Romtelecom changes Pricing Strategy

The Romanian incumbent telco Romtelecom has introduced differential pricing for fixed line internet services in order compete more effectively with its main rivals UPC and RCS/RDS.

According to ZF, the company has abandoned its policy of charging everyone the same, regardless of local context. As a result, some clients will pay €3.50 a month for 2 Mbps internet access, while others will be charged between €4.20 and €4.90. At the same time, the number of internet packages has been reduced from seven to three in order to bring it into line with the 2-4 offered by UPC and RCS/RDS.

Romtelecom has seen a surge in internet subscriber numbers in the last three years – up from 170,000 in 2007 to today’s 800,000, with 300,000 signing up in 2008 alone.

Many of the latter are on two-year contracts than come up for renewal this year, and Romtelecom, according to Ovidiu Ghiman, its executive director of strategy and business development, is keen to retain them.

Source: Broadband TV News

No comments: