Broadband, Pay-TV Drive Telecom Growth in Romania

Thursday, June 18th, 2009
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Broadband, Pay-TV Drive Growth in Romania as Bundling Remains Key for Success, finds Pyramid

CAMBRIDGE, Massachusetts — Broadband and pay-TV will become the major sources of growth in the Romanian telecom market during the next five years, while bundling remains key for success as competition intensifies, according to the latest report from Pyramid Research, the telecom research arm of the Light Reading Communications Network.

Communications Markets in Romania offers a precise, incisive profile of the converged telecommunications, media, and technology sectors in Romania based on exclusive market and economic data collected by Pyramid Research. The 30-page report provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies such as WiMax, IPTV, and VoIP. Download an excerpt of this report here.

By year-end, Romania is expected to become the fourth-largest CEE telecom market revenue-wise, after Russia, Poland, and the Czech Republic. Total telecom revenue is projected to grow to $7.6 billion by 2014 at a CAGR of 4.27 percent, above the average result for the CEE region, notes Sylwia Boguszewska, Analyst at Pyramid Research and co-author of the report.

“Due to a strong uptake of fixed and mobile broadband, the mobile data market is forecast to be worth more than $0.8 billion in 2014 – an almost 80 percent increase in value from 2009,” says Boguszewska. “Fixed broadband will continue to grow, boosted by growth in DSL and cable, at a CAGR of 4.1 percent, while mobile broadband will grow at a CAGR of 21.7 percent in the same period,” she says. “IPTV is the fastest-growing segment of the pay-TV market; its market share will almost triple in the 2008 to 2014 period – increasing from 1.0 percent in 2008 to 3.5 percent in 2014.”

Most players have launched triple-play packages combining telephone, Internet, and TV services, while bundles incorporating fixed and mobile broadband are also becoming a standard. “Although Pyramid expects that triple play’s share will decline to 66 percent in 2014 as households affected by the economic decline go for lower-priced bundles, bundling remains key for success,” says Boguszewska. “Affordable, budget bundles are likely to attract customers hit by the economic crisis; at the same time, high speeds and rich content remain important as competition intensifies,” she explains. “Mobile operators Orange and Vodafone are expected to enter the multiplay market following the anticipated LLU price drop by Romtelecom, and their entry will make fixed-mobile bundles standard and increase competition.”

Communications Markets in Romania is part of Pyramid Research’s Central and Eastern Europe Country Intelligence Report Series. Pyramid Research’s premium Country Intelligence Reports are the industry’s best available analysis on market trends, regulatory environments, and competitive dynamics for 60 countries worldwide.