Business Monitor International


Romania Telecommunications Report

Published 18 March 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: The Romanian telecoms market benefits from competition between major internationally backed operators. Competition covers the provision of basic services, where the arrival of mobile virtual network operators has had an impact, as well as higher value wireless data services, with all three mobile network operators having launched LTE services as of May 2013. 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. Meanwhile, in the wireline segment, the privatisation of incumbent Romtelecom should result in increased investment and boost quality for consumers and businesses.

Key Data

  • After contraction in 2011 and 2012 as operators discounted inactive subscriptions, the mobile market returned to growth in 2013 with the net addition of 223,000 subscriptions.

  • The latest data from ANCOM show that by the end of 2013, there were 9.6mn active mobile broadband internet subscriptions in Romania, up by 35% from end-2012.

  • Mobile average revenues per user (ARPUs) have continued to trend downwards following the brief stabilisation that accompanied the period of inactive subscription discounting. BMI expects price competition and IP substitution will contribute to gradual but ongoing declines in ARPU over the medium term.

Key Trends And Developments

In April 2014, Romania became the first European market where Vodafone launched M-Pesa, the most successful m-commerce platform in the world created by Kenyan operator Safaricom, in which Vodafone has a 40% share. Vodafone M-Pesa provides mobile money transfer and payment services to around 7mn Romanians who transact primarily in cash. Vodafone expects to attract 300,000 active subscribers to its m-commerce platform within the first year. The operator seeks to extend the service to other parts of...

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
18
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (Romania 2011-2018)
18
Industry Risk Reward Ratings
21
Central and Eastern Europe Risk/Reward Ratings
21
Table: CEE Telecoms Risk/Rewards Ratings, Q314
24
Market Overview
26
Mobile
26
Regional Perspective
26
Table: Romania Mobile Market Regional Comparisons, 2013
27
Key Developments
27
Market Growth
28
Market Shares
29
Table: Net Additions ('000), Q411-Q413
30
Subscription Mix
30
Usage (ARPU/MOU)
32
Networks
33
Table: Mobile Contract Wins
36
Mobile Content/Value Added Services
36
Table: Total Market Romania
38
Table: Orange
39
Table: Vodafone
39
Table: Cosmote
41
Central And Eastern Europe Mobile Content
42
Wireline
47
Key Developments
47
Fixed-Line
47
Broadband
49
Table: Fixed Broadband Subscriptions By Technology ('000), 2010-2013
50
Table: Wireline Developments 2011-2013
54
Table: Romtelecom
55
Table: UPC Romania
55
Industry Trends And Developments
57
Regulatory Development
60
Regulatory Overview
60
Table: Regulatory Body Responsibilities
60
Regulatory Development
62
Competitive Landscape
66
Table: Key Players in the Romanian Telecoms Markets
66
Table: Selected Operators Financial Indicators, 2008-2013, (USDmn)
66
Company Profile
67
Romtelecom
67
Cosmote Romania
72
Vodafone Romania
76
Orange Romania
81
Regional Overview
85
Table: Ericsson Quarterly And Annual Results By Segment (SEKbn)
86
Demographic Forecast
89
Demographic Outlook
89
Table: Romania's Population By Age Group, 1990-2020 ('000)
90
Table: Romania's Population By Age Group, 1990-2020 (% of total)
91
Table: Romania's Key Population Ratios, 1990-2020
92
Table: Romania's Rural And Urban Population, 1990-2020
92
Glossary
93
Table: Glossary Of Terms
93
Methodology
95
Industry Forecast Methodology
95
Sources
96
Risk/Reward Ratings Methodology
97
Table: Risk/Reward Ratings Indicators
98
Table: Weighting Of Indicators
99

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