Quantitative Research The Market of Internet Access Services

THE GALLUP ORGANIZATIONROMANIA

Quantitative Research The Market of Internet Access Services

•• Business SampleBusiness Sample ••

Report prepared for:

December 2006 - January 2007

2THE GALLUP ORGANIZATIONROMANIA

CONTENTS

General Framework and Objectives pag. 3

Research Methodology pag. 4

Socio-Demographic Profile of the Sample pag. 6

RESEACH REPORT

I. Degree of Penetration of Internet Access Services Inside Companies and Institutions pag. 8

II. Degree of Penetration of Data Transmission Services Inside Companies and Institutions pag. 13

III. Endowment of Companies and Institutions with PCs and Computer Networks pag. 17

IV. Types of Internet Access Connections pag. 30

V. Expenses with Internet Access Services pag. 40

VI. Purposes for Using the Internet and Use Policies pag. 46

VII. The Market of Internet Dial-Up Access Connections pag. 54

a. Description of Dial-up Access Connections and Their Degree of Use pag. 55

b. The Degree of Satisfaction with Providers of Dial-Up Internet Access Services pag. 65

c. Intentions to Change Providers or Types of Dial-up Internet Access Connections pag. 72

VIII. The Market of Dedicated Internet Access Connections pag. 82

a. Description of Used Dedicated Access Connections and Their Degree of Use pag. 83

b. Degree of Satisfaction with Dedicated Internet Access Providers pag. 96

c. Intentions to Change Providers or Types of Dedicated Internet Access Connections pag. 108

IX. Existence of Previous Internet Access Connections inside Companies and Institutions pag. 117

X. Intention to Acquire a New Internet Access Connection pag. 126

XI. Profile of the Companies and Institutions in Which Internet Access Services Are Used pag. 134


GENERAL FRAMEWORK AND OBJECTIVES

During the period October 2006 – January 2007, The Gallup Organization Romania made a research which subscribes to ANRC’s aim to monitor the tendencies in the behavior related to the use of Internet access services in order to analyze the changes in the structure and operation of the specific and relevant retail markets identified by ANRC.

The objectives of this research were:

• percentage of consumers and the degree of using Internet access services at the companies’ level

• used providers of internet access services and barriers/reasons for changing the provider

• used internet access services and selection criteria

• monthly average expenses with such services

• the degree of acquaintance with the types of internet access services

• domains and habits for using internet services

• degree of satisfaction with the used internet access services

• intention to change the used services – connection modality, bandwidth, reasons

• response to a price or tariff increase


RESEARCH METHODOLOGY

Researched Collectivity: active companies from Romania (which submitted their accounting balance sheet for 2005 and which have a turnover>0 RON) and public institutions.

Total Volume of Collectivity: 394,581 companies and institutions (376,611 companies and 17,970 public institutions).

Sampling Unit: a person from the management, who is in charge with making the decision regarding the acquisition of Internet access services.

Sampling Volume: 1,078 companies and institutions using Internet access services.

Sample Type: a probabilistic, stratified sample.

Sampling: a representative sample built by using two stratification criteria: number of employees and turnover for 2005. The sample was constructed upon the basis of the statistical data provided by the Chamber of Commerce and Industry of Romania. The stratification process generated 25 cells. For each cell, a number of companies and institutions was selected at random, which number was high enough to reach the volume of the proposed volume of the sample of users. Companies were selected in two stages: in the fist stage, two filters were applied to the database of the Finance Ministry which includes the companies from Romania, which filters comply with the sampling criteria, and in the second stage a number of companies three times higher than quota set for each cell was extracted. In the case of public institutions, the selection was simple, at random, with no previous stratification of the database. All the selected companies and institutions had fixed telephone posts.

Field inquiry: November 8 – December 15, 2006.


For making this research, a representative sample was constructed at the level of the companies; through filtering such sample, the final sample of Internet users was obtained. The representative sample was used to obtain data regarding the penetration of Internet access services at the level of the entire collectivity. The sample of users was used to obtain data responding to the other objectives of the research.

Interviews were conducted via the telephone, based on a standard questionnaire, applied by the interview operators specifically trained in this regard. The average duration of an interview was 8 minutes.

The response rate for eligible companies (which meet the sampling criteria):

This report, in a graphic format, presents the main results of this research.

1 07853%

Valid Main QuestionnairesResponse Rate for Main Questionnaire

62250642

- person in charge could not be contacted- refusal of main questionnaire- no Internet

2032Eligible Companies

33915492054

of which: - inexistent number/private residence- refusal of selection questionnaire- ineligible companies (exceeded quota)

5974Contacted companies

RESEARCH METHODOLOGY


SOCIO-DEMOGRAPHIC PROFILE OF THE SAMPLE

(N=2032)

*2005 average exchange rate is the reference: 1 Euro = 3,62 RON

Number of employees N % Areas N %1-2 employees 934 46,0 NORTH-EAST 270 13,33-9 employees 696 34,3 SOUTH-EAST 223 11,010-49 employees 305 15,0 SOUTH 138 6,850-249 employees 77 3,8 SOUTH-WEST 113 5,6250+ employees 20 1,0 WEST 236 11,6

NORTH-WEST 379 18,7CENTRE 258 12,7

Revenues in 2005 N % BUCHAREST 415 20,4Public institution 76 3,7under 50.000 Euro 1280 63,050.000 - 100.000 Euro 230 11,3100.001 - 500.000 Euro 288 14,2500.001 - 1 mil. Euro 63 3,1over 1 mil. Euro 95 4,7

Type of activity (CAEN) N %Public institution 76 3,7Agriculture and forestry 28 1,4Industry 284 14,0Constructions 181 8,9Trade 578 28,4Services 834 41,0Unspecified 51 2,5

RESEARCH REPORT

I. Degree of Penetration of Internet Access Services

Inside Companies and Institutions


Degree of Penetration of Internet Access Services Inside Companies and Institutions

67% of the companies and institutions from Romania use Internet access services. The larger are the companies and institutions, the higher gets the penetration degree in using Internet access services, reaching 99% for the companies and institutions with more than 50 employees, and 95% for the public institutions and companies with a turnover in excess of EUR 1 million. Small companies (1-2 employees and a turnover below EUR 50,000) have the lowest penetration degree of using Internet access services, approximately 55%. When making an analysis per development regions, we note that there are significant variations of the penetration rate of using [Internet access services] from region to region. The companies and institutions from Bucharest and from the South [of Romania] have the highest penetration degree of using (75%, respectively 72%), while regions as South-West and West have a penetration rate below the average (60%, respectively 62%).

Extrapolating this result to the collectivity subject to our research (active companies from Romania, which submitted their balance sheet for 2005 and have a turnover>0 RON, and public institutions), the result is that Internet access services are used in approximately 265,948 companies and institutions


NO it doesn't use, 33%

YES, it uses Internet services

paid by the company, 67%

Does your company use Internet services paid by the company?

Base: Representative sample for companies and institutions, N =2032

The penetration rate of Internet access services at business andconsumer level

*62 companies that didn’t answer the question were excluded


No. of employees72.3%

82.6%

99.0%

95.3%

57.6%

76.7%

83.3%

84.1%

94.7%

55.2%

0% 20% 40% 60% 80% 100%

1-2 employees (N=899)



50+ employees (N=97)

Public institutions (N=64)

under 50 thousands Euros (N=1234)

50 - 100 thousands Euros (N=227)


501 thousands - 1 milion Euros (N=63)

over 1 million Euros (N=95)

Turnover in2005

The penetration rate of Internet access services by number of employees and turnover

Base: Representative sample for companies and institutions, by number of employees and turnover




64.7%

72.4%

59.8%

61.7%

67.3%

69.1%

74.6%

62.4%

0% 20% 40% 60% 80% 100%

NORTH-EAST (N=263)

SOUTH-EAST (N=218)

SOUTH (N=134)

SOUTH-WEST (N=102)

WEST (N=227)

NORTH-EEST (N=370)

CENTER (N=246)

BUCHAREST (N=410)

The penetration rate of Internet access services by development areas

Base: companies and institutions from the following development areas



II. Degree of Penetration of Data Transmission Services Inside

Companies and Institutions


Degree of Penetration of Data Transmission Services Inside Companies and Institutions

Only 12% of the companies and institutions from Romania use also data transmission services, generally to ensure a permanent and secured connection between branches, respectively headquarters.

The larger are the dimensions of a company, the higher gets the penetration degree of using data transmission services, reaching almost 43% for the companies and institutions with more than 50 employees and 34% for the companies with a turnover in excess of EUR 1 million, respectively 31% for public institutions. Small companies (1-2 employees and a turnover below EUR 50,000) have the lowest penetration [rate] of using data transmission services, below 6%.


NO it doesn't use, 88%

YES, it uses data

transmission services payed by the company,

12%

Does your company use data transmission services besides the Internet (offered by a supplier, usually to ensure a permanent and secure connection to affiliates/headquarters?

Base: representative sample of companies and institutions, N =2032

The penetration rate of data transmission services at companies and institutions level



No. of employees14.3%

21.3%

42.7%

31.0%

5.9%

15.5%

19.4%

24.1%

33.7%

3.6%

0% 20% 40% 60% 80% 100%





Public institutions (N=58)

under 50 thousands Euros (N=1207)



501 thousands - 1 milion Euros (N=58)

over 1 milion Euros (N=92)

Turnover in2005

The penetration rate of data transmission services by number of employees and turnover

Base: representative sample of companies and institutions, by number of employees and turnover


Does your company use data transmission services besides the Internet (offered by a supplier, usually to ensure a permanent and secure connection to affiliates/headquarters?

III.Endowment of Companies and

Institutions with PCs and Computer Networks


Endowment of Companies and Institutions with PCs and Computer Networks

The companies and institutions in which there is an Internet access connection have an average number of 7 computers. The number of computers is closely related to the number of employees, so that in the case of companies and institutions with 3-9 employees there are 4 computers on the average, and in the case of the companies and institutions with more than 50 employees, the number of computers may reach 36.

Among the companies and institutions in which there is an Internet access connection, 69% have a computer network; this percentage varies again according to the number of employees. In this way, only 55% of the companies and institutions with 1-2 employees in which there is an Internet access connection have a computer network, while in the case of the companies and institutions with more than 50 employees, the percentage of those having their computers connected in a network grows to 95%.

The average number of computers connected to a network is 8, a number which increases at the same time with the company size, from 3 (companies and institutions with 1-2 employees) to 33 (companies and institutions with more than 50 employees).

Generally speaking, 80% of the computers existing in companies and institutions are connected in a network. The type of network through which such computers are connected is, in most of the cases, a Local Network – LAN (86%), then a Metropolitan Network – MAN (7%) and a Network between the central headquarters and subsidiaries - WAN (3%).

On the average, 5 computers from a company or institution have Internet access, this number going to 25 computers in the case of the companies with more than 50 employees.


Endowment of Companies and Institutions with PCs and Computer Networks

On the average, 75% of the computers in the companies and institutions with Internet access are connected to the Internet; this percentage varies according to the number of the employees of the company and institution, decreasing as the number of the employees decreases.

This phenomenon is valid also upon analyzing the percentage of employees with Internet access from the total number of employees of the companies, respectively institutions. On the average, only 29% of their employees have Internet access; this percentage varies greatly according to the size of the company and institution, from 97% in the case of those with 1-2 employees to 18% in the case of those with more than 50 employees.


44

73

40

24

6

32

23

41

13

12

2

14

21

20

5

1

2

13

15

4

1

7

26

2

1

18

1

1

2

34

1

0% 20% 40% 60% 80% 100%

Total sample (N=1078)



10-49 employees(N=252)


1-2 3-5 6-10 11-20 21-50 over 50 DK/NA

The total number of computers used in companies and institutions that have Internet connection

How many computers (including servers) do you currently use in your company? Please take account all offices that your company has in Romania, including affiliate offices, branches etc.

Base: companies and institutions that have Internet connection, on total sample and by

number of employees

Average number

6,81

2,20

3,83

8,24

36,49

(companies and institutions that have Internet connection)


68.6%

55.1%

67.4%

79.8%

95.1%

30.9%

44.6%

31.6%

20.2%

.6%

.3%

3.7%1.2%

1.0%

0% 20% 40% 60% 80% 100%






There is a local network There isn't a local network DK/NA

The presence of a computer network

How many computers (including servers) that your company uses are connected to a local network and how many are individual computers, are not connected to a network?


number of employees



53

85

54

36

14

16

7

23

8

15

3

16

21

18

6

1

1

14

12

5

2

7

24

2

1

17

5

4

8

18

5

0% 20% 40% 60% 80% 100%

Total number of companies and institutions that have a network





2-3 4-5 6-10 11-20 21-50 over 50 DK/NA

The number of computers connected to a network


Base: companies and institutions that have Internet connection and a computer network, on

total sample and by number of employees

Average number

7,93

2,71

4,23

8,50

32,83


68,6%

75,0%

82,2%

83,1%

79,7%

0% 20% 40% 60% 80% 100%

Total Sample (N=1078)





Percent of computers connected to a network of total number of computers form companies and institutions

How many computers (including servers) do you currently use in your company?



number of employees



86%

3%

7%

1%

6%

LAN - Local Area Network

WAN - Wide Area Network –between HQ and branches

MAN - Metropolitan AreaNetwork

Other

DK/NA

Multiple answer question

What type of network do your computers use for connections in your company?

The type of network used to connect computers in companies and institutions

Base: companies and institutions that have Internet connection and a computer network,

N=739


DK/NA, 6%

only network between HQ and

branches (WAN), 2%

only metropolitan network (MAN), 5%

local + network between HQ and

branches, 1%

only local network (LAN), 83%

Other, 1%

local + metropolitan, 2%

The type of network used to connect computers in companies and institutions

What type of network do your computers use for connections in your company?

Base: companies and institutions that have Internet connection and a computer network,

N=739


58

80

57

41

18

23

16

30

13

9

1

10

16

17

4

1

1

12

11

3

1

4

26

1

0

11

2

2

4

25

1

0% 20% 40% 60% 80% 100%






1-2 3-5 6-10 11-20 21-50 over 50 DK/NA

The number of computers with Internet access

What is the approximate number of computer with Internet access in your company? Please take into account all your offices in Romania, including HQ and branches.


number of employees

Average number

5,1

1,84

2,99

6,64

24,63



84.0%

78.3%

82.3%

66.8%

75.3%

0% 20% 40% 60% 80% 100%






Percent of computers with Internet access of total number of computers form companies and institutions

How many computers (including servers) do you currently use in your company?

What is the approximate number of computers with Internet access in your company?


number of employees



96.9%

71.4%

44.6%

17.9%

29.1%

0% 20% 40% 60% 80% 100%






Percent of employees with Internet access of total number of employees form companies and institutions

What is the approximate number of employees that have Internet access in your company?


number of employees



91.4%

62.0%

36.1%

14.9%

24.4%

0% 20% 40% 60% 80% 100%






What is the approximate number of employees that have a personal email account in your company?


number of employees

Percent of employees that have a personal email account of total number of employees form companies and institutions

(companies and institutions that have Internet connection

IV. Types of Internet Access Connections


Types of Internet Access Connections

36% of the companies and institutions with Internet access use a dial-up connection, mostly through a fixed telephone line (28%), and to a smaller extent through a mobile access ZAPP (4%) and ISDN line (4%).

67% of the companies and institutions with Internet access use a dedicated connection, mostly through fiber optic (25%) and TV cable (23%). The xDSL dedicated connection is only used by 9% of the companies and institutions.

The higher the number of employees, slightly higher is also the percentage of dial-up connections through a traditional telephone line, but the percentage of using the CDMA mobile connection is lower. In the same context, at the companies and institutions with a dedicated connection, as their employees’ number increases, one can note a tendency of giving up the cable connection in favor of the fiber optic. In the case of companies and institutions with more than 50 employees, such tendency is obvious: 10% have a dedicated TV cable connection and 43% have a fiber optic connection.

As a provider of dial-up connections, Romtelecom is present in 63% of the companies and institutions with this type of connection, followed by Zapp with 13% and RCS/RDS with 11%. The main provider for the companies and institutions that use the dial-up connection on a mobile line is Zapp with 67%, followed by Vodafone with 19%.

As a provider of dedicated connections, RCS/RDS is present in 29% of the companies and institutions with this type of connection, followed by UPC (Astral) with 17% and Romtelecom with 12%. On the market of dedicated connections through TV cable, RCS/RDS and UPC (Astral) are the main providers for the companies and institutions that use this type of connection (41% RCS/RDS, respectively 35% UPC(Astral). The main provider for the companies and institutions that use the dedicated connection through fiber optic is RCS/RDS with 31%, followed by UPC (Astral) with 12%.


Types of Internet connections used in companies and institutions

What type of Internet connection(s) are used in your company? Please leave out data transmission services i.e. services offered by a carrier (via VPN, rented lines) and usually used for data transmission among branches without Internet surf access.

Base: companies and institutions that have Internet connection, N=1078


36.0%

27.5%

4.0%

1.8%

4.4%

67.0%

22.6%

24.9%

9.4%

3.2%

0.4%

6.2%

0.6%

1.8%

DIAL-UP CONNECTION

Fixed phone line

ISDN line

Mobile access via GSM-CSD/GPRS/WAP

Mobile access via CDMA/EVDO (Zapp)

Mobile access via EDGE/3G

DEDICATED CONNECTION

TV cable

Optical fiber

xDSL(ADSL, SDSL, HDSL)

Radio (radio modem or microwave)

Satelite

UTP/FTP cable (via neighborhood network)

Other



4%

2%

27%

20%

9%

9%

0.3%

3%

5%

2%

%

23%fixed phone line

ISDN line

Mobile GSM-CSD/GPRS/WAP

Mobile CDMA/EVDO (Zapp)

Mobile EDGE/3G

TV cable

Optical fiber


Radio

Satelite

UTP/FTP

Other

Types of Internet connections used in companies - by size of the company -

(multiple question answer)


4%

2%

5%

1%

24%

24%

9%

2%

%

6%

2%

27%fixed phone line

ISDN line



Mobile EDGE/3G

TV cable

Optical fiber


Radio

Satelite

UTP/FTP

Other

What types of Internet connections does your company use?



3%

1%

19%

26%

11%

3%

34%

1%

2%

4%

4%

0.4%

fixed phone line

ISDN line



Mobile EDGE/3G

TV cable

Optical fiber


Radio

Satelite

UTP/FTP

Other

Types of Internet connections used in companies and institutionsby size of the company -

(multiple answer question)


5%

5%

1%

1%

10%

43%

6%

9%

1%

4%

2%

32%fixed phone line

ISDN line



Mobile EDGE/3G

TV cable

Optical fiber


Radio

Satelite

UTP/FTP

Other

What types of Internet connections does your company use?


For how long have the companies and institutions been using their connection

Since when has the company been using each type of Internet connection that you have mentioned?

12%

13%

17%

13%

30%

33%

28%

29%

6%

6%

0% 20% 40% 60% 80% 100%

Companies that havedial-up connection*

Companies that havededicated

connection*

Before 2003 2004

2005 2006

DK

Base: Companies that have dial-up Internet connections (N=388), respectively dedicated (N=722)

*In the case of several dial-up connections, respectively dedicated, the oldest connection has been taken into account


The market structure by the number of accounts and Internet ports

Base: Companies and institutions that have dial-up connection, N = 388

Number of dial-up accounts

One, 60%

DK/NA, 28%

At least four, 2%

Three, 4%

Two, 6%

Base: Companies and institutions that have dedicated connection, N = 722

How many Internet dial-up accounts does your company use?How many dedicated Internet ports does your company have?

Number of dedicated Internet ports

One, 43%

DK/NA, 37%

At least four, 7%

Three, 3%Two, 10%


DEDICATED

17%

12%

1%

31%

13%

29%RDS-RCS

UPC(Astral)

Romtelecom/Artelecom

Euroweb

Other suppliers*

DK/NA

DIAL UP

13%

11%

4%

3%

1%

1%

5%

7%

63%Romtelecom/Artelecom

Zapp

RDS-RCS

UPC(Astral)

Vodafone(Connex)

Xnet

Orange

Other suppliers*

DK/NA

Internet access service suppliers - by connection type -

* Mentions under2%* Mentions under 1%

Who are your current Internet suppliers for each type of existing connections in your company (including connections which are offered for free as part of a mobile phone subscription)?

(open question with multiple answer)

Base: Companies and institutions that have dial-up connection, N = 388

Base: Companies and institutions that have dedicated connection, N = 722


Fixed phone line

13%

4%

2%

1%

4%

7%

72%Romtelecom/Artelecom

RDS-RCS

UPC(Astral)

Xnet

Zapp

Other suppliers

DK/NA

Mobile access

19%

6%

4%

6%

67%Zapp

Vodafone

Orange

Others

DK/NA

Internet access service suppliers - by dial-up connection -

Base: Companies and institutions that have a dial-up connection through a fixed phone line, N = 296

Base: Companies and institutions that have a dial-up connection through mobile access, N = 70



TV Cable

35%

18%

6%

41%RDS-RCS

UPC(Astral)

Othersuppliers

DK/NA

Optical fiber

12%

1%

37%

12%

37%RDS-RCS

UPC(Astral)

Euroweb

Othersuppliers

DK/NA

Internet access service suppliers - by dedicated connection-

Base: Companies and institutions that have a dedicated connection through TV Cable, N = 244

Base: Companies and institutions that have a dedicated connection through optical fiber, N = 268


V. Expenses with Internet Access Services


Expenses with Internet Access Services

Almost half (44%) of the companies and institutions spend below RON 100 per month on the average for the payment of subscriptions for Internet access services.

In the last month, the average amount spent by companies and institutions with dial-up Internet access services was RON 163, and with dedicated Internet access services it was RON 256. The average amount paid by companies and institutions for the Internet access services in one month is RON 233.

The monthly average expenses related to Internet access services are significantly higher for the companies and institutions with more than 50 employees (RON 698) and significantly lower for the companies with 1-2 employees (142 RON).

When classifying the companies according to their turnover, one can note that a higher income of the company generates higher expenses with Internet access services, from RON 162 for the companies with a turnover below EUR 50,000 to RON 532 for the companies with a turnover in excess of EUR 1 million. Public institutions spend an average of RON 453 for Internet access services.


21%23%

15%

6% 5%3%

5% 4%

20%

0%

20%

40%

50 RON orless

51-100RON

101-200RON

201-300RON

301-400RON

401-500RON

501-999RON

at least1000 RON

DK/NA

Total monthly expenses with Internet access services

The average amount paid over the last month: 232,6 RON

What is the approximate amount that your company paid for all used Internet services, irrespectively of the type of connection, over the last month (excluding phone minutes for dial-up access)(RON, including VAT)?

Base: Companies and institutions that have Internet access, N=1078


What is the approximate amount that your company paid for all used Internet services, irrespectively of the type of connection, over the last month (excluding phone minutes for dial-up access)(RON, including VAT)?

The average amount spent over the last month with Internet access

Base: sample of companies and institutions, by number of employees and turnover

Turnover in 2005

No. of employees187.0 RON

338.2 RON

698.4 RON

452.5 RON

162.4 RON

250.6 RON

272.3 RON

294.5 RON

532.3 RON

142.2 RON 1-2 employees

3-9 employees

10-49 employees

50+ employees

Public institution

under 50.000 Euros

50.000 - 100.000 Euros

100.001 - 500.000 Euros

500.001 - 1 mil. Euros

over 1 mil. Euros

average amounts[N=258]

[N=312]

[N=33]

[N=432]

[N=141]

[N=179]

[N=40]

[N=105]

[N=33]

[N=45]

*289 respondents didn’t declare what was the average amount spent over the last month with these services


16%

25%

16%

5% 5%1%

4%

29%

0%

20%

40%

50 RON orless

51-100RON

101-200RON

201-300RON

301-400RON

401-500RON

501-999RON

at least1000 RON

DK/NA

The total monthly expenses with Internet dial-up connections


What is the average amount that your company paid over a month for the Internet access through this connection? The sum must bein RON, including VAT but excluding the fixed/mobile telephony costs required to make the connection.

Base: Companies and institutions that have Internet dial-up access, N=388


23%20%

13%

7% 5%2%

4% 4%

23%

0%

20%

40%

50 RON orless

51-100RON

101-200RON

201-300RON

301-400RON

401-500RON

501-999RON

at least1000 RON

DK/NA

The total monthly expenses with dedicated Internet access


What is the average amount that your company paid over a month for the Internet access through this connection? (RON, includingVAT) If the Internet services are offered to you together with other services (cable TV, telephony), please take into consideration only the costs with the Internet access

Base: Companies and institutions that have a dedicated Internet connection, N=722

VI. Purposes for Using the Internet and Use Policies


Purposes for Using the Internet and Use Policies

The main purpose for which Internet access services are used inside companies and institutions is to receive and send emails (in 97% of the companies and institutions). 76% of the companies and institutions use these services for Internet browsing, 58% for file downloading, while 31-32% use them for online transactions and for hosting WEB sites. Only in 12% of the companies are these services used for Internet telephony (VoIP).

The degree of using Internet access services for email and Internet browsing does not differ very much according to the business field. Instead, in public institutions, these services are used in an extent significantly higher than in companies for hosting Websites and for file downloading.

In 76% of the companies and institutions, there is no restriction or recommendation regarding the Internet use by employees with no management positions, with a slight decrease of this percentage in case of the companies with Internet access only through a dial-up connection (71%). In 5% of the companies and institutions, the access granted to this category of employees is only permitted during a certain hourly interval, in 3% of the companies and institutions, employees have access only to certain services, while in 2% employees have a maximum threshold for Internet traffic or hours.

Restrictions regarding the use of Internet access services are applied in a lesser extent to the employees having management positions (only 6% of respondents state that there is some type of restriction in their company or institution).


The purpose of using Internet access in companies and institutions

For what purposes does your company use the Internet?

97%

76%

58%

32%

31%

17%

12%

8%

E-mail

Internet browsing

For transferring files

To host web pages

On-line transactions

E-commerce

For Internet telephony

Other




The purpose of using Internet access in companies and institutionsby area of activity of the company

For what purposes does your company use the Internet?

96%

70%74%

49%

23%

9% 9%

4%

93%

71%

43%

29%

14%

99%

77%

59%

36% 35%

18%

12%9%

98%

78%

55%

28%31%

20%

6%9%

95%

77%

57%

29%33%

15%12%

8%

97%

75%

57%

32%30%

18%13%

7%

21%

0%

20%

40%

60%

80%

100%

E-mail Internetbrowsing

For transferringfiles

To host webpages

On-linetransactions

E-commerce Internettelephony (VoIPor through VPN)

Other

Public institution (N=53)

Agriculture, forestry (N=14)

Industry (N=164)Constructions (N=86)

Commerce(N=280)

Services (N=453)


Base: Companies and institutions that have Internet access, by area of activity

*28 companies had their area of activity not declared


76%

5%

3%

2%

5%

9%

There is no restrictionregarding Internet access

Access allowed only at acertain time

Employees have access onlyto some services (e.g. only e-mail)

Employees have a limit totraffic or hours of access

Other situations

DK/NA


Policies in companies and institutions regarding Internet use by non-managerial employees

Which of the following statements best describes the policy of your company regarding Internet use by non-managerial employees? What about managers?




71%

7%

3%

3%

6%

10%

79%

4%

3%

1%

4%

9%

78%

6%

6%

9%



Employees have accessonly to some services

(e.g. only e-mail)


Other situations

DK/NA

Companies that have only dial-up connection (N=356)

Companies that have only dedicated connection (N=690)

Companies that have both type of connection (N=32)


Base: Companies and institutions that have Internet access, by type of connection

Policies in companies and institutions regarding Internet use by non-managerial employees


82%

2%

2%

1%

1%

11%





(e.g. only e-mail)

Other situation

DK/NA




Policies in companies and institutions regarding Internet use by managers




79%

4%

1%

3%

1%

12%

84%

1%

1%

1%

1%

11%

84%

3%

3%

3%

6%




(e.g. only e-mail)


Other situations

DK/NA

Companies that have only dial-up connection (N=356)

Companies that have only dedicated connection (N=690)

Companies that have both type of connection (N=32)

Base: Companies and institutions that have Internet access, by type of connection

Policies in companies and institutions regarding Internet use by managers

VII. THE MARKET OF INTERNET DIAL-UP ACCESS

CONNECTIONS

VII.a. Description of Dial-up Access Connections and Their

Degree of Use


Description of Dial-up Access Connections and Their Degree of Use

Out of the total dial-up internet access connections, 74% are classic dial-up, 12% through CDMA, 9% through ISDN and 4% through GSM/GPRS/WAP and 1% through 3G/EDGE.

60% of the companies and institutions with a dial-up internet access connection have only one account.

76% of the companies and institutions with a dial-up internet access connection have an unlimited access subscription, while 14% have a limited access or partially limited access subscription. .The average number of hours included in the subscription is 41.5%. Only 1% of the companies and institutions use cards, respectively access value cards. The larger is the company, the higher is the percentage of the people using an unlimited access subscription (90% of the companies and institutions with more than 50 employees in which there is a dial-up access connection).

For the representatives of the companies and institutions, it was quite difficult to estimate the average monthly number of hours of using internet dial-up access services, almost 60% of them saying that they do not know such number. Among the companies and institutions that mentioned a number of hours, a little more than 50% use internet access services less than 50 hours a month, while 8% say they use such services more than 200 hours. The average number [of hours] of using internet access services in case of dial-up connections is 78.

The average amount spent in the last month for dial-up internet access connections is RON153 for fixed classic connections, RON 203 for ISDN connections, and RON 132 for mobile connections.

The average monthly expenses related to dial-up internet access connections are significantly higher for the companies with more than 50 employees (253 RON).


Classic dial-up, 74%

CDMA, 12%

ISDN, 9%

GSM/GPRS/ WAP, 4%

EDGE /3G, 1%

The market structure for dial-up connections by type of connection

What type of Internet connection are used in your company? Base: total number of dial-up connections, N=407


Number of dial-up Internet accounts

Number of dial-up accounts

One, 60%

DK/NA, 28%

Three or more, 6%

Two, 6%

How many Internet dial-up accounts does your company use?How many of those does the company pay for?

Number of paid dial-up accounts

DK/NA, 30%

Three or more, 6%

Two, 3%

One, 61%

Base: companies and institutions that have dial-up connection, (N=388)


Types of subscriptions to the dial-up Internet connections

What type of subscription to the dial-up connection does your company have?

76%

10%

4%

1%

13%

Unlimited subscription(unlimited access)

Limited hours or trafficsubscription (limited

access)

Partially limited accesssubscription, with pay foradditional time or MB

Card / pre-paid card

DK/NA



Monthly average number of hours included in

the subscription: 41,5


70%

13%

4%

1%

1%

73%

9%

5%

81%

8%

3%

1%

90%

6%

10%

14%15.4%

8%

Unlimited subscription(unlimited access)

Limited hours or trafficsubscription (limited

access)

Partially limited accesssubscription, with pay foradditional time or MB

Card / pre-paid card

Other

DK/NA





Types of subscriptions to the dial-up Internet connections- by size of the company -

Base: companies and institutions that have dial-up connection

What type of subscription to the dial-up connection does your company have?



Number of monthly used hours through the Internet dial-up connection*

How many hours does the company use the dial-up connection in a usual month?

11-30 hours, 21%

31-50 hours, 14%

51-100 hours, 20%

10 hours or less, 20%

over 200 hours, 8%

101-200 hours, 17%

Average number of monthly used hours: 78 hours

They state a value, 43%

Don't know, not answering,

57%

N=221

N=167


*if the company/institution has more than one dial-up connection, the question is asked for the most often used connection


Number of monthly used hours through the Internet dial-up connection by type of connection

118,8 hours

70,0 hours

112,2 hours

71,7 hours

0 50 100 150 200

classic dial-up (N=142)

ISDN (N=11)

GSM-CSD/GPRS/WAP/EDGE/3G

(N=2)

CDMA (N=12)

average values

What type of Internet connection(s) are used in your company? How many hours does the company use the dial-up connection in a usual month?

Base: companies and institutions that have dial-up connection*

*if the company/institution has more than one dial-up connection, the question is asked for the most often used connection For 221 connections, the number of monthly used hours with the services was not stated


How much do you pay on average each month for Internet access for this connection (RON, including VAT) Please do not include the telephony expenses required to make the connection.

The average amount spent over the last month with Internet dial-up services by type of connection

Base: dial-up connections used in companies and institutions from the sample, by their type

203.2 RON

175.0 RON

90.0 RON

126.3 RON

152.7 RON

0 50 100 150 200 250 300 350 400

Classic Dial –up (fixedphone line) (N=216)

ISDN connection(N=30)

mobile connectionGSM-

CSD/GPRS/WAP(N=7)

mobile connection3G/EDGE (N=2)

mobile connectionCDMA (N=35)

average amounts

*for 117 connections the amount spent over the last month with the services was not stated


How much do you pay on average each month for Internet access for this connection (RON, including VAT) Please do not include the telephony expenses required to make the connection.

The average amount spent over the last month with Internet dial-up services by size of the company

Base: sample of companies and institutions, by size of the company

162.7 RON

158.0 RON

253.2 RON

150.9 RON

0 50 100 150 200 250 300 350 400




`

average amounts

*113 respondents didn’t declare what was the average amount that the company spent with these services over the last month

VII.b. The Degree of Satisfaction with Providers of

Dial-Up Internet Access Services


The Degree of Satisfaction with Providers of Dial-up Internet Access Services

The most important elements to be considered when selecting a provider of dial-up Internet access services are network availability and log-in time, quality of technical support and intervention time, and subscription price. Contract negotiability and promotional offers are the elements that count the least when selecting the provider of Internet access services.

Generally speaking, 63% of the companies and institutions are satisfied or highly satisfied with dial-up internet access services; however, their satisfaction degree only reaches a rating of 3.7 on a scale from 1 to 5. RDS/RCS, UPC (Astral) and Vodafone report slightly higher ratings (provider ratings must be reservedly considered, due to the low number of users). When analyzing step by step the satisfaction with the quality of services provided, ratings and evaluations are similar.


71%65% 65%

58% 57% 57% 56% 55%51% 51%

4,1 4,03,8

4,3

3,7 3,8 3,83,6 3,5 3,5

0

20

40

60

80

100

Net

wor

k av

aila

bilit

y (n

ot

busy

whe

n co

nnec

ting)

an

d lo

g in

wai

ting

time

Qua

lity

of te

chni

cal a

ssis

tanc

e se

rvic

es a

nd e

mer

genc

y tro

uble

shoo

ting

wai

ting

time

The

pric

e of

sub

scrip

tion

Exi

sten

ce a

nd a

vaila

bilit

y of

cu

stom

er s

ervi

ce

Rep

utat

ion

of s

uppl

ier

Leve

l of p

rote

ctio

n ag

ains

t viru

s, s

pam

, hac

king

Pho

ne c

alls

tarif

fs

Inst

alla

tion

cost

s

Flex

ibili

ty o

f pric

ing

and

cond

ition

s (th

ey c

ould

be

nego

tiate

d)

Pro

mot

ions

1,0

2,0

3,0

4,0

5,0

Top 2 Box (%important + veryimportant)

average values (1 = not at allimportant ... 5 =very important)

%

The importance of criteria when choosing the Internet dial-up service that is currently used

When you chose the dial-up Internet service that you currently use how important were the following criteria for you?

Base: companies and institutions that use Internet dial-up connection, N = 388


22 20 2517

2835

12

41 40

5056

5023

47

15 19

13 22 5

10 7

7 10 5

62

7 6 3

13

5

8 4 6 6 10 1328

7

0%

20%

40%

60%

80%

100%

All

dial

-up

supp

liers

Rom

tele

com

/A

rtele

com

UP

C (A

stra

l)

Vod

afon

e

RD

S-R

CS

Zapp

Oth

ersu

pplie

rs

DK / NA

Not at all satisfied

2

3

4

Very satisfied

Overall satisfaction with dial-up Internet access suppliers

Overall, how satisfied are your with your Internet dial-up suppliers? Please use a scale from 1 to 5 where “5” = very satisfied and “1” = not at all.

Base: companies and institutions that have dial-up Internet from the respective

suppliers

[N = 407] [N = 40] [N = 48][N = 242] [N = 16] [N = 18] [N = 43]


3.70 3.593.93 3.94 4.05

3.71 3.81

1

2

3

4

5

All

dial

-up

supp

liers

Rom

tele

com

/A

rtele

com

UP

C (A

stra

l)

Vod

afon

e

RD

S-R

CS

Zapp

Oth

ersu

pplie

rs

Overall satisfaction with dial-up Internet access suppliersaverage values (1=not at all satisfied ...5=very satisfied)

Overall, how satisfied are your with your Internet dial-up suppliers? Please use a scale from 1 to 5 where “5” = very satisfied and “1” = not at all.


suppliers

[N = 407] [N = 40] [N = 48][N = 242] [N = 16] [N = 18] [N = 43]


24 21 25 2230 33

23

39 4044 44

4327

37

16 1913 22 8

10 7

79

6

5

42

56 3

13

5

10 613

613 13

265

0%

20%

40%

60%

80%

100%

All

dial

-up

supp

liers

Rom

tele

com

/A

rtele

com

UP

C (A

stra

l)

Vod

afon

e

RD

S-R

CS

Zapp

Oth

ersu

pplie

rs

DK / NA


2

3

4

Very satisfied

Satisfaction with the quality of Internet dial-up services

Using the same scale, how satisfied are you with the quality of service from these suppliers?


suppliers

[N = 407] [N = 40] [N = 48][N = 242] [N = 16] [N = 18] [N = 43]


3.76 3.683.93 3.88

4.063.74

3.97

1

2

3

4

5

All

dial

-up

supp

liers

Rom

tele

com

/A

rtele

com

UP

C (A

stra

l)

Vod

afon

e

RD

S-R

CS

Zapp

Oth

ersu

pplie

rs

Satisfaction with the quality of Internet dial-up servicesaverage values (1=not at all satisfied ...5=very satisfied)

Using the same scale, how satisfied are you with the quality of service from these suppliers?

Base: companies and institutions that have dial-up Internet from the respective suppliers

[N = 407] [N = 40] [N = 48][N = 242] [N = 16] [N = 18] [N = 43]

VII.c. Intentions to Change Providers or Types of Dial-up Internet Access Connections


Intentions to Change Providers or Types of Dial-up Internet Access Connections

The main barriers encountered when changing the provider or the type of dial-up Internet access connection are the lack of local alternative (39%) and the inertia generated by convenience (22%). Only 9% of the mentions relate to not knowing other offers.

19% of the companies and institutions that currently have a dial-up internet access connection declare their intention to give such connection up in the next 12 months. 69% of those intending to give up are using dial-up internet access services provided by Romtelecom, 14% -by Zapp and 10% - by RCS/RDS. The type of connection to be given up is primarily classic dial-up (82% of the mentions, although classic dial-up services represent only 74% of dial-up connections).

The intention to give up is stronger in case of small companies (with 1-2 employees) than in case of large companies. 13% of the companies that have 1-2 employees and have a dial-up internet access connection state that they will absolutely give this connection up in the next 12 months, as compared to 0 large companies (more than 50 employees).

The main reason for giving up dial-up connection is the downloading speed that does not meet the user’s needs, followed by the high tariffs as compared to the quality of services and to the instability of the connection which closes down often.


Intentions to Change Providers or Types of Dial-up Internet Access Connections

The increase in the subscription price generates an intention to change the provider or the type of connection in case of an important percentage of the companies and institutions, to be more exact between 20% and 41%, if we include both the categorical intention to change and the probable intention. Upon an increase by 5% of the price for the subscription for dial-up internet access services, almost 30% of the companies and institutions state that they are not affected and that they will take no action to change their provider, while 12% express their categorical intention to give up the connection they are currently using. Upon an increase by 10%, the percentage of the companies and institutions that are categorically stating that they would give up the dial-up access connection is 17%, such percentage reaching even 24% in case of an increase in the subscription price by 20%.

To an approximately equal extent, those intending to give up will either choose another provider keeping the type of Internet access connection, or will choose a dedicated Internet access connection

When the price of telephone calls tariffs for dial-up Internet access increases, 31% of the companies and institutions will choose a dedicated connection, 8% will choose a mobile dial-up connection, while 6% of the companies and institutions will definitively give up Internet access services. .


39%

22%

11%

10%

9%

5%

3%

2%

14%

I do not have an alternative in my area

Out of convenience

All suppliers have high tariffs

The cost of switching is too high

Not aware of other offers

All suppliers offer a low service quality

It takes a long time to install a dedicatedconnection

Other

DK/NA

Difficulties in changing the dial-up Internet supplier

You indicated that you were not satisfied with the services of your current Internet supplier(s). Why have not given up their services so far?

Base: companies and institutions not satisfied with a dial-up Internet supplier,

(N=116)



82%

4%

14%

Classic dial-up

ISDN

GSM/CDMA/GPRS/EDGE/3G

Intent of giving up the dial-up Internet connection in the following 12 months

In the following 12 months do you intend to give up any dial-up connection that your company currently uses?

[IF probably yes or definitely yes] Which connection?

Base: companies and institutions that have dial-up Internet , N = 388

Probably yes, 12%

Probably no, 23%

Definitely no, 45%

Definitely yes, 7%

Doesn't know, 14%

Which connection? - type

N=72

Open question with multiple answer

69%

14%

10%

1%

6%

Romtelecom

Zapp

RDS-RCS

UPC (Astral)

Other

Which connection? - supplier

N=72


13%

6%

4%

11%

12%

11%

13%

21%

20%

31%

19%

42%

44%

55%

13%

16%

11%

13%

46%

0% 20% 40% 60% 80% 100%





Definitely yes Probably yes Probably no Definitely no Doesn't know

Single answer question

Intent of giving up the dial-up Internet connection in the following 12 months by size of the company

Base: companies and institutions that have dial-up Internet

In the following 12 months do you intend to give up any dial-up connection that your company currently uses?


The main reason for giving up a dial-up un Internet connection

What is the main reason for you intending to give up this connection?

32%

29%

18%

7%

3%

3%

3%

6%

Speed of connection/transfer is not high enough for my needs

High tariffs compared to quality

Unstable connection, with often interruptions

To use a more advanced technology

The download of large files is slow

The line is busy very often

I cannot use the line for Internet and voicesimultaneously

NA

Base: companies and institutions that have stated that it is probable or highly probable to

change the dial-up connection in the following 12 months, (N=72)



Would the subscribers of the current supplier give up the services if the subscription fee increased with 5% / 10% / 20%?

If your dial-up Internet subscription would increase by 5%, would you give up the services of that supplier? What about 10%? What about 20%?

Base: companies and institutions that have subscribed to dial-up Internet, (N=343)

12%

17%

24%

8%

13%

17%

20%

24%

18%

29%

18%

14%

30%

28%

26%

0% 20% 40% 60% 80% 100%

5% Increase

10% Increase

20% Increase

Definitely YES Probably YES Probably NO Definitely NO Doesn't know


34%

36%

3%

1%

3%

37%

38%

3%

2%

38%

36%

4%

3%

2%

23%17%

3%

17%

I would switch suppliersand use the same type of

connection

I would switch to adedicated connection(cable, optical fiber)

I would switch to a mobiledial-up connection via

GSM/GPRS

I would no longer connectto Internet


3G/CDMA/EDGE

DK/NA

5% increase (N=70)

10% increase(N=102)

20% increase (N=144)

Intent of changing in case of an increase of the subscription fee

How do you think you will proceed? Base: companies and institutions that would give up the dial-up subscription if fees grew with 5% / 10% / 20%

Single answer question for each type of increase


Intent of changing in case of an increase in Internet dial-up tariffs for phone connection

What if telephony tariffs for dial-up Internet access (e.g. special Internet access tariffs or ClickNet Start ) increased, how would you proceed?

31%

8%

6%

1%

6%

48%

I would switch to adedicated connection

(cable, xDSL etc.)


GSM/GPRS

I would no longer connectto Internet


3G/CDMA/EDGE

Other

DK/NA

Base: companies and institutions that havedial-up Internet through

fixed phone line or ISDN, (N=335)


VIII. THE MARKET OF DEDICATED INTERNET ACCESS

CONNECTIONS

VIII.a. Description of Used Dedicated Access Connections and

Their Degree of Use


Description of Used Dedicated Access Connections and Their Degree of Use

The market of dedicated Internet access connections is dominated by TV cable and fiber optic connections. 37% of the total number of dedicated access connections are connections on a fiber optic support, while 33% are on TV cable support. The following connections are xDSL dedicated connections (14%) and UTP/FTP cable connections (10%).

With regard to the used types of subscriptions, most of the companies and institutions (86%) in which there is a dedicated internet access connection have an unlimited traffic monthly subscription, while 7% of the companies and institutions use limited traffic monthly subscriptions and pay for additional traffic. The average volume of traffic included in these subscriptions is 7.2 Gb.

When asked about the downloading speed they have at the dedicated Internet access connection used (most often), very many persons could not specify it, either in terms of guaranteed minimum speed, effective speed or maximum (best effort) speed. If we only speak about the persons giving valid answers, we note that 81% of such persons declare an effective downloading speed of 128 kbps or higher (27% even higher than 1024 kbps), while 19% say that such speed is lower than 128 kbps. With regard to the guaranteed maximum speed, it is higher than or equal to 128 kbps for 93% of the connections.

The average amount spent by a company, respectively an institution with dedicated Internet access services is RON 256. Such amount is significantly lower in small companies (1-2 employees) – RON 130.2, and significantly higher in average companies (10-49 employees) – RON 411.8 and in large companies (more than 50 employees) – RON 825.5. According to the connection type, the most “expensive” ones are those provided on radio support (on the average, a company paid RON 359 in the last month for this type of connection) and on fiber optic support (the average amount paid in the last month - RON 336).


TV Cable, 33%

Satelite, 1%

Optical fiber, 37%

xDSL(ADSL, SDSL, HDSL),

14%

Radio, 5%

UTP/FTP Cable, 10%

Other, 1%

The market structure for dedicated connections by type of connection

What is the type of dedicated connection you have installed?

Base: Total number of dedicated Internet connections , N=732


Number of dedicated ports

Number of dedicated ports

One, 43%

DK/NA, 37%

Three or more, 10% Two, 10%

How many dedicated Internet ports does your company have? Base: companies that have a dedicated connection, (N=722)


86%

7%

1%

7%

Unlimited traffic monthlysubscription

Limited traffic monthlysubscription and pay for

additional traffic

Subscription withouttraffic included and pay

as you go for traffic

Don't know

Types of subscriptions used for dedicated Internet connections

What type of subscription do you currently have for the dedicated connection you have installed?

Base: companies and institutions that have dedicated Internet connection, N=722


Average monthly traffic included in the

subscription: 7,2 GB


1,7%

1,4%

3,9%

7,3%

7,6%

8,3%

5,5%

1,0%

1,0%

62,3%

% 10% 20% 30% 40% 50% 60% 70%

<32 kbps

32 kbps

64 kbps

128 kbps

256 kbps

512 kbps

1024 kbps (1Mb/s)

2048 kbps (2Mb/s)

>2048 kbps (>2Mb/s)

NŞ/NR

Minimum guaranteed speed

For the dedicated Internet connection, what is the minimum guaranteed transfer speed (kbps)?


2048 kbps (2Mb/s); 3%

>2048 kbps (>2Mb/s);

3%

1024 kbps (1Mb/s);

15%

32 kbps; 4%

64 kbps; 10%

128 kbps; 20%

<32 kbps; 4%

512 kbps; 22%

256 kbps; 20%

Base: companies and institutions that have stated a value, N=272


1.4%

1.4%

3.9%

6.4%

5.4%

6.6%

6.6%

1.0%

1.2%

66.1%

% 20% 40% 60% 80%

<32 kbps

32 kbps

64 kbps

128 kbps

256 kbps

512 kbps

1024 kbps (1Mb/s)

2048 kbps (2Mb/s)

>2048 kbps (>2Mb/s)

DK/NA


2048 kbps (2Mb/s); 3%

>2048 kbps (>2Mb/s);

4%

1024 kbps (1Mb/s);

20%

32 kbps; 4%

64 kbps; 11%

128 kbps; 19%

<32 kbps; 4%

512 kbps; 20%

256 kbps; 16%


The real (actual) speed

For the dedicated Internet connection, what is the real (actual) speed (kbps)?


.3%

1.9%

3.2%

4.8%

6.1%

10.9%

2.4%

2.8%

67.6%

% 20% 40% 60% 80%

<32 kbps

32 kbps

64 kbps

128 kbps

256 kbps

512 kbps

1024 kbps (1Mb/s)

2048 kbps (2Mb/s)

>2048 kbps (>2Mb/s)

DK/NA


2048 kbps (2Mb/s); 7%

>2048 kbps (>2Mb/s);

9%

1024 kbps (1Mb/s);

34%

32 kbps; 0,9%

64 kbps; 6%

128 kbps; 10%

512 kbps; 19%

256 kbps; 15%


The maximum (best effort) guaranteed speedas stated in the contract

For the dedicated Internet connection what is the maximum (best effort) guaranteed speed (kbps)?


20%

33%

14%

18%

8%

13%

30%

10%

11%

7%

4%

80%

67%

86%

92%

87%

70%

90%

89%

93%

96%

82%

0% 20% 40% 60% 80% 100%

Companies and institutions where there is a dedicated Internetconnection, in which the real speed was mentioned (N=245)





Public institution (N=15)

under 50.000 Euro (N=125)

50.000 - 100.000 Euro (N=30)

100.001 - 500.000 Euro (N=36)

500.001 - 1 mil. Euro (N=14)

peste 1 mil. Euro (N=25)

<128 kbps ≥ 128 kbps

The structure of dedicated Internet connections by real access speed

Regarding your dedicated Internet connection, what is the real speed? Base: companies and institutions that have a dedicated Internet connection



Correlation between the maximum (best effort) sped and the real (actual) speed

For the dedicated Internet connection what is the maximum (best effort) guaranteed speed (kbps)?


Base: companies and institutions that have dedicated Internet access, N=722

Number of cases (N)

maximum(best effort)guaranteed

speed

Total

432 4 5 7 13 12 5 5 2 3 4880 0 2 0 0 0 0 0 0 0 21 2 1 10 0 0 0 0 0 0 142 1 1 4 15 0 0 0 0 0 237 2 0 4 10 11 1 0 0 0 358 1 1 2 5 11 16 0 0 0 44

16 0 0 0 2 4 22 35 0 0 795 0 0 0 0 1 3 7 1 0 176 0 0 1 1 0 1 1 4 6 20

477 10 10 28 46 39 48 48 7 9 722

DK/NA32 kbps64 kbps128 kbps256 kbps512 kbps1024 kbps (1Mb/s)2048 kbps (2Mb/s)>2048 kbps (>2Mb/s)

NŞ/NR<32kbps

32kbps

64kbps

128kbps

256kbps

512kbps

1024kbps

(1Mb/s)

2048kbps

(2Mb/s)

>2048kbps

(>2Mb/s)

real (actual) speed

Total


Description of the main (most often used) connectionby type of connection, real transfer speed and type of subscription





UTP/FTP cable (neighborhood network)

≥

≥

≥

≥

≥


20 136 102 15 1 16 50 19 151 2 142 11 1 17 67 1 3

50 36 2

1 3616 1

1 31 6 1

42 45 4

216 1

1 9

Real transferspeed

DK/NA<128 kbps>= 128 kbpsDK/NA<128 kbps>= 128 kbpsNS/NR<128 kbps>= 128 kbpsDK/NA<128 kbps>= 128 kbpsDK/NADK/NA<128 kbps>= 128 kbpsDK/NA


TV Cable

Optical fiber


Radio

Satelite

Other

Monthly subscription with limited traffic and

pay for additional traffic

Monthly subscription with unlimited traffic

Subscription without traffic included and pay as you go for

traffic Other type DK/NA

Type of subscriptionNumber of cases


What is the average monthly payment for Internet access on this connection (RON including VAT)? If your Internet services are part of a service package (TV cable, telephony) please refer only to the Internet access costs.

The average amount spent over the last month with dedicated Internet access services by size of the company

Base: sample of companies and institutions, by size of the company

130,2 RON

192,2 RON

411,8 RON

825,5 RON

256,4 RON

0 200 400 600 800 1000

Companies and institutions that use dedicatedInternet access services (N=722)





average amounts

*168 respondents didn’t declare what is the average amount spent over the last month with these services


What is the average monthly payment for Internet access on this connection (RON including VAT)? If your Internet services are part of a service package (TV cable, telephony) please refer only to the Internet access costs.

The average amount spent over the last month with dedicated Internet access services by type of connection

336,0 RON

262,8 RON

358,7 RON

101,9 RON

265,8 RON

201,7 RON

0 100 200 300 400 500 600 700 800

TV Cable (N=198)

Optical fiber (N=200)

xDSL(ADSL, SDSL,HDSL) (N=80)

Radio (N=19)

UTP/FTP Cable(N=56)

Other type (N=6)

average amounts

*for 173 connections, the amount spent with these services over the last month was not declared

Base: dedicated Internet connections used in the companies and institutions from the sample, by the

connection type

VIII.b. Degree of Satisfaction with Dedicated Internet

Access Providers


Degree of Satisfaction with Dedicated Internet Access Providers

The most important criteria that are the basis for choosing dedicated Internet access services inside companies and institutions are the bandwidth or the maximum speed under the contract and the real downloading speed (average ratings: 4.4 on a scale from 1 to 5 in terms of importance). The following are 4 criteria which recorded average ratings of 4.1-4.2: service availability in the area, technical support services and intervention time in case of emergency, subscription price and contractual guaranteeing of connection parameters.

In general, large companies and institutions (with more than 50 employees) tend to attach a significantly higher importance to all the assessed criteria than small and medium companies and institutions, particularly if we refer to issues such as protection against viruses and attacks, contractual guaranteeing of connection parameters, provider’s reputation, promotional offers, connection installation period and flexibility of contractual terms and prices.

Comparing the importance of the criteria per connection type, one can note that:.

in the companies and institutions that opted for a TV cable connection, the inclusion of other services in the package (e.g., fixed telephony or CATV) had a higher importance than in the case of the other companies;

promotional offers had a higher importance in the case of the companies and institutions which acquired a xDSL connection;

the provider’s reputation and the flexibility of contractual terms and prices had a lesser importance in the case of UTP/FTP cable connections.


Degree of Satisfaction with Dedicated Internet Access Providers

Considering globally all the providers of dedicated internet access services, the average level of satisfaction with such suppliers is 4.07 on a scale from 1 to 5, where 1 means highly dissatisfied, and 5 means highly satisfied. The differences between one provider and another are relatively insignificant, ranging from 3.95 (UPC/Astral) to4.21 (Romtelecom). Satisfaction with the quality of services records values almost identical to the general satisfaction with providers.

Correlating the general satisfaction with providers to the type of connection provided by the respective provider, the xDSL connections generate the highest percentage of satisfied or highly satisfied users (86%). The following are fiber optic connections (75%) and UTP/FTP cable connections (74%).


80% 78% 76% 74% 73% 73%66% 66% 64%

58% 56% 54%47% 44%

3,4 3,3

4,4 4,2 4,24,44,1 4,2

3,9 3,9 3,83,7 3,7

3,5

0

20

40

60

80

100

Max

imum

tran

sfer

spe

ed a

ccor

ding

to c

ontra

ct

Rea

l tra

nsfe

r spe

ed

Ser

vice

ava

ilabi

lity

in th

e ar

ea (t

he re

spec

tive

supp

lier p

rovi

des

its

serv

ice

in th

e ar

ea)

Tech

nica

l sup

port

and

emer

genc

ytro

uble

shoo

ting

time

Pric

e of

sub

scrip

tion

Con

tract

ual g

uara

ntee

of

con

nect

ion

para

met

ers

Con

nect

ion

inst

alla

tion

time

Exi

sten

ce a

nd a

vaila

bilit

y o

f cus

tom

er s

ervi

ce

Leve

l of p

rote

ctio

n ag

ains

t v

irus,

spa

m, h

acki

ng

Rep

utat

ion

of s

uppl

ier

Flex

ibili

ty o

f pric

e an

d co

nditi

ons

(pos

sibi

lity

of n

egot

iatio

n)

Cos

ts o

f ins

talla

tion

Bun

dled

ser

vice

s (fi

xed

tele

phon

y, C

ATV

)

Pro

mot

ions

1,0

2,0

3,0

4,0

5,0

Top 2 Box (%important + veryimportant)

average values (1 = not at allimportant ... 5 =very important)

%

The importance of criteria when choosing a dedicated Internet access service

When you chose dedicated Internet services, how important were the following criteria for you? Please use a scale from 1 to 5 where 1 is not at all and 5 is very important. You may choose any number between 1 and 5.

Base: companies and institutions that use dedicated Internet access, N = 722


The importance of criteria when choosing a dedicated access serviceby size of the company

4,1

3,4

3,1

3,5

4,4

3,83,9

4,2

4,5

4,0

4,6

3,8

4,4

4,24,3

4,0

3,4

3,7 3,83,9

4,03,9

4,4

3,4 3,5

4,24,1

3,33,2

3,84,2

3,6

4,34,2

3,3

3,8 3,83,8

4,5

4,2

3,8

4,2

3,8

3,4

4,64,6

4,54,3

3,5

4,2

4,4

4,6

3,9

4,3 4,24,1

3

4

5

Max

imum

tran

sfer

spe

ed a

ccor

ding

to c

ontra

ct

Rea

l tra

nsfe

r spe

ed

Tech

nica

l sup

port

and

emer

genc

ytro

uble

shoo

ting

time

Pric

e of

sub

scrip

tion

Bun

dled

ser

vice

s (fi

xed

tele

phon

y,C

ATV

)

Ser

vice

ava

ilabi

lity

in th

e ar

ea

Cos

ts o

f ins

talla

tion

Rep

utat

ion

of s

uppl

ier

Leve

l of p

rote

ctio

n ag

ains

t viru

s,sp

am, h

acki

ng

Exi

sten

ce a

nd a

vaila

bilit

y of

cust

omer

ser

vice

Con

tract

ual g

uara

ntee

of c

onne

ctio

npa

ram

eter

s

Pro

mot

ions

Con

nect

ion

inst

alla

tion

time

Flex

ibili

ty o

f pric

e an

d co

nditi

ons

1-2 employees (N=235) 3-9 employees (N=269) 10-49 employees (N=162) 50+ employees (N=56)

average values (1 = not at all important ... 5 = very important)



The importance of criteria when choosing a dedicated access serviceby type of connection

4,1

3,3

3,6

4,5

4,0 3,9

4,34,5

3,7

4,4 4,44,2

4,0

3,4

3,94,1

2,9

4,14,34,3

4,34,0

3,4

3,6 3,7 3,7

4,1

3,93,6

4,5

3,7 3,8

4,24,3

3,4 3,3

3,9

4,4

3,84,2 4,1

3,1

3,8 3,84,2

4,5

4,3

3,5

4,2

3,83,7

4,24,5 4,5

4,34,5

3,1

3,7

4,14,3

3,1

4,13,9

4,04,4

4,2

3,0

3,4

4,0

3,5

2

3

4

5

Max

imum

tran

sfer

spe

ed a

ccor

ding

to c

ontra

ct

Rea

l tra

nsfe

r spe

ed

Tech

nica

l sup

port

and

emer

genc

ytro

uble

shoo

ting

timeţ

e

Pric

e of

sub

scrip

tion

Bun

dled

ser

vice

s (fi

xed

tele

phon

y,C

ATV

)

Ser

vice

ava

ilabi

lity

in th

e ar

ea

Cos

ts o

f ins

talla

tion

Rep

utat

ion

of s

uppl

ier

Leve

l of p

rote

ctio

n ag

ains

t viru

s,sp

am, h

acki

ng

Exi

sten

ce a

nd a

vaila

bilit

y of

cust

omer

ser

vice

Con

tract

ual g

uara

ntee

of c

onne

ctio

npa

ram

eter

s

Pro

mot

ions

Con

nect

ion

inst

alla

tion

time

Flex

ibili

ty o

f pric

e an

d co

nditi

ons

TV Cable(N=241) Optical fiber (N=268) xDSL(ADSL, SDSL, HDSL) (N=100) Radio (N=29) UTP/FTP cable(N=70)

average values (1 = not at all important ... 5 = very important)



33 3628

36 32

4246

41

4141

149

1815

14

4 3 44

4

6 6 6 721 2

3

0%

20%

40%

60%

80%

100%

Overallsatisfaction with

the suppliers

Romtelecom UPC (Astral) RDS-RCS Other suppliers

DK / NA


2

3

4

Very satisfied

Overall satisfaction with dedicated Internet access suppliers

Overall, how satisfied are you with your dedicated Internet connection supplier? Please use a scale from 1 to 5 where “5” is very satisfied and “1” is not at all.

Base: companies and institutions that use dedicated Internet connection from the respective suppliers

[N = 89] [N = 123] [N = 206][N = 732] [N = 314]


4,07 4,213,95

4,13 4,03

1

2

3

4

5

Ove

rall

satis

fact

ion

with

the

supp

liers

Rom

tele

com

UP

C (A

stra

l)

RD

S-R

CS

Oth

ersu

pplie

rs

Overall satisfaction with dedicated Internet access suppliersaverage values (1=not at all satisfied...5=very satisfied)


Base: companies and institutions that use dedicated Internet connection from the respective suppliers

[N = 89] [N = 123] [N = 206][N = 732] [N = 314]


34 3629

36 33

4045

40

4238

1412

1912

13

41

4 54

2 2 12

6 6 6 4 9

0%

20%

40%

60%

80%

100%

Satisfaction withthe quality ofservice (allsupliers)

Romtelecom UPC (Astral) RDS-RCS Other suppliers

DK / NA


2

3

4

Very satisfied

Satisfaction with the quality of service of dedicated Internet access suppliers

Using the same scale, how satisfied are you with quality of service of this supplier?

Base: companies and institutions that use dedicated Internet connection from the respective

suppliers[N = 89] [N = 123] [N = 206][N = 732] [N = 314]


2836 38

2937

4439

48

4137

18 148

18 11

4 44

6 6

4 5 3 71

2 1 6

0%

20%

40%

60%

80%

100%

CaTV Optical fiber xDSL Radio UTP/FTP Cable

DK/NA


2

3

4

Very satisfied

Overall satisfaction with dedicated Internet access suppliersby connection type


Base: companies and institutions that use a dedicated Internet connection

[N = 269] [N = 101] [N = 34][N = 244] [N = 70]


4,074,23

3,954,10 4,05

1

2

3

4

5

Sat

isfa

ctio

nw

ith th

equ

ality

of

serv

ice

(all

supl

iers

)

Rom

tele

com

UP

C (A

stra

l)

RD

S-R

CS

Oth

er s

uplie

rs

Satisfaction with the quality of dedicated Internet access servicesaverage values (1=not at all satisfied...5=very satisfied)


Base: companies and institutions that use dedicated Internet connection from the

respective suppliers

[N = 89] [N = 123] [N = 206][N = 732] [N = 314]


2937 38 35 36

42

3947

38 36

1613

11

1814

4 52

36

4 15 6 3 6 7

1

0%

20%

40%

60%

80%

100%

CaTV Optical fiber xDSL Radio UTP/FTP cable

DK / NA


2

3

4

Very satisfied

Satisfaction with the quality of service of the dedicated access suppliersby connection type


Base: companies and institutions that use dedicated Internet connection from the respective

suppliers[N = 269] [N = 101] [N = 34][N = 244] [N = 70]

VIII.c. Intentions to Change Providers or Types of

Dedicated Internet Access Connections


Intentions to Change Providers or Types of Dedicated Internet Access Connections

The main barriers encountered when changing the provider of dedicated access services with which respondents are dissatisfied are the lack of alternative, convenience and a lower degree of knowing other providers’ offers. Also, 10% of dissatisfied respondents perceive a low quality of the services notwithstanding the provider, while 8% consider that their providers’ tariffs are high.

When asked whether in the next 12 months they intend to give up the dedicated connection or any dedicated connection inside their company, respectively institution, 9% of the interviewed persons stated that this is highly probable, while 3% said they will absolutely do so. According to the size of the company and institution, the intention to give up a provider is stronger in case of companies and institutions with a low number of employees, and lesser in large and medium companies and institutions (considering both the “absolutely yes”, and the “probably yes” answers). However, the representatives of large companies and institutions seem to be more determined, answering “absolutely yes” in a higher extent (5%).

The main reason for such intention to give up the dedicated access connection is given by the need of a connection with a higher data downloading speed, which issue is mentioned by one third of the respondents that expressed their intention to give up a dedicated access connection. The second reason in terms of importance is the unstable nature of the connection (19%), followed by the low quality technical support and by the high tariffs as compared to benefits.

When increasing by 5% the tariffs for the dedicated access connection, 16% of the interviewed persons contemplate giving up the current dedicated connection in their company and institution. Their percentage reaches 25% when increasing the tariffs by 10% and 39% in case of a tariff increase by 20%. For each tested level of tariff increase, approximately half of the respondents expressing their intention to give up their current connection declare that they would only change the provider, and not the connection type, while almost one fifth would opt for another type of dedicated access connection.


30%

15%

12%

10%

8%

2%

1%

7%

21%

4%

3%


Out of convenience





It takes a long time to install a dedicated connection

The contract is restrictive

The lack of time

Other

Doesn't know


Base: companies and institutions of which respondents stated they are not satisfied with their connection supplier (they answered 1,2 or 3 at the

satisfaction with the supplier question), N=145

Barriers in changing the dedicated Internet access supplier



21%

15%

15%

2%

6%

8%

2%

10%

25%

31%

16%

15%

2%

15%

5%

4%

4%

11%

16%

39%

18%

9%

6%

6%

3%

6%

18%

33%

22%

11%

22%

33%

2%

15%


Out of convenience





It takes a long time to install a dedicated connection

The contract is restrictive

Lack of time

Other

Doesn't know




50+ employees (N=9)



Barriers in changing the dedicated Internet access supplier by size of the company and institution

Base: companies and institutions of which respondents stated they are not satisfied with their connection supplier (they answered 1,2 or 3 at the

satisfaction with the supplier question), N=145


Doesn't know; 5%

Definitely yes; 3%

Definitely not; 55%

Probably not; 28%

Probably yes; 9%

Intent of giving up a dedicated Internet connection over the following 12 months


Does your company intend to give up the dedicated (or any dedicated) connection in the following 12 months?


3%

4%

2%

5%

11%

10%

8%

2%

26%

31%

30%

20%

53%

56%

71%

7%

3%

5%

2%

52%

0% 20% 40% 60% 80% 100%





Definitely yes Probably yes Probably no Definitely not Doesn't know


Intent of giving up a dedicated Internet connection over the following 12 months, by size of the company

Base: companies and institutions that have dedicated Internet access

Does your company intend to give up the dedicated (or any dedicated) connection in the following 12 months?


The main reason for intending to give up the dedicated connection

What is the main reason why you are considering giving up this connection?

32%

19%

13%

12%

3%

2%

2%

6%

10%

Access/transfer speed in not enough for my needs

Unstable connection

Low quality of technical support

High tariffs compared to benefits

There are better offers

Downloading large files is too slow

The change of the office location

Other reason

DK/NA

Base: companies and institutions that stated that it’s probable or highly probable to give up a

dedicated Internet access connection in the following 12 months(N=90)

Question with single assisted answer


Degree of giving up the supplier’s services at in increase in the subscription fee of 5% / 10% / 20%

If your Internet dedicated connection supplier would increase tariffs by 5%, would you give up their services? What about 10%? What about 20%?

5%

9%

17%

11%

16%

22%

25%

30%

22%

38%

25%

19%

21%

20%

21%

0% 20% 40% 60% 80% 100%

5% Increase

10% Increase

20% Increase

Definitely YES Probably YES Probably NO Definitely NO Doesn't know



Intent of changing the dedicated connection in the event of an increase of the supplier’s tariffs

Using the alternatives on this card, how do you think you would proceed?

44%

17%

7%

3%

2%

1%

26%

51%

17%

5%

2%

1%

1%

21%

54%

18%

5%

1%

1%

1%

18%

1%

2%

.5%1.4%

.4%

I would switch suppliers but use the same type ofconnection

I would switch to another type of dedicatedconnection

I would switch to a fixed line dial-up connection orISDN

I would choose another offer, but don’t know what typeof connection

I would no longer use the Internet access services

I would switch to a mobile dial-up connection viaGSM/GPRS

I would switch to a mobile dial-up connection via3G/CDMA/EDGE

Other

DK/NA

5% increase (N=114)

10% increase(N=183)

20% increase (N=278)

Base: companies and institutions that would give up the subscription to dedicated Internet

connection if the tariffs grew with 5% /10% /20%


IX. Existence of Previous Internet Access Connections inside

Companies and Institutions


Existence of Previous Internet Access Connections inside Companies and Institutions

In 32% of the companies and institutions, the interviewed persons state that they used in the past other internet access connections and they gave up such connections in the meantime. 62% of the given up connections were dial-up connections (most frequent: fixed telephonic line connection - 49%), while 29% were dedicated access connections (9% of the respondents could not answer this question).

The companies and institutions that gave up a dial-up access connection resorted mostly to dedicated connections (76%). However, 21% opted for fixed dial-up connections or ISDN connections, while 7% opted for mobile dial-up internet access connections

Regarding the companies and institutions that gave up in the past a dedicated internet access connection, the percentage of those that are currently having also a dedicated connection is even higher: 84%.

In the companies and institutions that gave up a dedicated access connection,37% do not know the maximum speed provided by the respective connection, while in 18% of the cases, such speed was lower than 128 kbps. Correlating the maximum speed provided by the given up dedicated access connection to their current maximum speed, we can note a clear tendency of choosing connections with higher access speeds.

This result is confirmed also by the reasons for giving up the last dedicated Internet access connection - 44% of the respondents in the companies and institutions that gave up in the past a dedicated access connection mention a low access speed as their primary reason for doing so. Another reason mentioned in a significant extent is represented by the high costs as compared to the benefits provided by that connection.


No, 60%

DK/NA, 8%

Yes, they have used another connection,

32%

Did they give up an Internet connection in the past?

Before the Internet connection(s) you currently use, have you had any other connections you have given up in the meantime?



1.2%

2.6%

1.2%

2.1%

5.9%

6.8%

0.6%

5.6%

9.4%

2.4%

48.5%

9.4%

4.4%

Classic Dial –up (fixed phone line)

ISDN

mobile dial-up GSM-CSD/GPRS

mobile dial-up 3G/CDMA/EDGE

dedicated (doesn’t state what type)

CATV

optical fiber

radio

satelite

xDSL


Other

Doesn't know

The type of connection they had given up

What type of connection did you use before (the last one you had given up, if you had more than one)?

Companies and institutions that previously used a connection that they had given up, N=340

Total dedicated connections :

29,2%

Total dial-upconnections :

61,5%



4%

5%

11%

5%

0.5%

32%

1%

2%

19%

27%


ISDN line

Mobile access GSM-CSD/GPRS/WAP

Mobile access CDMA/EVDO de la Zapp

TV Cable

Optical Fiber


Radio (radio modem or radio relay )


Other type

What types of connections do the companies that have given up a dial-up connection now have?

What type of connection(s) does your company use at the time being?

Companies and institutions that previously used a dial-up connection that they had given up, N=209

20,6% have a fixed line dial-up/ISDN connection

6,7% have a mobile access connection

75,6% have a dedicated connection



2%

3%

18%

33%

3%

2%

5%

23%

3%

4%

11%Classic Dial –up (fixed phone line)

ISDN line

Mobile access GSM-CSD/GPRS/WAP

Mobile access EDGE/3G

Mobile access CDMA/EVDO de la Zapp

TV Cable

Optical fiber


Radio (radio modem or radio relay )


Other type

What type of connection(s) does your company use at the time being?

15,2% have a fixed line dial-up/ISDN connection

7,1% have a mobile access connection

83,8% have a dedicatedconnection


What types of connections do the companies that have given up a dedicated connection now have?

Companies and institutions that previously used a dedicated connection that they had given up, N=99


Doesn't know, 37%

2048 kbps (2Mb/s), 2%

Other bandwidth, 10%

64 kbps, 3%

128 kbps, 4%

256 kbps, 11%

<64 kbps, 15%

1024 kbps (1Mb/s), 7%

512 kbps, 10%

The maximum speed of the dedicated connection they had given up

What was the maximum (best effort) speed your old connection had? Companies and institutions that previously used a dedicated connection that they had given up, N=99


The maximum speed the of the connection they had given up correlated with the maximum speed of the current connection

What was the maximum (best effort) speed your old connection had?

What is the maximum guaranteed transfer speed (kbps) for your Internet dedicated connection?

Companies and institutions that previously used a dedicated connection that they had given up, and that currently use another dedicated connection,

N=83

Number of cases (N)

9 1 1 4 4 5 0 5 26 551 0 0 0 0 0 0 0 0 11 1 0 0 0 0 0 0 1 31 0 0 1 0 0 0 0 0 21 1 0 1 1 0 0 1 1 61 0 1 3 2 0 0 1 1 90 0 0 0 0 0 0 1 0 10 0 1 0 1 1 2 0 1 6

14 3 3 9 8 6 2 8 30 83

NŞ/NR64 kbps128 kbps256 kbps512 kbps1024 kbps (1Mb/s)2048 kbps (2Mb/s)>2048 kbps (>2Mb/s)

the maximum (best effort)

speed guaranteed for

your current connection

Total

<64 kbps 64 kbps128kbps

256kbps

512kbps

1024kbps(1Mb/s)

2048 kbps(2Mb/s)

Other bandwidth DK/NA

What was the maximum (best effort) speed your old connection had?

Total


Reasons for giving up the last dedicated Internet connection

Think about the last Internet connection you gave up. What are the main reasons why you gave it up?

44%

22%

10%

7%

7%

4%

10%

8%

6%

the access speed was too slow for my needs

the costs were too high compared to the benefits

unstable connection, technical difficulties

supplier increased price of subscription

supplier increased tariff for additional traffic

we changed the office location

poor quality of service

other reason

DK/NA

Companies and institutions that previously used a dedicated connection that they had given up, N=99

Miultiple answer question

X. Intention to Acquire a New Internet Access Connection


Intention to Acquire a New Internet Access Connection

In 15% of the companies and institutions, the interviewed persons state that in the next 12 months they intend to acquire another Internet access connection. Their intention to acquire another connection is stronger in small companies (16-17%) and lesser in large companies, with more than 50 employees (9%).

16% of the respondents intending to acquire another access connection in their company or institution would opt for a dial-up connection, 57% for a dedicated access connection (among them, the highest percentage is held by fiber optic connections followed by TV cable connections), while 27% are still undecided.

For the dedicated access connection, 10% of the respondents desire an access speed of at least 128 kbps, 11% -of at least 256 kbps, 12% -of at least 512 kbps, 19% -of at least 1024 kbps, while 17% desire an access speed of at least 2048 kbps (28% do not know).

The main reason for their intention to acquire a new dedicated internet access connection is in this case also the speed access provided (mentioned by 40% of the respondents intending to acquire a new access connection in their company). Other reasons mentioned in significant percentages are a better quality-price relationship, access to an advanced technology and low quality of the services provided by their current provider.


NO, 71%

DK/NA, 14%YES, they intend to

acquire another connection, 15%

Intent to acquire a new Internet connection in the following 12 months

Does your company intend to acquire a different Internet connection in the following 12 months?

Base: companies and institutions that have a dedicated Internet connection, N=1078


17%

16%

14%

9%

70%

71%

72%

73%

13%

14%

14%

18%

0% 20% 40% 60% 80% 100%





YES, they intent NO Doesn't know


Intent to acquire a new Internet connection in the following 12 months, by size of the company and institution

Does your company intend to acquire a different Internet connection in the following 12 months?

Base: companies and institutions that have a dedicated Internet connection, N=1078


1%

1%

30%

2%

27%

6%

4%

14%

4%

2%

8%

1%


ISDN

Mobile dial-up GSM-CSD/GPRS

Mobile dial-up 3G/CDMA/EDGE

Dedicated (doesn't know what type)

CATV

Optical fiber

Satelite

xDSL


Other type

DK/ have not decided yet

Types of connections they intend to acquire

What type of connection do you intend to acquire? Base: companies and institutions that intend to acquire a different Internet connection in the following 12

months, N=165



Companies that intend to acquire a dial-up connection (N=29)

7%

35%

10%

3%

3.4%

3.4%

3%

52%Classic Dial–up (fixed phone line)

ISDN Line



Mobile EDGE/3G

TV Cable

Optical fiber


Radio

Satelite

UTP/FTP cable

Other

What type of Internet connection do companies that intent to acquire a different one currently have?

(multiple answer question)

Companii în care se intenţionează achiziţionarea unei conexiuni de acces dedicat

(N=92)

4%

1%

5%

20%

15%

7%

3%

2%

10%

2%

37%Classic Dial–up (fixed phone line)

ISDN line



Mobile EDGE/3G

TV Cable

Optical fiber


Radio

Satelite

UTP/FTP cable

Other

What type of Internet connection(s) does your company use at the time being?


Other bandwidth, 2%

Doesn't know, 28% at least 128 kbps, 10%

at least 256 kbps, 11%



2048 kbps (2Mb/s), 17%

at least 1024 kbps (1Mb/s), 19%

The real guaranteed speed the wish for their new dedicated connection

What real transfer speed do you want your new connection to guarantee? Base: companies and institutions that intend to acquire a different Internet connection in the following 12 months,

N=92


The reasons for indenting to acquire a new dedicated connection in the following 12 months

Why would you purchase a new Internet dedicated connection in the following 12 months?

40%

29%

29%

28%

17%

17%

16%

3%

7%

Higher access speed/transfer

Better cost-benefit

More advanced technology

Low service quality of the current supplier

To satisfy development needs of my company

More stable connection

Bundled communication services (telephony, TV etc)

Other reasons

DK/NA


Base: companies and institutions that intend to acquire a different Internet connection in the following 12 months,

N=92

XI. Profile of the Companies and Institutions in Which Internet

Access Services Are Used


Profile of the Companies in which Fixed telephony Services Are Used

The companies and institutions in which internet access services are used:

a higher percentage of such companies and institutions are registered in Bucharest as compared to those in which such services are not used.

there is an obviously higher percentage of the companies having more than 3 employees and a turnover higher than EUR 50,000.

there is a higher percentage of public institutions and companies operating in the field of services and a lower percentage of companies operating in the field of trade.


Development area

13

12

15

11

11

12

7

7

6

6

5

6

12

11

14

19

19

19

13

13

12

20

23

16

0% 20% 40% 60% 80% 100%


Companies and institutionsthat use Internet access

services (N=1328)

Companies and institutionsthat DON'T use Internet

access services (N=642)

NOTH-EAST SOUT-EAST SOUTH SOUTH-WEST WEST NORTH-WEST CENTER BUCHAREST

*62 companies and institutions that didn’t state if they were using internet access services were excluded


Size of the company / institution (number of employees)

46

37

63

34

36

29

15

19

8

4

6

1

2

0.2

0% 20% 40% 60% 80% 100%



services (N=1328)



1-2 employees 3-9 employees 10-49 employees 50-249 employees 250+ employees



Turnover in 2005

4

5

63

54

82

11

13

8

14

18

8

3

4

5

7

11 2

0% 20% 40% 60% 80% 100%



services (N=1328)

Companies and institutionsthat DON’T use Internet


Public institution under 50.000 Euros 50.000 - 100.000 Euros

100.001 - 500.000 Euros 500.001 - 1 mil. Euros over 1 mil. Euros



Area of activity

4

5

1

1

2

14

14

14

9

8

10

28

27

41

43

39

3

3

11 32

0% 20% 40% 60% 80% 100%



services (N=1328)



Public institution Agriculture, forestry Industry Constructions Commerce Services Unstated


Documents

Quantitative Research The Market of Internet Access Services