BUSINESS

Telecom market prices might go down

The second half of this year will bring with it the first signs of economic recovery on the telecom market, after a first half marked by a stabilized economic environment, holds Dinu Melacopol, CEO of Digital Cable Systems (DCS), one of the major players on the Romanian telecommunications market. According to a release to “Nine O’Clock”, the DCS top executive expects the Internet to continue developing, as Romanian market is far from being saturated in this respect. “Foreign investment resumption, a rebound in demand for goods and services, employment, towards recovery of the most affected economic sectors. The aforementioned are sure to lead to a greater need for communication and an increased appetite for entertainment, which in turn will bear a positive influence on the telecommunications sector,” Malacopol said. For 2011, the telecom operator aims to at least 10 per cent revenue growth of television services, on the back of digital television products mostly, and a rise of minimum 20 per cent in the number of Internet customers, along with a threefold increase of fixed telephony subscribers. This year, the RCD&RDS network expanded to Sighisoara by taking over a portion of the Teleson Company. UPC, the second-largest cable TV operator, acquired no company in 2010, while the Romtelecom-owned NextGen Communications cable television company, with over 160,000 subscribers of Internet, fixed telephony and cable TV, took over more than 10 enterprises last year, according to data reproduced by HOTNews.ro. However, the DCS official does not rule out services prices going even lower. Referring to the profit margins of telecom companies in 2011, Malacopol maintains that they are likely to stay in line with those in 2011, less so for those rare situation where companies manage to significantly cut fixed costs by means of strategic moves.

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