Romania Telecommunications Report

Published 15 June 2015

  • 105 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 market has seen impressive growth in internet data usage over the past year, as consumers become more focused on broadband access. In particular, the 3G and 4G segments have contributed to a strong rebound for mobile operators, amid falling 2G users and inactive SIM cards. Romania's 3G/4G market will grow to be one of the most highly penetrated in Central and Emerging Europe by 2019 and this will lead to opportunities potential for value-added services. Consolidation has been the key trend in the wireline market over this same period, as the smaller, local players are acquired by the national operators. This will have long-term benefits for the provision of high-speed broadband, however, if too many players are lost this poses a risk to competition dynamics.

Key Data

  • The Romanian mobile market supported 27.685mn subscriptions at the end of 2014, an increase of just 0.2% year-on-year (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 cuts.

  • Digi, the smallest operator by subscribers in Romania, ported the most amount of subscribers between January and April 2015, at 96,572 users, compared to Vodafone (46,754 incoming ports), Orange Romania (33,060) and Telekom Romania (21,969).

  • 4G LTE subscriptions grew from 22,000 in 2013 to over 700,000 in 2014.

  • The fixed broadband market reached 4mn in 2014 according to ANCOM. Of the total, 73% of lines were in urban areas, (2.9mn connections) - up by 4.2% y-o-y - while broadband lines in rural areas grew by 10.2% to 1.1mn. Roughly half of fixed internet connections, or almost 2mn high speed lines, enabled speeds of over 100Mbps at end-2014.

Key Trends And Developments

Prime Minister Victor Ponta is in favour...

Table of Contents

BMI Industry View
7
SWOT
8
SWOT
10
Political
12
Economic
13
Industry Forecast
14
Mobile
14
Table: Telecoms Sector - Mobile - Historical Data & Forecasts (Romania 2012-2019)
14
ARPU
15
Wireline
17
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (Romania 2012-2019)
17
Industry Risk Reward Ratings
20
Industry Risk Reward Index
20
Table: Central & Eastern Europe Telecoms Risk/Reward Index, Q215
25
Market Overview
27
Mobile
27
Regional Perspective
27
Table: Romania Mobile Market Regional Comparisons, 2013
28
Key Developments
28
Market Growth
29
Market Shares
30
Table: Net Additions ('000), Q312-Q314
32
Subscription Mix
32
Usage (ARPU/MOU)
34
Networks
35
Table: Mobile Contract Wins
39
Mobile Content/Value-Added Services
39
Table: Total Market Romania
42
Table: Orange
43
Table: Vodafone
43
Table: Cosmote
44
Central And Eastern Europe Mobile Content
46
Wireline
50
Key Developments
50
Fixed-Line
50
Broadband
53
Table: Fixed Broadband Subscriptions By Technology ('000), 2010-2013
54
Table: Wireline Developments 2011-2013
59
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
82
Orange Romania
87
Regional Overview
91
Demographic Forecast
96
Table: Population Headline Indicators (Romania 1990-2025)
97
Table: Key Population Ratios (Romania 1990-2025)
97
Table: Urban/Rural Population & Life Expectancy (Romania 1990-2025)
98
Table: Population By Age Group (Romania 1990-2025)
98
Table: Population By Age Group % (Romania 1990-2025)
99
Glossary
101
Table: Glossary Of Terms
101
Methodology
103
Industry Forecast Methodology
103
Sources
105
Risk/Reward Index Methodology
105
Table: Risk/Reward Index Indicators
106
Table: Weighting Of Indicators
107

The Romania Telecommunications Report features BMI Research'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, fixed-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