The Romanian telecom market contracted by 8.1% in 2010, from RON14.9bn ($4.9bn) in 2009 to RON13.7bn ($4.3bn) in 2010, as both residential and business customers implemented cost optimization strategies. In addition, the price wars among UPC, RCS&RDS and Romtelecom, aimed both at keeping existing subscribers as well as gaining new ones, had a negative effect on the overall revenue picture of the market. As economic recuperation slowly takes place, we expect Romania’s telecom market to grow to RON16.5bn ($5.0bn) in the 2010-2015 period, at a CAGR of 3.7% in local currency terms, representing a cumulative service revenue opportunity of RON89.0bn ($27.0bn) at the same time.
We forecast that the investments in next-generation networks, spurred by regulatory activities and the implementation of the National Broadband Strategy, will result in a higher proliferation of broadband access both on the fixed and mobile side. Bundling of services, which is practiced by the majority of the operators, will accelerate the already pronounced fixed-mobile convergence trends.
Like other Central & Eastern European countries, the fixed telephony market is impacted by the shift to mobile telephony and VoIP services. Thus we expect the mobile segment to increase its share of the total revenue pie from 63% to 64%, also owing to growth coming from mobile Internet propelled by proliferation of 3G+ and the spread of smartphones.
Table of Contents
Executive Summary
Market and Competitor Overview
Romania in a regional context
Economic, demographic and political context
Regulatory environment
Demand profile
Service evolution
Competitive landscape
Major market players
Segment analysis
Mobile services
Fixed services
Pay-TV
Convergence
Identifying Opportunities
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