Slight growth in Romania’s telecom sector gives hope of recovery

The domestic telecom sector maintained stable this year, as the consumer demand recovered from the 2009-2010 plunge, according to market data.
Nov. 2, 2012 - PRLog -- The Romanian customer remained overall cautious and price sensitive, but the increasing popularity of smartphones and the good performance of the data traffic segment visibly impacted positively upon the operators’ results in H1/2012.

The value of the Romanian telecom market is projected to reach around EUR 3.6bn in 2012, close to the EUR 3.5bn last year. The voice and cable segments are mature and rather unlikely to record significant increase in the short run, yet the internet segment has enough growth potential.

On the downside, further cuts in termination rates will predictably continue denting into the
operators’ financials. The telecom regulator cut mobile termination rates in two stages this year and plans more reductions of both mobile and fixed termination rates in 2013 as well.

The spectrum auction held in September, expected to reframe the market for the following 15 years, attracted much attention from the media and operators in 2012. The telecom regulator assigned 85% of the 575MHz bandwidth on sale to domestic operators for the overall amount of EUR 682mn. Orange, Vodafone, Cosmote, RCS&RDS and new small-sized telecom provider 2K won the spectrum auction.

The extended bandwidth available allows companies to implement 4G technology. Accordingly, the first launch has already been announced by yearend, while further launches are expected in 2013.
Source:Emerging Markets Direct
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Tags:Orange Romania, Vodafone, Romtelecom, Cosmote, UPC Romania
Industry:Research, Telecom
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