2014 Romania - Telecoms, IP Networks, Digital Media and Forecasts

RomTelecom prepares for next attempt at privatisation as well as a rebrand

Romania’s fixed-line telecoms market is evolving under the weight of competition and technological change. Implementation of EU Directives has opened the telecoms market to competition and introduced a regulatory framework designed to foster effective competition. Alternative operators have launched competing services in the liberalised fixed-line voice market, with cable TV operators the most successful to date. They and the incumbent RomTelecom have invested in network capacity upgrades to accommodate customer demand for improved broadband services.

The mobile telecom market is served by five network operators utilising a mixture of technologies. High penetration has stymied further growth in the voice market though mobile data has considerable growth potential in coming years, fostered by investments by MNOs in network capacity as also in widening the reach of their LTE services. Competition has encouraged these providers to make services increasingly affordable.

Key developments:

RomTelecom to be renamed under Deutsche Telekom’s T- brand; government makes third attempt to sell its 46% stake in RomTelecom; weakened currency contributing to decline in telecom market revenue; legislation passed to facilitate access to telco infrastructure; RomTelecom unites services under the Dolce brand; Vodafone launches its M-Pesa mobile banking service; RCS&RDS upgrades its mobile broadband speeds; regulator reduces fixed-line and mobile termination rates; Cosmote launches commercial LTE service; Ministry of Defence encouraged to release 800MHz and 2600MHz spectrum for commercial LTE; regulator auctions 4G frequencies; regulator awards licences for three multiplexes; UPC to extend 200Mb/s service across the network by end-2014; RCS&RDS launches 1Gb/s service; government secures €84 million EU funding to extend broadband to unconnected areas of the country; low rural PC use holds up broadband take-up; updates include the regulator’s 2013 market data; telcos’ operating and financial data to Q1 2014; market developments to mid-2014.

Companies and subsidiaries covered in this report include:

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

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