Telecom market growth up 10%, internet and data services rise 20%

The Romanian telecommunications market will grow by 10.6 percent this year, to €4.3 billion (RON 15.5 bln), up 14 percent from €4.24 bln year-on-year, due to a drop in operator tariffs due to an intensification of competition, according to a study by Polish PMR market research company.

A Romanian telecommunications market growth tempering trend was felt in revenue of the main market operators, Orange and Vodafone. As such, Orange reported growth of 8.8 percent in the second quarter, which ended on 30 June, three times lower than in Q2 2007. Vodafone Romania, the second-largest player on the Romanian mobile phone market, posted a 7.6 percent advance in revenue in the first quarter, ending on 30 June. According to Liliana Solomon, CEO of Vodafone, the maturation of the Romanian mobile telephone market, intensified competition, and decisions by several regulatory agencies have lead to this tempering in growth of revenue.

The most rapid advance was registered in the internet and data service sector, where the number of users rose to 5.79 million in 2007 from 499,000 in 2003. In terms of value, the internet and data market increased by some 23 percent in 2007, to €423.9 mln, or some 11 percent of the total IT&C market, up one percentage point.

Business Standard