Budapest-headquartered telco and IT group 4iG has signed a Memorandum of Understanding (MoU) with the government of North Macedonia which outlines the possibilities for the Group to enter the telecommunications market to offer mobile and fixed telecommunication services, 4iG has announced in its Q2 2024 financial results published on 2nd September. According to 4iG, the document also identifies strategic target areas of future development of telecommunication services and infrastructure in North Macedonia.
The agreement was signed in the capital of Skopje by Aleksandar Nikoloski, Deputy Prime Minister of North Macedonia, Minister responsible for transport and communication, and Jászai Gellért, the President of 4iG Group.
The Western Balkan country already has three MNOs – Makedonski Telekom, A1 North Macedonia and MTEL (Telekom Srbija) with the latter launching in the end of 2022. With a population of just under 2mn, a fourth MNO will find it difficult to gain market share. However, entry into North Macedonia aligns with 4iG’s strategy to increase its presence in the Western Balkans. The Group is already active in Albania and Montenegro through the One mobile operators which it owns, and the Group also provides both B2B and consumer services.
Despite unfavourable macro conditions, 4iG reports year-on-year EBIDTA growth for the MNOs it owns in Albania and Montenegro as well as for Vodafone Hungary (27%) and Digi (8%) MNOs in its home country, and broadcast towerco Antenna Hungaria (25%). Almost 90% of the group’s net revenues and EBIDTA in 2024, so far, has come from its telco businesses.
Earlier in the summer the Group also announced expanding its presence beyond CEE by signing a MoU with Telecom Egypt to establish a joint venture to operate fibre infrastructure on a wholesale basis in Egypt. The terms of the agreement envisage a joint investment of $US600mn in developing Egypt’s fibre network.
Beyond terrestrial
In addition to growing its telco business, 4iG has shown ambitious plans to build a vertically integrated space company and has created a space and defence technologies division - 4iG Space & Defence Technologies. Its CEO István Sárhegyi has said that the company wants to operate satellites with its own ground stations and have the downstream part, focusing on geographical data from geostationary orbit (GEO). In 2021 4iG announced plans to buy a 51% majority stake in Israeli geostationary operator Spacecom. Spacecom operates one of its communications satellites from a GEO slot leased from Hungary that covers Europe, the Middle East and Africa. This lease is due to expire in 2024 but is currently being renegotiated.
However, Spacecom’s financial issues have put 4iG’s ambitions on hold for now and it has only been able to buy a 20% stake in Spacecom so far.
In addition, 4iG has formed a joint venture with other Hungarian companies called CarpathiaSat which plans to order Hungary’s first privately owned GEO communications satellite after taking over the orbital slot. CarpathiaSat will also look to outsource manufacturing for Hungary’s first geostationary satellite internationally.
4iG has also started to look at non-geostationary satellites (NGSO) and has bought a 45% stake in Hungarian REMRED Space Technologies. It has announced plans to invest $US to build a manufacturing and for the testing facility to produce NGSO satellites in a couple of years’ time.
4iG is rumoured to be on the lookout for more acquisitions that will help it increase its presence in Hungary and outside. It’s also undergoing a transformation programme. An extraordinary general meeting has been scheduled for 30 September which could bring more interesting announcements.
