Telekom, one of the largest telecom operators on the Romanian market, complains about the fact that the profit generated by businesses in our country is far too small, despite the "record" economic growth. The complaints come from the voice of Srini Gopalan, a member of Deutsche Telekom's board of directors, stating that there are too many competitors on the Romanian market, and that is why the profit recorded is so low now.
Telekom is of the opinion that in the coming years the market in Romania will strengthen, but until then the investment capacity is quite limited due to the very low profit recorded by the operators. The Romanian market is not a colossal one, but with over 30 million customers of mobile telephony services, there is plenty of room for each "player", but Telekom has felt the most competition from Digi Mobil in recent years.
Telekom complains that the profit in Romania is too small
Telekom indirectly asks the authorities to reduce the number of mobile phone operators in the country, but at the same time not to demand very large amounts for the licenses on the basis of which the future 5G networks in our country will be created. Telekom demands the cheapening of the radio spectrum in Romania in order to obtain a higher profit based on the services it offers, but it is unlikely that the government will respond favorably, if it is not properly motivated for this.
"I think we will see a consolidation of the telecom market in Romania in the coming years. Because there are too many players on the market, the level of profitability is very low, and therefore the ability to reinvest is quite limited. Regardless of the fate of the Vodafone-UPC discussions, you have to assume that there will be a third player offering converged fixed-mobile services in Romania."
Telekom has lost millions of customers in recent years due to Digi Mobil's competition on the telecom market in our country, and Orange and Vodafone have proven to be far too strong competitors. The reality is that divisions of the largest telecom groups in the world operate on the Romanian market, and in this context it was normal for the profit to be low, especially since Digi Mobil "pulled down" perhaps with low prices for the services they offers.
