The budget capex of Digital Cable Systems (DCS) in 2011 is around EUR 10 million that will be injected into the development of the services and the network, as well as acquisitions, depending on the opportunities, according to Dinu Malacopol, CEO of DCS.
This year DCS aims to increase its revenues by at least 10 percent for television services, which will be due mainly to digital television products, a growth in internet revenues and clients by 20 percent at least but also a threefold growth of the current number of clients for fixed telephony.
Views on the telecommunications market
The second half of next year will bring the first signs of recovery for the market of telecommunications, says Malacopol.
“The telecommunications market is relatively robust and in this sense less affected than other domains by the economic turmoil of the last 2 years. A re-start of the growth will happen probably some time in the second half of the year. This is because in the first part we will need to stabilize the economic environment and adjusting to all the measures implemented and all the actions of 2010. Of course, there are other conditions necessary for this to happen, which have to do with the application of economic measures, the evolution of the currency exchange and why not, how long the cold season will last,” said Malacopol.
Malacopol expects internet to continue its development, since the Romanian market is not yet saturated. Digital television services are another sector that will have a positive evolution.
“The main factors that can positively influence the market evolution are the re-start of foreign investments, demand in goods and services, employments for the recovery of the most affected economic sectors. These will certainly lead to a more important need for communication and a bigger appetite for entertainment, consequently they will influence positively the sector of telecommunications,” said Dinu Malacopol, CEO of DCS.
The winning strategy over the past two years on the telecom market has been consolidations and partnerships, since by lowering fixed costs per client and offering as many services as possible, telecom operators could compete efficiently. This trend will also continue, between 2011-2012.
Profit margins of telecom players in 2011 will remain in line with those of last year. The occurrences when companies will manage to reduce their fixed costs significantly are rare.
Malacopol also did not exclude the possibility that prices may decrease further on the telecom market, but this will depend on the evolution of technology and reducing the costs for offering these services.