“At this point, the European markets are in various development stages. The profit margins will erode as the Romanian market grows,” says Moat.
The top companies on the Romanian telecom market, Orange and Vodafone, posted net profit margins of some 30 percent and 23 percent in 2007. Moat said operators will have to find alternative revenues sources to make up for the continuous erosion of prices. “We have a strong focus on mobile data services and we are talking about further investments in our data network,” said Moat.
Orange, largest operator on the Romanian market, expects turnover worth €1.3 billion in 2008 and some 10.7 million clients. The company plans to provide TV distribution services as of 2009 and is considering the possibility of a partnership to enter this market.
