Business Monitor International


Romania Telecommunications Report

Published 02 December 2014

  • 104 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Romania Telecommunications Report

BMI View: Despite having one of the lowest mobile market penetrations in the region, Romanian market sustained significant losses in 2014. BMI believes this to be a result of cautionary consumer habits during a period of economic weakness as well as discounting inactive subscribers. However, as GDP per capita will rebound as of 2015, Romanian telecommunications sector will recover in lock-step. The medium-term outlook is mixed in Romania, with continued price competition and economic challenges posing downside rise. However, rising smartphone penetration offers upside via the development of mobile data and value-added services such as mobile payment services. In the wireline sector we should see competition increase between pay-TV operators.

Key Data

  • According to the latest data available Romanian mobile market contracted to 26.795mn end of Q314, bringing the total subscriber losses over the first nine months of 2014 to 849,000The April 2014 cuts to mobile termination rates resulted in a faster rate of decline in operator reported ARPU in Q214, resulting in a minor downgrade to our forecast.

  • We made a small adjustment to our outlook for broadband subscription growth in Romania to reflect the negative impact of the 1.5% tax introduced on the construction of specialised equipment.

Key Trends And Developments

Incumbent operator Romtelecom has finalised its rebranding.   Cosmote Romania was renamed  Telekom Romania Mobile Communications, and Romtelecom was renamed  Telekom Romania Communications. From September 2014, the companies started to offerconverged services under the brand Telekom Romania.

Meanwhile, in July 2014 Romtelecom addressed operational concerns when it contracted Ericsson for a seven-year managed services agreement. Ericsson will manage the respective wireline and wireless networks of Romtelecom and Cosmote in Romania. In August 2014, Telekom Romania chose Chinese vendor ZTE to transform the latter's existing 2G/3G network and...

Table of Contents

BMI Industry View
7
SWOT
9
SWOT
11
Political
13
Economic
14
Business Environment
15
Industry Forecast
16
Mobile
16
Table: Telecoms Sector - Mobile - Historical Data & Forecasts (Romania 2011-2018)
16
ARPU
17
Wireline
20
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (Romania 2011-2018)
20
Industry Risk Reward Ratings
23
Industry Risk/Reward Ratings
23
Table: Central & Eastern Europe Risk/Reward Ratings, Q414
27
Market Overview
29
Mobile
29
Regional Perspective
29
Table: Romania Mobile Market Regional Comparisons, 2013
30
Key Developments
30
Market Growth
31
Market Shares
33
Table: Net Additions ('000), Q312-Q214
35
Subscription Mix
35
Usage (ARPU/MOU)
37
Networks
38
Table: Mobile Contract Wins
41
Mobile Content/Value Added Services
42
Table: Total Market Romania
45
Table: Orange
45
Table: Vodafone
46
Table: Cosmote
47
Central And Eastern Europe Mobile Content
48
Wireline
51
Key Developments
51
Fixed-Line
51
Broadband
54
Table: Fixed Broadband Subscriptions By Technology ('000), 2010-2013
55
Table: Wireline Developments 2011-2013
60
Table: Romtelecom
60
Table: UPC Romania
61
Industry Trends And Developments
62
Regulatory Development
65
Regulatory Overview
65
Table: Regulatory Body Responsibilities
65
Regulatory Development
67
Competitive Landscape
72
Table: Key Players in the Romanian Telecoms Markets
72
Table: Selected Operators Financial Indicators, 2008-2013, (USDmn)
72
Company Profile
73
Romtelecom
73
Cosmote Romania
78
Vodafone Romania
83
Orange Romania
88
Regional Overview
92
Business Divisions
92
Table: ENT: Revenue By Business Segment (HRKmn)
92
Financial Performance
92
Geographical Performance
93
Table: ENT: Revenue By Geography (HRKmn)
94
Domestic Market
94
Export Markets
95
Ericsson Market
96
Outlook
97
Table: Selected Contracts, 2013/14
98
Demographic Forecast
99
Table: Romania's Population By Age Group, 1990-2020 ('000)
100
Table: Romania's Population By Age Group, 1990-2020 (% of total)
101
Table: Romania's Key Population Ratios, 1990-2020
102
Table: Romania's Rural And Urban Population, 1990-2020
102
Glossary
103
Table: Glossary Of Terms
103
Methodology
105
Industry Forecast Methodology
105
Sources
107
Risk/Reward Ratings Methodology
107
Table: Risk/Reward Ratings Indicators
108
Table: Weighting Of Indicators
109

The Romania Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of Romania's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.

BMI's Romania Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Romania.

Key Benefits

  • Benchmark BMI's independent telecoms industry forecasts for Romania to test other views - a key input for successful budgeting and strategic business planning in the Romanian telecoms market.
  • Target business opportunities and risks in Romania's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Romania.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts and views, covering the ICT, fixed-line, mobile (including 3G), internet and broadband markets.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.

Business Environment Rankings

BMI's Telecommunications Business Environment Rankings provides a country-comparative Risk-Reward Rankings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.

The rankings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.

BMI Industry Forecast Scenario

Historic data series and forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

  • Fixed-Line Telephony - Telephone lines ('000); telephone lines/100 inhabitants.
  • Cellular Telephony - Mobile phone subscribers ('000); mobile phone subscribers/100 inhabitants; mobile phone subscribers/100 fixed line subscribers.
  • Internet Markets - Internet users ('000); internet users/100 inhabitants; broadband internet subscribers ('000); broadband internet subscribers/100 inhabitants.

Market Data Analysis

Detailed market analysis of the mobile, mobile content, fixed line and internet segments, broken down into:

  • Market Data - Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
  • Technology/Service Rollout - Analysis of rollout/adoption of new technology, such as 3G, WiMAX, IPTV, pay-TV, LTE and value-added handset services (gaming, music, video, apps etc.).
  • Mobile Content - The latest trends in content and services available and being introduced by mobile operators. Including a timeline of all the latest major mobile content developments.
  • Company Database - A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).

Regulatory Environment

Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. The latest updates in the market's development and regulatory rulings.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.

The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc