However, Orange is still considering whether to branch out in the direct-to-home (DTH) TV services market and has not made a decision, he added.
The really fierce competition on the TV service market in Romania, mainly among RCS&RDS, Romtelecom and UPC, will become even fiercer this year.
Orange, the number one of the mobile telephony market, decided to launch its own DTH service and is in talks with dealers throughout the country over the contractual terms to install equipment at its clients, several sources in the local communications industry told ZF.
“Orange decided to branch out into the TV market, that’s a sure thing. It is already negotiating with dealers throughout the country to install DTH receivers,” a source familiar with Orange’s actions told ZF.
“The decision to launch DTH services has been made. An analysis of the company showed its long-term position is vulnerable without TV services,” another sources in the local telecom industry said.
“They are now discussing the final details. Orange wants to test the TV market, wants to make sure it does not miss any opportunity on the Romanian market,” a TV service business insider told ZF about Orange’s plans.
On the other hand, Orange officials continue to say they are only looking into entering the TV service business without having made a decision yet. Asked by ZF in an interview on February 23, right after the announcement of the 2012 financial results, if it was true that Orange decided to launch TV services and started signing agreements with dealers throughout the country to install receivers, CEO Jean Francois Fallacher denied it.
“No, we have not signed contracts with dealers [to install TV services],” Fallacher answered, adding the company was considering the possibility and studying it but no decision had been made.
Romania has only three DTH providers (RCS&RDS’ Digi, Romtelecom’s Dolce and UPC’s Focus Sat) instead of five at some point. Romtelecom took over the customer base of Boom TV and AKTA Satelit a while ago.
Orange CEO also explained why Orange was looking at the TV service market and what consumer behavior trends were forcing the operator to look for ways to provide entertainment services to its users.
First of all, Fallacher said, more and more customers in Romania are using smartphones and tablets and the number of those who only use a phone to talk and send text messages is dwindling.
Orange is trying to meet demand of mobile entertainment services but will not create its own content and compete with Romtelecom and RCS&RDS, which did.
The introduction of TV services will turn Orange into a bigger competitor for RCS&RDS and Cosmote and Romtelecom, which provide the full range of services, i.e. landline and mobile telephony, cable and DTH TV and Internet.
(English version by Loredana Fratila-Cristescu)