The Romanian telecom market liberalization has meant that companies such as EAD Telecom could establish themselves in the voice market territory.
The initial purpose of the company was to offer voice termination to Romania and to become a trustworthy partner for external companies willing to send minutes to Romania.
Throughout the years, EAD has become a wholesale operator by providing a diversified array of voice routes.
EAD Telecom represents a well-established regional voice company with more than 1 billion minutes/year and revenues of about 14.000.000 EURO in 2015, working exclusively in voice wholesales.
EAD has a stable cash position and a good payment reputation, with neither payment incidents, nor any kind of debts.
Voice wholesales represents a market of approximately 13 billion USD (2015). Players are looking for good, stable routes, while being under a constant price pressure.
EAD constantly tries to offer routes at a good value for money ratio with:
Throughout the years EAD has been present on the market, the company has never had payment incidents. EAD’s credit limits have grown constantly, up to 100.000 Euro with some Tier1 operators.
Regardless of the continuous price drops that had affected the voice industry in recent years, EAD has succeeded to continuously grow its traffic volumes on a yearly basis and to keep revenues at a constant level.
The average price for a voice minute in the EU markets has seen a significant decline (about 12 times between 2005-2015). In the wholesales EU market, revenue fell about 50% in the same period. Activating mainly in European markets (about 95% of traffic), EAD has faced the European prices decline generated by the EU regulations as well as a tough competition.
With a cost oriented policy, EAD succeeded to keep a good level of profitability by maintaining a constant cash reserve and having continued bank support.
Note: all the information in the graphs above can be verified on the Romanian Finance Ministry official site, entering EAD’s VAT code, 18511326.
Despite the growing technical and administrative complexity of the EU voice business (regulations tasks, portability conditionings, asymmetric rates specifications, etc.), we believe that the voice industry is here to stay, regardless of the prices’ decline, the regulation pressures or the OTT offensive.
The focus towards quality and prices is intensifying. The demand for a large spectrum of routes at different quality ratios and prices is growing. There will never be an “everything for everybody” operator. The market pressure will also grow, leaving room for the most specialized, motivated and technically advanced companies.
EAD will try to keep its place within the industry, through the following: