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Telekom Romania announces the merger of all its mobile entities under Telekom Romania Mobile Communications SA

By Jerom Bolt
Telekom Romania group announces the merger of all its mobile entities into one, with the aim to concentrate the entire mobile telephony operations of Germanos Telecom Romania SA, Sunlight Romania Filiala Bucuresti SRL and Telemobil SA, as absorbed companies, under Telekom Romania Mobile Communications SA, as absorbing company. The merger of the mobile operations of Telekom Romania group is effective starting with December 1, 2017. Telekom Romania Mobile Communications SA will maintain its main field of activity.
“The merger of our mobile operations is an important step in the transformation program initiated this year, in line with our strategy to consolidate our position on the local telecom market. The merger will lead to a leaner and more efficient structure, and also to a more efficient use of resources, contributing to support the execution of our new commercial strategy, as well as to the consolidation of Telekom brand on the market. Also, through this merger we aim to provide our customer a consistent experience of the Telekom brand – simple, personal and digital, through all touch points and points of presence”, said Miroslav Majoros, CEO Telekom Romania.
The merger does not involve any discontinuation or significant changes of the services for the customers.
As an effect of the merger the employees of the absorbed companies have been transferred starting with December 1, 2017 to the absorbing company, Telekom Romania Mobile Communications SA, while preserving the same labor contract provisions and the same rights and benefits.
Telekom Romania is a dynamic brand, offering fixed and mobile innovative communication services to a broad customer community, using approximately 10 million services.
Our solutions open a world of infinite opportunities to share the beauty of life together with our families, friends, partners, colleagues and citizens around us. Our mission is to enrich people’s lives, by offering them fixed and mobile integrated services, latest technologies like 4G, optical fibre, as well as Internet TV which brings users a new entertainment experience, with access to exclusive and quality content, on all screens, and advanced interactive features. Telekom Romania is the trusted partner for companies, providing them with complete communications and IT&C solutions. Our network is bringing together people, machines and content, connecting them for a better, safer, simpler future.
Telekom Romania is present in the Romanian market since 2014, after the joint rebranding of Romtelecom and COSMOTE Romania.
Telekom is a brand pertaining to Deutsche Telekom, one of the world’s leading integrated telecommunications companies. (rbj/04.12.2017)

Digi Communications buys the Hungarian telecom operator Tavkozlesi

By Emea Riga

Digi Communications is one of the leading providers of telecommunication services in Romania and Hungary. The company is registered in the Netherlands through which businessman Zoltan Teszari controls the RCS & RDS holding, which owns the largest cable TV network in Romania and the fourth mobile phone company, Digi Mobil.

The sale and purchase contract was signed with Ilford Holding and Invitel Technocom Tavkozlesi, companies controlled by the China Central and Eastern Europe Investment Co-operation Fund, managed by Luxembourg Investment Solutions, thus taking over 99.9% of Invitel Tavkozlesi. Invitech Solutions, the company in the Invitel group that provides telecommunications services to customers in the business segment, is not included in the transaction. The company taken over by Digi is part of the Invitel Group and is one of the key operators on the Hungarian telecoms market, running business for over 20 years. It has a portfolio of resellers and small business and provides multimedia and entertainment services such as digital TV and interactive HD, fast internet, fixed telephony. It is the second largest Hungarian fixed and fixed telecoms operator in terms of residential and small business segment.

’We are excited about the opportunity to develop our business in Hungary by acquiring the Invitel's residential telecommunication services division for residential customers, this strategic transaction allowing us to increase our coverage significantly." Recent invitations development decisions are in line with the strategy Based on the latest generation of fiber optic fiber networks. After completing the transaction, we intend to move ahead with Invitel's fiber optic network development plans to continue delivering high-performance electronic communications services to our customers in Hungary. At the same time, we express our gratitude both for the Invitel and China-CEE Equity team for their support for the successful conclusion of this transaction, as well as the enthusiasm for future collaborations that we will have, ‘said Sergei Bulgac, CEO of Digi Communications.

Last year, the company in Hungary had a turnover of about 85 million euros and a profit of 23.2 million euros. Teszari's company hopes the deal will consolidate Digi HU's and Digi Communications's position on the Hungarian telecoms market. Completion of the transaction is currently scheduled for March 14, 2018.

Last year, Digi operations in Romania generated revenue of 612.7 million euros, or 72.7% of total revenues, and businesses in Hungary generated 137.9 million euros (16.4% of revenues). At the end of last year, the group controlled by Zoltan Teszari had a total of about 12.4 million customers on the markets where it operates, of which cable television services - about 3.3 million, Internet and fixed data - almost 2.5 Millions, mobile telecommunication services - about 3.9 million, fixed telephony services - about 1.7 million and DTH television services - about 0.9 million.

In Romania, in December 2016, RCS & RDS had about 2.9 million customers for cable television services, and in Hungary approximately 473,000 customers. (rbj/23.0-7.2017)

Telekom Romania extended data traffic available with its new mobile service subscriptions

By rbj

Telekom Romania announces a new portfolio of mobile service subscriptions for residential customers, which include even more national data traffic at 4G speeds.

“With the new mobile service price plans launched today we are making an important step forward within our #Netliberare platform, through which we want to bring the Internet closer to users. This promise we’ve made to our customers starting last month is reflected in our advantageous offers, with more value and extended benefits, so that they can make the most of best quality content and entertainment, anytime and anywhere, on all screens”, said Frantisek Mala, Chief Commercial Officer, Residential Segment, Telekom Romania.

The new Telekom voice and data price plans - Mobil 7 without handset, Mobil 10, Mobil 13, Mobil 13 without handset, Mobil 17 and Mobil 25, with prices ranging from 7 euros / month to 25 euros / month (VAT included), offer customers 4G national data traffic of up to 6.5 GB, unlimited minutes to any national network, minutes and SMSs to international fixed networks and up to 600 minutes of calls to international mobile networks. For customers who also own Telekom fixed services, the new mobile voice and data subscriptions are available at special rates starting from 5 euros per month (VAT included) and offer double monthly data traffic, of up to 13 GB, at 4G speeds, included in the mobile service subscription.

Also, with the new mobile service subscriptions, customers who port their number to Telekom Romania networks, as well as Telekom Mobile Communication customers who switch from prepaid to contract benefit from double national data traffic at 4G speeds, included in the subscription. In addition, all customers who opt for one of Telekom new mobile service subscriptions benefit from 50 GB of data traffic for video streaming in the Telekom TV mobile app, in addition to the data traffic included in the tariff plan. With the Telekom TV mobile app, customers will enjoy TV directly on their smartphone and will be able to watch the most important sports competitions broadcasted exclusively by Telekom, their favourite movies and documentaries.

Users can now opt for a top smartphone that can be purchased in instalments starting from 25 lei / month, without down payment: Samsung Galaxy J3 2016, which can be purchased in monthly instalments of 25 lei, Samsung Galaxy J5 2016, with instalments of 30 lei / month and Samsung Galaxy J7 2016 with instalments of 35 lei / month, together with Mobil 7 without handset or Mobil 13 without handset price plans. Also, users can benefit from handsets at special prices, together with a new mobile service contract: Huawei Y5 II at 1 leu and Samsung Galaxy J3 2016 at 49 lei, together with Mobil 13 subscription, at 13 euros / month (VAT included). Also, starting today, Telekom Romania introduces a new mobile data portfolio, for Internet access on laptop and tablet - Net Mobil 6, Net Mobil 9 and Net Mobil 11. The new price plans include national data traffic at 4G speeds of up to 12 GB / month, at tariffs from 6 to 11 euros / month (VAT included). For customers who also own Telekom fixed services, the new mobile data subscriptions are available at special tariffs, starting from 5 euros / month (VAT included).

With the new offer, users can purchase tablets in instalments, without down payment: Lenovo TB3-730X 16GB LTE in monthly instalments of 19 lei and Samsung Galaxy Tab A7 in monthly instalments of 32 lei, together with Net Mobil 6 and Net Mobil 11 price plans. Moreover, they can benefit from the Connect E3372h modem at 1 leu, together with Net Mobil 9, on 2-year contracts. (rbj/10.05.2017)

hub:raum and Nokia launch program for start-ups in the communications industry

By rbj

Two global leaders in integrated telecommunications and future technologies invite start-ups from across Europe to a new program: WARP Future Communication. The program aims at developing innovative communication services which make the lives of Deutsche Telekom’s and Nokia’s customers easier. By participating, start-ups gain the opportunity to accelerate their business and go to market with strong corporate partners within just a few months.

WARP Future Communication is designed for startups that can bring innovation to communication services and related areas such as speech recognition, parental control, artificial intelligence (AI), voice based messaging, digital life and generally enrich the voice and video communication experience. The program provides the start-ups with all the tools and resources needed to develop, scale and commercialize their service from both a technical and business perspective. WARP Future Communication offers a “triangle of power” which stems from the co-operation of Nokia, which offers the technical platform, Deutsche Telekom, which offers the distribution channel and via hub:raum provides the know-how and tools necessary to build, test, scale and commercialise the products.

Interested start-ups can apply at before 30th of April, 2017. The program will consist of onsite meetings, remote work (during which start-ups will receive individual help and support from business partners) and a summit at the end of the year. The expectations of the program founders are that by the end of the program 2-3 innovative solutions will be ready for a fast go to market. The start-up teams selected for the program will participate for free with no equity required and they will keep their own intellectual property.

It will be desired that the services developed would work on platforms delivered by Deutsche Telekom and Nokia. Start-ups selected for the program will receive support from the engineers who will help to transfer and activate the solutions on the desired platform. Further information, materials and webinars regarding chosen platforms will be available on the program’s website:

“We believe that challenges we face every day require the setting up of cross industry partnerships which focus on co-acceleration, give access to new expertise and technology leading to new use cases being developed. Joint and open innovation together with successful industry partners can successfully leverage corporate efforts to meet customer needs and requirements much better. This is why WARP Future Communication is so unique – it gives start-ups the opportunity to go to market fast with the support of two big corporations – Deutsche Telekom and Nokia” – explained Jakub Probola, Head of hub:raum for CEE region.

“Our business today is not just focused on meeting extraordinary technological demands, but also on how technology is deployed and used. At Nokia, we assist our customers in identifying compelling use cases for new revenue streams in addition to enabling the rapid on-boarding of new applications and services, scalability and operational efficiency. We are excited to team up with hub:raum in this start-up acceleration program right at the forefront of innovative service creation” – said Susanne Fettig, Head of Global Customer Business Team Deutsche Telekom, at Nokia. (rbj/14.03.2017)

Telekom Romania announces stable financial performance in Q4 2016

Telekom Romania group of companies: • Consolidated revenues for full year 2016 of EUR 984.7mln; • Adjusted EBITDA of EUR 175.2mln for entire 2016; • Approx. 10 million subscribers

By rbj

Telekom Romania Communications and Telekom Romania Mobile Communications announce key performance indicators in fourth quarter 2016, ended December 31, 2016, as reported today by OTE Group.

“In 2016, we continued to focus on our key-objectives: growth on MagentaONE convergent segment and TV services, as well as offering attractive mobile services. Wholesale segment positively contributed to the results. In terms of high-end network coverage, our customers benefit from increased coverage of 4G services of 97.43% in urban population. For the fixed segment, we exceeded our target of 2 million household FTTx footprint, as set for 2016. In 2017, we’ll continue focusing on generating more value to our stakeholders, our customers and shareholders, as well as consolidating our position on all segments of the local market”, said Miroslav Majoros, Chief Executive Officer, Telekom Romania operations.

Telekom Romania Communications

Full year results 2016 show stable revenues, with smaller EBITDA, but positive performance on integrated fixed-mobile bundles segment, TV and wholesale. 12 months revenues stood at EUR 602.5mln, up 0.14% against full year 2015. Quarter to quarter, revenues reached EUR 166.8mln increasing by 4.9% compared to Q4 2015, and the highest growth compared to the other quarters. The value of Adjusted EBITDA reported for Q4 2016 was of EUR 28.3mln down by 20.5% versus Q4 2015. For the entire year 2016, Adjusted EBITDA was EUR 93.5mln compared to EUR 118.4mln in 2015, down by 21%, as positive results reported for Q3 2016 couldn’t compensate the value reported at 12 months. Operating Expenses, excluding depreciation, amortization, charges related to voluntary retirement programs and restructuring, as well as RONET costs, increased by 3.96% for entire 2016 compared previous year, following higher direct costs related to customers, but also higher indirect costs, mainly in the area of network rent and customer care.MagentaONE customers’ growth rate stood at 64%, reaching over 370 thousands as of December 31st 2016, while revenues were up 63.8% for the same period.

TV customers grew by 0.8% yoy, reaching 1.464 thousands at the end of 2016, with corresponding revenues up by 4% in Q4 2016 compared to Q4 2015.TV services of HoReCa segment maintained their positive trend and increased by 9% in terms of revenues compared to the same period last year. Telekom Romania offers the highest number of HD channels and exclusive football content (UEFA Champions League, UEFA Europe League), while Telekom TV Web&Mobile offers the highest number of OTT channels in the Romanian market (up to 115). Interactive Television (IPTV) offers the best TV experience in the market through interactive features such as Catch-up TV, Cloud recordings, Video on Demand, to which were added new features such as Pause Live TV & Startover TV.

On the business side, Telekom Romania maintained the leading position for Managed Virtual Private Networks, Fixed Internet and Cloud IaaS in B2B segment, with increased revenues by 3.7% compared to last year. During 2016, the migration of ISDN services to IMS SIP Trunk modern technology continued, offering premium service level agreement to the customers. Moreover, Telekom extended the number of installed access points (AP) for Managed WiFi product dedicated to B2B, which offers wireless routers, smart gateways and access points, while focusing on sales of several cloud services, including Smart Office, Unified Communication, Smart Bill, Smart POS. In addition, the pilot project in Bucharest for the implementation of Smart City solutions available at Group level increased the presence of Telekom Romania Communications in all areas of operating ICT solutions. Telekom Romania Communications wholesale revenues increased by 10% in 2016, to EUR 113.1mln, compared to the same period of 2015. Fixed and mobile RGUs were 4.8 million at the end of 2016, down by 0.7% compared to the same period of last year.

Telekom Romania Mobile Communications

Telekom Romania Mobile Communications registered total revenues of EUR 121.9mln in Q4 2016, up by 0.7% compared to the same period of last year, while service revenues decreased by 6.9%, to EUR 73.8mln in Q4 2016. At 12 months, the total revenues increased by 4.2%, to EUR 457.1mln. In Q4 2016, compared to Q4 2015, Telekom Romania Mobile’s total customer base decreased by 7.1%, to 5.3 million, out of which 30.5% are post-paid customers. The total number of business customers grew by 6.3% compared to Q4 2015, reflecting the company’s targeted offers for professional users and synergies created following its rebranding, together with Telekom Romania Communications, under the Telekom brand. (rbj/02.03.2017)

The Romanian Business Journal
Constantin Radut
Editor in Chief
031726 Bucharest, Romania

+40 725 511 887