Romanian Post tries to keep up by adding mobile telephony, insurance and banking services

The state -owned Romanian Post, which has been trying to solve its financial problems and restructure, hopes to keep its level of business intact by entering new service areas in 2013. With its monopoly on small postal deliveries due to end in 2013, the Post needs to cover the lost services with new additions. Its management plans to introduce insurance brokerage services and some banking services in 2013. Its main asset, a large network covering most of rural Romania and small cities, would be the strong point in this addition, as it would allow it to sell financing and insurance services to areas less covered by insurance companies and banks. The Post would either offer its services in partnership with a bank, or via its own bank, that it could set up, according to its management. The Post plans to improve its IT systems and connect each of its units around the country to the system. Mobile telephony is another area where the Post could enter, said its GM Ion Smeeianu, who was the head of the telecom authority ANCOM in 2000. The Post submitted a request to launch a new Mobile Virtual Network Operator (MVNO), to re-sell mobile services. The Post already received two offers and will make a decision around December 10. The Post will have two mobile telephony services in its offer, a cheaper one which would allow free calls within a locality, and another one, which is promised to be still cheaper than everything else on the market. The service should be launched in the beginning of 2013 and the Post expects to sell some 30,000 pre-paid cards in a first stage. The aim is to sell mobile services to low income Romanians. The loss posted by the Romanian Post in the last three years adds up to some EUR 89 million. Next year, the company’s business is likely to continue its downwards trend, as the state will lift its monopoly on deliveries below 50 grams. editor@romania-insider.com