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MOLDTELECOM INTENDS TO BE TRANSFORMED INTO QUADRUPLE-PLAY – GHEORGHE URSACHI
“I”.: What are the results of the Moldtelecom company’s activities in 2007?
G.U.: We successfully fulfill our tasks. For January-September we drove 42.4 thousand new telephone lines. The number of the fixed telephony subscribers increased by 24.6 thousand and reached 1.03 million. The number of users of MaxDSL service on the broadband access to the Internet reached 21.3 thousand. The company’s income constituted 1.84 billion ($161.9 thousand), 375.4 million lei ($33 million) were transferred to the state budget.
“I”.: What is the forecast for the end of 2007 and for 2008 ?
G. U: In accordance with the Government’s resolution of 2004, which approved the telephony installation program for 2005-2010, Moldtelecom is designated as its main executor. According to this document, the telephony provision per 100 residents must reach 29.1% by the end of 2007 and 31.1% by the end of 2008. However, it is already 30.5%, and by the end of 2007, we shall implement the tasks, envisaged by the telephony installation program for 2008.
“I”.: What changes are going on in Moldtelecom?
G. U.: T The development of technologies, legislative frames, competition – all these external factors determine and demand changes inside the company. New sections appear and they develop new services and we must adapt our services to the changing requirements. At the same time there are services, which decline and must be replaced. However, these changes are not so large-scale ones to speak about any reorganization.
“I”.: How real is the tapping of a big number of subscribers to the fixed telephony network by private companies? Do you cooperate with them or they use completely different networks?
G. U.: Moldtelecom has more than a million of subscribers and their number continues growing. However, this growth is not so considerable, as during the previous years and in some localities for, example, in Chisinau, the satiation level has been achieved. Moldtelecom remains the only company, which undertakes the telephony installation in rural areas. It is due to the fact that the efficiency of investments into the fixed telephony installation in villages is rather low. That is why, our competitors do not haste to make investments in the rural sector, though tens of respective licenses have been already issued. The national telephony regulations oblige all the operators to unite their networks and services. That is why, though we compete with other operators, we are also partners on uniting into a single system.
“I”.: The National Competition Protection Agency has recently confirmed Moldtelecom’s status, as a monopolist at the telecommunications market. How do you estimate this decision and how will it affect the activities of your company?
G. U.: As a matter of fact, our monopolist status expired on January 1, 2004, when the liberalization of the telecommunications market began. The agency’s decision confirmed only Moldtelecom’s dominant position in the local, interurban and international fixed telephony. It puts forward new requirements in relations with our competitors. However, it would be advisable that respective institutions should work out the mechanism of activities at the liberalized market and establish the rights and obligations of each operator.
“I”.: Moldtelecom also renders services on the access to the Internet. What is the share of your company at this market?
G. U.: The broadband access to the Internet presents a dynamic packet of products in Moldtelecom’s portfolio. The majority of subscribers use the ADSL technology (Asymmetric Digital Subscriber Line), which has technical and economic advantages. In the first half-year the number of the MaxDSL subscribers exceeded 20 thousand, that is four times more against the same period of 2006. The share of the broadband at the MaxDSL products market constitutes 50% in the republic. The coming year will be probably the first year, when the number of new ADSL tappings will exceed the number of new fixed telephony subscribers The company is preparing for this growth by making additional investments in the expansion of technical capacities of this service type.
“I”.: What new services does the Moldtelecom company intend to offer?
G. U.: We are planning to develop new types of the broadband access. In the near time we shall drive a FTTB (optofiber lines to subscriber) in Chisinau and Balti and will give clients an access to the Internet within the 100 Mbps range. We also take efforts to reorganize the company into a quadruple-play operator (the Internet services, fixed telephony, mobile telephony and video) that calls for a more considerable involvement into the IP-telephony and the digital TV services.
“I”.: Are you satisfied with the activities of your daughter company - Unite?
G. U.: Unite – is a Moldtelecom brand, which was launched this year for promoting CDMA-standard mobile telephony. Unite has already 33 thousand subscribers, who bring a monthly profit at 265 lei (USD23) each. CDMA roaming services were introduced by three mobile operators of Russia - Moscow, Saint Petersburg and Krasnodar. Until the end of the year we intend to offer roaming with Romania and Belarus and in the future with other European operators, which use the CDMA-standard both for telephone calls and for data transfer. The advantages of the roaming services, rendered by Unite, are very low tariffs. Besides, we intend to take complete advantage of the CDMA data transfer technology in order to offer the most attractive prices for the high-speed access to the Internet to our clients. In 2008 we plan to launch a wide range of services in addition to mobile telephony services. We also offer a wide range of telephones, which allow making a high-speed navigation in the Internet.
“I”.: The tariffs for the local and national telephone calls are considerably lower that international ones. The intention to reduce the international call tariffs has been announced recently in order to bring them in line with the international standards and therefore, to increase the cost of local calls. Does Moldtelecom intend still to carry out this reform?
G. U.: The reconsideration of tariffs is inevitable for any fixed telephony operator, on the one hand, because of the competition for conquering the most profitable segments of the market, on the other hand, to avoid the subsidizing of services, rendered at tariffs, which are lower that their self-cost. Unfortunately, the implementation of this program depends not only on Moldtelecom.
