Nowadays, digital connectivity is an indispensable part of our daily lives. We need technology in order to communicate, work, shop, travel, get educated... It is present in all spheres with us being networked and dependent on it. With the appearance of the new technologies, such as 5G, endless new possibilities and new appetites have been emerging. More than 5 billion internet users worldwide seek constant connectivity and a high quality service. It is all happening at a time when the world is afflicted by an energy crisis and inflation, a time of uncertainty and adverse trends. In the telecommunications sector, which is the pillar of digital transformation, these turbulences and changes bring about numerous challenges and open up new chapters. We talked to Nikola Ljushev, the Chief Executive Officer of Makedonski Telekom, about the achievements in the year that has gone by, the future plans, the industry trends and the possibilities spurred by the new technologies.

1. How did you end 2022? What is the greatest achievement of the year?

This turbulent year, which will remain in our collective memory as the year of the energy crisis, the military conflict in Ukraine, the high inflation and the negative global trends, is concurrently a year of a great success for Telekom, with the complete upgrade towards a new smarter generation of wireless communication technologies. I am proud that we are the pioneers in the introduction of the new technologies and now we have the most modern and the best network. In just 18 months we fully modernized the mobile network, we installed 900 new base stations and we increased the 4G capacity by staggering 70%. We were the first ones to introduce the 5G network in Macedonia and now 5G services are available in 26 towns. Gigabit speeds and low latency have become our reality and already 12% of the traffic are generated on 5G. This is the largest project in the last ten years and an important milestone that will enable a complete shift not only in technology, but also in each and every aspect of our lives. We have set the foundation, the backbone of the new technological revolution, on which the new digital world is going to be built in the years to come.

2. What does it take in order to make such a step forward and complete such a large project?

Investments expressed in millions, teamwork, international support and a good motive. The work on this project was done in an exceptionally complex period and environment, but, as a lesson learned from the pandemic, it is precisely the network that constitutes the basis of the stability that makes it possible for us to function under any circumstances and that was exactly our motive. We are living at a time when the world is constantly changing. The need for faster internet, better connectivity, more data, greater capacities and better service, is constantly on the rise. As an illustration, if we compare the mobile internet consumption in October 2021 with that of October 2022, we may discern an increase of above 50%. Under such circumstances, the telecommunication operators must remain motivated to continuously build and improve the network, since it is the foundation and the backbone, especially during these turbulent times. We currently have the most modern network, but it is a living matter and we will continue maintaining and improving it in order to be able to meet the demands of the modern era and connect everyone, everywhere.

3. 5G has become reality, the network has been built. What can we expect next year? What are your future steps?

First of all, with the 5G technology we will be able to provide the customers from the rural areas, where it is not cost-effective or it is impossible to ensure coverage with fibre optic, with high quality internet with great speeds. This technology will be the driving force of the development of new features also in the area of Massive IoT, in the segment of smart cities and smart infrastructure - an area in which we are already dominant on the market, but now we will stride much farther. Thirdly, 5G will enable the application of artificial intelligence for improving the efficiency of the network itself. Artificial intelligence will enable us to detect even the tiniest inconsistencies in the functioning of the networks and the systems that deliver key services. Thus, we will be able to prevent and rectify them without the customers even noticing. All of the foregoing will increase the customer satisfaction and it will ensure a superior service, which is precisely what our objective is. These are the plans for next year only. We are on the verge of a new industrial revolution which will entirely transform all spheres of our society. The new technologies have a great potential to function as the tool that will enable us to tackle the global challenges, such as global warming, overpopulation of the cities, food production, access to clean water, etc.

4. What are the greatest challenges that the telecommunications industry is facing at the moment?

The telecommunications sector has been seriously afflicted by the energy crisis, even though not much is being said on this topic. Our services depend on electricity and with the expansion and the upgrade of the network with the latest technologies the consumption has been increasing even more. This is not just a deviation in terms of the initial projections from the business plan, but also substantial costs that will have a negative impact on the entire industry. It will be a challenge to sustain this enormous price pressure on the long run, especially because of the substantial capital investments. Investments in new technologies are in vain if the benefits from them cannot be used by all citizens at affordable prices. Telecommunications should be treated as a vital industry that moves society forward and enables it to function in an unhindered manner under any circumstances, especially during a crisis. If this negative trend continues, we will be able to feel the effects via a decrease of the social preparedness for a digital transformation and a decline of DESI (Digital Economy and Society Index). Furthermore, the digital gap may widen even more, which the greatest challenge of the new digital society.

5. The digital gap is a global problem. Are you, as a company, working on decreasing it?

That is precisely right, the digital gap is one of the greatest global challenges. Digital transformation is inevitable, but it is insufficient if it is not enabled for everyone. It is unacceptable for connectivity and internet access to be a luxury possible for only a few; they are a basic human need. We are committed to dealing with these challenges and having an impact on the creation of an equal digital society. On the one hand, with the constant expansion of the 5G network and the fibre optic, it is our goal to connect everyone with the new technologies, and thereby with the possibilities offered by the modern era. On the other hand, we believe in digital inclusion and in an equal digital society and we are strategically working on projects of this type. Concurrently, we are using technology as a tool for attaining our goal. This year, in partnership with UNICEF, we worked on a co-creation with young innovators for finding digital solutions with a view to reducing the consequences from global warming. With the Emergency Button project, together with the Red Cross, we have been providing support to elderly people with the help of devices that they can use in order to send an alarm in case they need any help. This is just a part of the initiatives and the projects that pertain to digital inclusion. We have set some serious goals on this topic. This year, we were committed to reaching more than 14 000 beneficiaries of digital inclusion projects and we have attained this goal. We are seriously committed to making a real difference.

6. The severity of the global warming has inspiried multiple 'green’ practices in the companies. What is your role in this joint battle?

Sustainability is an inevitable part of our strategy. We are doing everything in order to reduce the harmful CO2 emissions, as well as to restore and preserve the natural resources. This is being achieved through our work, our services, as well as the projects and the actions that we sustain. For example, by using software and IT infrastructure directly in TelekomCloud, our very efficient data centres consume 80% less energy as compared to the consumption generated when the customers are using their own infrastructure. With the smart city solutions, there is a saving of over 70% in electricity and a sustainable infrastructure is created, water savings are enabled, as well as a reduction of exhaust fumes. We were the first ones on the market to introduce a replacement for the plastic SIM cards with electronic ones, which has a direct impact on the reduction of plastics. We are working on reducing the electronic waste by collecting old mobile devices. This year, we collected more than 12 000 old devices and we planted 25 000 new trees for restoring the green zone in the Kochani Region. Together with the other European subsidiaries of Deutsche Telekom, we committed to collect and recycle more than a million old devices by the year 2024. We are responsible not only for delivering services, but also for making a real difference, on the one hand, by creating an equal digital society, and on the other hand, by reducing the harmful impacts from global warming.

7. What is in store for us next year?

With the development of the 5G technology, also the use of the Internet of Things will develop and expand. At the moment, worldwide there are 13.1 billion devices connected to the internet and this figure is expected to rise in 2023, especially due to the possibilities provided by 5G. Artificial intelligence will be increasingly used. It will be possible to detect network issues and to resolve them proactively, which will improve the customer experience. Cloud computing, despite being a new trend, will be on the rise in 2023. The new technologies, in addition to possibilities, will certainly bring about challenges and dangers as well. With the development of 5G, the safety and security of the data and the networks will remain a priority. It will be essential to ensure sustainability and to find new and alternative energy sources, which will provide savings and protect the environment. It remains on us to continue fighting for reducing the digital gap and establishing an ethical digital society. The new technologies should be available as widely as possible, while the patents and researches should be open for the public. We should develop frameworks and principles that will enable a benefit for everyone.

8. What are the challenges that we should tackle locally?

Despite the fact that all the tools are here and we may call ourselves a generation that will witness its own transition into a new evolution phase, the pace of the adaptation is still not quite as fast. We should start changing our inherent habits and also changing ourselves in order for the real change to actually happen. We do a lot of talking about the importance and the necessity of digital transformation in the public and the private sector, but, unfortunately, the achievements in this respect are quite modest. There is a lack of a structured approach, vision and dedication in the implementation. The digital data registries should be specified and, in a precisely defined manner, made available to all the entities that are able to create additional value by using them. Intensive work should be done in terms of the digital education strategy which will be upgraded with the advancement of technology and become of use both for the teachers and for the students, as well as the digitalization of health-care services by means of remote diagnostics, etc. The key factor for a complete digital transformation is mankind, their willingness to change and improve and, most importantly, to cooperate in order to ensure that the change is utter and complete. Such capability for cooperation will be crucial for this joint objective of dealing with the global challenges and using the technological achievements as tools for a better and more dignified life.

Publishes in Economist World In, december 2022

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