Zapp seizes deregulation opportunity

Zapp is taking advantage of the communications market deregulation in Romania, by trying to snatch some of RomTelecom’s business clients for data transmission services.
“The market deregulation allows us to provide not only mobile communications but also fixed line services in the entire country,” Cuneyt Turktan, Zapp’s President told Ziarul Financiar.
The services will be launched this year and will be available for business clients only, at first. They might be provided to individuals later.
“We will focus on high-speed data transmission via fixed lines at first and then we will offer voice services, as well, international calls included,” Turktan says.
The companies interested in the new offer will be able to use Zapp’s equipment to send data or faxes, as well as to make national or international calls.
Zapp does not have a local loop so that it will use RomTelecom’s infrastructure.
What is Zapp’s card up the sleeve in this strategy? The price. Its officials say that any company using a Zapp integrated service provided via fixed lines will pay less than the fees charged by RomTelecom for the same service. More on the various charges will be available as soon as the new services are launched.
Still, before starting to offer fixed line services, Zapp is getting ready to launch mobile banking. The company has already concluded partnerships with several banks on the Romanian market. This service will make it possible for Zapp users to check their own bank accounts by using their own mobile phones and the broadband Internet connection at any time.
Although Zapp’s financial results will be released in about a week, Turktan says 2002 was beyond expectations. At least in terns of revenues and number of customers. Zapp had come to total 70,000 customers by the end of last year, that is 10,000 more than initially scheduled. The 2003 goal is “to have 200,000 subscribers,” the official says. Out of Zapp’s total clients 85% are companies and 15% are individuals.