DCS estimates that cable service penetration in rural areas will not improve significantly this year and in 2012, but there will be interesting acquisition opportunities.
“As for Internet access services, the company estimates a slight increase by a few points of the penetration rate in rural areas by the end of this year. A similar but lower increase, of around 1%, is also expected for landline phone services,” says a DCS press release.
AKTA, the DCS division for individual consumers, has expanded this year and will continue to do so in counties like Timis, Arges, Ilfov, Vrancea and Ialomita.
“Telecom operators’ repositioned view of rural areas and other factors lead to higher investments in this sector, with significant development potential, especially as regards the Internet. Also, the public’s stronger need for information and education, as well as technological progress, will enable telecom services to resume their growth in such areas,” said DCS general manager Dinu Malacopol.
According to DCS, the current freeze in rural areas is caused by the economic crisis, overdue investments in infrastructure and production, layoffs in the public sector, as well as the lower income of non-active individuals (children’s allowance, pension, social aid).
“The current economic context maintains, even increases, the gap between urban and rural areas. At the moment, Internet penetration is about 20% in rural areas, compared to over 60% in urban areas, which makes Internet services an important growth engine for us in the next years,” said Malacopol.
Set up in 2005, through the merger of several cable companies, the DCS group provides telecommunication services countrywide, for both business and residential clients. The group’s portfolio includes the brands AKTA and Dial Telecom.