"We learn marketing techniques necessary to attract new customers as we go"

Interview with Lucian Milea - CFR SA Telecommunications Agency Director

Railway Journal: You have been appointed general manager of the CFR SA Telecommunications Agency for a month. How this affected you?
Lucian Milea: My appointing in this position was totally unexpected for me. The confidence the CNC CFR -SA leaders have in me honoured me and I have to respond them in an appropriate way.
RJ: What was your previous activity field and hoe is it linked to what you have to do now?
LM: I have been working at the CFR since 1970 when I graduated the Electronic and Telecommunications Faculty with the Bucharest Polytechnic Institute. After my graduation I received a job with the CF Bucharest Department at the CT 1 section. Between 1977 and 1990 I worked at the TTR Bureau within the Installations Division of Bucharest as pr.III engineer. All this period I co-ordinated the radio-communication activity, the radio networks supervision in the CF railway stations and the technical stations of the CF Regional Department.
I also co-ordinated the equipment supply activity for the radiotelephone-repairing lab of the regional department. During this period I co-ordinated the supply activity of the TTR equipment and systems for capital repairing workings and investments of the Bucharest CF Regional Department.
Between 1990 and 1998 I was chief of the TTR Bureau with the Installation Division of the Bucharest CF Regional Department, co-ordinating the maintenance and repairing activity if the telecommunication installations.
On October 1, 1998 along with the SNCFR restructuring process there was created the CFR Telecommunications Agency as an external sub-unit of the company. Then I was appointed Second Manager with the commercial problems, and I remained in this position until my present appointment.
Within the Telecommunications Agency I directly participated by the attributions I was invested, to the organisation of the functional services of the agency, to the elaboration of the fixed prices for the offered telecommunication services.
I also co-ordinated the supply and administration activity for the exchange materials for the telecommunication systems. I wanted to know the principles of the digital communications through fibre optics introduced now at the CFR. This allows me to easily approach the technical aspects of the telecommunication projects under way of implementation.
RJ: Two years ago, the Railway Journal published an article about the telecommunication network modernising project with the support of the World Bank. Under the contract, three projects had to be achieved at the CFR: the main 3500 km fibre optics cable network, the main digital transmission functioning on the fibre optics network and the digital network of integrated services (ISDN). What is the present situation of these 3 projects?
LM: the three projects are going along according to the agreement with the World Bank. For the first agreement - the main 3500-km fibre optics cable network, the delivery of the 3582-km of cables was completed during March of this year, by the Siemens. By the end of this year the installation workings will be completed also. The next step will be the connection of al the regional departments to that network, creating thus a network covering the entire regions of our country at a national level.
The second project - the main digital transmission functioning on the fibre optics network- is also under way of development. By the end of 30.09.2001 we will have the digital transmission equipment operational in more than 550 of the railway stations. The network will have five nods and two main branches with SDH-STM 4 and STM 16 equipment devices. The local transport network will function under SDH-STM 1 equipment insuring in each station at least 21 impulses of 2 Mbps.
The SIEMENS, winner of the international auction organised by the CFR in 1999, will deliver the equipment. To insure a well functioning of the network according to the ITU-T norms, a high quality synchronisation will be underwent, sing synchronisation sources in the essential stations of the network and a system of management for the SDH equipment of access and synchronisation.
Delivery of this equipment has already been divided in stages, the last being in April 2001. The first lot has already been delivered allowing us to make the tests of acceptance for a pilot configuration established by the agreement. Now we are waiting for the second lot to be delivered.
The equipment supplier technically assisting us, in view of the equipment implementation trained the personnel of the Telecommunications Agency.
For the third project - the digital network of integrated services (ISDN)- an international auction was also organised in order to choose the supplier for the switcher equipment, for the transitory network of ATM switchers and for the management. We have to receive the approval of the World Bank in order to sign this agreement. This project also undergoes the extension of the network with 458 km. The final term for this project is the end of 2001.
RJ: As a result of the reorganisation of the SNCFR some changes were made within the Telecommunication Agency. Could you tell us the present organisation structure of the agency on a central level and in the territory and what is your main activity?
LM: the Telecommunications Agency (ATCFR) was funded on October 1, 1998 with the occasion of the SNCFR restructuring process.
At a central level, the Agency is structured on seven functional services that co-ordinate the activity of the eight zones of telecommunication in the territory: Bucharest, Craiova, Timisoara, Cluj, Brasov, Iasi, Galati, and Constanta. Each telecommunication zone insures the maintenance, the repairing and the exploitation of the TTR installations in its area.
ATCFR insures the co-ordination of the telecommunication zones regarding the human resources deficiency, the supplying problems and the administration of the fixes assets, investments, RK, the network exploitation, the marketing, commerce and prices, the implementation and the development of the digital network and also in financial-economic problems.
On the level of each telecommunication zone bureaux or corresponding departments are created. Now, there are working for the Telecommunication Agency over 2320 employees.
ATCFR organises, leads and co-ordinates the maintenance, repairing and modernisation activity of the telecommunication installations for the traffic safety and the trains' manoeuvre, as well as for the railway exploiting installations. We insure the necessary telecommunication services for the CFR SA but also for the others railway operators. We also provide services for the institutions in the railway transport field that use the CFR's telecommunication services.
RJ: The telecommunication system of the CFR has a larger surface all over the country. This could be used in your advantage regarding the supplementary income obtained by renting the available telephonic capacity. What have you decided?
LM: Presently, Romtelecom has the monopoly over telecommunications services for the juridical and physical persons. This monopoly ends on December 31, 2002. Until then, ATCFR can offer its telephonic services only for the railway users. The necessary documentation for obtaining the approvals for independent licensed operator; the available capacities for supplemental telecommunications services will appear after the opening of the transmission network starting with the fourth semester 2000. ATCFR will then be able to rent the channel surplus for data relay, a liberalised domain on the Romanian telecommunication market. By adopting an attractive fee sister CFR SA could make serious supplemental income. We must not forget that in a few years a time will come to give back the loan obtained from the World Bank to modernise the railway telecommunication network. The reimbursement on term of the loan will be realised only by insuring an optimal exploitation of the available digital telecommunication capacities of the modernised network.
RJ: As a director of the CFR Telecommunication Agency what problems do you have that need solving?
LM: We have many different issues. We have to insure the good functioning of the existing analogue telecommunication network. Equipment is old and spare parts are scarce. In addition we have to put up with aerial telephony and cable circuits theft. They seem to be more than the state officials can handle. Secondly, we have to insure the good running of the three projects I mentioned earlier that have to be brought to term.
We are preoccupied with increasing the level of knowledge for engineers and workers that will have to set up and exploit the new telecommunication equipment. We have to learn as we go marketing techniques in order to attract future customers, we have to organise the specific commercial activity to cash in on time on the value of the offered services. Another urgent matter is that by the end of the year we have to prepare the PNB for 2001 necessary to the good development of a desirable activity on behalf of our agency. Just as important is maintaining a good relationship with our co-workers from the railway infrastructure, to insure fast operative intervention to solve eventual mishaps regarding telecommunication equipment, upholding railway norms, insuring smooth service with as little complaint from the users as possible.
RJ: What other projects are you currently running within the CFR Telecommunication Agency and what other actions do you intend to start?
LM: Aside from the three projects related to the CFR Telecommunication network modernisation that we already mentioned we also have to draw in a short time propositions for the rehabilitation of railway telecommunications to insure the traffic safety for trains on the areas where the current modernisation projects will not be implemented. These proposals will be presented to the management of the company to secure financing from the Transport Ministry or from other financial entities.
Presently we are working to establish a development strategy for railway telecommunication in order to be prepared to enter the Romanian telecommunication market after its complete liberalisation starting with January 1st, 2003.

Reporting Silvia Mitulescu