Romtelecom continues to invest in broadband Internet

Romtelecom, the largest telecommunications operator in Romania has more than 70,000 customers for its ADSL (Asymmetric Digital Subscriber Line) broadband Internet services at the moment, Pieter Bakker, chief commercial officer of Romtelecom told ZIARUL FINANCIAR.
He added Romtelecom maintained its previous estimate about 150,000 customers for its ADSL services by the end of the year. “Since we are planning a great deal of promotion campaigns for the upcoming period, I believe we will attain this figure,” Bakker added.
The operator concluded last year with 12,000 ADSL customers, 2,000 more than initially set for the end of 2005.
Romtelecom also has approximately 100,000 customers for dialup services at the moment, and these are the users of the ClickNet Start service alone, Romtelecom officials say.
“The share of the revenues generated by the ADSL customers in the total Internet revenues for 2006 amounts to 50%. With the increase in demand for broadband services, we estimate it will grow,” Bakker added.
Out of the total ADSL revenues, 50% are generated by corporate clients of Romtelecom, with corporate clients also generating 15% of the revenues derived from dialup services.
“We expect 40% of the revenues generated by the ADSL (services) to come from the business segment in the future and 60% from the residential client segment,” Bakker said.
He added that the broadband use would rapidly increase in Romania as it is happening worldwide. With a growth rate of 40-50% from year to year, broadband will consolidate its position in the communications industry in the coming years, Bakker said.
Rural areas are not one of the main targets of Romtelecom’s Internet division at the moment.
“As the technology evolves and becomes more affordable, Romtelecom will consider these areas, too. Romtelecom has installed more than 50 Mini-DSLAMs (a special piece of equipment used to provide ADSL services) in rural areas with potential for such demand and will continue to cover other areas where there is an interest,” Bakker stated.
Romtelecom’s Internet division made 14.8 million-euro revenues last year. The Internet access services market amounted to 104 million dollars (81 million euros) in 2005, according to a market survey by IDC, quoted by Romtelecom.