2013 Romania - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

This report provides a comprehensive overview of trends and developments in Romania’s telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure;
  • Major Players, Revenues, Subscribers, ARPU, MoU;
  • Internet, VoIP, IPTV;
  • Mobile Voice and Data Markets;
  • Broadband (FttH, DSL, cable TV, wireless);
  • Convergence and Digital Media;
  • 3G subscriber and mobile ARPU forecasts to 2015;
  • Broadband market forecasts for selective years to 2020.

Key developments:

Regulator raises €682 million at spectrum auction; government secures €84 million EU funding to extend broadband to unconnected areas; UPC Romania extends 120Mb/s Business Fiber Power to 13 cities; low rural PC use holds up broadband take-up; new EU roaming tariffs come into effect; RCS&RDS upgrades mobile broadband speeds; regulator reduces termination rates; Cosmote launches commercial LTE service; regulator issues guidelines on MVNO market entry; MNOs expand m-ticketing functionalities; weakened currency contributing to decline in telecom market revenue; new government formed following December 2012 elections; legislation passed to facilitate access to telco infrastructure and public spaces; OTE declines to buy government’s share in RomTelecom; RomTelecom unites services under the Dolce brand, appoints new CEO; regulator’s H1 2012 market data; telcos’ operating and financial data to Q4 2012; market developments to April 2013.

Companies covered in this report include:

Vodafone Romania, Orange Romania, Cosmote Romania, DigiMobil, Telemobil, UPC Romania, RCS&RDS, DigiTV, Boom TV, Dolce; GTS Telecom, Romtelecom, SN Radiocomunicatii.

Researcher:- Henry Lancaster
Current publication date:- May 2013 (11th Edition)

Executive Summary

LTE launches in 2013 herald renewed emphasis on mobile broadband solutions

BuddeComm’s annual publication, Romania - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media sectors of one of Eastern Europe’s most progressive and fast-moving markets. The report includes the regulator’s H1 2012 market data, telcos’ operating and financial data to Q4 2012 and market developments to May 2013.

Economic background

Romania’s economy has been one of the hardest hit among Eastern European countries. Unpopular austerity measures have led to social disruption, and social and political tension led to a new government being elected in late 2012. Lower exports to EU markets have resulted in less tax revenue and the closure of local businesses. Although GDP grew 2.5% in 2011 it sunk to 0.9% in 2012. The IMF anticipates that GDP would grow by 2.5% in 2013, increasing to 3% to 3.5% annually to 2017.

Telecom market overview

Telecom market revenue has contracted year-on-year since 2009, partly due to the 30% regulated cut in MTRs, growing competition and falling prices for services. Five operators – Orange, Vodafone, RomTelecom, Cosmote and RCS&RDS – between them account for 90% of revenue. Moderate growth is expected from the mobile telephony and internet sectors in 2013, though this will barely offset the continuing decline in fixed telephone revenue. The fixed-line market will continue to see a shift among consumers to mobile services, resulting in a declining share of overall sector revenue.

Broadband market

Investment in FttH networks has stepped up since 2010 when operators retreated through uncertain economic conditions. This meant that attention was focussed on cheaper FttC deployments. Fibre is the fastest growing fixed broadband sector, and by mid-2013 there were about 3.3 million connections.

Key telecom parameters – 2010; 2013

Sector

2010

2013 (e)

Subscribers by sector (million):

Fixed broadband subscribers

3.0

3.8

Mobile broadband

3.0

8.4

Mobile phone

24.36

22.1

Fixed-line telephony

4.50

4.58

Penetration by sector:

Fixed broadband

13.7%

18.9%

Mobile

127%

118%

Fixed-line

52%

53%

(Source: BuddeComm)

Market Highlights

  • Cosmote launch commercial LTE services in May 2013, providing data at up to 75Mb/s. The network complements the DC-HSPA+ network which provides over 50% population coverage.
  • RomTelecom reported a continuing drop in revenue in 2012, mainly due to a significant fall in the number of lines. As of a result of financial pressure, the company is significantly reducing its workforce in a bid to improve operations and increase efficiency. The company also appointed a new CEO to manage its turnaround.
  • In early 2013 RomTelecom adopted a new brand identity, with the company’s spin-off brands Clicknet and Dolce (for internet and TV services) were united under the Dolce brand.
  • In late 2012 legislation was passed aimed at setting up transparent and non-discriminatory procedures enabling telcos to access ducts on public property. It also regulates access to telecom infrastructure, including shared usage of networks.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Romania. It provides further information on:

  • Market liberalisation and regulatory issues;
  • The impact of the global economic crisis;
  • Telecoms operators – privatisation, acquisitions, new licences;
  • Mobile data market developments in coming years in light of spectrum auctions and new license awards;
  • 3G developments, regulatory issues and technologies including HSPA and LTE;
  • Broadband migration to an FttH architecture;
  • Historical and current subscriber statistics and forecasts;
  • ARPU statistics and forecasts.

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

  • 1. Key Statistics
  • 2. Telecommunications Market
    • 2.1 Economic background
    • 2.2 Overview of Romania’s telecom market
  • 3. Regulatory Environment
    • 3.1 Overview
      • 3.1.1 EU regulatory framework
      • 3.1.2 Revised NFR
    • 3.2 Regulatory authority
      • 3.2.1 National Authority for Management and Regulation in Communications (ANCOM)
    • 3.3 Telecom sector liberalisation in Romania
      • 3.3.1 Privatisation
      • 3.3.2 Access
      • 3.3.3 Interconnect
      • 3.3.4 Carrier selection and carrier PreSelection
      • 3.3.5 Number portability
  • 4. Fixed Network Operators
    • 4.1 Overview of operators
    • 4.2 RomTelecom
    • 4.3 Alternative operators
      • 4.3.1 RCS&RDS
      • 4.3.2 UPC
      • 4.3.3 GTS Telecom
      • 4.3.4 SN Radiocomunicatii (Radiocom)
  • 5. Telecommunications Infrastructure
    • 5.1 National telecom network
      • 5.1.1 RomTelecom
      • 5.1.2 Alternative operators
    • 5.2 International infrastructure
  • 6. Internet Market
    • 6.1 Overview
    • 6.2 Romania’s emerging internet society
      • 6.2.1 E-government
      • 6.2.2 E-health
  • 7. Broadband Market
    • 7.1 Overview
    • 7.2 Government programs
    • 7.3 Fixed broadband statistics
    • 7.4 Cable modems
    • 7.5 Asymmetric Digital Subscriber Line (ADSL)
    • 7.6 Local Area Networks (LANs)
    • 7.7 Fibre-to-the-Home (FttH) networks
    • 7.8 Wireless broadband
      • 7.8.1 WiFi
      • 7.8.2 WiMAX
    • 7.9 Mobile broadband
  • 8. Digital Media
    • 8.1 Overview of digital media
    • 8.2 Business models – bundled services
    • 8.3 Digital TV
      • 8.3.1 Digital Terrestrial TV (DTTV)
      • 8.3.2 Broadband TV (IPTV)
      • 8.3.3 Cable TV (CATV)
      • 8.3.4 Satellite-based digital pay TV developments
  • 9. Mobile Communications
    • 9.1 Overview of Romania’s mobile market
      • 9.1.1 Mobile statistics
    • 9.2 Regulatory issues
      • 9.2.1 Third Generation (3G) licences
      • 9.2.2 450MHz licence awarded
      • 9.2.3 900MHz band
      • 9.2.4 Multi-band spectrum auction 2012
      • 9.2.5 2.5GHz band
      • 9.2.6 Mobile Number Portability (MNP)
      • 9.2.7 Mobile Termination Rates (MTRs)
      • 9.2.8 Roaming
    • 9.3 Mobile technologies
      • 9.3.1 Third Generation (3G) mobile
    • 9.4 Major mobile operators
      • 9.4.1 Vodafone
      • 9.4.2 Orange
      • 9.4.3 Cosmote Romania/Cosmorom
      • 9.4.4 DigiMobil
    • 9.5 Mobile Virtual Network Operators (MVNOs)
    • 9.6 Mobile voice services
      • 9.6.1 Prepaid services
    • 9.7 Mobile data services
      • 9.7.1 Short Message Service (SMS)/Multimedia Messaging Service (MMS)
      • 9.7.2 General Packet Radio Service (GPRS)
      • 9.7.3 Enhanced Data for GSM Evolution (EDGE)
      • 9.7.4 Evolved High Speed Packet Access (HSPA+)
      • 9.7.5 Long-term Evolution (LTE)
      • 9.7.6 Broadband wireless data service (1x EV-DO)
      • 9.7.7 Mobile TV
    • 9.8 Mobile content and applications
      • 9.8.1 Orange World
      • 9.8.2 M-ticketing
  • 10. Forecasts
    • 10.1 Fixed broadband forecasts – 2010 - 2013; 2020
      • 10.1.1 Scenario 1 – stronger broadband subscriber growth
      • 10.1.2 Scenario 2 – slower broadband subscriber growth
      • Table 1 – Country statistics – 2012 (e)
      • Table 2 – Telephone network statistics – 2012 (e)
      • Table 3 – Internet user statistics – 2012 (e)
      • Table 4 – Internet subscriber statistics – 2012
      • Table 5 – Broadband statistics – 2012 (e)
      • Table 6 – Mobile statistics – 2012
      • Table 7 – National telecommunications authority
      • Table 8 – Telecom market revenue (RON) – 2006 - 2013
      • Table 9 – Telecom market revenue (€) – 2010 - 2013
      • Table 10 – Telecom market investment (RON) – 2005 - 2013
      • Table 11 – Revenue change (from base price) for telecom services – 2006 - 2010
      • Table 12 – Revenue by telecom sector – 2011 - 2012
      • Table 13 – Cost of local loop unbundling and shared access – 2006 - 2009
      • Table 14 – Wholesale lines available, by type – 2008 - 2010
      • Table 15 – Network interconnection rates – 2006 - 2009
      • Table 16 – CS and CPS providers, fixed network – 2008 - 2012
      • Table 17 – CS and CPS lines – 2008 - 2012
      • Table 18 – Annual fixed number portings – 2008 - 2012
      • Table 19 – Fixed number portings as share of total lines– 2008 - 2012
      • Table 20 – Fixed-line market share by traffic – 2008 - 2012
      • Table 21 – Fixed-line market share by subscribers – 2008 - 2012
      • Table 22 – Fixed-lines, by operator – 2008 - 2012
      • Table 23 – RomTelecom revenue – 2005 - 2012
      • Table 24 – RomTelecom fixed-line telephony subscribers – 2006 - 2012
      • Table 25 – RomTelecom broadband and TV subscribers – 2011 - 2012
      • Table 26 – Historical – Fixed lines in service and teledensity (by population) – 2000 - 2004
      • Table 27 – Fixed lines in service and teledensity (by population) – 2005 - 2013
      • Table 28 – Fixed lines in service by altnets – 2010 - 2012
      • Table 29 – Total international Internet bandwidth – 2000 - 2012
      • Table 30 – Internet users, subscribers and penetration – 1999 - 2013
      • Table 31 – Fixed broadband providers by access type – 2008 - 2012
      • Table 32 – Fixed broadband subscribers by access type – 2008 - 2012
      • Table 33 – Proportion of fixed broadband subscribers by access type – 2008 - 2012
      • Table 34 – Fixed broadband subscribers and penetration rate – 2002 - 2013
      • Table 35 – Internet access revenue – 2008 - 2013
      • Table 36 – Fixed broadband subscribers by data speed – 2011 - 2012
      • Table 37 – Proportion of fixed broadband subscribers by data speed – 2011 - 2012
      • Table 38 – UPC Romania broadband subscribers – 2006 - 2012
      • Table 39 – Cable broadband subscribers by access type – 2008 - 2012
      • Table 40 – RomTelecom broadband subscribers – 2005 - 2012
      • Table 41 – Fibre broadband subscribers by type – 2011 - 2012
      • Table 42 – WiFi hotspot locations – 2008 - 2013
      • Table 43 – Mobile broadband connections – 2008 – 2013
      • Table 44 – Mobile broadband penetration by connection type – 2010 – 2012
      • Table 45 – Revenue from audiovisual services – 2011
      • Table 46 – Bundled service subscribers by type – 2011 - 2012
      • Table 47 – Digital TV subscribers by platform – 2009 – 2012
      • Table 48 – IPTV subscribers – 2008 – 2013
      • Table 49 – CATV subscribers, analogue and digital – 2008 – 2013
      • Table 50 – UPC Romania – homes passed – 2006 - 2012
      • Table 51 – UPC Romania – subscribers by service type – 2006 - 2012
      • Table 52 – Satellite TV subscribers – 2008 – 2013
      • Table 53 – Dolce subscribers – 2007 - 2012
      • Table 54 – Overview of spectrum allocations – 2013
      • Table 55 – Overview of technologies by MNO – 2013
      • Table 56 – Historic – Mobile subscribers (active SIM) and penetration rate – 1997 - 2004
      • Table 57 – Mobile subscribers (active SIM) and penetration rate – 2005 - 2013
      • Table 58 – Mobile traffic – 2009 - 2013
      • Table 59 – Mobile market revenue – 2008 - 2013
      • Table 60 – Overview of mobile services by operator – 2013
      • Table 61 – Multi-spectrum auction results – 2012
      • Table 62 – Multi-spectrum auction results – spectrum allocation – 2012
      • Table 63 – Mobile number portings – 2008 - 2012
      • Table 64 – Mobile number portings as share of total lines– 2008 - 2012
      • Table 65 – Vodafone subscribers and voice minutes – 2008 - 2012
      • Table 66 – Vodafone ARPU – 2008 - 2012
      • Table 67 – Vodafone revenue – 2009 - 2012
      • Table 68 – Orange subscribers – 2007 - 2012
      • Table 69 – Orange annualised ARPU, data ARPU as proportion to total – 2008 - 2012
      • Table 70 – Orange mobile revenue – 2008 - 2012
      • Table 71 – Cosmote Romania financial data – 2006 - 2012
      • Table 72 – Cosmote Romania subscribers – 2006 - 2012
      • Table 73 – Cosmote Romania ARPU – 2006 - 2012
      • Table 74 – Zapp subscribers – 2009 - 2010
      • Table 75 – Ratio of prepaid to postpaid subscribers – 2000 - 2013
      • Table 76 – Prepaid cards in service – 2009 - 2013
      • Table 77 – Vodafone prepaid subscribers – 2005 - 2012
      • Table 78 – Cosmote Romania prepaid subscribers – 2008 - 2012
      • Table 79 – Total MMS messages sent – 2008 - 2013
      • Table 80 – Total SMS messages sent – 2005 - 2013
      • Table 81 –SMS messages sent per subscriber – 2010 - 2012
      • Table 82 – Forecast fixed broadband subscribers – higher growth scenario – 2010 - 2013; 2020
      • Table 83 – Forecast fixed broadband subscribers – lower growth scenario – 2010 - 2013; 2020
      • Chart 1 – Telecom market value (RON) – 2006 – 2013
      • Chart 2 – Wholesale lines available, by type – 2008 - 2010
      • Chart 3 – Fixed lines in service and teledensity – 2005 – 2013
      • Chart 4 – Fixed broadband subscribers and penetration rate – 2002 – 2013
      • Chart 5 – Cable broadband subscribers by access type – 2008 – 2012
      • Chart 6 – UPC – subscribers by service type – 2006 – 2012
      • Chart 7 – Mobile subscribers (active SIM) and penetration rate – 2005 – 2013
      • Chart 8 – Vodafone subscribers and voice minutes – 2008 – 2012
      • Chart 9 – Vodafone ARPU – 2008 – 2012
      • Chart 10 – Vodafone revenue – 2009 – 2012
      • Chart 11 – Orange subscribers – 2007 – 2012
      • Chart 12 – Orange annualised ARPU, data ARPU as proportion to total – 2008 – 2012
      • Exhibit 1 – The EU regulatory framework for communications
      • Exhibit 2 – Access, the local loop and unbundling – an overview
      • Exhibit 3 – Overview of digital media

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