Romanian telecom operators are annually investing in infrastructure up to 10% of their revenue

EurowebUncategorizedRomanian telecom operators are annually investing in infrastructure up to 10% of their revenue

Jul

31

Romanian telecom operators are annually investing in infrastructure up to 10% of their revenue

  • The annual pace of infrastructure investments will increase in the coming years
  • Telecom service providers will need to work better together in an attempt to make savings
  • Euroweb will invest this year up to 12% of the revenue in infrastructure development

Bucharest, 31. July 2015 – The Infrastructure investments made by the Romanian telecom operators will increase in intensity in the next period, while the quality of the networks is now a priority, a strategic asset and a key differentiator in a market with a very high level of competition. Also the increasing pace of infrastructure investments generates a closer collaboration between telecom service providers in an attempt to make savings.

“The amount of money allocated by the telecom operators for improving their infrastructures reaches up to 10% of the annual revenue. But the high level of competition requires telecom companies to closer cooperate which, ultimately, could generate savings of 5% – 7%”, says Nazmi Bölük Çağlar, CEO of Euroweb Romania.

The infrastructure investments are primarily aimed at increasing the coverage, thus creating the possibility of providing new services to customers.

“The areas of greatest interest for telecom operators in the next period will be 4G, 4G+, data center and cloud. Especially when the Government approved at the beginning of last month the program for implementing the National Plan for Next Generation Network (NGN) Infrastructure Development. The program involves promoting the construction of high speed broadband networks with national coverage and widespread distribution points in agreement with the National Strategy on the Digital Agenda for Romania 2020. In line with European Union (EU) targets, the strategy aims for 30Mbps-plus broadband in all households and at least 50% of households with 100Mbps-plus connections by 2020”, mentions Nazmi Çağlar Bölük.

Along with the expansion of the network, new service categories will be launched, depending on the type of the operator and it’s portfolio. Thus, fixed telecom companies will invest in core network so that they can provide better TV services or high speed internet, increasing the capacity of their broadband network. On the other hand, over the next period, mobile operators will focus on 4G + or VoLTE (Voice over LTE) based services, so necessary in a market where the number of smartphone users has increased significantly in the last two years.

Euroweb plans for this year to improve infrastructure aims an investment of up to 12% of the revenue. Euroweb is among the few suppliers in the local market which holds four border cross points as part of its infrastructure. Euroweb national network covers 2,000 Km of optical fiber owned, leased, or IRU. Through Euroweb, the customers have access to the metropolitan networks in all major cities like Bucharest (1,000 km fiber-optic cables), Timisoara, Suceava, Brasov, Targu Mures, Sibiu, Constanta, Craiova, Ploiesti, Oradea, and Bacau.

“For this year we aim to increase our presence in most of these cities, depending on the opportunities that we will identify. We are interested in developing niche service platforms, IT internal back office systems and datacenter capabilities”, says Nazmi Çağlar Bölük.

About Euroweb

Euroweb Romania is one of the most important players in the Romanian telecommunications market. The company is specialised in providing IT&C dedicated business solutions to the B2B segment.

Euroweb currently has 80 employees and operational centers in Bucharest, Timisoara, Cluj-Napoca and Iasi, serving over 1,000 customers in segments such as financial and banking, services,  manufacturing and telecommunications.

Since 2010, the main shareholder of Euroweb Romania SA is TT International Holdings BV, part of Turk Telekom group which owns the largest telecommunications infrastructure in the region.