US SUPPORTS EXPANSION OF INTERNET SERVICES IN CROATIA

ZAGREB, Sept 30 (Hina) - Croatia's Iskon Internet provider and the US Trade and Development Agency (TDA) on Monday signed an agreement whereby the TDA gives Iskon Internet US$246,000 to draw up a profitability, technical and financial study for the development of Iskon's data and voice services in the local fixed network. #L# The study is aimed at determining conditions necessary for Iskon Internet to turn into a company which will offer an entire scope of telecommunications services, with its own infrastructure, and the best model of expanding them. Iskon wishes to offer new Internet services, such as virtual private networks, but at more accessible prices, said Damir Sabol, the company's director and a member of the supervisory board. Asked about fixed telephony, Sabol said it was a big investment which should be preceded by services which would be part of the fixed network. It is estimated that a new national telephone network would cost Croatia US$50 million. Iskon has also announced the beginning of works on an advanced fixed wireless network in Zagreb which should make access to the Internet faster. The initial investment is US$200,000, while the entire project is estimated at two million. US Ambassador to Croatia Lawrence G. Rossin recalled that the US is the majority owner of Iskon Internet, which makes it possible for US companies to place their product and services on the Croatian market. Through this kind of support, the US contributes to the diversification of telecommunications services in the region, he said. Iskon Internet has more than 60,000 registered users and 7,000 business users. TDA is an independent US government agency helping US companies in estimating their chances when investing in developing countries. The agency has invested some US$4.5 million in various Croatian projects thus far. (hina) ha sb