“Telecommunications are a necessity. We may feel pressure on margins, from consumers, and because Romania is one of the countries with the lowest ARPU [average revenue per user], this will be difficult. Some could not be able to afford a landline phone subscription. They will choose other ways of communicating," Ioannidis told Business Standard. Romtelecom's General Manager said that the current economic crisis could last for a few years, and will peak at the end of 2009 or the beginning of 2010. But the evolution and severity of the crisis will also depend on the reaction of the authorities. The crisis is an opportunity for companies with cash resources and the capacity to attract talent, according to Ioannidis. He added that the domestic market, which had an estimated 17 percent growth rate in 2008, will keep rising in 2009, and in the coming two years. “The market will continue to increase, people will save on other activities, on Saturday night outings or on money spent on luxury clothing or expensive cars, but the telecom sector will be less affected," Ioannidis added. Romtelecom's investment plans for the immediate future will likewise not be affected. The company, controlled by the Greek OTE group, registered a 2.1 percent annual rise in revenues in the third quarter of 2008, to €214 million, and an operating profit worth €1.7 mln, down 77 percent year-on-year. The phone operator continues to target an intensive increase in the data segment, where company revenues surged 53 percent in Q3. (D.B.)
