Foreign currency exchange rate’s sways will affect Romtelecom, biggest landline operator, due to major expenses expressed in euro, company representatives stated.

“Companies in telecommunication segment are likely to feel the least the effects of a melting national currency. It is possible that on a short term the growth of incomes will outrank the decline of processed calls,” said Viorel Cernea, consultant at Ensight Management Consulting.

Telecommunication services companies will be downturned at different extents, given the products portfolio and their orientation into providing quality services to clients.

“For instance, many Romanians simultaneously use services of several landline and mobile operators. Growth of prices will lead to discrimination between players. If the leu’s decline continues we will see broad-band sways in the clients’ database of operators,” Basarab Gogoneata, consultant at A.T Kearney Management Consulting
opined.

He added there is a proper time for operators to launch new products reset to communication needs of different types of users; this is why he forecasts a broadening of operators’ products and service pool.

Considering that in telecommunication field, tariffs are expressed in euros, the operators are not likely to be much affected by the currency exchange rates, only if the number of calls drops.

According to online IT&C retailer, PCfun, the growth of euro against leu soared products’ prices by 10%.

Translated and adapted by Camelia Oancea.