Czech Production of Digital Czech Production of Digital Telecommunication SystemsTelecommunication Systems

by Ivan Říčař

TTC TESLA TELEKOMUNIKACE Ltd.

Třebohostická 987/5

100 43 Prague 10

Czech Republic

tel.: +420 2 781 52 47

fax: +420 2 781 52 48

e-mail: ricar@ttc.cz

http://www.ttc.cz

History of the NinetiesHistory of the Nineties

• 1989 – Velvet Revolution in the Czech Republic, the beginning of political and economic changes• Opening of the market at the beginning of the nineties

A problem yet an enormous opportunity for Czech enterprises

ProblemsProblems

• pressure of foreign competition• obsolete technology of the production• overemployment• export prevailingly oriented to the collapsing Eastern European markets

OpportunitiesOpportunities

• access to state-of-the-art technologies• access to state-of-the-art component basis• access to information technologies• temporary comparative advantages of having a cheap labour and good knowledge of the home market

TTC accepted new situationTTC accepted new situationas a challengeas a challenge

• quick establishing of ownership relations (management buy-out)• maintaining and utilizing of high intellectual potential of the staff, making use of knowledge and experience of previous years• clear vision of the management: building up a modern manufacturing company linked to a strong co-operative foreign partner

Educational Structure in TTC

Elementary7%

Academic degree2%

Secondary GCE39%

University26%

Secondary26%

Great BritainGreat Britain

Italy•

TTC MARCONI

Czech Republic

TTC

Czech Republic

TTC MARCONI - Joint VentureTTC MARCONI - Joint VentureMARCONI COMMUNICATIONSMARCONI COMMUNICATIONS

and TTC TESLA TELEKOMUNIKACEand TTC TESLA TELEKOMUNIKACE

49%

10% 55,5%

51%

49%44,5%97%51% 90%

TTC MARCONI, Ltd.

MARCONICOMMUNICATIONS

SATTES, Inc.

TTC TESLA TELEKOMUNIKACE, Ltd.Třebohostická 5

Praha 10

TTC TELECOM, Ltd.

Bajkalská 27Bratislava

Třebohostická 5Praha 10

GREAT BRITAINITALY

Naskové 3Praha 5

B. Němcovej 32Košice

3%

TTC groupTTC group

TTCTELECOM, Ltd.

B. Němcovej 32Košice

MTU SATURN, a.o.o.t.

RUSSIA

Revenues in Current PricesRevenues in Current PricesTTC and the GroupTTC and the Group

274 316

622 359

805 108

965 137

1 247 048

194 801

399 205 413 267 421 160

508 573

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1994 1995 1996 1997 1998

CZK x 1,000

TTC group

TTC

Profit after TaxationProfit after TaxationTTC and the GroupTTC and the Group

24 064 24 420

53 651

12 325

16 876 16 501 17 546

24 314

14 391

20 180

0

10 000

20 000

30 000

40 000

50 000

60 000

1994 1995 1996 1997 1998

CZK x 1,000

TTC group

TTC

EquityEquityTTC and the GroupTTC and the Group

92 452

145 190

199 599

28 534

45 410

61 911

77 978

102 301

50 032

72 212

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

200 000

1994 1995 1996 1997 1998

CZK x 1,000

TTC group

TTC

Milestones in the Company's HistoryMilestones in the Company's History

1953 TELECOMMUNICATIONS RESEARCH INSTITUTE (VÚT) was established.

1958 - 1989 Incorporated in various structures of TESLA Corporation, VÚT fulfilled the tasks of the R&D basis of the Czechoslovak telecommunications industry.

1989 VÚT was transformed into an independent state enterprise.

1991 A year of further transformation into a development & manufacturing enterprise; the business name was changed to TESLA TELEKOMUNIKACE, State Enterprise, and TTC trademark was introduced. PCM 30U Digital Transmission System was launched.

1992 A year of privatization: TTC was purchased in a public auction and registered as TESLA TELEKOMUNIKACE Ltd. TTC 2000 Digital Switching System was launched.

Milestones in the Company's HistoryMilestones in the Company's History (continued) (continued)

1993 Joint ventures with foreign partners were founded – the first subsidiaries of the future TTC Group: TTC MARCONI and TTC Bratislava.

1995 Subsidiaries TESLA TELEMECHANIKA , Prague and SATTES, Moscow, Russia, were established.

1996 Another subsidiary joined the Group - TTC TELECOM, Košice, the Slovak Republic. TTC purchased the TELLUS Company.

1997 TESLA TELEKOMUNIKACE became an ISO 9001 certified producer.All manufacturing capacities of the TTC Group were concentrated in new premises in Prague - Košíře.

1998 The parent company changed its business name to TTC TESLA TELEKOMUNIKACE Ltd. TTC Group's turnover for 1998 exceeded the boundary of one billion crowns.

ISO 9001ISO 9001

ReferencesReferences

1993 – 1994 Important contract with SPT Telecom (Czech Telecom)

1996 – 1997 Contract with Lietuvos Telekomas (LithuanianTelecom) – tender by EBRD

1994 – 1998 Construction of the Czech Army stationarynetwork

Join Projects of TTC and MarconiJoin Projects of TTC and Marconi

• Complete solution of the Transgas network (Czech Republic)• Complete solution of the Slovtransgaz network (Slovak Republic)• Construction of the PON Passive Optical Network using a joint product of Marconi, TTC and CS Telecom, France• Subcontract for the delivery of the DORIS Management System to complement Marconi's DLC systems for ETISALAT, United Arab Emirates• Success in a tender by Italian Railways together with Marconi

Each success is but admissionEach success is but admissionto the next round of contestto the next round of contest

– The basic objectives have remained the same:• highly qualified team of motivated staff• co-operation with a strong foreign partner• emphasis on international co-operation

International co-operationInternational co-operation

export – assuming new market segments joint development work, especially with MARCONI COMMUNICATIONS, leading to new joint products taking part in international, first of all European, co-operation: the Fifth Framework Programme, in particular ITS (Information Society Technology)

Thank you for your attentionThank you for your attention

Ivan Říčař

TTC TESLA TELEKOMUNIKACE Ltd.

Třebohostická 987/5

100 43 Prague 10

Czech Republic

tel.: +420 2 781 52 47

fax: +420 2 781 52 48

e-mail: ricar@ttc.cz

http://www.ttc.cz