Capital from the London financial market would help the operator enter the mobile phone market by launching its 3G service, according to the license it won in October 2006, awarded officially in January 2007, said industry sources. The company has already paid the first installment of the license price, worth $10.5 million (€7.65 million). Company officials forecast the official launch of the 3G service by the end of February 2007.
Catalin Marinescu, former President of the General Inspectorate for Communications and Information Technology (IGCTI), said that the investment necessary for the launch of this service would rise to some $200 million (€145.73 million). RCS&RDS must ensure a 50 percent population coverage before 30 June 2008.
Orange and Vodafone, current operators offering 3G services on the Romanian market, have a total 400,000 subscribers of this type of service. Orange invested €22 million in the 3G launch last summer. Zapp officials told Business Standard they would invest €37 million in their 3G license. Ovidiu Ghiman, Commercial Manager and Ionut Tarcea, Marketing Manager of RCS&RDS said they are unable to provide further information in the absence of General Manager Alexandru Oprea.
In August, the operator's shareholders will discuss the issuance of GDRs limited to 15 percent of the company's shares, and a RON 7.7 million (€2.45 million) increase in capital, up to RON 49.99 million (€15.93 million), according to Romania's Official Gazette. The company will also issue 77.935 million shares with a nominal value of 0.1 RON/share (€0.03).
