'Broadband, pay-TV to drive growth in Romanian market'

Broadband and pay-TV are expected to become the major sources of growth in the Romanian telecommunications market during the next five years, according to a report by Pyramid Research. The research also suggests bundling remains key for success as competition intensifies. By the end of 2009, Romania is expected to become the fourth-largest CEE telecommunications market revenue-wise, after Russia, Poland, and the Czech Republic. Total telecommunications revenue is projected to grow to USD 7.6 billion by 2014 at a CAGR of 4.27 percent, above the average result for the CEE region, according to the report. Due to a strong uptake of fixed and mobile broadband, the mobile data market is forecast to be worth more than USD 0.8 billion in 2014 AcaeaEURoe an almost 80 percent increase in value from 2009.AeA 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. IPTV is the fastest-growing segment of the pay-TV market; its market share will almost triple in the 2008 to 2014 period AcaeaEURoe increasing from 1.0 percent in 2008 to 3.5 percent in 2014. In Romania, 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. Pyramid expects triple play's share will decline to 66 percent in 2014 as households affected by the economic decline will switch to lower-priced bundles. Even in these conditions, researchers expect bundling to remain a key for success. The report also mentions that mobile operators Orange and Vodafone are expected to enter the multiplay market following the anticipated LLU price drop by Romtelecom, whose entry, it is expected, will make fixed-mobile bundles standard and increase competition.

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