Business Review

Online is the only medium where advertising has not taken a nosedive. Of course, it has had a very narrow escape from the effects of the recession, but it has a great chance of fully recovering, riding the wave of the huge potential that lies in certain under-exploited niches such as search engine optimization and social media sites, as well as blogs, which have the advantage of polarizing a solid target community.
By Otilia Haraga

The telecom regulator in Romania is testing the ground to see whether there is room for a new 3G license on the market. The first step is to reorganize the available radio spectrum which could facilitate the advent of new operators. Meanwhile, Spanish player Telefonica announced last week that it had opened an office in Romania to serve its multinational corporate clients. And local player RCS&RDS has launched mobile internet services.
By Otilia Haraga

There are currently some opportunities for investors who are looking to increase their portfolio. Notable acquisitions on the IT market have included the takeover of the indirect distribution division of Flamingo International and online retail store eMag by Asesoft Distribution. Meanwhile, FIT Distribution, controlled by businessman Marius Ghenea, has made several acquisitions in the online retail sector this year and says more will follow. Still, neither investors nor sellers are enjoying this period.

The European Union has reduced the tariffs that cell phone users have to pay for calls, text messages and mobile data communication when abroad. Although the figures are the maximum that telecom operators can charge for roaming services, competition is likely to force them down even lower, shaking up the market. The EU move was prompted by the excessive sums customers were being charged for using their mobile abroad.

The official acquisition of Telemobil (Zapp) by Cosmote upsets the balance of power on the local telecom market. Cosmote, until now the third player on the market and the only one which did not have a 3G license, has now become a competitor to be reckoned with for Orange and Vodafone on all fronts, not merely voice. The firm has delivered on its promise to make the acquisition of a 3G license one of its top priorities. But the transaction has yet to be approved by the relevant authorities.

Due to a nosedive in demand and harsher conditions for consumer loans, the electronic products and home appliances market is reeling - especially as local consumers are heavily dependant on consumer loans, which accounted for a large portion of sales. Business Review talked to producer Arctic and retailers Altex and Flamingo International to see how much they have been affected and what plans they have for the future.

The chase is on for online entrepreneurs to find financial sustenance for their businesses through M&A. But since many are willing to sell and few have the resources to buy, acquisition prices are going down, and the fact that owners over-evaluate their businesses does not make it easier. Eventually, on the still fragmented online market, start-up businesses will be most exposed to bankruptcy if they are not taken under a bigger umbrella or do not find other resources to sustain themselves.

The IT retail market has entered negative territory this year. Everything starts with a "no": no mergers and acquisitions, no new investments, no expected higher profits and no new store openings in sight. Of course, there is an exception to every rule, and given the right opportunity, time and place, there may be a few surprise moves, but they will most likely not weigh much in the grand scheme of things. Retailers are also faced with a volatile exchange rate and must crack down on unprofitable locations.

This year telecom companies made investments mainly in their retail networks and new product launches, especially on the data segment. Next year, investments announced look set to be even more meager as telecom players expect to be affected by the global financial crisis.

Electronic payment companies are operating on a market whose value was estimated at nearly EUR 7 million and which amounted to 600 million transactions in volume - bill payment and electronic recharging of prepaid cards. Players in this industry plan to proceed with their expansion plans and do not expect to be affected by the crisis, as "utility bills will remain a constant presence on our everyday life."