Interview with Christophe Carniel, CEO NETIA

Over the last few months, NETIA has experienced a number of changes which show how determined its management team is to carry on being a heavyweight in a sector with fast ongoing technological evolution. NETIA CEO Christophe CARNIEL explains here the company's objectives for the next few years.

• NETIA has undergone a management buyout (MBO). What do you think are the advantages of the new share structure ? How will it affect NETIA's future development ?

"Since September, NETIA has been under management and employee ownership with a holding by two investors: I-SOURCE GESTION (France) and MANGROVE CAPITAL PARTNER (Luxembourg). The first of these has holdings in other digital audiovisual players and the latter has investments in the IP technology area, such as SKYPE in the Voice over IP sector. Right now is a key time in the technological evolution of the audiovisual sector and integrating IP technology is the next challenge for NETIA. The new share structure will, for instance, give us access to the financial and technological impetus required to fulfil this project. It's quite simply a new growth stage which marks our intention to make NETIA a central player in the Media Industry."

• This growth strategy and new impetus have also had a recent fillip in the merger with MANREO, the Media Asset Management software publisher. What will Manreo do for NETIA ?

"The merger is the first stage in the IP technology integration I just mentioned. Manreo develops software for capturing, indexing and broadcasting audio and video items over IP. These products are designed for broadcasting audiovisual items via mobile broadband video platforms, consulting audiovisual archives and sharing them easily over intranet/internet networks. For instance Manreo created an automatic system to put news online on the TF1 and France Televisions Interactive (FTVI) websites."

• What is your forecast for the economic and technological evolution of the market where NETIA is involved ?

"Technological developments are quite often the driving force for companies such as NETIA. We are absolutely convinced that IP technology will be the next vector for technological development. In our opinion within a few months it will help our customers to make substantial savings in IT infrastructure and network costs. This is a development which involves all the audiovisual markets (radio, television and postproduction). At the end of 2004, we were in a situation of high growth (over 30%), back to profit-earning capacity and with nigh-total borrowing power. This makes things look good for the next few years. Not many companies in our sector are as healthy as that at the moment."

• What are NETIA's choices in this situation ?

"NETIA recently submitted a European Project to design and develop new products in this environment. The project obtained the Eureka label, for a European programme to support technological cooperation, and financial backing from ANVAR, the French agency for innovation. The partnership is organised by NETIA and combines the software algorithm development work by the Fribourg Ecole d'Ingénieurs et d'Architectes in Switzerland with Belgian sound and/or image output quality control to the requirements of broadcasters. NETIA has joined forces with RTL Belgium for this. In the next few months, we hope to widen the partnership to take in 2 or 3 customers who are close to NETIA and our vision for the future."

• Most of NETIA's current customers are in Europe. How is this aspect developing ? What is NETIA doing to move into the American and Asian markets ?

"It's a fact that NETIA is now in a strong position in Europe. In 2004, we bid successfully, sometimes for some significant, you may say "benchmark", contracts in Asia and America competing some local candidates. We are now going to make the most of this and invest in marketing over the next few months. We also think very great potential is developing in Africa and the Middle East. We are currently in first position in the Mediterranean countries.This is why 2005 is likely to be a really exciting year !"