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The operator signed a preliminary agreement with the government on Monday to take over the fixed -line operations of incumbent Telekom Romania
The Romanian telecoms market is beginning to consolidate, driving up competition across its various markets.
In 2019, Romania’s largest mobile operator, Vodafone Romania, acquired fixed-line operator UPC Romania, leaving Vodafone a major force in both the country’s mobile and fixed markets.
Now, Orange Romania has struck a convergent deal of its own, having signed a preliminary agreement with the government on Monday to take over Telekom Romania’s fixed-line operations. The assets acquired will be used to create a new entity in which the Romanian government will retain a 20% stake.
As a result of the deal, Orange will take on Telekom Romania’s 13% subscriber share in the fixed-line market, presenting the operator with a range of multi-play opportunities.
The operator said that such convergence will allow it to reduce churn rates, increase ARPU, and increase the amount of services available to each household.
Further market consolidation could be on the cards for the Romanian telecoms industry, with DIGI communications, the nation’s largest fixed-line operator, rumoured to be in talks to acquire Telekom Romania’s mobile operations. DIGI has shown interest in such a move for over a year.
When it comes to mobile, Orange Romania holds 33% of the market, just behind Vodafone’s 37%, and switched on 5G back in November last year.
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