Romania Telecommunications Report

Published 27 February 2015

  • 107 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 mobile market is struggling to recover from declines seen in 2011-2012 as growth failed to return 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. As GDP per capita rebounds as of 2015, the Romanian telecommunications sector will recover in lock-step, but despite this, the market will only grow an average of 0.4% per annum until the end of our forecast. 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

  • The Romanian mobile market supported 27.685mn subscriptions at the end of 2014, an increase of just 0.2% y-o-y. Inactive subscriptions are being shed as operators look to increase the quality of their user bases. We expect modest growth through to 2019, yielding a total market of 28.305mn. Meanwhile, mobile ARPUs will decline as a result of downward pressure brought about through price competition and mobile termination rate (MTR) cuts.

  • The broadband market will grow from 5.381mn subscriptions in 2014 to 6.285mn by 2019 as a result of increased investment in high-capacity wireline networks and innovations in product bundling centred around pay-TV.

Key Trends And Developments

Romanian telecoms operator RCS&RDS' mobile network-operating subsidiary DigiMobil will increase its network of 900MHz 3G base stations to 500 sites by the end of 2014. RCS&RDS currently has a total of around 300 UMTS-900 base stations in 28 cities in Romania. The additional 200 sites will increase coverage in both urban and rural areas, according to the company. The operator switched on its UMTS-900 cell sites in April 2014.

UK-based

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 ARPU, fi xed-line, mobile (including 3G & 4G ), 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.

BMI Industry Forecast Scenario

Historic data series (2010-2013) and forecasts to end-2019 for all key industry indicators, 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; and where available, 3G & 4G subscribers (‘000); 3G & 4G subscribers/100 inhabitants; 3G & 4G subscribers as a percentage of overall mobile market.
  • Internet Markets – Internet users (‘000); internet users/100 inhabitants; broadband internet subscribers (‘000); broadband internet subscribers/100 inhabitants.

BMI’s Telecommunications Risk Reward Index

BMI’s Risk Reward Indices provide investors (vendors, operators and suppliers) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an Indices of highest to lowest appeal to investors, with each position explained.

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 & 4G, WiMAX, IPTV, pay-TV, LTE and valueadded 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 & 4G 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. Also covers 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.

Sources

The Telecommunications Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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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