Includes 3 FREE quarterly updates
BMI View: The Romanian telecoms market contains a number of major international players, such as Cosmote, backed by OTE and Deutsche Telekom, Orange, and Vodafone in the mobile sector, as well as Liberty Global-owned UPC in the wireline sector. While the mobile subscriber market has witnessed declines in total subscriber numbers in recent quarters, the latest data from operators show a return to growth in Q212. Romania is at a crossroads in terms of market development: the recent spectrum auction sees five operators being awarded LTE-capable bandwidth, and Vodafone had already begun trials of its 4G network at the time of writing. But faster download speeds require investment in LTE technology and 4G-capable infrastructure, and regular cuts to mobile termination rates (most recently in September 2012) have had a negative impact on operators' profits. The question remains: will the potential returns of 4G encourage operators' shareholders to approve new capital expenditure in a country where growth has been sluggish, and regulatory measures and weak economic conditions are hitting the market hard?
KEY DATA:
Five operators won a total of 485MHz of spectrum in the 800MHz, 900MHz, 1800MHz and 2600MHz bands. Cosmote, Orange, Vodafone, RCS&RDS and 2K Telecom all acquired spectrum, and are obliged to host MVNOs as part of the terms of the agreement.
Following the successful allocation of 4G-capable spectrum, Romania's mobile operators are keen to launch LTE services. Vodafone began LTE trials at the end of October 2012, Orange aims to begin its LTE pilot before the end of 2012 and Cosmote plans to launch LTE services in 2013.
From 2 September 2012, mobile and fixed-line subscribers can request number portability, and operators are obliged to activate numbers in the new network with a day, and for the porting process to be completed in three days.
BMI View: The Romanian telecoms market contains a number of major international players, such as Cosmote, backed by OTE and Deutsche Telekom, Orange, and Vodafone in the mobile sector, as well as Liberty Global-owned UPC in the wireline sector. While the mobile subscriber market has witnessed declines in total subscriber numbers in recent quarters, the latest data from operators show a return to growth in Q212. Romania is at a crossroads in terms of market development: the recent spectrum auction sees five operators being awarded LTE-capable bandwidth, and Vodafone had already begun trials of its 4G network at the time of writing. But faster download speeds require investment in LTE technology and 4G-capable infrastructure, and regular cuts to mobile termination rates (most recently in September 2012) have had a negative impact on operators' profits. The question remains: will the potential returns of 4G encourage operators' shareholders to approve new capital expenditure in a country where growth has been sluggish, and regulatory measures and weak economic conditions are hitting the market hard?
KEY DATA:
- Inactive subscription discounting was repeated this quarter, but even despite these losses, the market has grown overall. The mobile market climbed to 27.183mn subscriptions in Q212; it gained 151,000 subscribers from Q112.
- The broadband market has seen a sharp slowdown in growth, falling from 19.1% growth in 2010 to 9.7% growth in 2011.
- The fixed-line market saw subscription growth in 2011, which we believe to be the result of the increasing popularity of bundled services.
Five operators won a total of 485MHz of spectrum in the 800MHz, 900MHz, 1800MHz and 2600MHz bands. Cosmote, Orange, Vodafone, RCS&RDS and 2K Telecom all acquired spectrum, and are obliged to host MVNOs as part of the terms of the agreement.
Following the successful allocation of 4G-capable spectrum, Romania's mobile operators are keen to launch LTE services. Vodafone began LTE trials at the end of October 2012, Orange aims to begin its LTE pilot before the end of 2012 and Cosmote plans to launch LTE services in 2013.
From 2 September 2012, mobile and fixed-line subscribers can request number portability, and operators are obliged to activate numbers in the new network with a day, and for the porting process to be completed in three days.
Executive Summary
SWOT Analysis
Romania Mobile Industry SWOT
Romania Fixed-Line & Broadband Industry SWOT
Romania Political SWOT
Romania Economic SWOT
Romania Business Environment SWOT
Risk/Reward Ratings
Central And Eastern Europe
Table: Central And Eastern Europe Risk/Reward Ratings, Q113
Romania
Industry Forecast Scenario
Mobile
Table: Mobile - Historical Data & Forecasts, 2010-2017
ARPU
Table: ARPU - Historical Data & Forecasts (RON), 2010-2017
Fixed Line
Table: Fixed Line - Historical Data & Forecasts, 2010-2017
Internet
Table: Internet - Historical Data And Forecasts, 2010-2017
Market Overview
Mobile
Regional Perspective
Table: Romania Mobile Market Regional Comparisons, 2011
Key Developments
Mobile Growth
Market Share
Table: Net Additions ('000), Q410-Q312
Subscriber Mix
ARPU
Networks
Mobile Content/Value Added Services
Value-Added Services Timeline
Table: Selected VAS Services
Mobile Contract Wins
Table: Mobile Contract Wins
Mobile Operator Data
Table: Total Market Romania
Table: Orange
Table: Vodafone
Table: Cosmote
Mobile Content
Fixed Line
Broadband
Wireline Developments
Table: Wireline Developments 2008-2012
Converged Service Operator Tables
Table: Romtelecom
Table: UPC Romania
Industry Trends & Developments
Regulatory Environment
Regulatory Developments
Competitive Landscape
Key Players
Table: Key Players in the Romanian Telecoms Markets
Table: Selected Operators Financial Indicators, 2006-2011, (US$mn)
Company Profiles
Romtelecom
Cosmote Romania
Vodafone Romania
Orange Romania
Regional Overview
Vendor Profile
Table: Revenue By Business Segment (HRK '000)
Table: Revenue By Geography (HRKmn)
Table: Key Contracts, 2011-2012
Country Snapshot: Romania Demographic Data
Table: Romania's Population By Age Group, 1990-2020 ('000)
Table: Romania's Population By Age Group, 1990-2020 (% of total)
Table: Romania's Key Population Ratios, 1990-2020
Table: Romania's Rural And Urban Population, 1990-2020
Glossary Of Terms
Table: Glossary Of Terms
BMI Methodology
How We Generate Our Industry Forecasts
Table: Key Indicators For Telecommunications Industry Forecasts
Telecoms Business Environment Ratings
Risk/Reward Ratings Methodology
Table: Ratings Indicators
Weighting
Table: Weighting Of Indicators
Sources
SWOT Analysis
Romania Mobile Industry SWOT
Romania Fixed-Line & Broadband Industry SWOT
Romania Political SWOT
Romania Economic SWOT
Romania Business Environment SWOT
Risk/Reward Ratings
Central And Eastern Europe
Table: Central And Eastern Europe Risk/Reward Ratings, Q113
Romania
Industry Forecast Scenario
Mobile
Table: Mobile - Historical Data & Forecasts, 2010-2017
ARPU
Table: ARPU - Historical Data & Forecasts (RON), 2010-2017
Fixed Line
Table: Fixed Line - Historical Data & Forecasts, 2010-2017
Internet
Table: Internet - Historical Data And Forecasts, 2010-2017
Market Overview
Mobile
Regional Perspective
Table: Romania Mobile Market Regional Comparisons, 2011
Key Developments
Mobile Growth
Market Share
Table: Net Additions ('000), Q410-Q312
Subscriber Mix
ARPU
Networks
Mobile Content/Value Added Services
Value-Added Services Timeline
Table: Selected VAS Services
Mobile Contract Wins
Table: Mobile Contract Wins
Mobile Operator Data
Table: Total Market Romania
Table: Orange
Table: Vodafone
Table: Cosmote
Mobile Content
Fixed Line
Broadband
Wireline Developments
Table: Wireline Developments 2008-2012
Converged Service Operator Tables
Table: Romtelecom
Table: UPC Romania
Industry Trends & Developments
Regulatory Environment
Regulatory Developments
Competitive Landscape
Key Players
Table: Key Players in the Romanian Telecoms Markets
Table: Selected Operators Financial Indicators, 2006-2011, (US$mn)
Company Profiles
Romtelecom
Cosmote Romania
Vodafone Romania
Orange Romania
Regional Overview
Vendor Profile
Table: Revenue By Business Segment (HRK '000)
Table: Revenue By Geography (HRKmn)
Table: Key Contracts, 2011-2012
Country Snapshot: Romania Demographic Data
Table: Romania's Population By Age Group, 1990-2020 ('000)
Table: Romania's Population By Age Group, 1990-2020 (% of total)
Table: Romania's Key Population Ratios, 1990-2020
Table: Romania's Rural And Urban Population, 1990-2020
Glossary Of Terms
Table: Glossary Of Terms
BMI Methodology
How We Generate Our Industry Forecasts
Table: Key Indicators For Telecommunications Industry Forecasts
Telecoms Business Environment Ratings
Risk/Reward Ratings Methodology
Table: Ratings Indicators
Weighting
Table: Weighting Of Indicators
Sources
