Economic growth and greater buying power of the Romanian population are to impact on the income of telecom operators

“Romania is one of the markets with the lowest average revenue per user (ARPU) in Europe. I am convinced that, along with economic development and increased prosperity, funds allocated for communication services will increase accordingly in Romania,” Vodafone Romania’s CEO, Liliana Solomon, told Business Standard.

Vodafone Romania is the second-largest telecom operator on the local market, in terms of users, with 9.25 million clients.

The company’s ARPU is €10.3, with average telecom spending worth €21.1 for subscribers and €3.8 for prepaid users. ARPU in Hungary amounts to €18.8, in the Czech Republic €25.17, in Germany €17, and in Albania €14.5. The lowest ARPU in Europe is registered in Turkey, at €7.6.

“In Eastern Europe, Vodafone Romania has been the [group’s] engine of growth for several years.

Western European markets, which have reached maturity, have a lower growth rate compared to Eastern Europe, but Western European consumers have higher living standards, which impacts on the funds spent on communication services,” Solomon added.

The top two players on the local market, Orange Romania and Vodafone Romania, posted lower annual revenue growth in the March-June period, due to market consolidation, stronger competition, and the negative impact of several new regulations.

In the coming years, operators are expect growth opportunities from fields such as fixed and mobile data, mobile advertising, and mixed phone and internet offers.

Other mobile operators on the local market are Cosmote Romania, Zapp, and RCS&RDS.

Source: Business Standard