The difficult financial conditions have stressed the consolidation trend on the GSM retail market, especially in the second half of 2008, as small and medium-sized enterprises were acquired or forced to face difficult competition. The coming year brings no better news, as chains of up to 20 stores have little chance of survival, and large players can also be eyed for acquisitions.

Vodafone took over two GSM retail networks in 2008, Proton and Vegastel, while the Ged investment fund purchased the majority package of Plus GSM. Euro-GSM, a major player on the local GSM retail market, acquired the Kopiernicus GSM 15-store network in a transaction estimated by market players at €300,000.

“It is very likely to see some more acquisitions, but also bankruptcies, among players on the GSM retail market. It depends on their risk exposure and debt level,” said Dimitris Blatsios, General Manager of Germanos Telecom Romania.

Romtelecom laid off over 2,000 employees since the beginning of 2008, as part of its restructuring process. The company has also won the auction for the license to use the 410-415 and 420-425 MHz mobile communication frequencies.