The authorities’ attitude is critical for telecom operators to make such investments, said Robert Redeleanu, CEO of the Romanian and Hungary subsidiaries of US Liberty Global (UPC).
“This is another type of digital transformation, we will not attain without investment. The necessary investments in Romania in the next 10 to 15 years are huge, and involvement of local and central authorities is critical,” Redeleanu said during a meeting with the media.
“The government must not only provide a favorable investment framework, but also be ready not to block a potential consolidation of the communications market by mergers or acquisitions.”
Investment cannot be stimulated in the absence of consistent public policies. What is needed is a positive, minimally regulated framework, to encourage investment. Consolidation may happen in Romania as on other markets, and it is very important that the regulation authorities be open to such deals, he added.
The statements of the UPC CEO come at a time when Europe has been talking for several years about plans of several telecom giants to join forces to create entities capable of withstanding competition from Amazon, Google, Netflix and Facebook. One of such deals could involve UPC and Vodafone and would also make an impact in Romania.
UPC invested EUR197 million in 2014-Q1, 2017 and the total economic impact thereof is estimated at EUR315 million, according to a survey by Oxera Consulting.
UPC directed this money into expanding network coverage and acquisitions, Robert Redeleanu said. All companies must continue expanding their networks so Romania could attain the goal set by the EU for 2025, i.e. every family to have access to 100 Mbps Internet connections, which can be upgraded to 1 Gbps.
“We’re probably talking billions of euros in investments here.”
The overnight Fiscal Code changes are a problem, because they weaken confidence in Romania as a market one can invest in, he added.
(English version by Loredana Fratila-Cristescu)