Chris Togneri - author - page 13 - The Slovak Spectator

Slovak firms show uneven Y2K preparedness

International and domestic criticism of Slovakia's level of readiness to face the Y2K millennium bug has been sharp. The Slovak Spectator asked three Slovak firms - telecom provider EuroTel, the central bank (NBS) and Internet service provider Infolot Inc. - to explain their millennium bug strategies, and found that each had a different level of knowledge and concern about Y2K.On March 18, the American Chamber of Commerce held a Y2K seminar with invited speakers from Oracle, Compaq and Arthur Andersen. The seminar outlined the standard international strategies that Slovak companies should apply to their millennium bug preparations.

Chris Togneri

Mochovce readies for Y2K

With their massive cooling towers rising over the horizon, nuclear power plants like Slovakia's Mochovce are the stuff 'millennium bug' doomsday scenarios are made of. But international and domestic observers say years of solid preparation by Slovakia's nuclear sector should prevent any systems failures as the clock strikes the year 2000.The country's two nuclear facilities, in fact, appear to be in line with international norms for nuclear facility "Y2K" readiness. Work being done at Mochovce to update the computer systems began in 1997 and should be finished by June, plant managers said.The millennium bug problem is one that affects computer chips that have outdated time components in them. Unable to recognize the '00' notation for the year 2000, computers and electronic devices containing these chips are widely expected to fail as the date changes to January 1, 2000, wreaking havoc on tranport, telecom and banking sectors.

Chris Togneri

Security concerns surround OnLine Start

Private Internet providers say that security is their main concern with the OnLine Start Internet access offered by state-owned telecom monopoly Slovenské Telekomunikácie (ST)."There are serious security problems with OnLine Start," said Stanislav Stowasser, general director of provider Global Network Services. "Under the law, you are not allowed to offer anonymous access to subscribers. OnLine Start is anonymous."Stowasser, who is a member of an Internet provider group named API that is protesting the ST service, explained that OnLine Start uses one universal user name and password, which allows any user to surf the net unidentified.

Chris Togneri

ST accused of abusing monopoly over Internet access Internet providers say OnLine Start is forcing them out of business

After four weeks, a protest launched by Slovak Internet providers against state-owned Slovenské Telekomunikácie (ST) remains unresolved. The Internet connection service offered by ST, the providers say, abuses the state firm's telecom monopoly to force other providers out of business."This is a war between Slovak Telecom and private Internet providers," said Stanislav Stowasser, director of Internet provider Global Network Services and a member of the Association of Internet Providers (API).API was formed on February 25 to protest the "Slovak Telecom OnLine Start," the ST Internet service which allows subscribers to log onto the Internet without identification for the cost of a local telephone connection - about 5 cents per 90 seconds. Private Internet providers normally charge a flat monthly rate of around $12.

Chris Togneri

Net access planned for every school

Worries that Slovakia may become a cheap source of unskilled labour for high-tech western firms has led to the launch of an ambitious programme to equip future workers with computer-age skills.Project Infovek, as the initiative is known, has set itself the goal of educating and preparing forthcoming generations for the Information Age by delivering Internet access to every school in Slovakia within 10 years - approximately the time the group predicts Slovakia will become a full member of the EU. "Full-scale internetisation," an Infovek press release reads, can be achieved if the project gains state support, foreign investment and grants from the EU's PHARE programme.

Chris Togneri

Outrageous domestic housing prices daunt homebuyers

Throughout the 1990's, the price of residential real estate in Bratislava has steadily and quickly risen, often leaving potential homebuyers flat out of luck. Analysts agree that the root of the problem lies in the city housing shortage, and say that the government must take steps to improve the situation."The situation has worsened dramatically since 1992," said Igor Federoňko, statutory representative for real estate office Bratislavská Realitná Kancelária (BRK). "In 1992, a two-bedroom flat in [the Bratislava suburb of] Petržalka would run you around 400,000 Slovak crowns [Sk]. Now, that same flat would probably cost around 1.1 million Sk."Adriana Litomerická, director of Národna Aukčná Spoločnost, also noted the price increase. "In some cases, the price of flats has risen three-fold," she said. "Now, for a 70 square-metre flat in Dúbravka or Rača, you can expect to pay around 1.5 million Sk and over 2 million Sk in the centre."

Chris Togneri

Central bank's 37-storey dream-building arouses anger

While Slovakia struggles through a deepening economic crisis, and while the cabinet wrestles with austerity measures, the National Bank of Slovakia (NBS) is erecting an expensive new headquarters in Bratislava that will eventually be the nation's tallest building.As the projected July 2000 completion date approaches, the project has drawn increasingly harsh criticism from government officials who are being forced to pinch pennies in their own departments. On the other side of the fence stand bank officers and Bratislava city hall, who defend the building as a necessity for the NBS, a help to the city and ultimately a money-saver.

Chris Togneri

New DVD technology to render VCR's obsolete

The VCR craze that swept through North America and western Europe in the 1980's has never made much headway in Slovakia, much to the disgust of ex-pats desperate for a video 'fix'. Tatiana Barta, a Slovak Canadian living in Bratislava, says she misses having a video rental store on nearly every city block. "When I get home," she said dreamily, "I'm going to rent five movies from Blockbuster!"But according to computer software company Softmedia Bratislava, foreigners like Barta may never see their VCR dreams realised in Slovakia. A new product known as DVD video, Softmedia representatives say, is set to replace VCR technology on the market and "kill off" videos as a form of home entertainment.

Chris Togneri

Compaq 1998 hardware sales plummet

Accustomed to being king of the hill in most Slovak information technology sales categories, global computer giant Compaq was rudely suprised by its Slovak sales results for 1998. Compaq saw sales plummet in many market segments, including desktop sales where the firm's products recorded a 45% decrease.Statistics provided by the Internation Data Corporation (IDC) show that the Slovak computer market as a whole suffered a lean year in 1998. However, the two major players on the scene, Compaq and IBM, had far different annual results. While Compaq began and ended the year as number one on the market (a category that combines desktop, laptop and server sales), it suffered a dizzying fall of 38.4% in units sold.IBM, meanwhile, grew 17.6% in overall hardware sales in 1998. While the firm's 1997 unit sales figures were only 45.8% of Compaq's totals, in 1998 the gap narrowed to 87.5%

Chris Togneri

Blizzards leave country buried

According to an old Slovak proverb, every year on November 11, a man named Martin comes galloping into town on his white horse bringing Slovakia its first snow of the year.The blizzard which slammed into Slovakia during Valentine's Day weekend, however, had many in the country wondering if Martin had been dissatisfied with his earlier effort."Martin has gone crazy!" said Alper Olzogman, 24, a British-born English teacher who has lived in Slovakia for seven years. "Of all the time I have lived in this country, I have never seen so much snow here!"

Chris Togneri

'Millennium Bug' to snare unprepared computer systems

As the clock counts down to the millennium, computer experts warn that the "century date change problem" (also known as the "Millennium Bug" or "Y2K") could wreak havoc on unprepared computer systems and programmes worldwide. Globally, Y2K disaster scenarios vary from the trivial - mobile phones on the fritz - to serious problems like air traffic control systems failures. In Slovakia, experts say, everything will depend on how well companies prepare for the turn of the century.David Lyscom, the British Ambassador to Slovakia and the author of "UK note on the Millennium Bug", warns that Y2K bug-related problems could have devastating effects on unprepared countries. "The effective operation of governments, companies and other organisations worldwide will be threatened as we approach the turn of the century," he writes. "Computer-based systems important to the proper functioning of national infrastructures are at risk."

Chris Togneri

IBM Slovakia boss touts 'e-business'

Miroslav Majoroš became the general director of IBM Slovakia on January 1, 1998, breaking the firm's string of three consecutive foreign directors. At the time, Majoros said that "my Slovak origins will help me communicate with customers better than my predecessors."After over fourteen months in the top post, the numbers support Majoroš's earlier predictions. IBM has significantly narrowed the gap between themselves and Compaq in hardware sales. On February 9, The Slovak Spectator sat down with Majoroš to discuss the current and future plans of IBM Slovakia.

Chris Togneri

HR firms bristle at criticism

Following criticism of Slovak Human Resources companies from the heads of large corporations, carried in The Slovak Spectator in 1998, several HR firms have responded that they are doing an excellent job under tough market conditions.Thomas Velinder, managing director of Swedish pharmaceuticals company Astra, said in May 1998 that Slovak HR firms over-charged and provided sub-par services. "Human Resources companies here in the Slovak Republic are way behind their colleagues in other countries, but they charge the same amount of money," Velinder said. "The way they behave, the way they look at me as their customer, their understanding and how fast they work is quite different from what I am used to in other countries."

Chris Togneri

Import limit raised to EU standards

Diplomats and business leaders are delighted by a recent easing of Slovak import restrictions which once made importing even the cheapest goods into Slovakia a paperwork nightmare.On February 3, Juraj Mihálik, director of the Slovak Customs Directorate, told The Slovak Spectator that the value limit for goods which need full import paperwork and certification has been raised to 1,000 Slovak crowns ($26.39) effective January 1. The move makes it substatially easier to import goods to Slovakia, as the old system required that any import worth over $1 be fully certified by customs officials and bureaucrats."Any shipment under 1,000 Sk now needs only an invoice," Mihálik said.

Chris Togneri

English, experience key to finding job

At the end of 1998, the official jobless rate in Slovakia sat at 16.4%, the highest in the country's history. Many job-seekers are now asking themselves what they must do in order to secure employment in an increasingly competitive labour market.Stanislav Fančovič, a consultant for the human resources company Take It, told The Slovak Spectator that companies are looking for two main qualities from their prospective employees. "Without a doubt, it's language and experience," he said

Chris Togneri

English - no longer a hobby

With the fall of communism in 1989, the social and political orientation of Slovakia shifted from the east towards the west. This shift brought in its wake a flood of language schools which taught little-known western languages and thrived on the free market.In straw poll conducted by The Slovak Spectator this month, 90% of the language schools surveyed and now operating in Bratislava opened for business in the 1990's. Furthermore, all but one of these schools reported a dramatic increase in the number of students attending their classes since they opened to the public.

Chris Togneri

Labour Minister Magvaši: Labour mobility crucial

Peter Magvaši, the new Minister of Labour, Social Affairs and Family, is an civil engineer who rose to power through the former communist Social Democratic Left (SDĽ) party. In 1993-94, Magvaši served on the Presidium of the FNM state privatisation agency, and then as the Minister of Economy in the short-lived 1994 cabinet of Prime Minister Jozef Moravčík.The Slovak Spectator spoke to Magvaši on February 4 about his ideas for re-training Slovakia's workforce to meet the demands of the new labour market.The Slovak Spectator (TSS): Unemployment has risen to 16.4% in Slovakia, and it is very regional. One of the problems is the lack of proper housing. What can the Ministry do to reduce unemployment in general and the regional nature of unemployment?

Chris Togneri

Ministry to give GSM tender another try

The Ministry of Transport, Post and Telecommunications has offered a new tender for a third company to begin services in the Slovak mobile telephony market on the GSM-1800 frequency. This marks the second attempt by the Ministry to extend the tender.The first attempt was cancelled by then-Transport Minister Ján Jasovský who stated that neither of the applicants, Telenor GSM a.s nor Tatrytel a.s., had met the stated requirements for the bid. "Regarding the fact that it was impossible to announce a winner of the tender and grant the respective license, I decided to conclude it and prepare a new international tender," Jasovský stated.According to Stanislav Vanek, regulatory department director of the Ministry, the last tender had been ill-prepared and rushed. "These tenders must be approached seriously and enough time must be given for serious evaluation," said Vanek, "Acceleration of the process only leads to mistakes."

Chris Togneri

Mobile phone market exceeds all predictions

The penetration of the mobile telephone market today stands at approximately 10%, meaning that half a million Slovaks own wireless telephones. With the market only a little over two years old, these numbers have surprised many experts in the field and have exceeded all expectations.In January of 1997, a study conducted for the Ministry of Transport, Post and Telecommunications by Pyramid Research forecast that the 8% mark, let alone the current 10% mark, would not be achieved until the year 2001. Stanislav Vanek, director of the ministry's regulatory department, counted himself among those who had been taken aback by the industry's rapid growth and observed that the 10% penetration is, "an astonishing figure."

Chris Togneri

Now a joint stock company, Slovak Telecom for sale

After three years of delay, state-owned Slovak Telecom is now a joint stock company and the search is on for an investor - likely a foreign firm - to privatise the company within the next six months.Realising plans that had been delayed for almost three years, the Ministry of Transport, Post and Telecommunications was finally able to transform Slovak Telecommunications from a state enterprise to a joint stock company, effective as of January 1, 1999."What is happening now is the first step towards privatisation," said Peter Druga, the ministry's telecommunications policy department director. "We had planned on the transformation of Slovak Telecom in May '96 and December '98, but it was not accepted by the government."

Chris Togneri

List of author's articles, page 13