This report covers the market developments in FY 2013 and the data available as of June 2014 The statistical indicators on the Romanian telecom sector’s performance in 2013 show that i. the market remains stable, compared to past yearand ii. despite the challenging market environment and rising competition, there is still enough room for growth -- particularly on the internet segment. The largest telecom operators managed to record annual increase (albeit slight) of revenues in 2013, despite demand-side, regulatory and competition-related deterrents during the year. No official data were released on telecom service revenues in 2013, yet given the major players’ financial results last year, it is likely that the telecom market increased marginally y/y in 2013. Mobile voice services witnessed a slight recovery in the number of active users in 2013, while the voice traffic continued to increase last year. Fixed voice services managed to attract more customers in 2013, but the traffic volume remained weak y/y, indicating that the positive performance in terms of customer base probably reflects the rising popularity of bundled offers rather than a rebound of interest in fixed telephony. Data services segment kept accelerated expansion pace in 2013. The number of subscribers surged by 34.7% y/y to 13.6mn in 2013, backed by the 58.2 y/y rise of mobile subscriptions or dedicated extra-option connections, while the fixed broadband internet connections advanced by 7.1% y/y. The segment has enough room for further growth, as internet usage in Romania remains below the EU average, despite the dynamic growth in the recent years. Key points: • Revenues from mobile communication services increase marginally y/y in 2013 • Mobile voice traffic, customer base up in 2013 • Bundled services keep gaining ground in 2013 • Mobile broadband connections surge by 34.7% y/y last year • Romtelecom, Cosmote to re-brand under Deutsche Telekom label • Media company Antena TV secures rights to launch cable, IPTV services • State-owned Radiocom prepares to launch internet, telephony, TV offer