ESIS extension / Romania / Alternative Networks / Update Memo 2

The following report outlines new developments in the past three months and the state of on-going developments.

Apart an announcement in the mass-media about a new contract of the Romanian National Railroad Society (NRS- SNCFR) with Siemens to build an internal communication structure which will provide also alternative communication services, nothing has been done in the area of state owned gas, electric and transport companies.

However, a closer look deserves two domains where the private companies are competing for the marker share: mobile telecommunications networks and satellite communications. These sectors, due to the large geographic extent attained and to the level and dynamics of tariffs, but also to the diversification of offered services are true alternative networks.

The GSM mobile telecom network was started in Romania in 1996, when two consortia earned a 10-year GSM-900 license: MobiFon and MobilRom, added to the old NMT-450 operator, Telefonica Romania.

Since 1996 the mobile network has one of the fastest evolutions in Romanian economy, the number of customers grew up from about 50.000 in later 1996 to about 1.000.000 in 1999.

These two consortia include one of the major telecommunications operators in the world:

In 1998 these companies offered, for the first time in Romania, data transmissions services like facsimile transmissions, e-mail and Internet access using the access to the mobile GSM network.

Since early 1999 MobilRom and MobiFon has been provided GSM access to the Internet through other major Internet Service Providers.

Recently, in August 1999, one of these operators, MobiFon, was the first Romanian GSM company that was awarded the license for the Internet Service Provider and launches "Xnet" as a part of a first full communication solution that belongs to a digital mobile telephony company in Romania.

With Xnet, MobiFon extends the possibility to connect to the Internet by all existent options: GSM access for about 500.000 mobile telephony users, fixed RomTelecom lines access (both regular phone and leased lines) for general public/small offices and advanced wireless radio connections for large companies and institutions.

Xnet is present in Bucharest and other 9 counties (Prahova, Brasov, Cluj, Timis, Dolj, Iasi, Bacau, Galati, Constanta) and will continue to extend its presence all over the country.

The access to the International Internet Backbone was made by its own satellite connection backed up by the terrestrial hi-speed lines (fiber optic).

The services include e-mail, web site and FTP site hosting, Internet domain and subdomain registration and hosting, web page design, customized Intranet design, electronic commerce etc.

The other GSM operator, MobilRom, intends to develop and operates a similar data network in the late 1999.

Another mobile communications operator for DCS-1800, CosmoRom, a RomTelecom join-venture, was announcing its presence on the Romanian communications market for the next year.

Communication satellites are operated by one public institution, National Radiocommunications Company (coordinate by National Agency for Communications and Informatics) and ten private operators (Digicom , Logic Telecom, Sumitcom Rokura etc.)

National Radiocommunications Company has an important satellite earth station used for data communications, TV broadcasts and international phone communications (used by RomTelecom).

This company develops a national backbone using fiber optic with Points-of-Presence (PoP) in the most important cities in the country. Beginning from this PoP’s this company develops a strong and reliable infrastructure of data communications through wireless radio technology and wired high-speed connections.

This structure will be used soon for national backbone that connects the major data networks in the country (ISP’s, institutions, large companies).

The main structure of this network is interconnected with the RomTelecom backbone, a 7000 km fiber optic ring which connects the national telecommunication company with other mobile communications operators: MobiFon, MobilRom, Telefonica Romania and with other major backbones that cross through Romania (KAFOS – a link between Romania, Bulgaria, Turkey and Moldavia, ITUR – between Turkey, Ukraine, Russia and Romania, BALTICA – between Baltic counties, FLAG – between Romania and Spain and TEL – a 14.000 km fiber optic cable linking Eastern and Western Europe.)

This backbone will provide complete data communication solutions such as ISDN, X.25, Frame-Relay, ATM and B-ISDN for public institutions (Internal Affairs Ministry, Public Ministry etc.) and for private companies.

Since 1992 the satellite communications market was fully liberalized and many private companies (most of them foreign joint-ventures) appeared on this market as satellite operators with wide territorial coverage.

Most of the private satellite operators offers data communications services for general public and companies (including for other Internet Service Providers) such as Internet access using regular phone lines, leased lines, fiber optic connections, wireless radio systems (like Wave LAN) and VSAT technology connections.

Many of these private companies offers high-performance data communications services (LAN to LAN Ethernet and Token Ring connections, X25 networks, Frame-Relay, SDLC-based networks), digital TV point-to-multipoint broadcasts services and special services like Euteltracs (satellite tracking and mobile communications for ships and trucks).

There are a few companies that offers worldwide integrated services using the support of other international telecommunications companies: British Telecom/Concert, Loral Orion.

All of these data communications providers are interconnected by terrestrial high-speed line in a backbone named BUHIX, maintained by National Computer Network for Research (RNC) and National Institute for Research and Development in Informatics.

This facility links all major Internet Service Providers in Romania like RNC, KAPPANet, RoEduNet, FX, DNT, MediaSat, ITCNet, Canad Systems, Global One Communications, LOGICnet, Eastern Space Systems, Rokura, MediaFax, StarNets, MobilRom, DigiCom.

For the future these companies, both public and private, will expand its network capacity, deploy new technologies such as Frame-Relay and expand data transmissions services as soon as new legal framework appears.

Please note that this report has been prepared under the sole responsibility of the ESIS II contractors.
It does not necessarily reflect the views of the Commission, nor does the Commission accept responsibility for the accuracy or completeness of information contained herein.
The ESIS Team of contractors welcomes any additional information or corrections.