Internet for companies: a 240 mln market in 2007

Publish date: 05-11-2007
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The market of internet services dedicated to companies will reach a value of €240 million this year, according to Romtelecom representatives, compared to the €139 mln reported last year by the National Regulatory Authority for Communication and Information Technology (ANRCTI).

"The market of internet services for companies currently exceeds a monthly €20 mln for internet and data," Romtelecom's Director for Business Products Management, Vasile Voicu, told Business Standard. In October 2007, ClickNet broadband internet products reached 260,000 clients, he added.

"The total value of internet access services, including revenues from mobile and dial-up access for 2006 was €240 mln, of which €139 mln came from companies, representing more than 50 percent," said ANRCTI representatives. For 2005, the estimated value of the market was €160 mln.

"Considering the continuous development of the Romanian business environment, and implicitly the need for quality communication services, including the internet, especially if this is provided as part of a complex communication service pack, the market trend is sure to increase," said Vasile Voicu. The market is also heading toward high-speed internet connections and the Romanian market has one of the most dynamic growth rates in Europe, added Voicu.

Romtelecom entered the ADSL-based broadband internet market in 2005. By the end of that year, the company registered 8,000 clients. According to the company, the number of clients rose to 260,000 in October 2007, and they estimate that by year-end Romtelecom's broadband services will have 300,000 clients.

"VPN (Virtual Private Network) services provided by the company, both in terms of revenues and POP (Point of Presence), doubled since the beginning of the year. We have largely exceeded our objectives for this year by 150 percent for income and 60 percent for POP," said Voicu. Romtelecom has some 6,000 POPs countrywide, and more than two thirds of the Romanian banking system is using Romtelecom's data services.

Romtelecom also offers SLA (Service Level Agreement, a formal provider-client arrangement, which if broken will incur penalties) for Premium Internet&Data, such as Fixed IP, Metronet, and VPN, dedicated to corporate clients.

RCS&RDS, with a 35 percent share of the internet services market and 590,000 clients by the end of June 2007, and UPC Romania, with a market share of 11 percent and 160,000 subscribers, are Romtelecom's main competition on the domestic market.


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