December 27, 2006

“From many viewpoints, the year 2006 is a key moment as regards the electronic communications sector. First, we speak about the year prior to Romania’s integration in the European Union and therefore it may be regarded as a moment for drawing conclusions, for making an “X-ray” of the communications market by the time of accession, in order to emphasize the risks or business opportunities on the common internal market, as well as to learn the expectations of the European Commission from Romania’s part and the features of the European technological environment”, Dan Georgescu, President of ANRC, declared today.

Competition in the electronic communications market continued its development in 2006 as well, it is increasingly intense and may be acknowledged considering the significant increase of the fixed telephony, the mobile telephony, as well as the broadband Internet access services. Major changes in this field in 2007 are not to be expected, since Romanian communications are already compatible with those in the European Union.

In 2006 were adopted two essential measures aimed at strengthening competition in the Romanian electronic communications market: cost-orientation of the tariffs for the interconnection with the mobile networks of Orange Romania and Vodafone Romania, the two main mobile operators having significant power in the market, and the regulation of the fixed and mobile numbers portability.

Improving the access conditions to the local loop of Romtelecom, together with revising the regime of the interconnection with the network of this operator, these two measures are in line with ANRC’s measures dedicated to the improvement of the regulatory framework in view of stimulating the development of competition in the market.

Also, in the second half of this year, the alternative operators benefited from a service rendered operational by ANRC, that has played an important role in the development of competition in the electronic communications markets of the European states: carrier pre/selection, namely the possibility of Romtelecom subscribers to choose that their calls are taken over and conveyed to the destination by another provider of fixed telephony services, interconnected with the network of Romtelecom.

“Broadband Internet is the leader of the electronic communications market, with one of the highest growth rates in Europe. By mid-2006, the number of broadband connections exceeded 1,100,000, compared to only 751,000 connections by the end of 2005, representing a 60% increase, while the broadband penetration rate reached 5.5%. As for 2007, we estimate a broadband penetration rate of 10%”, Dan Georgescu added.

In view of ensuring the access of less favoured categories to communications services, ANRC continued in 2006 the implementation of universal services, by focusing on the installation of telecentres by means of which telephony and Internet access services become available in remote, isolated rural areas.

As regards the market of postal services, in 2006, ANRC focused on implementing the quality standards imposed on the universal service providers.

ANRC’s efforts will continue to target the update of the regulatory framework, at the same degree and by the same pace as at a European level, since Romania has already contributed to the consultations launched by the European Commission in view of revising the regulatory framework in the field of electronic communications.