On the significant growth of 5G connections and the challenges for the telecom sector in 2023

In the first half of the year, the number of 5G mobile internet connections saw a remarkable increase in Romania, exceeding 1.5 million, according to data provided by the National Authority for Administration and Regulation in Communications (ANCOM). However, the report signals decline in the telecom sector, including a 2.3% decrease in revenues to over 8.3 billion lei (€1.7 billion).

Key issues:

Explosion in 5G Connections: The number of 5G connections increased significantly, doubling to over 1.5 million in the first half of the year. This reflects the rapid adoption of next-generation mobile internet technology.

Stability in 4G and 5G Connections: In terms of mobile internet, the total number of active connections remained almost constant at 21.3 million connections. Of these, 75% allow access to 4G and/or 5G, totaling 15.9 million.

Data traffic on the rise: Average monthly traffic reached 9.2 GB per inhabitant, an increase of 4%. This translates into around 300 MB per day, highlighting the growing reliance on data in everyday life.

Top Service Providers: By number of active connections, the top three providers were Orange Group (38%), RCS&RDS (26%) and Vodafone (24%), dominating the Romanian telecom market.

Declines in Telecom Revenues: Despite growth in fixed and mobile internet usage, telecom revenues fell by 2.3% in the first half of the year to over RON 8.3 billion. This is mainly due to the decrease in wholesale mobile revenues.

Although the rapid adoption of 5G technology brings a significant change in the connectivity landscape, the telecom sector faces challenges in maintaining revenues in the context of the ongoing market evolution.