Competition body consults on RCS&RDS’ commitments to secure network deal

18 Jun 2020

Romania’s Competition Council has begun a public consultation on the commitments made by RCS&RDS in return for approval to take over the customers of rival network operators AKTA and ATTP, reports local news agency Agerpres. To allay the competition watchdog’s concerns, RCS&RDS, which has a share of over 50% in the fixed broadband and cable TV markets, has pledged to migrate AKTA and ATTP’s customers to fibre-optic infrastructure and reduce their tariffs by between 10% and 15%, with no increase to subscription charges for three years, to bring them into line with its own standard prices. In addition, the transition to the RCS&RDS network must be completed within three years of receiving clearance. Interested parties are invited to submit their comments before 29 June.

RCS&RDS, which is owned by Digi Communications, announced a deal in December 2019 to operate networks owned by Digital Cable Systems (operating under the AKTA brand) and ATTP Telecommunications. Under the agreement, RCS&RDS will pay up to EUR77 million (USD86.6 million) to control the networks and provide internet access, cable TV, fixed and mobile telephony services to around 540,000 residential clients for an initial three-year period, with an option to extend for a further three years. The deal could also see RCS&RDS acquire ATTP’s infrastructure and clients if certain conditions are met.

Romania, Digi Communications, Digital Cable Systems (AKTA / Dial), RCS&RDS (DIGI)