Case | HBS Case Collection | August 2012 (Revised December 2012)

Telecommunications Regulation and Coordinated Competition in Romania

by Arthur Daemmrich, Alex Radu and Ana Sarbu

Abstract

Leaders of the Romanian telecommunications agency must decide about a proposed international merger and how to structure bandwidth auctions critical to the telecoms market. The case is designed to teach about regulatory choices from the perspective of a regulatory agency, but it also describes the competitive standing of domestic and international telecoms providers in Romania and the challenges of operating as a "foreign" multinational, even in the European Union where protection of national champions is supposedly obsolete. Policy tradeoffs are developed among approving, delaying, or denying the proposed merger of domestic Romtelecom with Greek-based Cosmote. Likewise, tradeoffs are described for bandwidth auctions, notably among public transparency, maximizing revenue, preventing collusion, promoting efficient use of spectrum, broadening coverage, and fostering innovation in products and services.

Keywords: regulation; Auction Policy; European Union; government policy; cell phone industry; Mergers and Acquisitions; Telecommunications Industry; Romania;

Citation:

Daemmrich, Arthur, Alex Radu, and Ana Sarbu. "Telecommunications Regulation and Coordinated Competition in Romania." Harvard Business School Case 713-016, August 2012. (Revised December 2012.)