Eight concerns about TELEKOM taking over by Vodafone and Digi

The competition authority invites the parties involved in sending commitments to respond to the concerns expressed, before issuing a final decision. The proposals for commitments will be analyzed and published later for public consultation on the institution’s website.

Concerns about prices, service quality and infrastructure

According to the President of the Competition Council, Bogdan Chirițoiu, it is essential that these transactions do not adversely affect consumers. « We want to make sure that the networks will work to high standards, that the coverage and speed of services will remain competitive and that the investment plans in infrastructure will continue, » he said, emphasizing the collaboration with ANCOM and the interest for the views of the affected.

In the preliminary analysis, the authority identified several risks:

• Decrease the quality of mobile internet servicesespecially in terms of average data download speed;

• The risk of efficient non -use of radio spectrum resourceswith their accumulation by Vodafone and Digi;

• Affecting Orange Romania access to Telekom websitesby the possible limitation of the collocation of the telecommunications infrastructure;

• Negative impact on mobile services marketby the disappearance of Telekom as a supplier and the lack of a solid alternative from Digi for virtual operators (MVNO);

• Reducing the availability of pre-Paid services for Telekom customersin the context of taking over by Digi, there are fears related to a temporary supply or under disadvantageous conditions;

• Changing the price conditions for post-Paid customers You have Telekom, which could be affected by the taking over by Vodafone;

• Possible damage in the M2M segment (Machine-to-Machine)by changing the structure of service offer;

• Affecting the contractual relationship with Veridian Systems SRLespecially in terms of hosting services provided by Telekom.

The context of transactions

Vodafone Romania aims to take over the whole Telekom Romania Mobile Communications, while Digi Romania wants to purchase a number of assets: rights for use of radio, infrastructure (towers and equipment) and the entire pre-Paid service provision.

Both transactions are analyzed in parallel, given that they can generate a deep restructuring of the Telecom market in Romania, with implications on the competition, prices and quality of the services offered to consumers.

The following steps

In the next period, Vodafone and Digi can transmit commitments meant to eliminate or mitigate the identified negative effects. These will be analyzed by the competition authority and subject to a public consultation, before making a final decision.

Authorities reiterate the importance of preserving a functional competitive environment, in which end users are not disadvantaged by the consolidation of the telecom market