Cable-TV operator Romanian Cable Systems (RCS), the main company of the RCS group, comprised of other local cable-TV operators, as well, is planning to complete most of a nearly $100 million investment by the end of next year.
Alexandru Oprea, RCS Group CEO, says the investment is necessary to build a network to allow data, Internet, voice and image transmissions.
“We will fund the investment with our own resources, as well as with money from banks and international private and public investment funds, other investors, as well as from the international capital market,” Oprea specified.
Most of the funds will be directed to developing, upgrading and equipping already existing networks, as well as to expanding the national fibre optic network, under construction since Q2 last year.
The RCS Group companies are currently building hybrid fibre optics coaxial cable infrastructures in the cities where they operate.
“By the end of 2002, the national fibre optics network could be some 3,500km long, given that we will enlist Electrica Company’s support and understanding, with the entire network scheduled to reach 4,200km and link the major cities in Romania upon completion,” RCS CEO explained.
Under a partnership with Electrica, RCS has installed a section of nearly 1,000km of fibre optics using the high voltage (110 KV) poles. This section links Bucharest and Oradea, as well as Oradea and Timisoara through Arad, with 622Mbps in installed capacity. Most of the cables will be airborne, though the underground solution will also be used wherever possible.
“If Electrica wants to enter the telecommunications market, it would make a most interesting partner to RCS, as both parties could gain from their partnership.
Even if it decides not to enter the telecoms market, we can still work together as we do now and both parties will still be able to benefit from this cooperation,” Oprea added.
The intercity fibre optic network is also linked with the networks of two operators in Hungary and Slovakia, namely Matav and Pantel.
The company at the end of last year signed a similar contract with the representatives of the Government of the Republic of Moldova to build an intercity fibre optic network using the 110KV poles to cross the neighbouring country and integrate into the similar network in Romania.
RCS CEO feels that the direct investments in the Romanian economy may increase only if the legislation is completed, observed and stable and if the Government enforces fiscal relaxation and investment boosting measures. Mediafax