Croatia's Hrvatski Telekom (HT), the country’s largest telecom provider, is making major structural changes as it prepares to separate its passive mobile infrastructure assets into a new, wholly owned subsidiary, as announced in the company's press release on February 28.

The move mirrors a growing trend across Europe, where major telecom operators are spinning off their tower infrastructure to improve efficiency, unlock new revenue streams, and attract infrastructure investors.

The decision, approved by HT’s supervisory board, mirrors similar strategies seen across Europe. In 2022, Deutsche Telekom, HT’s majority owner, sold a 51% stake in its tower business to investors, valuing it at €17.5bn. Hungary's Magyar Telekom has confirmed plans to spin off around 2,800 tower sites, retaining around 900 of its 3,700 towers.

The separation of HT’s passive mobile infrastructure will allow the company to focus on core telecommunications services while its new subsidiary manages the physical assets. This model is increasingly popular as telecom operators seek to cut costs, boost profitability, and prepare for future 5G expansions.

The separation process remains subject to corporate approvals, but HT expects it to be completed by the third quarter of 2025.

Croatian Telecom is majority-owned by Deutsche Telekom, which holds a 51% stake. It offers a full range of mobile, fixed, internet, and data services, making it a key player in Croatia’s digital economy. 

Beyond restructuring, Hrvatski Telekom has been actively reshaping its operations. The company is considering merging its subsidiary, HT Services, into the main company to streamline processes and enhance customer service.

In a major network shift, HT has also shut down its 3G services, redirecting resources to more energy-efficient 4G and 5G networks, which promise faster speeds and better coverage.

Meanwhile, HT has partnered with Nokia to boost 5G application development, opening the door for new consumer and enterprise solutions. The company is also playing a key role in Croatia’s first smart port project, integrating private 5G network slices at the Port of Rijeka to support autonomous container handling.

Croatia's electronic communications market grew 7.8% y/y in 9M24 to €1.36bn. However, consumer groups have recently raised concerns over price increases, with some advocating boycotts against major Croatian telecom providers.