French telecom group Orange will soon start building its own fiber optic network in Romania, as the operator currently has to pay high fees to competitor Telekom Romania, Ziarul Financiar reported.
Telekom Romania representatives also complained in the past about the “large” bills charged by Orange for access to its 4G mobile network.
The two groups entered a network sharing agreement several years ago, under which Orange granted Telekom Romania access to its 4G network while Telekom provided Orange access to the fixed network. However, Telekom stopped using Orange’s 4G network in the first half of the year, invoking high costs.
The German group has invested in recent years in the development of its own mobile network. Meanwhile, Orange still needs to use Telekom’s fixed network to provide fixed internet services to its customers.
The number of customers for Orange’s fixed-line services increased, making feasible the development of own fiber optic network, Ramon Fernandez, deputy general manager and chief operating officer of Orange group, announced at a meeting with analysts on Q2/2019 results.
Higher costs paid for renting the fixed network from Telekom Romania have contributed to the erosion of the group’s profit margin. Fernandez explained that the solution for lower costs in Romania will be the development of an own fiber optic network.
“Our costs will fall because we will soon develop our own fiber-optic network in Romania,” said Ramon Fernandez, without giving any further details.
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