re : STET Hellas (ADR) - NasdaqNM: STHLY - $11.25
NEXT ADDITION TO MY ABSURDE VALUATION PORTFOLIO
This is a major (think it's #2) wireless carrier in Greece. Almost no debt, very profitable, gross margin expansion, already north of 50%, new service offerings. Acquired it's UMTS licence really cheap.. And unlike Germany or the UK, mobile phones are still growing with 2.5G service, even in the category of basic voice..
Company can earn north of $1 this year, PSR around 1.1, PE 11, great cashflow generator..
biz.yahoo.com
Business Summary:
Stet Hellas Telecommunications S.A. provides GSM (global systems for mobile communication) mobile telecommunications services in Greece. The Company is one of four operators licensed to provide mobile telecommunications services in Greece, and one of three operators licensed to provide national GSM services in the 900 Mhz (megahertz) frequency band and UMTS (universal mobile telecommunications system) services in Greece. On December 31, 2002, it signed a commercial agreement with EUROPROM Telecommunications S.A. to lease EUROPROM's fixed wireless access (FWA) license in the 25 GHz (gigahertz) frequency band. This agreement enables the Company to bundle mobile and FWA service elements, thus offering combined fixed and mobile voice and data products and services.
Contract Customer Services
The Company offers individuals and small to medium-sized business customers basic GSM network access, related value-added services and international dialing and roaming through 12-month contracts. The services are available to contract customers on the basis of several tariff plans, each tailored to the usage patterns of different targeted groups or market segments. In June 2000, the Company launched the mobile portal, TELESTET OnLine WAP, featuring a variety of online services such as sports news, weather, lottery results, horoscopes, and m-commerce (mobile commerce) services, which include a trading service that allows customers to trade shares on the Athens Stock Exchange via their mobile phone. During the third quarter of 2001, the Company launched basic commercial general packet radio system (GPRS) services to all the contract customers, both business and residential, including WAP (wireless application protocol) over GPRS, mobile Internet access and corporate access. In November 2002, the Company complemented the offer to the high-end residential market segment with the launch of TELESTET PRO 50, a bundled minutes-based tariff plan featuring 50 minutes of bundled airtime, responding to market demands for new competitive tariffs. In January 2003, it launched six new competitive bundled minutes-based tariff plans, encompassing the changing needs of a wider market spectrum.
In late 2001, the Company launched TELESTET Finder and Call Attempt Notifier. Telestet Finder is an SMS (short message service) location-based service that enables customers to find the store, service or company nearest to the location of their mobile phone. Call Attempt Notifier allows customers to receive SMS notification of calls missed when their mobile phone is switched off or out of network range. The focus on technological innovation and enhanced product and service offerings culminated in mid-2002 with the launch of Multimedia Messaging Services (MMS).
Prepaid Customer Services
In the first quarter of 2001, the Company revamped its prepaid products and services by enhancing existing tariff plans and redesigning the packaging and marketing of these services. This prepaid offer, Talk Simple, allows customers to choose among two tariff plans (the Talk Pack and the Send Pack), each of which provides lower rates for voice calls or for SMS, respectively. Talk Simple remains available to already existing subscribers, but has been replaced by FREE2GO for new customers. In June 2001, the Company complemented the services for young people with the launch of FREE2GO, a prepaid product with automatic activation and wide availability in thousands of kiosks and mini-markets throughout Greece, maximizing the accessibility and user-friendliness of the mobile phone. In July 2001, it launched FREE2Date, an SMS-based service that allows all customers to communicate with people sharing common interests. In November 2001, it further enhanced the FREE2GO offer with the launch of FREE2Chat, an SMS-based service offered to contract customers, enabling the user to participate in virtual chat rooms with people sharing similar interests.
In 2002, the Company launched two new entertainment services under the FREE2GO umbrella. FREE2Flirt is an SMS-based game that allows customers to exchange messages with people sharing common interests, and FREE2PlayGalaxy is a multiple-choice, SMS-based game. In addition, the Company continued to enhance the offer of value-added services with the launch of TELESTET Sharing, which allows the prepaid customers to transfer airtime instantly, even while abroad, by sending an SMS.
Business Customer Services
The Company offers business customers (including corporations, small and medium-sized enterprises and small office/home office companies) network access and mobile telecommunications services tailored to the specific needs of each business customer, including data traffic transmission between two or more customers' sites. Additional business customer services include Virtual Private Network, Business Connect, Professional Voice Mailbox, Teleconference, Mobile Organizer, Data & Fax Transmission, Bulk Web SMS messaging for companies and electronic billing, which presents the customers' monthly bills on the Web.
Internet Services
Consistent with its one-stop shop approach, in February 2001, the Company launched B OnLine Internet, an integrated mobile telephony and fixed Internet service offering in the Greek market. B OnLine is the first product of the Company's commercial cooperation with Forthnet S.A., a Greek Internet service provider. Building on this relationship, the Company enhanced the B OnLine Internet service with the launch of B OnLine ISDN towards the end of 2001. This service provides access to the Internet via a fixed ISDN (integrated services digital network) line, at speeds of 64 kbps (kilobits per second), as well as a free line for making voice calls or sending and receiving fax messages simultaneously.
Value-added Services
The Company, in addition to standard GSM services such as call waiting, call forwarding, call barring, caller identification and conference calling, offers its whole customer base a range of value-added services. TELESTET Services includes directory assistance, mobile fax, e-mail and information regarding the weather, sports news, stock exchange and exchange rates through IVR (interactive voice response) and SMS. TELESTET WAP is a mobile portal that features a portfolio of online services and exclusive access to certain Internet portals. Other services include fax and data transmission services, and location-based services such as the TELESTET Personal Mobile Guide. The Company also provides services such as allowing foreign roaming customers to be connected to the emergency phone numbers of the nearest car rental agency, radio taxi service or TELESTET store; TELESTET Finder, an SMS-based service; Teleconference, which allows up to six users to talk simultaneously, independent of a network or operator; Organizer, a form of call divert that allows customers a choice of three pre-programmed alternative numbers if the customer cannot answer the call; High-speed Circuit Switched Data (HSCSD); GPRS services, including WAP over GPRS services; MMS, enabling customers to send and receive photos, high-definition colored or animated images, audio files and more, to another MMS-enabled phone or to an e-mail address, and to access interactive applications; Call Attempt Notifier, a service that allows the customers to receive SMS notification on calls missed when their mobile phone is switched off or out of network range; TELESTET E-bill, a service providing customers with access to their mobile phone bill over the Internet; TELESTET Mobile Organizer, which offers Calendar and Agenda functions through Synchronization with Microsoft Outlook; TELESTET Sharing, which enables prepaid customers to exchange airtime by sending an SMS; Social and entertainment services, including TELESTET Trivial Pursuit, FREE2Date, FREE2Chat, FREE2Flirt and FREE2PlayGalaxy, a multiple-choice SMS-based game; Information services, including TELESTET Mobile Dictionary and TELESTET Score, and Charity donation services, including such charities as Medecins Sans Frontieres.
The Company competes with Panafon-Vodafone, Infoquest S.A. and Cosmote |
