RomTelecom releases end-2007 figures; will cut up to a fifth of workforce in 2008

29 Jan 2008

Romanian incumbent fixed line operator RomTelecom has released a statement outlining the key points of its business strategy for 2008, plus end-2007 operational results. By 31 December 2007 RomTelecom exceeded its own forecasts by signing up a total of 360,000 DSL broadband customers, which it claimed gave it a market share of over 20% in the fixed broadband segment. In the fixed line market, the former monopoly said it held on to approximately 70% of local access lines, maintaining its number of subscribers at approximately three million. Satellite TV service Dolce, reached almost 400,000 customers, representing a market share of 8% of the pay TV market, according to the statement. The business plan for 2008 will focus on ‘service quality, efficiency and innovation’, to combat aggressive competition. The telco aims to improve internal processes and its competitive service offerings, in order to increase its presence in growing market segments, whilst rigorously controlling costs. Implementation of the new business plan will require the ‘redesign of workflows and work methodologies’, resulting in up to 2,500 redundancies during 2008, or around 20% of its workforce. According to TeleGeography’s GlobalComms database, RomTelecom had 12,257 employees at the beginning of 2007, after losing 6.1% of workers in 2006, on the back of a 27.8% reduction in workforce in 2005.