UPC reveals Romanian strategy

UPC Romania plans to invest €30 million on its infrastructure this year rather than expand its network.

Quoted in ZF, the company’s CFO Severina Pascu said that the money would be used to raise internet access speeds, increase the number of value added services and optimise processes.

In the case of internet access, the aim is to up the current maximum download speed from 24 Mbps to between 160-180 Mbps. However, this will be done gradually and in accordance with how the market responds.

UPC Romania’s decision to focus on improving its existing services rather than to expand its network is understood to be down to the competition it faces from Romtelecom and RCS/RDS, which currently offer maximum download speeds of 30 Mbps and 100 Mbps respectively.

Although UPC has enjoyed some success in selling HD services to its digital subscribers in Romania, DVR still has to be explained and “pushed” in the market, added Pascu.

Significantly, a typical digital subscriber opting for HD channels and a DVR product provides UPC with as much revenue as four analogue cable customers.