Vodafone Romania says competition eroded yields below cost of capital

Vodafone Romania will continue to focus its infrastructure investments on the mobile side, and on the fixed side, it will continue to improve the network it currently owns, said CEO Achilleas Kanaris – who also stressed that the market regulator ANCOM should address the issues that plague the market bringing the yield below the cost of capital.

Kanaris complained about the supplementary taxation enforced as of January for companies where the profit tax is lower than 1% of adjusted revenues (Vodafone Romania has posted losses recently, unlike most of the other telecom companies in the country).

Nobody invests in a market where the yield is below the cost of capital, Vodafone's CEO warned – mentioning the option of an exit, such a sin the case of Vodafone Spain.

"I think Telekom's exit from mobile is not a good story for Romania. If a big player like Deutsche Telekom decides to leave, it confirms to me that there is a problem with this market," he argued, quoted by Ziarul Financiar.

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