This report covers the market developments in H1/2014 and the data available as of December 2014.

The statistical indicators on the Romanian telecom sector’s performance in H1/2014 show that the market remains dynamic and that despite deterrents such as MTR cuts and tight price competition, which continued denting into the players’ revenues, there is still enough room for growth, particularly on the internet segment.

Mobile telephony continued to record increase of traffic this year, while the customer base shrank, though the decrease slowed down. The rise of traffic however fails to reflect in higher revenues of mobile operators on the segment, as prices are affected by tight competition. According to the latest statistical data (released by the telecom regulator in December 2014), mobile telephony service revenues dropped by 6.2% y/y in 2013, thus driving downwards the full-year performance of the entire telecom market.

On the upside, the internet service revenues surged by 16.9% y/y in 2013, propped by the cheering 32% y/y hike of the mobile segment, and prospects for the future are optimistic. In H1/2014, fixed and mobile broadband internet connections maintained y/y increase, with the mobile segment recording the most accelerated pace- up by 28.7% y/y over the period.

Bundled services also kept dynamic y/y performance in H1/2014, with the number of users more than double compared to end-December 2011, reflecting the customer’s preference towards several telecom services purchased together, at a more convenient price.

Key points:
• Mobile telephony traffic maintains y/y positive performance in H1/2014, number of active users continues shrinking
• Mobile broadband connections surge 28.7% y/y in H1/2014
• Pay TV segment reports y/y improvement of customer number, penetration rate in H1/2014
• Retail sales of telecom equipment record dynamic increase in Jan-Sep 2014, propped by higher smartphone sales
• Telekom targets to become Romania’s largest integrated operator in 2015
• RCS&RDS to acquire all CME’s radio licences in Romania
• Two international IT groups to start operations in Romania, employing 4,500 in total