Competition Council approves RCS&RDS deals to operate rival networks

29 Jul 2020

Digi Communications has announced that its Romanian subsidiary RCS&RDS has received approval from the country’s Competition Council to operate the networks of local rivals Digital Cable Systems, AKTA Telekom and ATTP Telecommunications. Under the terms of the agreement announced in December 2019, RCS&RDS will pay up to EUR77 million (USD18.7 million) over three years to operate 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. The deal could also see RCS&RDS acquire ATTP’s infrastructure and clients if certain conditions are met.

RCS&RDS, which controls more than 50% of the fixed broadband and cable TV markets, proposed a number of commitments in June to allay the competition watchdog’s concerns. These included a pledge to migrate AKTA and ATTP’s customers to fibre-optic infrastructure and offer them the same packages and prices available to RCS&RDS’s existing subscribers, with a promise not to increase prices during the duration of the agreement. With regard to its cable TV services, RCS&RDS will for the next five years offer to include a provider’s channels in a pay-TV offering in exchange for an additional charge, largely determined by the provider, should the two parties fail to reach a commercial agreement regarding their inclusion in the RCS&RDS basic TV package.

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