Leading market positions in all telecommunications segments in Austria (AAA/Stable/A-1+), A growing mobile-telephony operation in the Republic of Croatia (BBB-/Stable/A-3), Strong operating profitability and free operating cash flow, and A moderately leveraged balance sheet. Very strong wireline competition since aggressive deregulation in 1998; Steep increase in competition in the mobile market with the entry of two new players in 2003 and the expected introduction of mobile-number portability in 2004; Plans to expand in wireless the markets of Southeast Europe, such as Bulgaria (BB+/Stable/B), and in Middle Eastern countries, such as Oman (BBB/Stable/A-3); and Some uncertainty attributable to the group's forthcoming privatization, as a new owner could change the strategy or financial policy. The ratings on telecommunications-services provider Telekom Austria AG
