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          Vipnet profile

          Vipnet was the first private mobile operator in Croatia. In September 1998, Vipnet was granted a concession for the second GSM network in Croatia and started its commercial operations on July 1st, 1999. By entering the Croatian telecommunications market, Vipnet introduced competition into mobile telephony. The prices were cut down by half and the quality of services was raised to the highest possible level. At the time when Vipnet entered the market, the penetration rate in Croatia represented just 4.6%, while it reached 140.6 % by the end of 2010. Due to its great success compared with the market monopolist back then, Vipnet is known as the best market entrance of a second GSM operator in Europe ever.

          Vipnet was the first on the Croatian market in 1999 to offer Vipme prepaid (with no subscription fee) to the customers so that they could achieve the best possible cost control. The customers were thrilled to welcome the service, and Croatia actually turned out to be a prepaid market, and has maintained that status until now. In 1999 we were also the first on the market to make it possible for the customers to have a Customer Service at their disposal at any time, 24 hours a day and seven days a week, to provide them with the best possible assistance and advice on Vip’s offer.

          In the following years, Vipnet also continued to introduce innovations, regardless of whether they concerned products, services, technology, employees, quality standards ... and it is by doing so over the last 10 years that it acquired the status of innovations leader on the telecommunications market in Croatia.

          Corporate Social Responsibility

          But Vipnet is much more than that - it is a company that does not only care for its business results and figures, but a company oriented towards the customers’ needs and wishes, corporate social responsibility and investments in employees, because it considers that only satisfied employees can offer new values to the customers, which also contributes to the creation of new values of the Croatian economy. The labor market changed considerably with Vipnet’s market entrance because Vipnet’s business policy provided for the development of young experts through different training and advanced training sessions, as a result of which it became a direct competitor to other employers in attracting the most talented staff.

          Vipnet had 18 employees when it started to operate in 1998, and this number reached 470 as early as in 1999. Today, Vipnet has more than 1,000 persons in its employ, a majority of whom are highly-educated experts, with an average age of 35 years. 55 percent of the employees are men, while 45 percent of them are women. The surveys conducted among employees in Croatia have been showing for a number of years already that Vipnet is one of the most desirable employers owing to its human resources management strategy, which is based upon attracting, developing and retaining the best employees. In this context, Vipnet was among the first companies in 2005 to be awarded the Employer Partner Certificate, and in 2008 it was proclaimed one of the top five Certificate awardees and was the only one to win 100 percent of the scores in this independent appraisal.

          Vipnet confirmed leadership on the list of best employers with Employer Partner Certificate in 2010 as well, and is the only company to win maximal number of points in the cerification process.

          On the other hand, in 2006 Vipnet provided its employees in the new business complex with a workspace fitted with the most modern equipment, standards, and restaurants, but also with many other features so that the employees could harmonize their business and private lives more easily. A special building inside the complex accommodates a fitness center, a wellness with swimming pool and sauna, and the first corporate nursery school in Croatia.

          Corporate social responsibility is also one of the strategic objectives because the company returns part of its earnings to the society through corporate social responsibility. Vipnet’s most important project has been the support to clearing Croatia from mines since 2002 under the 'Mobility.Communication.Life’ motto. As early as in 2005, the Croatian Mine Clearing Center proclaimed Vipnet its major private donor, and so far Vipnet has invested 9.2 Million kunas in the clearing of land in seven Croatian counties from mines and it has thereby provided for children to grow up in more freedom and for a speedier economic development of these regions.

          Vipnet has been systematically investing in healthcare and providing regular assistance to hospitals since 2002, and it has invested 5.1 Million kunas so far in regional healthcare. On the occasion of the achievement of the number of 2 million customers in May 2007, Vipnet donated 2 Million kunas to the Polyclinic for the Rehabilitation of Hearing and Speech SUVAG in order to make everyday communication easier to persons with hearing impairments. Vipnet donated 3.1 Million kuna to regional hospitals, thus helping equal development and implementation of healthcare.

          Over the years, Vipnet also participated in the construction of the Bliznec forest track, which provided disabled persons for the first time with an easier access to one of the protected nature parks – the Medvednica Nature Park. It also financed the training of a guide dog for the blind, which was allocated to a blind girl in Zagreb. In 2008, it joined the fight against breast cancer by selling the exclusive Samsung Pink Ribbon mobile phones in the Vip Centers. Funds were raised thereby for the purchase of an ultrasound for the General Hospital in Šibenik, and the sequel of this project in 2009 will secure education of medical teams on psychosocial assistance to women treated for breast cancer. In 2010 Vipnet supported the „All for her" initiative in the fight against breast cancer.

          Vipnet's employees from Zagreb and Rijeka have been cleaning and tidying the Medvednica Nature Park and the Risnjak National Park, while employees from other two regions Osijek and Split have been cleaning and tidying Kopački Rit Nature Park and the botanical garden in the Marjan Forest Park. Vipnet started with cleaning and tidying the most beautiful nature parks in four Croatian regions as early as April 2010. Each of Vipnet's one thousand employees approximately will spend one day cleaning the environment instead of being at his/her workplace. The Vip people have shown thereby their care for the environment, which is an essential component of the company's corporate social responsibility, which has confirmed once more its status as environmental leader in the telecommunications industry.

          Vipnet has also been investing in the knowledge society, and the first symposium entitled “The Future of Communications” was organized in 2002. Many Croatian and European telecommunications experts and representatives of the business world and the world of politics discussed the development of the Croatian telecommunications industry. The gurus of modern economy and authors of the books Funky Business and Karaoke Capitalism, Dr. Jonas Ridderstråle and Kjell Nordström, gave the lecture “How to Become Sexy” in 2004, while the central topic in 2006 was the mastery of speed and multitasking with the adventurer Bertrand Piccard and Professor Dr. Ernst Pöppel. On July 1st, 2009, on the occasion of the celebration of its 10th anniversary, the Irish rock singer Bob Geldof shared its experience with how to integrate humanity, nobility and ideals about a better world into everyday life and business. The topic of the symposium was corporate responsibility as a guiding principle, and in his lecture entitled ‘Commitment to the Objective’ Bob Geldof spoke about enthusiasm and examples of his humanitarian actions.

          As early as in 2002, Vipnet also joined the project of the weekly magazine ‘Nacional’ entitled “Top Scholarships for Top Students”, which provided the highest scholarships in the country to the best Croatian students. Since 2002, Vipnet has also been supporting the educational projects of the Višnjan Science & Education Center and initiated the Vip Eureka project as a multidisciplinary fair of the scientific creativity of Secondary School students. In 2005, Vipnet also launched an educational drama program for Croatian Elementary School pupils, and the three-year cooperation with the Thearto Project and young actors resulted in a unique tour to perform these plays on all the Croatian islands in order to provide the children there with cultural contents that they rarely have the occasion to enjoy.

          Vipnet has also been providing its assistance to the community in the form of sponsorships and since 2001 it has been the general sponsor of the Dubrovnik Summer Festival, one of the major cultural events in Croatia. Vipnet also sponsored the Motovun Film Festival, and since 2003 it has been the general sponsor of the Zagreb Film Festival. It also supports music and was the general sponsor of the Vip INmusic Festival in 2007 and 2008, and Vipnet also became the general sponsor of the Vip Zagreb Jazz Festival in 2008.

          In the field of sports, Vipnet was the general sponsor of the Cibona Vip Basketball Club from 1999 to 2005 and sponsored the Croatian Basketball Federation from 2003 to 2007. From 2001 to 2008, it was the general sponsor of the Croatian Beach Volleyball Championship and Cup (Vip Tour). Following the tradition of investments in beach volleyball, Vipnet has been the general sponsor and co-organizer of the Vip Open, a World Series beach volleyball tournament, for the fourth consecutive year since 2005. Over the years, Vipnet has also supported the Croatian tennis players - Goran Ivanišević, Mario Ančić, Ivan Ljubičić and Marin Čilić. In 2007, Vipnet became the general sponsor of the Croatian Alpine Skiing National Teams and the Vip Snow Queen Trophy slalom race.

          Vip brand

          The Vip brand was presented in 1999 and Vipnet services had four logos, claims and colors corresponding to different key product segments. In October 2003 Vipnet consolidated the brands into one single, unique Vip brand that successfully presented the visual identity of the company and was communicated with the claim: Vip - the Power of Communication.

          The logo was red because the color personifies strength, energy, mobility and speed, everything what Vipnet represents. The change in Vipnet’s visual identity in 2003 constituted a logical and natural step resulting from the continuous development, improvement and adjustment to the new arising needs of the customers. The reason for the rebranding was to ensure consistency in communications, to make it easier for the customers to make their choice of service, and to provide identification of the brand with the company values and product portfolio.

          In January 2006, Vipnet refined again its visual identity and presented the new values of the Vip brand: individual, innovative and inspiring. The enhanced Vip brand made it possible for the customers to express their personality, and the new ‘Everything Because of You’ slogan confirms that the customers’ needs come first for Vipnet in its products and services. Due to orientation to customers, in 2009 values of Vip brand were upgraded and accent was put on customer care, along with individuality and innovation. That way we put additional accent to providing top service to customers, making it an integral part of the company. Experience of service we offer our customers depicts a friendly and proactive approach, and customers know their needs are important to us and that we understand them.

          In 2010 Vip brand evolved again. Following the promise made to customers with slogan Everything Because of You, Vipnet’s employees have been increasing quality of service for years, thus increasing customer satisfaction. Vip network is the safest and fastest network in Croatia, Vipnet has the best offer of products and services at the best prices, support to customers is expressed through care in the first Customer Service in Croatia... Over the years brand values evolved as well, so particular emphasis was put on the fact that customers come first, on quality, responsibility and value for money.

          Over the last 11 years, the Vip brand has been continuously enhanced and adapted to the customers’ needs and market requirements with a constant high quality available to everyone. Any new refreshment of the visual identity meant a new, more meaningful and more advanced communication with the market.

          Technologies

          Vipnet led on the market in introducing the most modern technologies with products and services which enabled customers the fastest access to information via e-mail and internet, at any moment and any place. In May 2003, by making calls to Zagreb, Rijeka, Osijek, Split and Vienna, Vipnet presented the first test UMTS network in Croatia. Data transfer at the speed of 384 Kb/sec and use of new UMTS technology-related applications was also demonstrated. In April 2004 EDGE was introduced, and in October Vipnet was granted the UMTS concession for a period of 20 years. By starting HSDPA technology in 2006, Vip network became the fastest and highest quality network in Croatia. In 2007 Vipnet was the first in Europe to demonstrate HSPA network, thus offering mobile internet access faster than ADSL. In February 2009 Vipnet was among the first in the world to successfully test the latest technology for mobile broadband – HSPA+, reaching speed up to 42 Mbps in downlink. Vipnet also began introducing HSUPA 5.7 tehnoclogy, offering almost four times faster data upload. It also presented test phase of DVB-H standard (Digital Video Broadcast-Handheld) for watching television programs on mobile phone display. At the end of 2009, Vipnet began the implementation of HSPA+ technology which enables up to three times faster surfing in Vip network, and Osijek was the first Croatian city fully covered by this technology. At the end of 2010 HSPA+ was available in 12 Croatian cities. In October 2010, Vipnet performed a successful 4G LTE technology test in live network and achieved download speed of 136.6 Mbps.

          Network Quality

          Vip’s network has the best network audio quality and the highest average data transfer speed, according to independent measurements performed by the P3 Solutions company in accordance with EU standards. Such an independent survey was conducted for the first time in 2005, then in 2007, 2008 and 2010.

          Customers

          When referring to the customer base, Vipnet had 155,100 customers at the end of 1999, and it reached the number of one million customers by the end of 2002. Vipnet reached the number of two million customers in May 2007 and, according to figures referring to the beginning of 2010, Vipnet has 2.6 Million customers.

          Services

          When referring to services, the first mobile payment service in Croatia - Vip.parking - stands out. This service was entirely conceived by Vipnet’s experts in 2001, i.e. a few months after GPRS, on which this service is based, was presented to the world. The m parking payment model was taken over later on by many operators throughout the world. The most important service presented in 2002 was the Multimedia Messaging Service (MMS), a service that makes it possible to send and receive messages containing not only text but also color photographs, and audio and video clips. Vipnet was also among the first operators in the world to introduce MMS roaming.

          The beginning of 2003 was marked by the execution of a partnership agreement between the mobilkom austria group and Vodafone. Owing to the partnership with Vodafone, in 2004 Vipnet was also the first in Croatia to present Vodafone BlackBerry, a new business communications solution. In 2004, we also presented the first Vodafone Mobile Connect Card for mobile access to the internet, and the Vodafone live! mobile portal for access to informative and entertaining contents via mobile phone. The Vodafone live! portal offers, for instance, Halo melodies to the customers, which constitutes Vipnet’s unique offer on the market. One month only upon the execution of the UMTS Concession Agreement, in January 2005, Vipnet offered the first commercial UMTS service: City Broadband for mobile access to the internet, and also presented the first video call service; it is still the only one on the market to offer it.

          The Integrated Business Solutions, which made Vipnet the first one to offer an individual approach to each business customer and the creation of voice and internet services packages, were presented at the beginning of 2006. In September 2006, Vipnet offered to residential customers and small and medium-sized companies a substitution for their fixed telephony line with the Vodafone Homebox, for calls and access to the internet.

          Vip over IP, a service combining mobile and internet telephony, was presented in September 2007, while Vipme Broadband, the first prepaid service for mobile internet access, was presented in November. In March 2008, Vipnet introduced the first prepaid fixed line in Croatia – the Vipme Homebox. In October 2010 Vipnet offered it's business customers Vip ADSL technology, integrated service composed of fast ADSL Internet, already available fixed line and new team tariffs.

          In May 2010 Vipnet was the first in Croatia and Europe to offer its customers SMS Customer Service and in July 2010 Vip support from the distance which enables Customer service agents to directly acces customers mobile phone.


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