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4.1.2.

Network and Coverage

In recent years, VIVACOM’s development is based on a

clear and long-term strategy: to offer its clients what it

canactuallydo. Forthedifferent networkswithwhichthe

company operates, it means a smooth and evolutionary

upgrade with the latest technology on the market. The

company’s management approach has always been

geared towards promptly and effectively meeting the

needs of the market, while investing in innovations and

solutions for the future.

In 2018, the focus in the mobile segment remained on

high-speed data transfer and wider coverage of the

population. Our consistent and long-term efforts in this

direction were also appreciated by world-class industry

analysts. After having been the winner of the Ookla

Award for the fastest mobile network for the whole of

2017, VIVACOM has also been recognized for the fastest

mobile network in Bulgaria for the third quarter of 2018,

according to an analysis of Speedtest Intelligence®

of Ookla® . The popular mobile application for speed

measurement collects information from real user tests

and gives its assessment based on their analysis.

And because for us is important not only the high

quality of the network but also its good coverage on

the territory of the country, we continued to work on its

development in this direction as well. At the end of the

year, we also received the measurement results of one

of the international leaders in the field – Global Wireless

Solutions (GWS). According to their December 2018

report, VIVACOM 4G network once again had the highest

coverage by population in Bulgaria – 99.25% .

In 2018, the company made a significant innovation

in its fourth-generation network – building on the 4G

technology in 4.5G or LTE Advanced. This provides

telecom’s customers with higher download speeds from

the Internet – up to 150 Mbps for download. Users need

only to use a smartphone that supports LTE Advanced.

The 4.5G network started in April in five major cities –

Sofia, Plovdiv, Burgas, Russe and Stara Zagora, and by

the end of the year a total of 615 settlements across the

country were covered with the new technology.

All efforts of the company to modernize the mobile

network are a step towards the next major revolution –

5G. Technologically speaking, VIVACOM is ready to meet

the challenges of the fifth-generation network expected

to be available in Bulgaria for end-users in 2020-2021.

In 2019, we are even ready to launch the first private

industrial 5G network.

For now, what keeps the development of the new

technology is the allocation of the frequency spectrum

by the state among the different operators, as well

as the over-rigid construction regime that treats the

replacement of the old with new equipment at the

base stations, such as a construction of an entirely new

infrastructure.

In the provision of fixed services in the past year, the

focus continued to be high-speed broadband Internet

and interactive television. For this purpose, the company

is investing in the development of its optical network

(FTTx – Fiber To The x). With it in 2018 two new cities –

Russe and Bansko –were covered, so a total of 1,182,000

households in 25 cities have the opportunity to use

optical Internet and IPTV. And 296,304 households in

another 112 smaller settlements have access to modern

fixed services thanks to the network built using FTTc

technology (Fiber To The curb).

Throughout the year, the IPTV service itself was

upgraded, so users in 2019 enjoy an even friendlier

interface and more options for interactivity in content.

The high quality of each service has always been of

an utter importance for VIVACOM. That’s why we are

also concentrating on improving our satellite TV, and

in 2018 we have been running a large-scale systemic

preparation for switching to a new satellite in 2019. The

planned relocation aims to improve both signal quality

and wider terrestrial coverage of the service.

The company does not underestimate also its fixed

telephony network, with which it has begun to operate

on the market as a telecom. The efforts there are mainly

aimed at optimizing the electricity it consumes. Older

TDM technologies are being upgraded with the newer

Next Generation Network (NGN), which leads to lower

electricity consumption, smaller occupied zones, and

optimized transport infrastructure.

One of the key objects in VIVACOM’s large-scale

technology infrastructure – the Plana satellite station

– is also being constantly modernized. The teleport,

through which we broadcast radio and television

signals and satellite data, already transmits over 200 TV

channels on three continents – Europe, Asia and Africa.

In 2018, we renewed the Head-end TV channel system

and invested in a new VSAT HUB platform to provide

satellite Internet on ships. The Plana Teleport is already

certified by the World Teleport Association (WTA) at

Tier 3 level, making it one of the 27 certified teleports in

the world and ensuring customers the highest level of

service and reservation. The Plana Teleport is in active

preparation for certification at the maximumTier 4 level.

The large number of networks and systems operated

by VIVACOM requires serious integration with them,

as well as ongoing support to work as one platform

and our customers to get their services seamlessly.

Facing the case that on the market there is no such

comprehensive system for managing such a multi-

component infrastructure, we come to the decision

to develop one. As a result, we created our own OSS

environment or Operational Support System. Through it,

we manage both the physical infrastructure and devices

on the network, as well as the services built on them.

For example, if we see a malfunction in a component of

the network, we immediately know which services are

affected and we can inform their users. Conversely, if we

find a problem in any end-to-end service, we uniquely

identify the network elements that are involved in

delivering it, and we resolve the issue in a very short

time.

Our research has shown that such a comprehensive OSS

environment does not exist not only on the Bulgarian

market but also on the international one. That is why,

in the beginning of 2019, together with Italtel as our

global partner, we presented it to the world’s largest

technology forum, held in Barcelona, Spain – the MWC

(Mobile World Congress).

Technologically, VIVACOM’s achievements are the result

of both the strategic approach of top management and

the policy of permanent and long-term investment, as

well as of the team of high technical expertise. The Chief

Technical Directorate is one of the largest units in the

company, where every year a lot of effort is made to

maintain high quality in the creation and maintenance

of services. There is no other company in our country

with such a large own resource of people for network

and service maintenance. This enables us to follow a

unified standard of quality and fulfil our commitments

to customers across the country. For this purpose, each

year, more than 1,500 employees from the Directorate

undertake a series of training sessions not only to

increase their professional qualification but also to

develop the so called ‘soft skills’ to work with clients.

Radoslav Zlatkov,

Chief Technology Officer and Member of the Managing Board

of VIVACOM:

‘2018 was one of the most successful for VIVACOM in terms of technology. We

achieved the fastest mobile network in Bulgaria for the third quarter of 2018,

according to Ookla® Speedtest Intelligence® information analysis. However,

for us, not only the speed of the mobile broadband is important, but also to

offer quality coverage of services. We worked hard in this direction and the

result was not delayed – VIVACOM’s 4G network had the highest coverage

by population in Bulgaria: 99.25% according to GWS’s December 2018 report.

We have also expanded the number of households with fibre-optic network

coverage, so to offer them high-speed fixed Internet and interactive television.

I believe that these achievements rank us among the technological leaders in

Bulgaria. We will continue to uphold our position as an innovator by developing

and offering technical solutions for the broadband of Things and Smart Cities.

All this is possible thanks to the professionalism, energy and team spirit of all

our employees.’

1

According to Ookla® analysis based on Speedtest Intelligence® data from tests conducted on the territory of Bulgaria in the third quarter of 2018 for average download

speed in the mobile network. Ookla trademarks are used with permission. More information at

www.vivacom.bg

.

2

The coverage of 4G technology by population was measured by Global Wireless Solutions (GWS) according to their methodology in the period 15.10–15.11.2018.

ANNUALREPORT

2018

INTEGRATED

4. PERFORMANCE

4.1. Effective

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