Information Technology Landscape in Romania

IT-Usage

Overview

The Romanian personal computer market is expected to grow at a compound annual rate exceeding 17% over the next five years, and is expected to reach $130 million by the year 2000. Given the virtual lack of computerization before 1989, the greatest demand has been from governmental bodies, public corporations, banks, and some state-owned companies benefitting mostly from sponsorship of the international financial corporation (World Bank, EBRD, PHARE).

The Romanian market is supplied by both system integrator with brand local names have covered almost 53% of the computer sales registered in 1996 and by imports of computer parts and brand name units (estimated at 40% of the market). The most promising subsectors within the sector are Internet equipment and software - the Internet market registered an explosion, users increasing by about 200% a year, computer parts and peripherals, local area networks, and wide area networks.  US exports in this sector decreased in the past two years because of the unfavorable customs duties applied to US products
following Romania's association with the EU and the CEFTA countries. (14)

Internet Activity

Leading ISPs in Romania

1.  Dynamic Network Technologies
2.  EUNET Romania
3.  FX Internet
4.  IIRUC
5.  StarNets
6.  Ines Internet
7.  InterComp
8.  Institutul de Tehnica de Calcul
9.  Kappa
10. PC-Net
11. Rokura

DNT (Dynamic Network Technologies) is the market leader in terms of the number of domains it hosts with an approximate 16% market share.  DNT is followed by StarNets with 13% and FX with 11%.  Together these three ISPs host nearly 40% of Romania’s internet domains.

PC-NET Data Network S.A., a leading Bucharest-based internet service provider, together  with the Romanian Post Privatization Fund – capitalized by the European Bank for  Reconstruction and Development, European Union and GED Eastern Fund I – announced  on 28 September 1999 the conclusion of an agreement according to which RPPF will  acquire 40% of PC-NET. The value of the transaction is $1.5 million and is RPPF’s first  investment in the internet service domain in Romania.(15)

Internet Market

The Romanian internet services  market continues its rapid expansion, the overall number of hosts increasing from 20,741 in  November 1998 to 37,399 in September this year. This doubling represents a growth rate comparable to the world-wide evolution of the Internet. The Internet service market,  currently based primarily on internet access, is estimated at approximately $6 million.

Prices for internet services are continuously decreasing. In comparison to the same period  last year, when an account of unlimited access to Internet via dial-up cost $40 per month  on average, DNT Bucharest and Ines Internet now offer $15 per month for the same service.  Connection taxes, which were between $5 and $50, have now been eliminated. (16)
 
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Created by Dan Jianu                                                                                                    Last Updated, December 16, 1999