Romtelecom reaches full ownership of New Com

Romtelecom has recently signed the acquisition of New Com Telecomunicatii, a company based in Cluj. The value of the deal and number of subscribers that the national operator gained through the acquisition were not made public. However, an independent report carried out in October last year evaluated New Com’s networks at 26,000 clients and USD 9 million.

The transaction was made through NextGen Communications, a TV cable, telephony and internet provider that is fully owned by Romtelecom. In March 2009, New Com sold a portfolio of 30,000 customers to NextGen Communications. Several months later, it sold another 30,000 clients to RCS&RDS in a transaction that was estimated at that time to be worth EUR 5 million.

New Com Telecomunicatii was founded in 2007 in Cluj. The shareholders of the company were investment firm Capital Partners and two other investment funds.

Romtelecom is competing on this market with UPC and RCS & RDS, which has reached 1.1 million customers for landline internet services, following an aggressive acquisition policy of expanding its customer base. Additionally, the context is favorable to larger, liquidity-rich players as many small companies no longer have the necessary cash flow to sustain their operations and are forced to sell up.

According to Romtelecom representatives, the company has a 30 percent market share on both broadband and satellite television. The firm’s business strategy is to expand access to broadband internet services based on technologies xDSL, CDMA and FTTH, FTTB, including by developing the optic fiber network, according to its representatives. It plans to continue to stimulate internet use by including hardware equipment, such as PC, laptops, multifunctional equipment, in the package with broadband connections. It also aims to reduce internet and TV prices by promoting 3P services, as well as regional offers.

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Romtelecom launched IPTV services in December 2009 in ten cities in Romania. At the moment, four HD channels are available through the IPTV platform Dolce Interactiv: Sport.ro HD, TVR HD, Pro TV HD and HBO HD.

Otilia Haraga