Romtelecom pushes for growth on Internet access segment

On Monday, Romtelecom launched two Internet offers including the provision of a computer or laptop in the rate, while the free period for new subscribers was extended to six months, in a bid to hit the ambitious target of 70,000 customers within just 3 months.
In 2006, Romtelecom attracted 90,000 customers to its ClickNet Internet access service.
Faced with strong competition on the segments of fixed telephony and Internet access services from RCS&RDS and UPC and more recently from Vodafone and Orange, Romtelecom has set the tone of the market after a change in management this year by operating significant price cuts, and responding to rivals’ moves by matching their offers.
One such examples is the 50% of the rates for Internet access services in May and the introduction of unlimited call plans in its own network or to any fixed network, then response to an offer available from UPC.
Romtelecom is the first operator on the domestic market to carry out a nationwide promotion by bundling a new computer with Internet access services. The computers offered by Romtelecom are only available for 3-year Internet subscribers.
The desktop computer, provided by Flamingo (with a 17-inch screen) is available for ClickNet subscriptions offering a speed of 3 Mbps for a 20 euros/month (excluding VAT), 7.5 euros higher than the rate charged exclusively for web access. Therefore, within 3 years, the price paid in instalments for the computer stands at 321 euros (including VAT).
The Fujitsu Siemens-branded laptop is available for ClickNet subscriptions with a speed of 6 Mbps, with a monthly rate of 39 euros (excluding VAT), 14.5 euros more than the price of a normal ClickNet subscription. After 3 years, the additional price paid for the laptop stands at 621 euros (VAT included).
Practically, Romtelecom finances the acquisition of a PC for its customers, with the payment divided into 36 monthly instalments.
“This is a first initiative in a broader strategy that addresses the specific needs of small and medium-sized companies. (…),” George Makowski, executive commercial manager in charge of the business segment of Romtelecom, told ZF.
The company announced it had also extended the free period for new ClickNet customers. Customers who opt for a one-year subscription will not have to pay anything for 3 months, while those with a 3-year subscription will not pay for 6 months.
The domestic Internet access services market was estimated at 155m euros last year. The market leader is RCS&RDS, followed by Romtelecom and UPC.