The evolution of mobile communication services in Romania so far can be defined as a [629896]

Introduction

The evolution of mobile communication services in Romania so far can be defined as a
success and the communication infrastructure is broadly the same as in many countries more
economically developed than our country. By comparison, if the sam e investments and
development were also taking place in the road infrastructure sector, for example, the extensive
highway network we are talking about and that we want so much would have been a reality.
Mobile communications services in Romania has alread y passed the age of 20 – the first
mobile phone network has emerged since 1993 in the 450 MHz network s and in the NMT
technology, a technology that has many in common with broadcast stations and almost nothing in
common with current d igital technologies us ed in mobile communications. The time span seems
to be a small one, but the transformations are huge, due both to the progress of technology in this
period, worldwide and to the demand of Romanian consumers for more varied and better
services.
Paradoxicall y, the future risks to this sector of the economy start from the seemingly good
situation today. Why “apparently ”? Because , in advanced electronic communications, advanced
technology is quickly overtaken by more advanced technology. The electronic communic ations
sector is the one where the phrase “disruptive technology ” has been created and the process of
renewal and innovation r emains high. Technological dynamics overlap at the same time with a
mature market, and most of the economic operators that brought the new technologies and, once
with them, made a considerable investment effort, would like to be able to get their breath an d
enjoy the prospect that shows off the heights of success. The market, however, as usual, wants
more, better and cheaper, three d ifficult to reconcile in a mature market.
Mobile communications services are subject to the greatest challenges: the “lead” of the
electronic communications market has become a common necessity, almost a vital necessity, and
although it is still the main s ource of income for operators in the field, it is no longer the main
engine increase. Its strengths are an indisputable appeti te of the Romanians to talk, including at a
distance, and the penetration rate that is well above the 100% level (which in real te rms does not
mean that any Romanian currently has a mobile phone). The challenges come from the strong
development of the tast e for social networking and the emergence of new technologies that force
operators to make large -scale investments on their networ ks. It ’s hard to say, by a mobile

operator, that you do not invest in 4G (and even 5G, all intermediate) networks, although the
financial effort is still not justified by a real and solid demand from consumers. For the most part,
investments in new technol ogies are a gamble with the future and if such investments are made
only because the technology is available and it looks good , the result may be similar to that of the
arms race between countries in the second half of the twentieth century . A gradual expa nsion of
the coverage of new technologies, with the increase in demand for them, maybe a more feasible
option, given that mobi le operators are private enterprises and have to pay attention to the
balance between revenue and expenditure. Evidence of this ef fect comes from the market, where
the largest number of users in 2014 is Digi (RCS & RDS), whose network is growing in the GSM
/ 3G category. RCS & RDS ’s success , once it has overcome the obstacle to the reduced coverage
area, shows that Romanian c onsumers are still price sensitive. Of course, it is too early to draw
other conclusions – the attractiveness of RCS & RDS will not endanger the position of market
leaders in the short and medium term. In the longer term, their supremacy is at stake, while
Telekom and RCS & RDS are at least theoretically advantageous due to their ability to provide
integrated services.
Adopting technologies such as LTE is more useful for other services, which now bring
higher net benefits, such as data services. We will tal k about access to the internet below.
Given that voice services are a standard product that consumers are willing to spend
additional amounts, decreased ARPU, unit profitability in the communications industry, is natural
and should be offset with new servi ces with added value, developed based on the same
infrastructure. Mobile operators have grown and developed on account of scale economies. Now
is the time to know the other side of the advantages of the 21st-century economy: the economy of
purpose. Under t hese con ditions, the indicator ARPU itself is inadequate and should be
abandoned in favor of indicators showing profitability and potential multiple services that are part
of the tender: the formula was simple ARPU is an indicator that provides accurate fi gures on ly if
the company offers a major service with significant weight in the total revenues.
At the same time, operators have to further reduce the costs of networking and operation
so that the huge investment volume required by the adoption of new tech nologies is supportive.
The first step in this direction was achieved in 2014 through the network -sharing
agreement between Orange and Vodafone, which is mainly aimed at building new 4G mobile
networks.

In 2015, we saw the first results of sharing on the costs o f the two operators , and it is also
possible to join other operators in this agreement, which is, in principle, open to all market
participants.
The simultaneous existence of several competing physical networks is, unfortunately,
hard to support, e ven if it was desirable fr om the point of view of competition on the market. In a
not too distant future, separating the activities of building and operating most tower companies
from commercial activities becomes possible.
With regard to Internet access, we have the old challenges : to ensure that consumers have
access to the Internet on any fixed or mobile medium at speed and constant quality and the
investments to be made for that purpose. Even though more and more of us are using the internet
on the radio, in reality , fixed infra structure remains of the utmost importance. Up to our mobile
phone or to wireless networks in offices, dwellings, and public places the flow of electronic
communications comes a long way on fixed fiber (even mobile network relays are oft en
interconnected b y fixed cables) and the way in which access to the internet available is just “the
last mile”.
In this respect, the leaders of the mobile communications market in Romania – Orange ,
and Vodafone – are still living in a world where the la rgest fixed infrast ructure owners are not
them, but the “followers ” – Telekom and RCS & RDS. The latter is in the position that the fixed
and in -built networks (Telekom) and developed (RCS & RDS) are the most important asset for
the telecommunicatio ns mark et, in the light of developments in the coming years. Orange and
Vodafone have in the past focused their e fforts on mobile networks – with commendable results –
but have neglected fixed infrastructure and it is now too late to recover.
Orange and V odafone will have to buy companies that have a fixed access structure and
potential targets are not numerous. Con sequence ? The prices for purchase are high, which leads
the market leaders to postpone this inevitable moment as much as possible. Of course, t he big
operators are looking for alternative solutions, but here too, the range of possibilities does not
include more than two or three partial solutions.
Beyond the “classical ” challenges, internet access services are also subject to other
challenges, in line w ith global and European concerns: “neutrality ” of Internet access, privacy
and the introduction of control s and access for public authorities with security responsibilities
(“Big Brother ” provisions, which are on the public agenda and in us).

In sum mary to the above, the last three years have brought interesting developments, but
for now, there will not be any spectacular chang es, except for the acquisition of an important
operator of Internet access and cable TV infrastructure by a telephone operator furni ture.
Chang es will be even lower in other areas of the electronic communications market. If we
include here, for example, the introduction of digital terrestrial television on 17 June 2015, the
impact on broadcasters (TV stations) or on „cable oper ators” will be insignificant and why a
wider space to this event was not given , otherwise important in the history of at least 60 years of
radio broadcasting in Romania – analog TV transmissions have existed since 1937, at the level of
experiment, the firs t emitte r was launched in 1953, and regular broadcasts began in 1955. Despite
apparent facilities, digital terrestrial television still does not have a sustainable business mode l to
destabilize the TV cable or DTH.
Telecommunication services shall be consi dered as services for the transmission,
issuance , and reception of signals, documents, pictures and sounds or information of any kind by
cable, radio, optical means or other ele ctromagnetic means, including the ceding of the right to
use the means for such transmi ssions, issues or receptions. Telecommunication services also
include providing access to the worldwide information network: fixed telephony, cable
transmissions and, mo re recently, classic cameras.
Mobile communications services consist of providi ng mobil e telephony services through a
network of cells distributed over a wide area. A cell has a radio base station (BTS – Base
Transceiver Station) that contains a radio tran smitter, radio receiver , and antenna. The base
station sends and receives signa ls to an d from mobile phones in the radio coverage area. A base
station controller (BSC – Base Station Controller) manages the use of radio resources allocated to
radio base stations within its scope. The connection between subscribers is controlled and
accomplish ed by telephone exchanges (MSC – Mobile Switching Center).

Chapter I
Theory

As the vat tube and the transistor made it possible to make the early telephone network,
the wireless revolution began only after cheap microprocessors, miniature c ircuits a nd digital
power stations became available. Although the plans initiated by the United States of America to
introduce mobile telephony date back to the period following the Second World War, their
implementation took place only in 1978, and then a s a test. Practically, mobile telephony has only
begun to be used in the true sense of the word in 1984.
On June 17, 1946, in the US city of Saint Louis, Missouri, AT & T and Southwestern Bell
introduced the first US mobile trading system called: Mobile Telephone Service (MTS), a half –
duplex system that uses two frequencies but only one he spoke, one by one.
AT & T has not introduced mobile telephony plants until 1964 when Bell System
introduces the Imded Mobile Telephone Service (IMTS) system, a full duple x system, which
means that all calls take place in the same way as for classic phones.
The Frequency Reus e Technique was first introduced in commercial service in 1969 by
Bell System. Traveling a train traveling 100 miles per hour between New York and Wash ington
found it useful to call the train.
Six channels are used in the 450 MHz band, the system being man aged by a Philadelphia
computerized control center. The main elements of cellular telephony finally appear, but the
system will not become fully functi onal unt il 1978.
The basic principle of mobile communication services is the reuse of frequencies, making
it the dif ference between IMTS and true mobile phone servi ces.
The radio equipment in each cellular telephone base, as well as the low power of mobile
phones , allow t he same radio frequencies to be reused in different cells, multiplying the ability to
initiate calls with out creating interference. This highly efficient spectral method clearly contrasts
with old mobile phone systems that have used a very powerfu l central transmitter to establish
communications with high -powered mobile phones mounted on cars on a small numbe r of
frequencies, the channels being monopolized and unable to be reused on an extended area.
A mobile phone network can be imagined as a hone ycomb. Movin g a user on a particular
route involves moving from one cell to another.

The main purpose of the GSM netw ork is to ensure the continuity of the call with an
adequate level of quality, so maintenance and recording equipment monitors the movement s of
mobile stations (Subscriber Identity Module active) at certain time periods even if they are not
used, but they are in standby mode.
When a call is in progress at the boundary of the cell sphere ( e.g. moving user), it may
decrease the quality of the t ransmission to the specified quality limit, but by monitoring the
positions it is possible to automatically transfer from one cell to another. This process is called
handover.
In the GSM network, during a call, the mobile station mobile station monitors al l
surroundin g antennas and continuously sends reports of signal strength to control equipment.
These reports sent to the controller lead to an optimal decision when the handover process and
the selection of a new cell are initiated.
The speed of data proce ssing and th e deployment of all these processes is very high,
practically unobtrusive to the user. Securing the trans mission is fully ensured by using all digital
encoding methods.
The radio on the phone (transmitter) and the antenna (base station transmi tter) use
encryption codes to decrypt the conversation data and digitize them together with the voice.
This encryption makes it virtually impossible for any interception system to listen,
decipher and record the conversation or conversation data. The main systems curre ntly used in
mobile telecommunication include the following standards:
 Global System for Mobile Communica tion
Extremely popular in many European countries, including Romania, the GSM standard
was created in 1982 in order to create a common pro tocol for mobile communication services on
the continent.
At present, it seems that several countries outside Europe are planning to adhere to this
standard. Between 1982 and 1985, talks among the GSM standard encouraged around the subject:
analog or digi tal? After numerous tests , the digital version was adopted, and in May 1987 it was
decided that the system used would be TDMA and the operating frequency would be 900 MHz
The GSM standard was only validated in 1989, and the commissioning of the system took place
in 1991.

The GSM n etwork comprises three major systems: the central system, the base station
system and the operational and maintenance system. The central system is responsible for
processing calls and performing subscriber -related functions (estab lishing communication
connections, locati on and mobility control of subscribers, connecting to networks of other
operators, etc.).
The base station system deals with everything that concerns the use of radio frequencies.
The latter, the operational and m aintenance system, is the functional entity from which the
network operator monitors and controls the system as a wh ole by controlling configuration,
performance, charging, troubleshooting, and security. The goal is to provide users and operators
with perm anent assistance for all i ssues that may arise within the GSM network.
 Code Division Multiple Access
Considered to b e the technology of the future for mobile communication services , CMDA
is a split time system in which the encoded signal features make othe r radio signals as well as
possible i nterferences treated as irrelevant noises.
The system uses highly advanced voice compressi on technologies, a variable rate
vocoder, a voice synthesizer, and a voice processor all together.
The vocoder, known to musici ans as an instrument through which spec ial sound effects
can be obtained, is found in the miniaturized form in any digital phone, having the role of
“digitizing ” the voice (transforming the sounds emitted by the human voice into packets of binary
data) and to compress it.
The CDMA system offers , in the opinion of the specialists, five great advantages:
capacity 8 to 10 times higher than the AMPS analogue system and 4 to 5 times higher than the
GSM system; better , clearer audio quality and more consistent s ound ; simplified system of use of
the same freque ncy in each sector of each cell ; increased confidentiality of conversations ; better
coverage enabling cell number reduction ; reducing talk time possibly in other systems;
 Universal Mobile Telecommunication S ystem
3G systems are designed to provide global mobi lity with broad service coverage,
including telephony, paging, messaging, the Internet and broadband data. The International
Telecommunication Union began the process of defining the third -generation stan dard, called
International Telecommunications in 200 0 (IMT -2000).

In Europe, the European Telecommunications Standards Institute w as responsible for the
UMTS standardization process. Through UMTS, it is possible to negotiate and renegotiate the
characteri stics of the data bearers, to establish the session o r the connection, or to conduct them.
Both services, no connection or connecti on-oriented, are offered for point -to-point or multi -point
communication.
The UMTS network consists of three interactive doma ins: Nuclear Network, the
Terrestrial Radio Acces s Network (UTRAN) and the User Equipment (UE).
The core function of the core n etwork is to make switching, routing, and transit traffic for
the user. This network also contains the database and management f unctions.
The core architecture of the core networ k is based on the GSM network with GPRS. All
equipment, however, must be modif ied for UMTS operations and services.
UTRAN provides the Aircraft Access Method for User Equipment. The Base Station is
called N od-B, and the Nod -B control equipment is the Radio Network Controller (RNC).
The transfer rate can reach a maximum of 384 kbps – in the urban environment.
 Beyond 3G / HSDPA ( High -Speed Download Data Access
HSDPA is a protocol for 3G telephony, allowing 3G networks to increase their data
transfer speed a nd capacity. HSDPA currently supports 14.4 Mbps downloads, and in the future,
the HSDPA Evolved upgrade will allow initial speeds of 42 Mbps.
The capacity of the network is enhanced, providing 30 gigabyte s of data per month to
customers, plus 1000 minutes of voice and 300 minutes of video.
A distinctive feature in HSDPA is the use o f HS -DSCH (High -Speed Downlink Shared
Channel) to send packets to User Equipment. It uses adaptive modulation and coding (AMC); fast
packet programming at Node -B; rapid retransmission from Node -B (also known as HARQ –
Hybrid Automated Repetition Request) .
The incremental redundancy concept is used in HARQs where retransmissions contain
different user data encodings relative to the original transmission. When a vicious package is
received, the user terminal saves it and combines it with post -sequential ret ransmission to create a
non-error packet as efficiently as possible. Even if the retransmitted packet is itself flawed, the
combination of the number of erroneous transmissions can create a package without errors.
At present, Vodafone uses HSDPA technology , along with the UMTS standard, exploring
new ways to enhance technology .

1.1. Characteristics of mobile communication services

One of the technical characteristics of mobile phones is the Specific Absorption Rate
(SAR), which is the amount of RF energy that is absorbed by the human body when using the
phone. The maximum permissible SAR is 2W / kg. Since 1992, there has been some concern
about the harmful effects of mobile phones on health. Radiation in radio -communications is
emitted by energy in the form of electromagnetic waves.
All equipment using radio waves produces non -ionized radiation (heat), and mobile
phones are no exception to this. It is not scientifically proven that the radiation emitted by GSM
networks and devices causes health damage.
In studie s in the UK on the effects of electromagnetic radiation exposure in
electromagnetic fields, the International Nonionized Radiation Committee and the National
Radiological Protection Commission concluded that there is insufficient evidence to support any
long-term effect at all levels of biological development.
Practically, mobile phones are no more dangerous to health than FM radio or television
and are far less dangerous than microwave ovens.
The World Health Organization has also certified that the level of rad iation emitted by
GSM equipment and equipment is well below the average radiation level accepted by
international standards (8 times lower).
Radio transmissions can interfere with several types of home appliances, most likely
being personal aud io equ ipment , hearing aids or electronic devices for heartburn. However, to
prevent certain phenomena, it is recommended not to use mobile phones in reanimation rooms or
near life -saving appliances, gas stations, airports, aircraft or other places where th ey can cause
reactions from household appliances sensitive to such waves.
Other peculiarities to be mentioned are the rights and obligations of users of this type of
service, regulated by strict laws and in accordance with international requirements.
Accor ding t o the provisions of Law no. 676/2001 on the processing of personal data and
the protection of privacy in the telecommunications sector, the confidentiality of communications
via a public telecommunications network or the use of a publicly available t elecom munica tions
service is guaranteed. Listening, recording, storing or any other form of interception or
surveillance of communications is prohibited, unless they are made by users participating in that

communication, in which case the users participati ng in the co mmunication have given their
written consent as well as the case when these operations are carried out in the exercise of the
powers of public authority, according to the law. The law requires a user to inform the other user
when using equipmen t that allow s the conversation to listen , recorded, or stored by other people
during the call.
For the purpose of ensuring confidentiality, service providers and network operators are
required, under severe sanctions, to go through the withdrawal of the li cense, to ta ke all
appropriate technical and organizational measures to guarantee the security of the service and of
the network.
Specific safeguards are provided for traffic and billing data, detailed billing, provision ,
and restriction of the calling line serv ice or call line service, as well as automatic call forwarding,
and unsolicited commercial calls. Mobile communication services providers are required to
include in the registers of their subscribers or to make available to third parties making such
registe rs only t he personal data necessary to identify a particular subscriber unless the subscriber
concerned has expressly agreed to include additional data. Any subscriber has the right to
request, free of charge, not to be in cluded in a subscriber ’s register, to reque st that his or her
personal data be used by third parties for the purposes of direct marketing, request that the
address be only partially written, as well as no mention of sex, where this is linguistically
possib le.

1.2. Mobile telecommunication serv ices in E urope (Romania)

In our country , mobile telephony emerged in April 1993, when Telefónica Romania,
owned by the Spanish national fixed telephony operator Telefonica, launched the Telemobil
service based on NMT 450 technology. Due to reduced invest ment and poor management, the
results achieved were much below expectations. Thus, at the end of 1993, there were only 1000
subscribers compared to 3000 as planned, and three years after launch, the number of subscribers
was approximately 20000 and the cov erage of only 40% of the population. At the end of 1998,
the number of subscribers was halved. Poor performance in business in Romania and Spain
forced the principal shareholder Telefonica of Spain to sell in September 199 8 shares in the
Romanian company t o the Bal li Group in the UK and RDT Holding. In order to break the link

with the past, the new shareholders gave a new identity to society, renaming Telemobil . On 25
May 1999, SanTel launched the service.
Based on new tec hnology in the 450 MHz band with l ow radiat ion emissions. The
strategy of the company was ambitious, as the coverage of major cities and main roads was
foreseen for the end of 1999. It was also intended to expand in rural areas and install prepaid
calling phones. Reduced annual investment, approxim ately 10 times lower than those achieved
by GSM operators and increased competition has hampered the development of society. At the
beginning of 2000, according to the latest technology initiatives in the 450 MHz band, Telemobil
has decided to ad opt CDMA2 000 as a future technology. The implementation of the CDMA2000
will allow Telemobil to reposition itself on the Romanian market as one of the major providers
of telecommunication services.
In this context, R.D.T., the company ’s main shareholder, has decid ed to join the Inquam
consortium to develop and implement the latest digital mobile tec hnology. Qualcomm, the world
leader in telecommunications in the US and Omnia, a Middle East investment fund are the main
shareholders of the Inquam group. In O ctober 20 00, Inquam Romania became the main
shareholder of Telemobil , currently holding 99.5% o f the shares.
Although mobile telephony was not very successful, MobiFon and Mobil Rom operators
focused on GSM 900 technology managed to redress the image of t his type of service in Romania
and achieved remarkable success, although the perceived tariffs w ere quite high.
For our country, the introduction of the GSM mobile system meant attracting a $ 1 billion
investment. The license was granted, according to the law, for a period of 10 years. The bid for
the auction was purchased by more than 40 companies.
Operators of the first two new GSM mobile networks had to cover at least 65% of the
country ’s territory and, last but not least, have enough financial strength to bear t he costs of the
project.
Although the selection criteria were quite clear and tough, th e auction was postponed by
more than a year, mainly due to the lack of free frequencies in the 900 MHz band used in mobile
communications by the Army and the Go vernment
MobiFon was established at the end of 1996. It started with a share capital of US $ 30
million owned by the majority of Telesystem International Wirelss Inc. and Air Touch , two well –
known international companies with financial strength and telecom municatio n experience.

Substantial increases in share capital and changes in shareholder structu re were subsequently
followed. The official launch of the mobile service was made on April 15, 1997 , under the name
of Connex. The important investments for net work deve lopment and advertising campaigns have
led to rapid development of the number of subscr ibers. In the first year since launch, both
MobiFon and Mobil Rom recorded a four -fold increase in the number of predicted subscribers.
Mobil Rom was set up at the end o f 1996 with a share capital of 120 million USD.
Majority shareholder was France Telecom Mobile International. On 6 June 1996 , he launched the
mobile service under the trade name Dialog. It has an evolution similar to that of its MobiFon
competitor . An impo rtant moment in the history of society is its integration into the international
group Orange, France Telecom ’s mobile division. This involved changing the name of the
company, Orange Romania, and the services of Dialog in Orange. On December 31, 2003,
Orange Romania had more than 3.3 million customers, compared to 2.2 million at the end of
2002. With a 50% increase in customer base, Orange has recorded the highest growth rate of a
telephon e operator in Romania in 2003. Turnover increased by 42% fr om USD 37 0 million at the
end of 2002 to USD 527 million at the end of 2003. The investments made by Orange Romania
also increased by 74%, from USD 72 million at the end of 2002 to USD 126 million a t the end of
2003.
In December 1998 Cosmorom, owned by Rom telecom, acquired the license for the launch
of the DCS -1800 mobile telephony service. Due to the lack of funds and know -how, the launch
of the service took place in May 2000. The company ’s market s hare dropped from 1.2% to 0.86%
in 2003 -2004 1. On June 30 , 2005, t he territorial coverage was 60.34% and the population was
39.01%. The market share was only 0.72% of the mobile telephony market1. In July 2005,
Romtelecom sold 70% of the shares in Cosmoro m to CosmOTE, the Greek mobile operator, for
the amount of 120 mill ion euros. According to statements by Cosmorom general manager
Nikolas Tsolas, the Greek company will invest 450 million euros in the next three years.
As a current picture, it can be menti oned that the number of mobile users exceeded the
threshol d of 18 m illion users, a large number of them paying online bills, the evolution of this
type of transactions being closely related to the evolution of transactions online transactions by
banks, whe re the total value of transactions in online payment instr uments in RON and currency,
expressed in euro equivalent, amounted to over 44 billion in 2006.

1.3. Features of quality services

With regard to the quality of mobile telecommunication services, we briefly presented, as
well as the quality features, the charac teristics that differentiate the multitude of standards
together with a comparative analysis of them, so that on the basis of specific indicators, describe
how effectively evaluates the quality of service in Romania. There are two representative features
that we ne ed to examine for the purpose of assessing the specific quality of mobile
telecommunication. The first is end -user performance and the other is spectral efficiency, more
specifically the aggregate transport capacity of the network.
Maximum network speed me ans the maximum transmission speeds that each network can
theoretically achieve for a sectoral message. It should be specified that the bandwidth required for
each technolo gy to achieve the maximum speed is different. The likely end -to-end speed i s the
download speed that the end user can expect when downloading different files. The first
important observation is the significant increase in network performance by going throu gh the
GPRS – EDGE – UMTS – HSDPA route. EDGE achieves mo re than three time s the maximum
transfer speed and a likely speed for the user compared to GPRS with the coding scheme 1 -2
(GPRS CS 1 -2). This increase is amplified by the switch to UMTS and HSDPA. EDGE is the
best narrowband spectral efficiency technology and WCDMA best br oadband technology. As
such, multi -radio UMTS technology that combines EDGE and WCDMA is the best spectral
performance and efficiency
The National Regulat ory Authority for Communications (ANRC) is the main body
regulating the legislation and the quality of telecommunications services.
The main tasks of ANRC are: monitoring and controlling compliance with obligations
imposed on providers of electronic commun ications networks and services through general
authorizations; the management of num bering resources a nd the granting of licenses for the use
of numbering resources; developing a methodology for conducting market analyzes and
identifying relevant markets in the electronic communications sector; carry out market analyzes
to establish relev ant markets and su bsequently designate companies with significant market
power and impose specific obligat ions; the management of the mechanisms for financing the
obligations related to the provision of universal service, provided by the special legislatio n;
control of the fulfillment of the obligations imposed on universal service providers under the

provisio ns of the special legislation. Evaluation of service quality was done on the basis of
specific indicators, according to the natural order in which the processes take pl ace in time:
1. Time to start service delivery
This is the time interval between the tim e of receipt of the service provider ’s service
request and the time at which the service becomes available to the requesting user. Only requests
for w hich there are tec hnical installation conditions will be considered.
Considerations on measuring the param eters of this indicator
The values of the following parameters will be reported . Also, the timeframe in which
95% of requests are settled , the timeframe in which 99% of requests are settled , and the
percentage of requests settled within the time frame agreed with the user.
The first two parameters will be calculated in actual days rather than in business days.
They will exclude cases in which the user requests postponement of service delivery
This indicator applies to a new network connection as well as to an additional connecti on.
2. Breaches reported per access line per year
A valid fault report is a service interruption or degradation report, written by a user and
attributed to the network through which the service or any network interconnected with the fir st
through which the calls generated by that service are being transmitted. Excluded are cases where
the interruption or degradation of the service is caused by the failure of terminal equipment.
Reports on basic or primary access or multi -line access rate s will be recorded a s a single
report, regardless of the number of channels activated or affected. Also, the number of access
lines considered will be 1 for basic or primary access rates, regardless of the number of enabled
channels.
In the case of indirect service provision, the number of access lines will be replaced by the
number of users of the service. An access line is a circuit capable of establishing a voice link
between the network termination point and the local control panel. Troublesh ooting time is the
length of ti me m easured between the moment when the malfunction was reported to the public
address indicated by the service provider and the moment when the service element or service
complained of was returned to normal operating parame ters.
Considerations on measur ing the parameters of this indicator:
The provider of the publicly available telephone service will make public the timeframe in
which notifying disturbances may be filed with the public address designated for that purpose.

An account shall not be taken of cases where the service provider concludes with the user
a contract under which he undertakes to provide preferential troubleshooting services other than
those currently offered.
The values of the following parameters wil l be reported . Also time to troubleshoot the
access line in the case , valid reports for the fastest 80% of cases , time to troubleshoot the access
line in the case , valid reports for the fastest 95% of cases , the time needed to rectify all other
reported mi stakes, in the case of valid reports, for the fastest 80% of cases , time to correct all
other reported mistakes, in the case of valid reports, for the fastest 95% of cases , the percentage
of total disruptions rem edied within the time agreed with the user o f the total reported
malfunctions. It will exclude from the statistics cases of faults that resolve within other electronic
communications networks interconnected with the first that the provider of the publicly available
telephone service cannot receive i nformation about the rectification of the problem.
The statistics will quantify the corrected faults during the data collection period,
regardless of when the fault was reported.
An unsuccessful call is a call to a valid, correctly formatted identification number where
neither a busy tone nor a dial tone or response signal is received within 30 seconds since the
information needed to identify the called user was received by the network. Considerations on
measuring the parameters of this indica tor: The missed call rate is represented by the percentage
ratio between the number of unsuccessful calls and total calls attempted within a specified time
period. The values of the following parameters will be reported and the percentage of
unsuccessfu l local calls , the percentage of unsuccessful calls at a national level , the percentage of
unsuccessful calls at international level.
The values of the national and international parameters will be provided broken down for
each carrier used and under the jurisdiction of the Romanian State. No limit values are required
for the international parameter.
The c onnection timing is the time period between the time when the address information
required to establish the connection w as received by the network and when the calling party
receives a busy tone, ringtone or response signal from the called party.
Considerations on measuring the parameters of this indicator:
The values of the following parameters will be reported : the aver age (in seconds) for local
call setting , the time (in seconds) in which 95% of all local telephone connections are established ,

the average (in seconds) for making calls at a national level , the time (in seconds) in which 95%
of the total national telephon e connections are established , medium (in seconds) for international
call routing , time (in seconds) in which 95% of all international telephone connections are
established. Calls deemed unsuccessful are not counted.
The values of the national and inter national parameters will be pro vided again broken
down for each carrier used and under the jurisdiction of the Romanian State. Again, limit values
are not required for the international parameter. Response time for the “operator ” services is the
time between the time when the address information for an “operator ” service was correctly
received by the network and the moment when the human operator responds to the calling user to
provide the requested service. Considera tions on measuring the parameters of this indicator:
The services ref erenced by this indicator are those that can be called using special access
formats (three -digit short numbers, except for emergency number 112 access numbers).
Services wholly provided automatically are not considered .
The values of the following parame ters will be reported and the a verage response time ,
the percentage of calls to the “ operator ” services that were answered in maximum 30 seconds of
all calls to these services.
The indic ator is particularly useful for internal evaluation and is a measureme nt parameter
for customer satisfaction. A complaint about the accuracy of the invoice is an expression of the
user’s disagreement with the correspondence between his payment obligation a nd the actual
services provided. No such claim will be confused with a request for additional information on
the invoice received. Considerations on measuring this parameter:
The percentage ratio between the number of complaints about the accuracy of the i nvoice
and the total number of invoices issued in the reported quarter will be calculated. All complaints
of this kind received, regardless of their validity, will be considered.
Invoice -related complaints handling generally involves several sub -department s, such as
Customer Relationship, Billing, Payroll.

1.4. Vodafone in Romania

Vodafone Romania is one of the top companies operating in the Romanian business
environment, the old Connex brand successfully evolving almost 9 years before being taken over.

Vodafo ne has seen a strong development lately, targeting the leadership position currently
occupied by Orange Romania, the distance between the two being almost insensible.
The motto and at the same time the vision of Vodafone sounds like this: “We are here to
communicate lightly and to be in constant contact with t he world. We want to be the most
appreciated company in Romania. ” It is of little interest that in order to carry out an exhaustive
analysis of this multinational company that offers complex services, it is necessary to go through
a very large number of st ages, referring both to the service offer, as well and the relationship with
the business environment and social responsibility.
Since 2005, Conex has become an integrated part of the world ’s largest m obile
telecommunications community, Vodafone, with a ne twork extending over 27 countries,
including over 200 million users, and is estimated at a market value of about 142 billion euros.
The service offer comprises two broad categories: subscription -based services and
rechargeable card services (approximately 70% of the total number of users). By reviewing the
main types of services, across different application areas and customer segments, we can
distinguish for the consumer segment: subscriptions and extra options (Favorite Hours, Favorite
Numbers, Standard, Active, etc.); the Vodafone card; 3G services; messaging, Roaming; SIM
services: My Banking ; recharge; ATM / Bank in the area; other services: call barring; conference
call; Vodafone Compass. For the corporate or corporate segment: subscriptions and extra options
(Bundled , One4All, Business Group); mobile internet access and data; fixed Internet access and
data; roaming, Messaging; dedicated solutions (Integrated Communication Solutions, Internal
Commu nication, Your Online Business) . The most suggesti ve and highly used (except for the
voice services to be treated) services to be considered are :
The Messaging service is available from the moment the SIM is activated, whether you
opt for a subscription or a rechargeable card.
The Multimedia Messaging Ser vice allows you to send or receive multimedia messages
from Vodafone or Orange customers who have MMS enabled, but it is also possible to send to
users of your own network or other networks that do not have the service enabled or who cannot
receive multime dia messages to optimal parameters.
Vodafone has roaming agreements with 289 operators in 135 countries. Besides the
Vodafone Passport option described in the Vodafone global services, there are two very pr actical
services for roaming people, i.e. people a rriving with roaming in Romania.

Travelers arrive in Romania, they can get in touch with the local headquarters of
multinational companies without knowing their phone number or city prefix. For example, to get
in touch with the VISA Romania office, it is e nough to dial the V -I-S-A name on the mobile
phone, i.e. keys 8 -4-7-2 and then “YES ”. Short roaming numbers allow – call short numbers of
services made available by the home operator. For example, an Omnite l subscriber in Italy will
make 2020 to listen to voice messages, just as it would if it were in Italy. Vodafone Push Email
provides real -time access to email, calendar, and other mobile -based applications in the business
class.
Vodafone Push Email provide s a complete messaging functionality, allowing you to edit
and view attachments in a known format such as MS Word, PowerPoint, or Excel. With
Vodafone Wireless Office, companies can reduce their number of office phones, helped by a
service that equals if n ot even below the cost of fixed lines.
Wireless Office relies on Mobile Virtual Private Network (MVPN) technology, a platform
that allows the interconnection of all mobile lines. It is intended to use a single phone inside and
outside the office. It does n ot matter what number is formed, since the call is routed to the correct
phone, making it much easier to access.
With the Mobile Attendant software, contacts, calls , and SMS can be managed with a simple PC
interface.
Vodafone live multimedia portal! provid es access to a range of services that d istinguish
them: games, ringtones, news. Using 3G technology, customers can experience newscasts or a
cinema caravan at a quality close to digital television. Among partners include HBO, MTV,
UEFA Champions League, Di scovery, EMI, Universal Music.
Vodafone is the latest service launched by Vodafone and is already enjoying a great deal
of interest. Through Vodafone Home, the charging plan is very low in fixed networks, as long as
the area declared in the contract is res pected. Registering the “home ” area is done through space
you want to use for low -cost calls. Once out of this area, the user can no longer call, possibly
using the text messaging service.
The service is especially useful for customers who use mainly fixed networks, removing
from the start a se ries of inconveniences of fixed devices such as: restricting freedom of
movement by the receiver wire, difficult installation and sometimes impossible in areas where the

infrastructure is poorly developed or non-exist ent. The only condition for the optimal operation
of the service is that the user is in a Vodafone coverage area .
Vodafone has over 1 billion euros in turnover over the past year, with nearly 3000
employees. As an internal structure, the company is divided into 4 major departments, which are
divided into several sub -departments. The 4 departments are represented by:
 The Operative Department, which is also the largest one with nearly 1,000 employees. It
includes several sub -departments: Customer Relations, Physical Entities, Legal Entities ,
and Major Customers; billing; Collection of payment, Activation , and Quality; Logistics.
 The Department of Finance is responsible for drafting department budgets for various
projects as well as salary calculations, the se being also its two sub -departments.
 The Marketing Department is the least numerous, being responsible for creating and
promoting new products and setting promotional prices; is also responsible for
communicating services to both internal clients and t he pres s;
 The Sales Department includ es several sub -divisions: Direct Sales; Sales by Phone; Sales
by Representatives.
The last two departments, although the least numerous, bring the company the most
revenue, with highly qualified employees or excellent results in other departments.
Just 135 days after the license was approved, in 1997 Connex commercially launched
GSM services, being the first company to introduce the Customer Relations Service in Romania.
In 1998, it is the first operator to launch the Short Mes sage Serv ice (SMS) and also the
first GSM operator in Romania to provide data and fax services. In the same year, it became the
first operator to install GSM equipment on the Black Sea Continental Platform, and for the
Ceausescu advertising campai gn (the f irst inte rnationally awarded campaign) won gold and silver
medals at the Golden Drum Advertising Festival.
Connex was also the first operator in Romania to provide full Internet services via Xnet in
1999, being the first company to install GSM equipment in inaccess ible helicopters . For the “The
future sounds good ” image camp aign, “Romanian Advertising ” won the prize for “The Most
Creative Advertising Campaign in Romania ”.
In 2000, he launched WAP technology and won for the third time in a row the award
“Best Company in Romania ” awarded by Business Central Europe, a publicatio n of The
Economist. Services offered after 2000:

The first mobile portal in Romania – myX, was launched in 2001, and throughout the
same year, Connex markets GPRS (General Packet Radio Service) technology.
In 2002, he was the first operator in Romania to e xtend GPRS technology to pre -paid
service and also the first operator to offer Electronic Charge, an alternative to card recharge.
It was the first operator t o introduce Mobile Banking, based on SMS, in cooperation with
the Romanian Commercial Bank.
Among the achievements worth mentioning in 2003, we can mention: winning the Golden
Trophy for Excellence in Public Relations for the best PR campaign, the Connex E ducational
Program for the Faculty of Electronics and Telecommunications Bucharest, awarded by the
Forum for International Communicatio n; has received excellence prizes for the “You Make The
Future ” campaign, offered by the Financial Market and IDG Romania magazine, as well as the
“The Most Admired Telecommunications Company in Romania ” Award, awarded by Bucharest
Business Week magazine.
In 2004, Busola Connex launches the first co -branding card from Romania, together with
Raiffeisen Bank Romania, and launc hes the first videotelephony demonstration in Romania based
on 3G technology.
2005 marks Connex ’s acquisition by Vodafone, becoming a p art of the largest mobile
community in the world, is rated as the largest transaction in Romania in the last 15 years.
In April 2005, it became the first operator to launch 3G services in Romania, offering
videophone, f ast Internet and telephone calls at m ore favorable rates.
Launches the „Connex for the Fu ture” program, which aims to support initiatives that can
improve the lives of Romanians in the fields of education, culture and the environment. Also, in
2005, the fi rst 3G portal in Romania – Live is in augurated, and communication solutions for
business customers such as BlackBerry or Connex 3G MultiOffice are also released.
Among the achievements of 2006 can be mentioned: implementation of the Vodafone
brand in Roman ia through the campaign “Live every m oment ”; the launch of Vodafone Mobile
Connect, a pow erful wireless connectivity solution for laptop users; expanding 3G services in 22
cities; the launch of Vodafone World, an innovative roaming service for customers in Romania.