 AND FOR BP Co. FOR THE PERIOD 1991 - 1992

RESEARCH AND DEVELOPMENT ACTIVITY

In the period 1993 - 1998 the BTC plc research and development activity was concentrated in two main directions: the strategic development of BTC plc and scientific support for implementation of the Business plan and the Investment programme sites.
In 1993 the BTC plc research and development activity was performed by three units: Institute for Scientific Research in Telecommunications, Information, Switching and Automated Systems Institute and Centre for Telematic Services.

Institute for Scientific Research in Telecommunications (ISRT)
The Institute has a significant contribution for the development and initiation of the priority project for building a national digital telecommunications network financed by international investment banks. The ISRT activity is divided into the following main directions: - Network planning and traffic study. In 1993 continue the studies and application developments related to the project for building digital overlay network (DON project). - Switching systems. Here the major task is solving the problems for adaptation of the new digital exchanges to the existing analogue network. - Transmission lines and systems. In this direction the activity is oriented mainly towards solving the problems related to building fibre optical cable lines and transmission systems on SDH technology under DON project too. - Data transmission. Improvement of the BULPAC Data Transmission Network. - Radio and TV networks and systems. Standards have been elaborated for cable distribution systems for radio and TV signals, for radio and TV receivers, etc. Preparation for implementation of certain ETSI standards is made. - Control and maintenance systems. In 1993 two automated systems for control of the existing telephone networks are put into operation.

Information, Switching and Automated Systems Institute (ISASI)
The ISASI activity in 1993 involves the performance of several main tasks: - Building a new public packet-switching data transmission network - IKASNET. - Implementation of customer care systems, including the following subsystems: distribution frame, telephone charges and telephone directory. - BTC plc servicing in the standardisation area. - development of a tester for telephone lines measurement.

Centre for Telematic Services (CTS)
The Centre for Telematic Services creates, operates and sales value-added services. Its main activities include the national videotext under the trade name of INFOTEL, the national paging system INFOEFIR and issuing BTC plc official telephone directories. The respective engineering, commercial and marketing activity are performed in CTS.
The research and development activity in 1995 was concentrated in two main directions: BTC plc strategic development and scientific support for implementation of the Business plan and the Investment programme sites. A Strategy for Company’s Telecommunications Networks Development has been developed which represents the main part of the Programme for Telecommunications Development till 2010, approved by the Council of Ministers of the Republic of Bulgaria.

In accordance with the Master Plan for Telephone Network Development till 2010 and the Programme for Telecommunications Development till 2010, a Middle-Term Programme for BTC plc Development for the 1996 - 2000 Period is specified which follows several main priorities: - building new telecommunications infrastructure on the basis of advanced digital technologies which will bring the quality of service closer to the international standards; - expansion and digitalisation of the international connectivity observing strictly all European standards and recommendations, drive and participation in building international, regional and European projects; - rehabilitation of the existing analogue telecommunications network as a main source of company’s revenue at that time; - development and modernisation of the networks for radio and TV broadcasting; - speeded-up digitalisation of the Sofia telephone network; - building and implementation of MIS and information technologies encompassing the whole company intended for support and realisation of the main management and operational activities in BTC plc; - laying down programmes for development of the mobile communications and for interaction with the licensed cable operators.
In 1996 was accomplished a restructuring of the organisational units in the company’s system performing research and development activity. From August 1, 1996 the Information, Switching and Automated Systems Institute and the Centre for Electronisation and New Technologies in Telecommunications merged into a Centre for Informations Technologies in Telecommunications (CITT). A new structure of organisation was established and approved – 135 out of 265 employees were involved with research and development activity. The BTC plc management laid down and approved a paper on management of the research and development activity - the instruction "Order and Procedure for Planning and Reporting on Research and Development Activity in BTC plc".
In 1996 work has been done on 160 assignments which worth in total 182 230 235 levs distributed as follows:

Research and Development Units	Actual Expenses (levs)	Assignments (number)
ISRT	114 711 069	101
CITT	61 684 876	54
CTS	5 834 290	5

The BTC plc research and development activity for 1997 was oriented towards the following major problems: - introduction of digital exchanges in regional telecommunications networks; - Implementation and commissioning of transmission systems from DON project; - radio and television broadcasting; - Construction of control and maintenance systems; - Normalisation of the national telecommunications network; - Technological support and control in building and operation of telecommunications sites on the basis of optical cables; - Development and modernisation of information networks and services; - Management information system; - Electronic data processing centres; - Administration of the systems, technical and software service; - General-system problems in information technologies; - Automation of the economic and operation activity - common functional systems, customer care, information systems for servicing the telecommunications network; - Normative documents; - Scientific technical information; - Investment; - Marketing and services development; - Human resources.

In 1998 the scientific research and development activity in BTC plc was oriented towards the following main problems:

- Normalization of the National Communications Network.	3%
- Implementation of digital exchanges in PSTN.	4%
- Study of the technical status and elaboration of normative documents for supporting the digital systems.	2%
- Realization and commissioning of transmission systems under DON project.	2%
- Technological support and control in building and operation of telecommunications sites based on optical cables.	2%
- Scientific technical studies for radio and television broadcasting.	2%
- Development of systems for radio and television broadcasting.	9%
- Building of supervision and maintenance systems.	4%
- Research and testing of equipment developed by the Bulgarian industry and intended for implementation in the National Communications Network.	2%
- Implementation of new technologies in the telecommunications of the Republic of Bulgaria.	3%
- Scientific technical information.	4%
- National ATM network.	1%
- Development and modernization of the data communications networks.	8%
- General system problems in information technologies.	8%
- Management information system (MIS).	5%
- Information system for subscribers servicing.	6%
- Information systems for servicing the telecommunications network.	5%
- General purpose information systems.	4%
- INTERNET services.	6%
- Elaboration of standards and rules for telecommunications.	3%
- Assignments and technical projects for investment sites.	12%
- Marketing and development of services.	1%
- Human resources.	2%

Funds used (levs) per institutes in BTC plc for 1998:

ISRT	CITT	CTS	BTC plc - total
2 140 773 203	1 251 644 371	631 958 376	4 024 375 950

The personnel of the company involved in the scientific research and development activity area amounts to 745 persons distributed in one institute (ISRT) and two centers (CITT and CTS).

INTERNATIONAL ASSOCIATIONS

COMMERCIAL VENTURES WITH FOREIGN PARTICIPATION

Bulgarian Telecommunications Company plc is a shareholder in the following joint ventures with foreign participation: BETCOM Ltd., Radio Telecommunication Company Ltd., GUCIS Ltd., BULFON Co.

BETCOM Ltd.

Established on July 16, 1992.
The headquarters and the address of the joint venture are in Sofia.
The Bulgarian Telecommunications Company plc foreign partner in BETCOM ltd. is GPT International Ltd., United Kingdom.
The joint venture is involved with organization and operation of card pay-phone system and other telecommunications projects for telecommunications services provision.
The shares are as follows:
- 49,1% for the foreign shareholder
- 50,9% for the BTC plc.
The joint venture will run for a 6 years time.
On September 16, 1998 the BETCOM Ltd. was acquired by the Radio Telecommunications Company Ltd.

Radio Telecommunications Company Ltd.

Established on December 10, 1992.
The headquarters and the address of the joint venture's management are in Sofia.
The Bulgarian Telecommunications Company plc foreign partner in Radio Telecommunications Company Ltd. is Cable & Wireless Public Limited Company, United Kingdom.
The joint venture is involved with providing wireless communications services, paging systems, value-added services and products on the territory of Bulgaria and other countries upon additional written agreement for each particular case.
The shares are as follows:
- 49% for the foreign shareholder
- 39% for Bulgarian Telecommunications Company plc
- 12% for Radio Electronic Systems Ltd.
The joint venture will run for a 20 years time.
Radio Telecommunications Company Ltd. acquired at 100 % BETCOM Ltd. under the trade name MOBICA, public card pay-phone network operator, on September 16, 1998.

GLOBAL ONE COMMUNICATIONS AND INFORMATION SERVICES Ltd.

Established on July 5, 1993.
The joint venture's headquarters and management are in Sofia.
The Bulgarian Telecommunications Company plc foreign partner is GLOBAL ONE COMMUNICATIONS Ltd.
The joint venture is involved with building and operation of data communications network for provision of local and international value-added services and sales of systems for such services.
The shares are as follows:
- 60% for the foreign partner
- 40% for the BTC plc.
The joint venture will run for 15 years time.

BULFON Co.

BULGARIAN CORPORATION FOR TELECOMMUNICATIONA AND INFORMATICS

Established on November 14, 1995.
The headquarters and the address of the management are in Sofia.
The Bulgarian Telecommunications Company plc foreign partner is INTRACOM, Greece.
The joint venture is involved with survey, design, installation and operation of informatics networks and telecommunications networks (cellular or other) and provision of related services, design, production and trade with electromechanical equipment and software for new telecommunications and informatics systems, creation and management of data bases, providing consultancy and training services.
The shares are as follows:
- 66% for the foreign partner
- 34% for Bulgarian Telecommunications Company plc
The joint venture will run for unlimited time period.

RILA SOFTWARE CORPORATION Co.

Established on October 23, 1998.
The headquarters and the address of the management are in Sofia.
The Bulgarian Telecommunications Company plc foreign partner is Geosor Rila Holdings Ltd.
The joint venture is involved with providing computer services related to production and testing of software, computer technologies, adaptation of software to such technologies.
The shares are as follows:
- 85% for the foreign partner
- 15% for Bulgarian Telecommunications Company plc
The joint venture will run for unlimited time period.

FINANCIAL RESULTS