Romtelecom
Encyclopedia
Romtelecom is the largest telecommunications company in Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...

; the majority of shares are held by the Greek telecommunications company OTE
OTE
Hellenic Telecommunications Organization S.A. , usually known by its Greek initials OTE, is the dominant telecommunications provider in Greece. Formerly a state-owned monopoly, OTE was part-privatized in 1998 and is now listed on the Athens and New York Stock Exchanges...

 (54.01% of shares). The Romanian state also has a minority stake of 45.99% in the company. The company had a monopoly for the provision of fixed telephony services until January 1, 2003. Currently, according to the OTE Group 2006 1st Quarter Results Press Release, Romtelecom has 3,835,647 fixed telephony lines, down from 4,279,038 at the end of 1st quarter 2005. Romtelecom has also the second CDMA network in the country.

History

In 1930, Societatea Anonimă Română de Telefoane (SART, "Romanian Telephone Company, Ltd.") was founded, more than 90% of its value being a foreign investment from ITT
ITT Corporation
ITT Corporation is a global diversified manufacturing company based in the United States. ITT participates in global markets including water and fluids management, defense and security, and motion and flow control...

.

During this period (1930–1933), SART commissioned Palatul Telefoanelor
Palatul Telefoanelor
Bucharest Telephone Palace is an office building located on Calea Victoriei in Bucharest, Romania. It serves as the headquarters of Romtelecom.-Bucharest:Palatul Telefoanelor in Bucharest is an art deco style building...

 (The Telephone Palace), a historic building in Bucharest
Bucharest
Bucharest is the capital municipality, cultural, industrial, and financial centre of Romania. It is the largest city in Romania, located in the southeast of the country, at , and lies on the banks of the Dâmbovița River....

. Although the building has suffered from several earthquakes and a bombardment, it is still standing, and has recently undergone a process of reconstruction and reconsolidation.

In 1949, SART was nationalised and turned into a division of the Ministry of Posts and Telecommunications. The slow pace of technological development that ensued was in accordance with a more general trend in the country during the Communist
Communist Romania
Communist Romania was the period in Romanian history when that country was a Soviet-aligned communist state in the Eastern Bloc, with the dominant role of Romanian Communist Party enshrined in its successive constitutions...

 period, which lasted until 1989.

In December 1989, ROM-POST-TELECOM was created as a post and telecommunications operator, independent of the Ministry. The current name of Romtelecom was given after a reorganization in July 1991, when the state-owned company was also given the monopoly for basic telecommunications services.

In 1998, a share of 35% was sold the Greek company OTE
OTE
Hellenic Telecommunications Organization S.A. , usually known by its Greek initials OTE, is the dominant telecommunications provider in Greece. Formerly a state-owned monopoly, OTE was part-privatized in 1998 and is now listed on the Athens and New York Stock Exchanges...

. A corruption case arose around details of this privatisation, but eventually no measures were taken.

OTE has since acquired an additional 18% of the shares and has thus become the majority share holder of the company.

In April 2009 Romtelecom launched the second CDMA 420 MHz network in the country under the brand "Clicknet Mobile".

Criticism

The company is often criticised for poor services as well as expensive fees, especially when compared with other telecommunications companies. Poor policy, such as constantly increasing fees for local calls (where 90% of all calls occur) and lowering fees for international calls (that are still twice as expensive as those offered by mobile or fixed alternatives) have driven subscribers away from Romtelecom to other companies after the fixed-line telecommunications market was liberalised in 2003. Additionally, 250,000 fixed line customers out of 5.4 million subscribers nationwide currently subscribe to other companies, such as RDS.Tel or Astral Telecom
Astral Telecom
UPC Romania is the 2nd largest cable television operator in Romania after RCS&RDS. UPC Romania provides video, broadband internet, and digital telephony services to 1.2 million customers as of December 31, 2009....

 (now part of UPC Romania). Nonetheless, as of 2005, Romtelecom still maintains approximately 95% market share in the fixed line telephony market. However, as of 2007, the company is in a process of severely lowering tariffs, offering all-inclusive plans, and triple play
Triple play (telecommunications)
In telecommunications, triple play service is a marketing term for the provisioning of two bandwidth-intensive services, high-speed Internet access and television, and a less bandwidth-demanding service, telephone, over a single broadband connection. Triple play focuses on a combined business...

 system in order to both gain new subscribers and recover lost customers.

Subsidiaries

Romtelecom owns 30% of the Cosmote România
Cosmote România
Cosmote România is a Romanian mobile phone operator. It is the third largest mobile phone operator in the country, following Orange Romania and Vodafone Romania after surpassing Zapp Mobile...

 mobile phone operator (the ex-Cosmorom), as well as 100% of the internet provider "Clicknet.ro", the television digital satellite platform
Digital television
Digital television is the transmission of audio and video by digital signals, in contrast to the analog signals used by analog TV...

 Dolce
Dolce (satellite television)
Dolce is a DTH platform of Romtelecom, a Romanian telephony and Internet provider.As of 2008, Dolce has more than 9 000 000 customers.-Basic package:-MaxPak:-Explorer:-Active:-Kids:-Style:-Midnight:-Hungarian:-Future channels:...

 and CyberHost
Cyberhost (data center)
CyberHost are data center facilities provided by Romtelecom, the leader of the Romanian telecommunications market. CyberHost is the only data center facilities provider capable of offering Disaster Recovery and Business continuity by the means of its three data centers: one in Bucharest and two in...

 data center
Data center
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems...

facilities.
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