RCS&RDS engaged in all-out war with UPC

The TV services tariffs could reach an all-time low this year given that the pricing war which the local giants RCS&RDS, Romtelecom and UPC are waging over clients has become fiercer, amid a shrinking economy, which saw the consumers’ purchasing power decline markedly.

The latest move in this regard comes from market leader RCS&RDS, which launched very aggressive offers in various areas of the country, targeting their rivals at UPC. To persuade UPC’s clients to switch sides, RCS offers free cable TV services until the expiration of the contract with the rivals plus three more free months. To be able to cope with the attack, UPC cut prices to an all-time low of 18 RON/month, with 40 to 45 TV channels included, fewer than RCS and Romtelecom.

Price erosion is the result of the fierce battle of the three giants, which control over 80% of the cable and satellite TV clients. RCS has 2.7 million clients, UPC – 1.2 million, while Romtelecom is getting close to 1 million. With an average revenue of five euros per month, one of the lowest in Europe, the TV services market in Romania stands at less than 400 million euros a year.