Romanian Telecom Market OverviewPresentation Zilele BIZ Bucharest, October 2004天马行空官方博客：http:/t.qq.com/tmxk_docin ；QQ:1318241189；QQ群：1755696321Document number2Document numberThe Romanian telecom market has steadily increased over the last five years with mobile telephony playing the leading roleSource: Roland Berger Strategy Consultants estimates and analysisMobile telephony Fixed telephony Internet and other data transmission services Evolution of the Romanian telecom market1) EUR mBreakdown of Romanian telecom market by segments, 2003 %CAGR = 8.5%Note: 1) Including fixed telephony services, mobile telephony services, Internet, data transmission and leased lines; excluding internal telecom services on own infrastructure of Teletrans and Telecomunicatii CFR 3Document numberSource: MCTI, ANRC, OTE, ITU, Roland Berger analysisThe fixed telecommunication infrastructure has developed constantly over the last yearsNote: E = EstimateDevelopment of the number of fixed telephone lines m and penetration rate %, 2000 2004CAGR = 3.3%4Document numberAfter a significant drop in 2003 the fixed telephony market is expected to slightly grow in 2004 mainly due to increased consumptionEvolution of fixed telephony market1) , 2000 2004 EUR mComments868903921825860 The 2003 drop of the market was mainly due to lower tariffs in real terms as compared to 2002, as well as shrinking interconnection and fixed to mobile tariffs Moreover new players emerging after the opening up of the fixed line market led to decreases in tariffs for international calls and subsequently long distance calls In spite of the 2004 soar in tariffs for local calls, Romtelecom is likely to decrease these tariffs once competition makes way in the local calls segment as wellNotes: 1) Including international private leased circuitsE = Estimate Source: ANRC, Roland Berger estimates and analysis5Document number6Document number7Document number8Document numberDue to the rapid development of the mobile communication in Romania, the penetration rate will exceed 39% by the end of 2004Growth in the number of users1) thou and the penetration rate %, 1998 2004 Source: ANRC, Roland Berger estimates and analysisNote: 1) Total number of users was calculated based on operators data regarding mobile phone end users, except for Zapp, which onlyprovided the number of clients and not the number of end users; E = EstimateCAGR = 54%9Document numberSource: MCTI, ANRC, OTE, ITU, Roland Berger analysisThe mobile telephony market has strongly increased in the last years and the trend is to continue in the futureNote: 1) Including all services offered by mobile operators; E = EstimateEvolution of the mobile telephony market1), 2000 2004 EUR mCAGR = 17.5%Comments Bolstered by continuous upsurge of the customer base the value of the mobile telephony market grew steadily over the last five years In 2003, the market average revenue per user (ARPU) has stabilized at approximately USD 165 170 similar to levels registered in 2002 As the additional users usually have lower ARPU levels than the existing customers, the operators started to foster sales of non-voice services thus increasing the added value10Document number11Document number12Document numberNumber of weekly Internet users (thou)Source: RNC, ISPs, Roland Berger Strategy Consultants estimates and analysis2000200120022003 ERomania registered one of the highest growth of the Internet penetration rate in the region in the last years+244%Comments The Internet access and data transmission, including also the leased business lines market is estimated at approximately EUR 67 m in 2003 The main growth driver will be the broadband connections as a larger number of companies are seeking for high quality and speed transmissions There is a clear trend towards having Internet access, data transmission and other additional services, as well as telephony on the same infrastructure199913Document numberThanks for your time !Anca Ioan, Managing PartnerAnca_Ioanro.rolandberger.com www.rolandberger.com14Document number