Balesh Sharma: Partnership with e& confirms PPF's commitment to Bulgaria

Balesh Sharma is CEO of e& PPF Telecom Group. The group was formed following last year's announcement of a strategic partnership between the Czech PPF Group and global technology group e&, which operates in the Middle East, Asia, Africa and Europe.

In Bulgaria, e& PPF Telecom Group is represented by telecommunications operator Yettel Bulgaria and infrastructure company CETIN Bulgaria.

What are the results of this partnership today? How do you see its role for Central and Eastern Europe, and what specifically are you focusing on in Bulgaria?

Balesh Sharma discusses this in an exclusive interview with Economic.bg below.

Mr. Sharma, in October last year, PPF Group completed a transaction with global technology group e&, resulting in the creation of a new regional leader, e& PPF Telecom Group. Nine months later, what has this partnership brought? What have you achieved so far, and what lies ahead?

The last few months have been very dynamic, and time has flown by. The partnership with e& is fully meeting expectations. It is giving us much greater opportunities for investment in the region and accelerating the achievement of our strategic goals, which benefits both sides.

Before the agreement was signed, we had a very strong position in Central Europe, but realistically, we were a mid-sized telecommunications group, especially compared to larger competitors. Thanks to our partnership with e&, we now have the scale and resources to make new investments and drive innovation in all our markets.

A clear example of this strategy is the acquisition of SBB in Serbia by e& PPF Telecom Group. In less than six months, we've already invested 820 million euros—concrete proof of our new direction. And this is just the beginning.

Does the acquisition of SBB mean you have a more ambitious expansion strategy in the region, including Bulgaria?

We're always looking for opportunities to grow our telecommunications business, both organically and through partnerships, expanding our service portfolio or, where it makes sense, through acquisitions.

The acquisition of SBB, a leading TV and internet services provider in Serbia, was strategically justified. Market dynamics and synergies with our existing operations made it a logical step. It was one of the markets where we lacked the products and services that SBB offers.

However, acquisitions are not our only focus. Our main priority remains value creation, whether through organic growth, innovation or strategic transactions. PPF has always pursued an active investment approach, and through our partnership with e&, we have two powerful engines under our wings, so to speak. This gives us the financial strength to move forward and support innovation in all our markets, including Bulgaria.

Is this transaction a sign that PPF is planning to withdraw from the region or from Bulgaria?

Quite the contrary. The transaction clearly signals our long-term commitment. PPF has been a long-standing investor in Bulgaria and active in the local market for many years.

Telecommunications have always been a key pillar of PPF's portfolio, and our deep knowledge of the region was one of the main reasons why e& approached us.

PPF is well known for its regional expertise in telecommunications. How do you differentiate yourself in the European telecommunications market?

PPF has a long tradition in Europe. We know the markets, regulatory environments and customer profiles. e& recognized this as a strategic advantage. Our partnership was a natural step, and its benefits are already beginning to show.

PPF has a history of innovation in the telecommunications sector. Our approach of separating network infrastructure from commercial operations was one of the first in the world and has been successfully applied in markets such as Bulgaria, Serbia, Hungary, the Czech Republic and Slovakia. We were first to introduce this model in Bulgaria, and our competitors later adopted it as well, proving that our strategy was the right one.

We also invest in network quality. For example, Yettel Bulgaria has received the Best in Test certificate for best network eight times from the independent comparative analysis organization umlaut. This year, the company achieved its best result yet, with more than 950 points out of a maximum 1000, ranking its network among the top 10 in Europe and the top 20 in the world.

But in addition to technology, we're also a proven employer. Yettel Bulgaria has twice been awarded the Top Employer certificate by the Top Employers Institute. It's this balance between innovation and operational efficiency that sets us apart.

What is e& PPF Telecom Group's vision for the next five years? Are you focusing on the so-called "techco" model, like many other telecommunications companies?

The telecommunications industry is changing, and we're definitely part of this evolution. The future lies in not just being a connection provider but offering much more. We see the transition from the traditional telco model to the so-called "techco" model as a key part of our development. In practice, the techco model combines telecommunications with innovative digital services, artificial intelligence, and customer-oriented platforms. e& has already undergone this transformation, which puts us in a good position to draw on its experience.

We're also moving in this direction with confidence and a clear goal. As head of e& PPF Telecom Group, it's my job to ensure we're ready for the future—flexible, digitally oriented and adaptable to change.

Artificial intelligence is a hot topic today. What role does it play in your business, both globally and locally?

Artificial intelligence is playing a transformative role in telecommunications. Globally, it enables preventive maintenance, intelligent network management, and advanced analytics solutions. Locally, including in markets such as Bulgaria, we're already using AI-based tools to personalize the customer experience and optimize operations.

For example, we're integrating AI into customer interactions, from personalized offers in digital channels and physical locations to increasing customer service efficiency. The goal is to create value for both the customer and the business.

PPF Group recently made changes to its management team. Didier Stoessel and Kateřina Jirásková became CEOs. Does this affect the strategy or direction of e& PPF Telecom Group?

Our strategic direction remains unchanged. As CEO of e& PPF Telecom Group, my role has always been to create value for our customers, shareholders and society as a whole. I set the strategic vision, but local management handles implementation. I have the full confidence and support of the current management teams, including those in Bulgaria. We're keeping both the team and the strategy—we aren't changing anything that has proved successful.

What is Yettel Bulgaria's main priority at the moment?

Without a doubt, digital transformation. We're focusing on fully digitizing operations and transforming Yettel into a telecommunications company ready for the future. Our goals for 2025 are ambitious, and the local team, led by CEO Jason King, is doing an excellent job of achieving them.

We're actively upgrading the Yettel app into a comprehensive digital platform. It's the first telco app in the country to offer features such as fully digital number portability and tariff activation, as well as expanded payment options through Google Pay and Apple Pay.

We also plan to integrate AI-based tools to improve and personalize the customer experience. From a commercial perspective, we'll be strengthening our exclusive online offerings with the aim of achieving a 30% share of digital transactions.

Of course, we still have a lot of work ahead of us, but this is an exciting time for both the telecom sector in Europe and our customers in Bulgaria.