CRO POST AND CRO TELECOMMUNICATIONS READY TO FUNCTION SEPARATELY

ZAGREB, Dec 30 (Hina) - As of January 1, 1999, the Croatian post and Telecommunications (HPT) will separate into two new joint stock companies - Croatian Post (HP) and Croatian Telecommunications (HT). The gross profit of HPT will amount to about US$79.4million, HPT director and chairman of the HT managing board, Ivica Mudrinic told a news conference in Zagreb on Wednesday. Mudrinic said an agreement would be reached with the owner (the Government) on how these funds would be divided. Deputy director Mladen Sutalo and Mudrinic assessed that the value of HT was far higher due to investments into the telecommunications infrastructure. The equipment makes up 80 per cent of the value of the present HPT, and the remaining 20 per cent, including premises and accompanying equipment, is to be divided 50:50. The HP, on the other hand, is expected to end up with a deficit of US$20.6million. The post will offer new services, computerise its business, expand its activities through the Croatian Post Bank, possible restructuring and privatisation of a part of its business (such as individual post offices). In 1999, Croatian Telecommunications will continue the trend of expanding its capacities in the fixed and telephone network, expanding its Internet services, introducing Internet access into all primary schools, setting up a cable television network across the country... As regards the privatisation of HT, Mudrinic said the Government and then the Parliament must reach a decision on the issue. The privatisation process would be solved by a special legal text. Asked about the price of telephone impulses, Mudrinic and Sutalo said the price would not be decreased in 1999, as it was already among the lowest in Europe. (hina) lml