quantitative study on access to internet services market

THE GALLUP ORGANIZATIONROMANIA

Quantitative Study on Access to Internet Services Market

•• PopulationPopulation Sample Sample ••

Report on behalf of:

November 2006

2THE GALLUP ORGANIZATIONROMANIA

TABLE OF CONTENTS

General frameworkand objectives p. 3

Research methodology p. 4

Social and demographic profile of the sample p. 6

RESEARCH REPORT

I. Size of the Romanian Internet access market p. 9

II. Awareness of the main Internet access connections types p. 17

III. Internet access market structure depending on the connection type used p. 20

IV. Internet usage habits p. 33

V. Expenses related to Internet access services p . 43

VI. Dial-up Internet access connections market p. 48

a. Dial-up access connections types and usage levels p. 49

b. Level of satisfaction with the providers of dial-up Internet access services p. 58

c. Intentions to change the providers or the types of Internet dial-up accessconnections- p. 67

VII. Dedicated Internet access connections market p. 78

a. Types of dedicated access connections used and usage level p. 79

b. Level of satisfaction with the providers of dedicated Internet access p. 94

c. Intentions to change the providers or types of dedicated Internet accessconnections p. 105

VIII. Existence of previous connections in the household p. 114

IX. Intention to purchase a new Internet access connection p. 124

X. Profile -Internet users vs. non-users p. 132


GENERAL FRAMEWORK AND OBJECTIVES

During the period October 2006 – January 2007, The Gallup Organization România conducted a research which is part of ANRC’s (National Regulatory Authority for Communications) objective to monitor tendencies in the behavior related to the use of Internet access services, in order to analyze the changes occurring in the structure and operation of specific relevant retail markets identified by ANRC.

The object of this research was:

level of penetration of Internet access services at the level of population and households

used providers of Internet access services and barriers to/reasons for changing the provider

used services of fixed Internet access and criteria applied for the selection thereof

average monthly expenses related to these services

level of awareness of Internet access services

domains and habits related to the use of Internet services

level of satisfaction with the Internet access services used; reasons for not using these services and substitute electronic

communication services

intention to change the services used – connection type, band width, reasons

reaction to the increase in prices and tariffs


RESEARCH METHODOLOGY

Research target group: population over the age of 16.

Poll unit: household members selected based on Kish sampling (representative sample) and user of Internet in the household, for the users sample.

Sample size: 10929 people for the representative sample and 1351 people – Internet users in the household.

Sample type: probabilistic, stratified sample

Sampling: representative sample selected based on two stratification criteria: regional development areas and type of settlement. Regional development areas consist of counties belonging to the same geographic region and having a similar economic and social development level. According to the sampling methodology used by Gallup, 18 such development areas are taken into consideration. There are 8 types of settlements: developed communes, medium developed commune, poorly developed communes, towns with a population under 50 thousand, towns with a population between 50 and 100 thousand, cities with a population between 100 and 200 thousand, cities with a population over 200 thousand (including Bucharest). The households were selected randomly, the people in the households were selected based on Kish sampling and the selection questionnaire.

The interviews were conducted face-to-face, at the respondents’ domicile.

Field study: October 26 – November 8, 2006


A population representative sample was established for this research and, based on its filtration, the final sample of Internet services users was obtained. The representative sample was used to obtain data related to the penetration of the Internet at the level of the total target group. The users sample was used to obtain data providing answers to the other study objectives.

The interviews were conducted at the respondents’ domicile, based on a standardized questionnaire applied by the interview operators who received special training for this purpose.

Response rate for eligible persons (who meet the sampling conditions):

This report, in a graphical format, presents the main results of this study.

1 35192%

Valid main questionnairesRate of response to the main questionnaire

119- refusal to answer the main questionnaire

1 470Eligible persons

9 28312848

of which : - no Internet in the household- the respondent does not know, refuses to answer- the respondent does not use the Internet in the household

10 929Valid recruitment questionnaires

RESEARCH METHODOLOGY


SOCIAL AND DEMOGRAPHIC PROFILE OF THE SAMPLE

(N=10929)Gender % Occupation %

Male 45.2 DNK 0.9Female 54.8 Business (Co-) Owner 1.8

Free lance Professional 1.6Manager / Director 1.0

Age % Engineer, doctor, architect, professor, economist,etc 5.7DNK 0.8 Public Administration 2.616-24 12.3 Technical staff, assistant, school teacher etc 3.725-34 14.3 Skilled Worker 13.335-44 15.5 Non-skilled Worker 2.745-54 16.8 Housewife 11.055-64 16.7 Maternity leave 0.865-74 15.0 Retired 39.275+ 8.7 Student 7.7

Unemployed 2.4Other 5.5

Marital Status %DNK 0.8 Household Size %Married 63.3 DNK 0.4Single 18.7 1 person 11.6Widowed / divorced 17.2 2 persons 33.1

3 persons 23.14 persons 18.0

Education (last graduated level % 5+ persons 13.9DNK 0.8Primary school 11.2 Household Income per Person %Secondary school(5-8 grades) 19.4 DNK 11.7Crafts school 15.1 100 RON or less 13.8

10 grades (under high school level) 8.0 101-200 RON 22.3High school 26.4 201-300 RON 18.7Technical undergraduate school 7.4 301-400 RON 12.0University degree 11.7 401-600 RON 12.3

Over 600 RON 9.1


SOCIAL AND DEMOGRAPHIC PROFILE OF THE SAMPLE

(N=10929)

Development Areas % Type of Location %NORTH-EAST 16.6 Village, town 47.6SOUTH-EAST 12.8 City under 30 thousand inhabitants 12.1SOUTH 15.5 City between 30-99 thousand inhabitants 11.4SOUTH-WEST 10.7 City between 100-199 thousand inhabitants 8.0WEST 9.3 City over 200 thousand inhabitants 12.0

NORTH-WEST 13.1 Bucharest 8.8CENTRE 11.5BUCHAREST (+ Ilfov county) 10.4

RESEARCH REPORT

I. Size of the Romanian Internet access market


Size of the Romanian Internet access market

21% of the people aged over 16 stated that they had used the Internet during the past 6 months. The Internetusage level is higher in the urban areas (34%) and lower in the rural areas (7%). Extrapolating at the level of the entire target group, this means that 3,962,986 people aged over 16 used the Internet during the past 6 months.

Regarding the level of penetration of Internet access services at the household level, 14% of the respondents stated that there is at least one Internet connection in their household, i.e. approximately 1,052,000 households in Romania are connected to the Internet. In the urban areas, approximately one household out of 4 has an Internetconnection, while in the rural areas only 3% of the households use this facility.

However, if we discuss the households that are not connected to the Internet, 15% of the respondents stated that “they do not need these services”, while 32% of them are unable to provide a reason for this situation. Other obstacles invoked regarding the absence of an Internet connection were: “lack of a provider in the area they live in” (11%), “high tariffs for the use of the service” (10%), the fact that “they have an Internet connection at the work place” (10%) and the “high installation costs” (8%).

The use of the Internet is significantly higher in Bucharest (40%), the North-West (27%), the South-East (26%) and the West (23%), as compared to an average of 21% of the representative sample. The same regions have a rate of penetration of Internet services in the households that is higher than the average rate.


Internet Service Consumption over the last 6 months – overalloverall and average per household*

Have you personally used Internet services, irrespectively of location, over the last 6 months?

21%

34%

7%

National representativesample (N=10929)

Urban area (N=5728)

Rural area (N=5201)

Estimated number of persons over 16 year-old per total

population, who have used Internet services over the last 6

months*

3.962.986** (17.833.567)

3.375.616 (9.991.261)

587.370 (7.842.306)

*The number in parenthesis includes total number of persons over 16 year-old(Source: Annual Statistics of Romania, 2004)

* 128 persons were excluded from the estimation because they did not answer this question**The estimation was weighted against location because of the high number of respondents from the rural area


21%

17%

26%

13%

13%

23%

27%

17%

40%

National representative sample (N=10929)

NORTH-EAST (N=1818)

SOUTH-EAST (N=1400)

SOUTH (N=1695)

SOUTH-WEST (N=1171)

WEST (N=1018)

NORTH-WEST (N=1433)

CENTRE (N=1259)

BUCHAREST (N=1135)

Internet Service Consumption over the last 6 months per area

Have you personally used Internet services, irrespectively of location, over the last 6 months?


Level of Penetration of Internet Services in Householdsoverall and average per household

Does your household have an Internet connection?

14%

24%

3%

National representativesample (N=10929)

Urban area (N=5728)

Rural area (N=5201)

Estimated number of Romanian households with an Internet

connection*

1.052.084 (7.320.202)

943.891 (3.958.342)

108.193 (3.361.860)

*The number in parenthesis represent the total number of Romanian households(Source: Census 2002)

* 128 persons were excluded from the estimation because they did not answer to this question** The estimation was weighted against location because of the high number of respondents from the rural area


14%

12%

17%

7%

8%

14%

17%

11%

31%

National representative sample (N=10929)

NORTH-EAST (N=1818)

SOUTH-EAST (N=1400)

SOUTH (N=1695)

SOUTH-WEST (N=1171)

WEST (N=1018)

NORTH-WEST (N=1433)

CENTRE (N=1259)

BUCHAREST (N=1135)

Level of Penetration of Internet Services in Householdsper area

Does your household have an Internet connection?


Number of Internet Users per Householdper size of household

How many persons from your household use the Internet connection?

100%

21%

7%

79%

36%

30%

34%

19%

22% 7%

14%

4%

6%

19%

35%

26%

32%

10%

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

1 person

2 persons

3 persons

4 persons

5 persons or more

1 person 2 persons 3 persons 4 persons 5 persons DNK/refusal

Reference: households with Internet connection (N=1518)

Households of...

(N=63)

(N=332)

(N=548)

(N=410)

(N=160)


Obstacles against Installation of Internet Connection in the Household

What is the main reason why you have no Internet connection in your household?

15%

11%

10%

10%

8%

4%

4%

1%

6%

32%

No need for this service

No supplier covers our area

Services are too expensive

I use Internet at work

Too high costs of installation

Disconnected services because of costs

No personal computer in the household

Internet connection pending

Other

DNK / no reason

Reference: households with NO Internet connection which answered this question

(N=848)

Leased house or newly moved in, no cable / telephone connection, old computer, bureaucracy, dissatisfaction with area suppliers, other priorities, etc.

II. Awareness of the main Internet access connections types


Awareness of the Main Internet Access Connections Types

When asked what types of Internet connections they know, 83% of the Internet services users immediately mentioned at least one dedicated connection, while 67% of them mentioned at least one dial-up connection. The TV cable connection (51%) and the telephone line connection (50%) were mentioned most frequently.

Then the respondents were asked to choose from a list the types of Internet connections known by them. 82% of them mentioned the fixed telephone line connection, 79% the TV cable connection, 75% the optical fiber connection, 65% the connection through mobile telephony operators and 59% the UTP/FTP cable access (using a residential area network). On the whole, 96% of the Internet services users know at least one dedicated connection, while 87% of them have heard at least of one dial-up connection.


Brand Recognition of Main Types of Internet Connection

What type of Internet connection do you know? Out of the connection types from the list below, which ones have you heard of, even if you do not currently use them?

Reference: Internet users in households

N = 1351

96%

82%

65%

36%

79%75%

22% 25%

44%

59%

2%

67%

83%

50%

29%

9%

51%

37%

8% 8%

16%

34%

1%4%

87%

0%

20%

40%

60%

80%

100%

DIA

L U

P

DE

DIC

ATE

D

Fixe

dte

leph

one

line

Mob

ileac

cess

ISD

N

TV c

able

Fibr

e op

tics

xDS

L

Rad

io

Sat

ellit

e

UTP

, FTP

cabl

e

Oth

er

DN

K b

rand

Assisted

Spontaneous

III. Internet access market structure depending on the

connection type used


Dedicated access connections have definitely superseded dial-up connections lately. In 83% of the households that have an Internet connection, there is one dedicated access connection, and only 19% of them have a dial-upconnection. Extrapolating to the level of the entire target group studied, this means that approximately 881 thousand households have a dedicated access connection and approximately 206 thousand households have a dial-up connection.

The most frequent dial-up connection type is the fixed telephone line connection, which is present in 14% of the households that are connected to the Internet. As far as dedicated access connections are concerned, TV cable connections are the most frequently used (in 33% of the households connected to the Internet), UTP/FTP cable (26%) and optical fiber (20%).

An analysis by residential areas indicates that fixed telephony line connections prevail in the rural areas, while TV cable, UTP/FTP cable and optical fiber connections prevail in the urban areas.

Income does not result in significant differences among the types of connections used. However, one may notice a slight preference for optic fiber of those whose income exceeds RON 200 per capita, as compared to those whose income is below RON 200 per capita, who use the fixed telephone line connection more frequently.

The Romanian market of Internet access connections is very dynamic. At least 68% of the total number of dedicated access connections and at least 54% of dial-up connections have been purchased during the last 2 years.

Structure of the Internet Access Market Depending on the Connection Type


Structure of the Internet Access Market Depending on the Connection Type

Among the households using dial-up Internet, 85% of them use a single account. 6% of the respondents from these households stated that they use two dial-up accounts, and 2% of them stated that there are three or more accounts (6% were unable to tell that).

Almost all of the households (97%) using dial-up Internet access use only one dedicated access connection, and 2% of them use two connections.

Romtelecom is the main supplier of dial-up Internet access provider. 50% of the respondents who have a dial-upconnection in their household mentioned Romtelecom as the service provider. This company was followed by RDS (20%), Zapp (11%), Vodafone (7%), Orange (5%) and Xnet (3%). Romtelecom is by far a leader on the market of fixed telephone line connections, while Zapp is a leader on the mobile line access connections market.

Regarding dedicated access connections, the main provider is RDS (used in 32% of the household using such connections), followed by UPC / Astral (15%) and Romtelecom (2%). RDS is a leader both on the TV cable connections market (53%), and on the optical fiber connections market (43%).


Type of Internet Connections in Households

What type(s) of Internet connection(s) do you have in yourhousehold?

Reference: households with Internet connections, N=1351

19%

14%

1%

2%

2%

83%

33%

26%

20%

3%

1%

1%

0,1%

0,2%

DIAL UP CONNECTION

Fixed telephone line

ISDN

GSM-CSD/GPRS/WAP mobile access

CDMA/EVDO (Zapp) mobile access

EDGE/3G mobile access

DEDICATED CONNECTION

TV cable

UTP/FTP cable (neighbourhood network)

Fibre optics

xDSL(ADSL, SDSL, HDSL)

Radio (radiomodem or microwave)

Satellite

OtherMore than one answer


Estimated Number of Romanian Households that Have the Following Types of Internet Connections

200.916

150.298

9.345

24.920

21.805

873.751

348.878

271.003

207.146

31.150

11.681

7.009

1.557

2.336

0 200.000 400.000 600.000 800.000 1.000.000 1.200.000

DIAL UP CONNECTION


ISDN





TV cable


Fibre optics



Satellite

Other

More than one answer

What type(s) of Internet connection(s) do you have in yourhousehold?


Urban area (N=1201)

12%

1%

2%

35%

%

27%

%

2,8%

20,9%

1,9%

,2%

%

DIAL UP CONNECTION


ISDN

GSM-CSD/GPRS/WAP mobile

CDMA/EVDO (Zapp) mobile

EDGE/3G mobile


TV cable

Fibre optics


Radio

Satellite

UTP/FTP cable

Other

Type of Internet Connections of Households- by residential area -

(more than one answer)

Rural area (N=150)

35%

2%

6%

1%

3%

15%

10%

4%

7%

4%

16%

DIAL UP CONNECTION


ISDN



EDGE/3G mobile


TV cable

Fibre optics


Radio

Satellite

UTP/FTP cable

Other

What type(s) of connection(s) do you have in your household?


200 RON or less (N=139)

17%

1%

2%

38%

1%

21%

1,4%

17%

2,9%

DIAL UP CONNECTION


ISDN



EDGE/3G mobile


TV cable

Fibre optics


Radio

Satelitte

UTP/FTP cable

Other

Type of Internet Connections of Householdsby household income per capita


201-400 RON (N=311)

%

3%

2%

31%

21%

1%

27%

%

12,9%

,3%

2,6%

DIAL UP CONNECTION


ISDN



EDGE/3G mobile


TV cable

Fibre optics


Radio

Satelitte

UTP/FTP cable

Other



401-600 RON (N=257)

15%

1%

2%

31%

28%

3%

20,6%

3,1%

1,2%

1%

DIAL UP CONNECTION


ISDN



EDGE/3G mobile


TV cable

Fibre optics


Radio

Satelitte

UTP/FTP cable

Other

Type of Internet Connections of Householdsby household income per capita


over 600 RON (N=329)

13%

1%

%

2%

38%

20%

1%

23%

%

4,0%

,3%

2,1%

DIAL UP CONNECTION


ISDN



EDGE/3G mobile


TV cable

Fibre optics


Radio

Satelitte

UTP/FTP cable

Other



Age of Household Connections

Since when has your household used each type of connection you mentioned?

15%

6%

9%

8%

14%

14%

20%

31%

34%

37%

9%

5%

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

Households with dial-up connections *

Households withdedicated

connections*

Before 2003 2003

2004 2005

2006 DNK

Reference: households with dial-up (N=258) / dedicated connection (N=1122)

* For more than one dial-up or dedicated connections, the oldest connection was taken into account


Market Structure according to Number of Accounts / Internet Ports

Reference: dial-up connection households, N = 258

Number of dial-up accounts

One; 85%

DNK; 6%Three of

more; 2%

Two; 6%

Number of dedicated ports

One; 97%

DNK; 6%

Three; 0,4%

Two; 3%

Reference: dedicated connection households, N = 1122

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


DIAL UP

20%

11%

7%

5%

3%

3%

6%

50%Romtelecom/Artelecom

RDS-RCS

Zapp

Vodafone

Orange

Xnet

Other suppliers*

DNK

DEDICATED

15%

2%

40%

11%

32%RDS-RCS

UPC(Astral)

Romtelecom/Artelecom

Other suppliers*

DNK

Internet Service Suppliers- per type of connection -

* Under 2% answers* Under 2% answers

Reference: dial-up connection households, N = 258 Reference: dedicated connection households, N = 1122

Who are your current Internet suppliers for each type of connection? (open-ended question with more than one answer)



26%

4%

4%

2%

2%

4%

64%Romtelecom/Artelecom

RDS-RCS

Xnet

DNK

UPC(Astral)

Other suppliers*

DNK

Mobile phone

31%

19%

7%

45%Zapp

Vodafone(Connex)

Orange

DNK

Internet Service Suppliers- per dial-up connection -

Reference: households with dial-up connection via fixed telephone line, N = 193

Reference: households with dial-up connection via mobile telephone line, N = 62


TV cable

35%

10%

2%

53%RDS-RCS

UPC(Astral)

Othersuppliers

DNK

Fibre optics

5%

4%

2%

2%

2%

30%

14%

43%RDS-RCS

UPC (Astral)

SyncoTelecom

Evolva

IT 4 WEB

Pronet

Othersuppliers

DNK

Internet Service Suppliers- per dedicated connection -

Reference: households with TV cable Internet connection, N = 448

Reference: households with fibre optics dedicated connection, N = 266

IV. Internet usage habits


Internet Usage Habits

Almost two thirds of the total number of persons that used the Internet during the past 6 months, irrespective of their location, stated that they accessed to the Internet in their household, 42% at the work place or at school, 20% at the friends’ or relatives’ domicile, and 16% from Internet Cafes. In the urban areas, most users access the Internet from home (68%), then from the work place or school (42%). In the rural areas, the percentage of those who use the Internet in their household decreases, while the percentage of those who frequently go to Internet Cafes for this purpose increases.

Most Internet users (87%) use this service in the household for e-mail correspondence. Approximately 8 respondents out of 10 access the Internet for information purposes, and approximately two thirds mentioned that they use it to play games, to download music and films and for chatting.

The maximum level of Internet usage is between 18:00 and 22:00, both during the week and in the weekend, the absolute peak being between 20:00 and 21:00. 60% of the respondents stated that they use the Internet during this time interval (20:00-21:00) during the week, and approximately half of them stated that they do this on weekend.


Locations of Internet Service Consumption

Where do you usually use Internet services?

Location

64%

42%

20%

16%

3%

At home

At work /school

Friends /acquiantances

Internet café

Other placesN=2301

By Residential Area

68%

42%

14%

20%

3%

42%

42%

24%

23%

6%

At homeAt work /school


Internet café

Other places

At homeAt work /school


Internet café

Other places

UrbanInternetUsers(N=1917)

RuralInternetUsers(N=384)

Reference: persons who have used Internet over the last 6

months


Frequency of Internet Consumption per Location

Where do you usually use Internet services?How often do you use Internet services in an average month, irrespectively of purpose?

26

11

18

8

1

4

3

1

6

8

3

4

3

6

3

4

3

5

8

10

36

56

83

79

4

3

1

20,3

0,5

1

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

At home

At work / school

Internet café


More than once a day

Once a day

4-6 times a week

2-3 times a week

Once a week

Less than once a week*

Have not used Internet at thislocation

DNK

Reference: persons who have used Internet over the last 6 months

(N=2301)

*Percentages for “less than once a month",“once a month" and "2-3 times a month” were added


Purpose of Internet Service Consumption in Households

For what purpose / activity do you use your household Internet connection?

87%

79%

77%

66%

65%

29%

24%

13%

1%

To send and receive mail

To read news, get information and updates for various events

To get necessary information for work or school

For entertainment, to play or download games / music / movies)

To chat, including via web camera

To listen to Internet radio

To use Internet based telephony

E-commerce (online shopping)

Other

Reference: household Internet users, N = 1351



Purpose of Internet Service Consumption in Householdsper respondent occupation

For what purpose / activity do you use your Internet household connection?What is your current occupation?

Reference: household Internet users

N=97

N=40N=261N=63N=91N=118

N=56N=73N=387N=140


For what purpose/activity do you use your Internet household connection?

90% 73% 73% 60% 25% 33% 70% 29% 3%

93% 80% 83% 60% 13% 20% 65% 30% 3%89% 89% 81% 58% 16% 25% 54% 28% 1%81% 75% 84% 56% 21% 41% 62% 25%88% 78% 76% 58% 11% 12% 53% 20%77% 61% 74% 69% 10% 16% 59% 11% 1%79% 61% 71% 61% 11% 25% 64% 23%81% 42% 74% 37% 1% 11% 45% 19% 3%91% 86% 82% 83% 13% 41% 81% 26% 1%84% 71% 78% 61% 9% 26% 64% 25% 1%

Occupation:Business (co) ownerFree lance professional Manager

(manager, director)Engineer, doctor, architectprofesor, economist, etcPublic administrationTechnician, assistantînvãtãtor, etcWorkerHousewifeRetired Student Other

%

To send and receiveemails

%

To getnecessaryinformation

for workor

school

%

To readnewsto get

informationand updatesfor various

events%

Forentertainment

to playor

downloadgames/

music/ movies

%

E-commerce(online

shopping)%

To listento

radio onInternet

%

To chatincluding

viaweb

cameras

%

ForInternet

telephony

%Other


Household Internet Consumption per Period

When do you personally use Internet in your household?

Maximumconsumption



6% 7%4% 6%3% 4%2% 3%1% 2%2% 2%2% 2%4% 3%7% 7%11% 12%14% 24%14% 26%13% 28%12% 26%15% 28%18% 29%23% 32%31% 35%41% 42%49% 46%60% 49%50% 43%37% 33%22% 22%

%between 0.00-1.00%1.00-2.00%2.00-3.00%3.00-4.00%4.00-5.00%5.00-6.00%6.00-7.00%7.00-8.00%8.00-9.00%9.00-10.00%10.00-11.00%11.00-12.00%12.00-13.00%13.00-14.00%14.00-15.00%15.00-16.00%16.00-17.00%17.00-18.00%18.00-19.00%19.00-20.00%20.00-21.00%21.00-22.00%22.00-23.00%23.00-24.00

Weekdays Weekend


7% 7%5% 6%3% 4%2% 3%2% 2%2% 2%2% 2%4% 3%7% 7%

11% 12%15% 25%15% 28%13% 30%13% 28%16% 31%19% 31%25% 34%33% 36%43% 42%51% 47%61% 50%51% 44%37% 34%23% 23%

%From 0.00 to 1.00%1.00-2.00%2.00-3.00%3.00-4.00%4.00-5.00%5.00-6.00%6.00-7.00%7.00-8.00%8.00-9.00%9.00-10.00%10.00-11.00%11.00-12.00%12.00-13.00%13.00-14.00%14.00-15.00%15.00-16.00%16.00-17.00%17.00-18.00%18.00-19.00%19.00-20.00%20.00-21.00%21.00-22.00%22.00-23.00%23.00-24.00

Weekdays Weekend

Household Internet Consumption per Period- dedicated connections -



Reference: household Internet users with dedicated connection, N = 1122

Dedicated connection


11% 10%6% 10%5% 6%3% 5%5% 6%5% 6%3% 5%8% 5%

11% 5%18% 13%19% 26%16% 29%15% 23%16% 24%19% 23%18% 23%21% 21%34% 27%42% 42%42% 44%65% 48%42% 42%35% 29%24% 21%

%From 0.00 to 1.00%1.00-2.00%2.00-3.00%3.00-4.00%4.00-5.00%5.00-6.00%6.00-7.00%7.00-8.00%8.00-9.00%9.00-10.00%10.00-11.00%11.00-12.00%12.00-13.00%13.00-14.00%14.00-15.00%15.00-16.00%16.00-17.00%17.00-18.00%18.00-19.00%19.00-20.00%20.00-21.00%21.00-22.00%22.00-23.00%23.00-24.00

Weekdays Weekend7% 7%5% 6%3% 4%2% 3%2% 2%2% 2%2% 2%4% 3%7% 7%

11% 12%15% 25%15% 28%13% 30%13% 28%16% 31%19% 31%25% 34%33% 36%43% 42%51% 47%61% 50%51% 44%37% 34%23% 23%

%From 0.00 to 1.00%1.00-2.00%2.00-3.00%3.00-4.00%4.00-5.00%5.00-6.00%6.00-7.00%7.00-8.00%8.00-9.00%9.00-10.00%10.00-11.00%11.00-12.00%12.00-13.00%13.00-14.00%14.00-15.00%15.00-16.00%16.00-17.00%17.00-18.00%18.00-19.00%19.00-20.00%20.00-21.00%21.00-22.00%22.00-23.00%23.00-24.00

Weekdays Weekend

Household Internet Consumption per Period- dial-up connections -



Reference: household Internet users with fixed line dial-up (N = 205) and mobile line (N=62)

Fixed line / ISDN Mobile line


Household Internet Consumption per Period- per amount paid for Internet services over the last month -

When do you personally use Internet in your household?More than one answer

Reference: household Internet users

Weekdays Weekend

N=869 N=381 N=869 N=381

6.0 6.83.5 5.82.1 3.41.2 2.4.9 2.9

1.0 2.42.1 2.13.3 3.96.2 9.4

10.2 12.913.0 17.812.1 18.610.9 16.311.0 14.714.6 15.518.2 17.123.5 21.832.3 28.642.9 36.751.3 44.461.8 57.551.7 47.537.9 33.922.2 22.0

%Between 0.00-1.00%1.00-2.00%2.00-3.00%3.00-4.00%4.00-5.00%5.00-6.00%6.00-7.00%7.00-8.00%8.00-9.00%9.00-10.00%10.00-11.00%11.00-12.00%12.00-13.00%13.00-14.00%14.00-15.00%15.00-16.00%16.00-17.00%17.00-18.00%18.00-19.00%19.00-20.00%20.00-21.00%21.00-22.00%22.00-23.00%23.00-24.00

Answers Answers

40 RON orless

Over 40RON

Amount paid for Internetservices last month

6.7 7.35.4 6.83.6 5.52.3 3.91.8 3.71.5 3.12.0 2.93.0 3.97.2 6.6

11.9 12.323.9 24.426.7 27.329.2 28.125.5 27.028.4 28.627.6 31.831.6 33.935.3 36.541.8 42.847.1 46.550.6 49.144.6 42.032.8 35.222.4 23.4

%Between 0.00-1.00%1.00-2.00%2.00-3.00%3.00-4.00%4.00-5.00%5.00-6.00%6.00-7.00%7.00-8.00%8.00-9.00%9.00-10.00%10.00-11.00%11.00-12.00%12.00-13.00%13.00-14.00%14.00-15.00%15.00-16.00%16.00-17.00%17.00-18.00%18.00-19.00%19.00-20.00%20.00-21.00%21.00-22.00%22.00-23.00%23.00-24.00

Answers Answers

40 RON orless

Over 40RON

Amount paid for Internetservices last month

V. Expenses related to Internet access services


Expenses Related to Internet Access Services

On the average, a household connected to the Internet spent RON 43 in the last month for these services. Approximately 6 households out of 10 spent between RON 21 and 40.

The expenses related to dedicated Internet services are higher than those related to dial-up services. On the average, a household using a dedicated access connection spent RON 44.1 monthly for this connection, while the average expense of a household using dial-up Internet connections was up to RON 37.6.


1%4%

31%28%

13%

5% 4%2% 1% 2% 2%

7%

0%

20%

40%

10 RONor less

11-20RON

21-30RON

31-40RON

41-50RON

51-60RON

61-70RON

71-80RON

81-90RON

91-100RON

over100RON

DNK

Total Internet Services Monthly Expenses

Average amount paid for last month: 43,0 RON

What is the approximate amount that your household paid for all Internet services used over the last month, irrespectively of type of connection (RON, including VAT)?



4%

12%

23%

13% 12%

6% 6%

2% 0,4%

21%

0,4%0%

20%

40%

10 RONor less

11-20RON

21-30RON

31-40RON

41-50RON

51-60RON

61-70RON

71-80RON

81-90RON

91-100RON

DNK

Internet Dial-up Service Monthly Expenses

Average amount paid last month: 37,6 RON

What is the average amount you pay monthly for Internet access for this connection? (RON, including VAT)?

Reference: household with Internet dial-up connection, N = 258


3%

32% 31%

13%

5%3% 2% 1%

8%

0,4% 2%0,6%0%

20%

40%

10 RONor less

11-20RON

21-30RON

31-40RON

41-50RON

51-60RON

61-70RON

71-80RON

81-90RON

91-100RON

over100RON

DNK

Internet Dedicated Connection Monthly Expenses


How much do you pay on average for Internet services via this connection (RON including VAT)? If your Intennet services are part of a bigger package of services (TV cable, telephony) please refer only to Internet costs.

Reference: households with dedicated Internet connection, N = 1122

VI. Dial-up Internet access connections market

VI.a. Dial-up access connections types and usage levels


Dial-up Connection Types and Usage Level

Three quarters of the households using dial-up connections use classical dial-up services, by fixed telephone line. In 12% of the households, the Internet is accessed from the mobile telephone using CSD/GPRS/WAP connections, from Vodafone or Orange, and in 11% of the households through Zapp mobile connections.

The most frequently used type of subscription for dial-up connections existing in households is the unlimited access subscription, which is used in 59% of the households having such connections. 12% of the households use services under a subscription including a limited number of hours or limited traffic (limited access), and another 12% have subscriptions with partly limited access (payment of additional number of hours or additionalnumber of MB). 17% of the respondents from these households are unable to indicate the type of subscription they use for their connection/connections.

Most of the respondents (74%) are unable to tell which is their weekly traffic on the dial-up connection they use (most often). Calculated based on the valid answers received, the average traffic in a regular week is 364 MB.

The respondents estimated that, on a regular week, they use the dial-up connection for an average number of 16.4 hours, i.e. a little more than 2 hours daily. However, 21% of the respondents stated that they use this connection intensively (more than 20 hours/week).


Types of Internet Dial-up Connections

What type(s) of connection(s) does your household have?

75%

5%

12%

1%

11%

Fixed phone line

ISDN

GSM-CSD/GPRS/WAPmobile access


CDMA/EVDO mobileaccess

Reference: dial-up connection households (N=258)



Number of Internet Dial-up Accounts

Number of dial-up accounts

One; 85%

DNK; 6%Three or more; 2%

Two; 6%

How many Internet dial-up connections does your household use?How many of those do you pay for?

Number of paid dial-up accounts

None; 2%DNK; 19%

Three or more; 1%

Two; 5%

One; 73%

Reference: households with dial-upconnections (N=258)


Types of Subscriptions for Internet Dial-up Connections

What type of subscription do you have for your householddial-up connection(s)?

59%

12%

12%

4%

17%

Unlimited subscription

Subscription for limitedtime or traffic (limited

access)

Subscription with limitedaccess and payment foradditional hours or MB

Pre-paid card

DNK

Reference: households with dial-upconnections (N=258)



53%

13%

16%

6%

13%

55%

19%

17%

68%

6%

14%

2%

18%

64%

10%

9%

3%

19%

15%

Unlimited subscription(unlimited access)

Subscription for limitedhours or traffic (limited

access)

Subscription for partiallylimited access and pay for

additional hours or MB

Pre-paid card

DNK


201-400 RON (N=53)

401-600 RON (N=50)

600+ RON (N=58)

Type of Subscriptions for Internet Dial-up Connectionsby household income per capita

What type of subscription do you have for the dial-up connection(s) in your household?

Reference: households with dial-up connections (N=258)


DNK; 74%

11-50 MB; 5%

51-100 MB; 4%

101-500 MB; 3%

10 MB or less; 10%

over 1 GB; 2%

501-1000 MB; 4%

Weekly Traffic on Internet Dial-Up Connection

Please tell me the approximate traffic (Megabytes / MB) your household uses in an average week on your Dial-up connection (the one you use mostly)?

Reference: households with Internet dial-up connection, N = 258

Weekly average traffic: 364 MB


170,5 MB

497,4 MB

281,1 MB

0 100 200 300 400 500 600 700

Subscription for limitedtime or traffic

Partially limitedsubscription with pay for

additional hours


average value

[N=30]

[N=32]

[N=152]

Average Weekly Traffic per Type of Dial-up Subscription

Please tell me the approximate traffic (Megabytes / MB) you personally use in your household in an average week on your Dial-up connection (the one you use mostly)?

Reference: household with subscription for Internet dial-up connection


DNK; 29%

3-5 hours; 9%

6-10 hours; 17%

11-20 hours; 15%

1-2 hours; 9%

over 30 hours; 9%

21-30 hours; 12%

Weekly Number of Internet Hours on Dial-up Connection

How many hours do you personally use your household dial-up connection in an average week?

Reference: households with dial-upconnections, N = 258

Average number of Internet hours per week: 16,4 hours

VI.b. Level of satisfaction with the providers of dial-up

Internet access services


Level of Satisfaction with Dial-up Access Providers

There is no clear difference regarding the importance of the criteria considered when choosing a dial-upconnection in the household. There are two criteria mentioned as important or very important by more than half of the respondents who use dial-up connections: the network availability and the log-in time, and the subscription price. In fact, except for the network availability and log-in time (3.9 on the average) and promotional offers (3.2), the other criteria measured have obtained medium rates of importance, comprised between 3.4 and 3.7 on a scale from 1 to 5, where 1=not at all important criterion and 5=very important criterion.

Both in terms of general satisfaction, and in terms of satisfaction with the quality of services, RDS connections through fixed telephone line and Zapp connections (mobile access) generate the highest average scores among the users.

Although it is the most important provider on the dial-up connections market, Romtelecom has the lowest satisfaction scores, both in the case of fixed telephony line connections, and in the case of ISDN connections.


55% 52%48% 45% 46%

43% 44% 45% 43% 44% 41%36%

3,23,43,43,53,53,63,63,6

3,9 3,73,73,7

0

20

40

60

80

100

Ava

ilabi

lity

of n

etw

ork

/ tim

e to

logo

n

Pric

e of

sub

scrip

tion

Type

of t

echn

olog

y us

ed

Qua

lity

of c

usto

mer

ass

ista

nce

and

time

to e

mer

genc

y tro

uble

shoo

ting

Ban

dwid

th (t

rans

fer s

peed

)

Exi

sten

ce a

nd a

vaila

bilit

y of

cus

tom

erse

rvic

e

Leve

l of p

rote

ctio

n ag

ains

t viru

s, s

pam

and

hack

ing

Sup

plie

r rep

utat

ion

Tele

phon

y ta

riffs

Cos

ts o

f ins

talla

tion

Flex

ibili

ty o

f pric

es a

nd c

ontra

ctco

nditi

ons P

rom

otio

ns

1

2

3

4

5

Top 2 Box (%important + veryimportant)

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

%

Importance of Criteria for Selecting a Dial-up Internet Service

When you selected your Internet dial-up service that you currently use, how important were for you each of the following criteria?

Reference: households with dial-up Internet connection, N = 258


19 13

37 4021 14

3537

31

26 46

16 21

10

109

4

10 12 8

109

7

7

20 94

14 615 20 26 2511

0%

20%

40%

60%

80%

100%

Ove

rall

satis

fact

ion

with

dial

-up

Inte

rnet

pro

vide

rs

Rom

tele

com

cla

ssic

tele

phon

e lin

e

RD

S c

lass

ic te

leph

one

line

Rom

tele

com

ISD

N

GS

M-

CS

D/G

PR

S/W

AP

/ED

GE

/3G

mob

ile a

cces

s

CD

MA

- Za

pp m

obile

acce

ss

DNK

Not at all satisfied

2

3

4

Very satisfied

General Satisfaction with Dial-up Internet Providers

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

Reference: households with dial-up connections from respective suppliers

[N = 258] [N = 34] [N = 28][N = 123] [N = 52] [N = 10]


3,55 3,29

4,14

3,38 3,56 3,81

1

2

3

4

5

Ove

rall

satis

fact

ion

with

dial

-up

Inte

rnet

pro

vide

rs

Rom

tele

com

cla

ssic

tele

phon

e lin

e

RD

S c

lass

ic te

leph

one

line

Rom

tele

com

ISD

N

GS

M-

CS

D/G

PR

S/W

AP

/ED

GE

/3G

mob

ile a

cces

s

CD

MA

- Za

pp m

obile

acce

ss

General Satisfaction with Dial-up Internet Providersaverage values (1=not at all...5=very satisfied)

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

[N = 258] [N = 34] [N = 28][N = 123] [N = 52] [N = 10]

Reference: households with dial-upInternet connections from respective

suppliers


21 1635 40

21 25

3029

33

24

39

16 21

8

12

1110 1310

206

4720

6

17 10 15 2032

2111

0%

20%

40%

60%

80%

100%

Sat

isfa

ctio

n w

ith s

ervi

cequ

ality

of d

ial-u

p In

tern

etsu

pplie

r

Rom

tele

com

cla

ssic

tele

phon

e lin

e

RD

S c

lass

ic te

leph

one

line

Rom

tele

com

ISD

N

GS

M-

CS

D/G

PR

S/W

AP

/ED

GE

/3G

mob

ile a

cces

s

CD

MA

- Za

pp m

obile

acce

ss

DNK

Not at all satisfied

2

3

4

Very satisfied

Satisfaction with Service Quality of Internet Dial-up Connection

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

[N = 258] [N = 34] [N = 28][N = 123] [N = 52] [N = 10]

Reference: households with dial-up connections from respective suppliers


3,59 3,31

4,09

3,25 3,70

4,09

1

2

3

4

5

Sat

isfa

ctio

n w

ith s

ervi

cequ

ality

of d

ial-u

p In

tern

etsu

pplie

rs

Rom

tele

com

cla

ssic

tele

phon

e lin

e

RD

S c

lass

ic te

leph

one

line

Rom

tele

com

ISD

N

GS

M-

CS

D/G

PR

S/W

AP

/ED

GE

/3G

mob

ile a

cces

s

CD

MA

- Za

pp m

obile

acce

ss

Satisfaction with Service Quality of Internet Dial-up Connectionaverage value (1=not at all...5=very satisfied)

[N = 258] [N = 34] [N = 28][N = 123] [N = 52] [N = 10]

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

Reference: households with Internet dial-up connections from respective

suppliers


3,1 3,23,1

3,2

3,63,3

4,0 4,0 4,1 4,14,3

4,2

3,23,4 3,5

3,1

3,43,6

3,03,1

4,1

2,5

3,5 3,4

3,13,3

3,6

3,2

3,8 3,8

4,1

3,7

4,0

4,3

4,04,2

3,6

4,03,7

4,1

3,73,9

1

2

3

4

5

Bandwidth Quality of technicalsupport and emergency

troubleshooting time

Price of subscription Network availability /time to logon

Costs of installation Supplier reputation

Romtelecom classic telephone line (N=109) RDS classic telephone line (N=42)Other classic telephone line (N=13) Romtelecom ISDN (N=8)Vodafone - GSM-CSD/GPRS/WAP/EDGE/ 3G (N=17) Orange - GSM-CSD/GPRS/WAP/EDGE/ 3G (N=7)Zapp - CDMA (N=22)

Satisfaction with Internet Dial-up Connections (1) average value (1=not at all...5=very satisfied)

Please indicate how satisfied you are with your dial-up Internet supplier(s) on any of the following criteria; please use a scale from 1 to 5, where 1 is not at all and 5 is very satisfied.

Reference: households with Internet dial-up connection from respective

suppliers*

* Analysis does not include DNK. Interpret the results with care because the number of respondents was small


3,03,3

2,82,9

2,83,1

3,73,8

3,7

4,3

4,0

4,2

3,3

3,1

2,3

3,13,2

3,4

3,1

3,3

2,8

3,4

3,0

2,7

2,5

3,6

2,9 2,9 2,9

3,4

3,8

4,0

2,8

3,73,8

4,1

3,7

3,9

3,5

3,9

3,7

4,3

1

2

3

4

5

Protection against virus,spam and hacking

Existence andavailability of customer

service

Promotions Telephone call tariffs Flexibility of prices andcontract conditions

Used technology

Romtelecom classic telephone line (N=109) RDS classic telephone line (N=42)Other classic telephone line (N=13) Romtelecom ISDN (N=8)Vodafone - GSM-CSD/GPRS/WAP/EDGE/ 3G (N=17) Orange - GSM-CSD/GPRS/WAP/EDGE/ 3G (N=7)Zapp - CDMA (N=22)

Satisfaction with Internet Dial-up Connections(2) average value (1=not at all...5=very satisfied)

Please indicate how satisfied you are with your dial-up Internet supplier(s) on any of the following criteria; please use a scale from 1 to 5, where 1 is not at all and 5 is very satisfied.

Reference: households with Internet dial-up connection from respective

suppliers*

* Analysis does not include DNK. Interpret the results with care because the number of respondents was small

VI.c. Intentions to change the providers or the types of

Internet dial-up access


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

42% of the respondents who are not satisfied with the services supplied by the dial-up Internet provider consider that “there is no alternative provider in the area I live in” and, for this reason, they did not renounce its services. Other obstacles against renouncing the providers’ services are the fact that “they do now know other offers”(11%), “the high cost of changing the provider” (11%), and also “respondents’ idleness” (15%).

However, the intention to renounce the services of dial-up Internet providers has a rather high level: 30% of the dial-up connections users stated that, within the next 12 months, they are likely or very likely to renounce their provider (or at least one of the connections, if they have several connections), and 33% of them do not know yet if they would renounce these services or not. As expected, most of the respondents (74%) who stated their intention to renounce a connection, indicated this to be the connection through Romtelecom fixed telephone line.

There are 3 major reasons that generate the intention to renounce a dial-up connection: “insufficient speed for their needs” (mentioned as the main reason by 38% of the respondents who want to renounce), “high tariffs as compared to the services quality” (21%), and “in order to use a more advanced technology” (19%).

In case of dial-up connections based on subscription, the increase in the subscription tariff by 5% generates the intention to renounce the provider’s services among 25% of the respondents. Taking into consideration the percentage of those who stated their intention to renounce the dial-up connection within the next year, one may conclude that a 5% increase in the subscription price does not lead directly to the decision to renounce the provider’s services.


Things are different in case of a 10% or 20% increase in the subscription tariff, in which cases 42%, respectively58% of the respondents stated that it was probable or even certain that they would renounce the provider’s services.

In case of an increase in the tariffs of telephone calls for dial-up Internet access (for example, Internet special access tariffs, ClickNet Start tariffs), 41% of those using fixed telephone line or ISDN connections stated that they would change the connection with a dedicated access connection. 14% of the would choose a mobile access connection, 12% would not do anything and 11% stated that they would no longer use Internet services.

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


Obstacles against Switching to other Internet Dial-up Supplier

You indicated that you are disatisfied with the services of yourcurrent Internet supplier(s). Why have you not given up on theirservice so far?

42%

15%

11%

11%

7%

2%

2%

6%

6%

I have no alternative in the area

Out of convenience

I am not aware of other offers

Cost of change is too high

All suppliers offer low service quality

All suppliers have high tariffs

Too long to instal a dedicated connection

Other

DNK

Reference: respondents who are dissatisfied with their Internet dial-up

supplier (N=88)

Restrictions in the contractThis connection is used as a back-upNo time to switchA member of household is againstDebts owed to current supplier

More than one question, assisted answer


Intention to Giving Up the Internet Dial-up Connection in the following 12 Months

Do you intend to give up your household dial-up connection(s) in the following 12 months? [IF probably yes or certainly yes] Which one of them?

74%

7%

6%

6%

4%

1%

1%

Romtelecom - fixed line

Vodafone - GPRS/WAP

Romtelecom - ISDN

RDS

Zapp

Orange - GPRS/WAP

Xnet

Certainly yes19%

Certainly no21% Probably no

16%

Probably yes11%

DNK33%

Reference: households with dial-upInternet connection, N = 258

Which connection?

N=68

Open-ended question with more than one answer


13%

16%

10%

30%

16%

15%

17%

25%

23%

23%

31%

40%

17%

13%

12%

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

Limited hours or trafficsubscription

Partially limitedsubscription and pay for

additional hours


Certainly yes Probably yes Probably no Certainly no DNK

Intention to Giving Up Internet Dial-up Connection in the following 12 Months - per Type of Subscription

Do you intend to give up your household dial-up connection(s) over the following 12 months?

What type of subscriptions do you have in your household for dial-up connections?

Reference: households with Internet dial-up connection

[N=30]

[N=32]

[N=152]


Main Reason for Giving Up an Internet Dial-up Connection

What is the main reason why you consider giving up thisconnection?

37%

21%

19%

4%

4%

3%

3%

3%

1%

4%

Speed too low for need

Too high tariffs compared to quality

To use more advanced technology

Line too busy

Cannot use line simultaneously for Internet andphone

Difficulties in downloading big files

Unstable connection, with frequent interruptions

A better offer

No one in the households use the connectionanymore

DNK

Reference: respondents who indicated that they would probably or certainly give up a dial

up connection over the following 12 months(N=68)

One single answer


31%

23%

8%

8%

8%

23%

50%

20%

10%

10%

10%

37%

18%

26%

5%

5%

3%

5,3%


To use a more advanced technology

Too high tariffs for offered quality

Line is busy too often


Unstable connection with frequent interruptions

I cannot use the line for Internet and phonesimultaneously

Other

DNK

Limited hour or traffic subscription

Partially limited access subscription, withpay for additional hours

Unlimited subscription (unlimited access)

Main Reason for Giving Up an Internet Dial-up Connection– per Type of Subscription

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

What type of subscription do you have for the household dial-up connection (s)?

[N=13]

[N=10]

[N=38]

Reference: respondents who indicated that they will probably or certainly give up a dial-up

connection over the following 12 month, according to type of subscription they have

One single answer*Interpret results with care because of small number of respondents


Would Respondents Give Up the Services of their Current Supplier if Subscription Tariffs Increased by 5% / 10% / 20%?

Would you give up the services of your current Internet dial-up supplier if they increased tariffs by 5%? What about 10%? What about 20%?

Reference: households with Internet dial-upsubscription (N=214)

18%

22%

37%

10%

20%

22%

27%

20%

9%

25%

17%

12%

21%

21%

20%

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

5% increase

10% increase

20% increase

Certainly YES Probably YES Probably NO Certainly NO DNK


61%

19%

3%

2%

5%

3%

57%

22%

5%

1%

2%

54%

25%

5%

2%

6%

3%

6,8%5,5%

7%

4,8%

I would switch to a dedicated connection (cable,xDSL, etc)

I would switch suppliers, but keep the same type ofconnection

I would switch to a GSM/GPRS mobile dial-upconnection

I would switch to a 3G/CDMA/EDGE mobile dial-upconnection

I would no longer use Internet services

Other

DNK

5% increase 10% increase

20% increase

Switch Intention for an Increase of Subscription Tariff

Use the alternatives on this card to indicate how you wouldproceed.

Reference: respondents who would give up the Internet dial-up subscription for a

5%/10%/20% increase

One single answer for each percentage of increase


Switch Intentions for a Increase of Telephone Tariffs for Internet Dial-up Connections

What if the telephone tariffs for Internet dial-up connection (for example, special Internet access tariffs or ClickNet Start) increased, how would you proceed?

41%

14%

11%

1%

1%

12%

20%

I would switch to a dedicated connection

I would switch to a GSM/GPRS mobile dial-upconnection


I would switch to a 3G/CDMA/EDGE mobile dial-up connection

Other

I would do nothing

DNK

Reference: households with dial-upconnection via fixed phone line or ISDN

(N=205)

One single answer

VII. Dedicated Internet access connections market

VII.a. Types of dedicated access connections used and usage level


Types of Dedicated Access Connections Used and Usage Level

40% of the households using the Internet through dedicated access have a TV cable connection, 31% of them have a UTP/FTP cable connection (local network), and 24% of them have an optical fiber connection

83% of the households using the Internet through dedicated access pay a monthly subscription with unlimited traffic and only 6% of them pay a monthly subscription with limited traffic, with the payment of additional traffic. The average traffic volume included in the subscription with limited traffic is 1136 Mb. One may notice the very high percentage (more than 60%) of those who do not know the traffic volume included in the subscription.

The average amount of the expenses related to dedicated Internet services was RON 44.1 during the last month.

The weekly average traffic on a dedicated connection is 934 Mb. Again, one may notice the very high percentage (65%) of dedicated Internet users who do not know their weekly traffic.

The average number of navigation hours within one week is 23. One may notice that the easiest measuring unit for the use of Internet is the hour, the percentage of non-answers being much lower, below 20%.


40%

31%

24%

4%

1%

0,2%

1%

TV cable

UTP/FTP cable(neighbourhood network)

Fiber optics

xDSL(ADSL, SDSL,HDSL)

Radio (radiomodem ormicrowave)

Satellite

Other

Type of Dedicated Connections in Households

What type(s) of Internet connections do you have in yourhousehold?

Reference: households with dedicated Internet connections, N=1122



83%

6%

1%

10%

0,3%

Monthly unlimitedsubscription

Monthly limitedsubscription and pay for

additional traffic

Subscription for trafficpay as you go

Other

DNK

Type of Dedicated Connection Subscriptions

What type of subscription do you currently have for yourdedicated connection?




86%

4%

1%

9%

82%

7%

2%

86%

6%

9%

84%

7%

%

1%

9%



additional traffic

Subscription for traffic payas you go

Other

DNK


201-400 RON (N=259)

401-600 RON (N=213)

600+ RON (N=282)

Type of Subscription Used for Dedicated Connectionsby household income per capita


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

*259 respondents did not disclose their income


1 GB; 14%

Over 1 GB; 10%

DNK/refusal; 62%

Under 1 GB; 13%

Traffic Included in Monthly Limited Subscriptions

How many MB are included in your subscription?

Reference: households with limited traffic subscriptions,

N = 69

Average traffic included in subscription: 1136 MB


2048 kbps (2Mb/s); 5%

>2048 kbps (>2Mb/s); 2%1024 kbps (1Mb/s);

9%

32 kbps; 9%

64 kbps; 8%

128 kbps; 20%

<32 kbps; 10%

512 kbps; 21%

256 kbps; 17%

Minimum Guaranteed Speed

Please indicate the minimum guaranteed speed of data transfer (kbps) for your dedicated Internet connection.


Answer; 49%

DNK; 51%

N=576

N=546


2048 kbps (2Mb/s); 5%

>2048 kbps (>2Mb/s); 5%

Other; 1%

1024 kbps (1Mb/s); 12%

32 kbps; 7%

64 kbps; 13%

128 kbps; 18%

<32 kbps; 6%

512 kbps; 19%

256 kbps; 14%

Real Speed

Please indicate the real speed of transfer for your dedicated Internet connection (kbps)?

Answer; 46%

DNK; 54%

N=606

N=516

Reference: households with dedicated Internet connection, N=1122


2048 kbps (2Mb/s); 5%

>2048 kbps (>2Mb/s); 17% Other; 1%

1024 kbps (1Mb/s); 15%

32 kbps; 3%

64 kbps; 6%

128 kbps; 13%

512 kbps; 24%

256 kbps; 17%

Maximum Guaranteed Speed (best effort) per Contract

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

Answer; 42%

DNK; 58%

N=650

N=472



Comparison between Maximum Guaranteed (best effort) and Real Speed

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

What is the real speed for your dedicated Internet connection(kbps)?


Number of cases (N)

Count

573 12 5 9 9 8 18 11 4 1 0 6500 0 1 0 0 0 0 0 0 0 0 10 3 9 0 0 0 0 0 0 0 0 121 4 10 14 0 1 0 0 0 0 0 301 4 7 27 20 1 0 0 0 0 0 604 1 1 7 37 26 3 0 0 0 0 79

11 4 2 5 16 21 54 1 0 0 0 11410 0 2 2 3 13 17 20 0 0 2 692 0 0 0 1 1 2 13 4 1 0 244 0 0 2 7 1 2 18 19 25 0 780 2 0 1 0 0 0 0 0 0 2 5

606 30 37 67 93 72 96 63 27 27 4 1122

DNK<32 kbps32 kbps64 kbps128 kbps256 kbps512 kbps1024 kbps (1Mb/s)2048 kbps (2Mb/s)>2048 kbps (>2Mb/s)Other

maximumguaranteed

(best effort)

Total

DNK<32kbps

32kbps

64kbps

128kbps

256kbps

512kbps

1024 kbps(1Mb/s)

2048 kbps(2Mb/s)

>2048 kbps(>2Mb/s) Other

Real Speed

Total


3%

32% 31%

13%

5%3% 2% 1%

8%

0,4% 2%0,6%0%

20%

40%

10 RONor less

11-20RON

21-30RON

31-40RON

41-50RON

51-60RON

61-70RON

71-80RON

81-90RON

91-100RON

over100RON

DNK

Internet Dedicated Connection Monthly Expenses


What is the approximate amount that your household paid last month for all Internet services used, irrespectively of type of connection (RON, including VAT)?

Reference: households with dedicated Internet connections, N = 1122


42,9 RON

42,2 RON

46,2 RON

42,4 RON

0 10 20 30 40 50 60 70

200 RON or less

201-400 RON

401-600 RON

600+ RON

average value

[N=109]

Internet Dedicated Connection Monthly Expenses by household income per capita

How much do you pay monthly for Internet access on this connection (RON including VAT)? If Internet services are part of a bigger package of services (TV cable, telephony) please refer only to Internet costs

Reference: households with dedicated Internet connection

[N=259]

[N=213]

[N=282]

Income per householdmember:

*259 respondents did not disclose their income


101-500 MB; 7%

501-1000 MB; 6%

over 1 GB; 6%

100 MB or less; 16%

DNK; 65%

Weekly Traffic on Dedicated Internet Connection

Please indicate the approximate traffic that you use on your dedicated Internet connection in an average week (megabytes - MB).

Average Weekly Traffic: 934 MB



DNK; 19%

3-5 hours; 7%

6-10 hours; 15%

11-20 hours; 21%

1-2 hours; 4%

over 30 hours; 19%

21-30 hours; 15%

Number of Hours of Internet Use for Dedicated Connections per Week

How many hours do you personally use the dedicated connection in your household in an average week?

Average number of Internet use hours per week: 23 hours



16,6 hours

19,3 hours

23,4 hours

0 10 20 30 40 50



additional traffic

Subscription for trafficpay as you go

average value

[N=929]

Number of Hours of Internet Use for Dedicated Connections per Week- per type of subscription

[N=68]

[N=9]

How many hours do you personally use the dedicated Internet connection in your household in an average week?


VII.b. Level of satisfaction with the providers of

dedicated Internet access


Level of Satisfaction with Dedicated Internet Access Providers

The three most important criteria based on which dedicated Internet access services are chosen are “the real transfer speed”, “subscription price” and “band width”.

The general satisfaction with the providers of dedicated Internet access services is similar for the three main providers existing on the market (UPC/Astral, RCS/RDS and Romtelecom), more than 70% of the users of each provider being satisfied or very satisfied. However, the percentage of those who are very satisfied is significantly higher among RCS users (48%) than among the other users (27% Romtelecom, 33% UPC/Astral).

The analysis of users’ satisfaction by connection types reveals that the highest percentage of very satisfied users is recorded in the case of TV cable and optical fiber connections (43%, respectively 41%), however, if we discuss into detail the quality of the services for the two connection types, the level of satisfaction for the TV cable connection is higher than that for the optical fiber connection (44%, compared to 35%). In the case of local networks, even if the level of usage is higher, the satisfaction is a little lower, the percentage of very satisfied users being approximately 34%.

The analysis of satisfaction with the services offered by the providers of dedicated access connections indicates that the highest scores are recorded in relation to the “subscription price”, “speed” (real speed and band width), “installation cost” and time required for the installation of this type of connection.

Among the providers of dedicated access connections, RCS/RDS has the highest satisfaction scores for all services offered, being followed by UPC/Astral.


73% 72%66% 64% 62% 60% 59% 58% 56% 55% 54% 52%

47%43%

3,43,2

3,63,73,73,73,83,93,83,94,3

3,94,14,2

0

20

40

60

80

100

Rea

l spe

ed o

f tra

nsfe

r

Pric

e of

sub

scrip

tion

Ban

dwid

th

Ava

ilabi

lity

of s

ervi

ce in

the

area

Tim

e to

inst

alla

tion

Cos

ts o

f ins

talla

tion

Con

tract

gua

rant

ees

of s

ervi

cepa

ram

eter

s

Tech

nica

l sup

port

and

emer

genc

ytro

uble

shoo

ting

time

Flex

ibili

ty o

f pric

e an

d co

nditi

ons

Pro

tect

ion

agai

nst v

irus,

spa

m a

ndha

ckin

g

Sup

plie

r rep

utat

ion

Exi

sten

ce a

nd a

vaila

bilit

y of

cus

tom

erse

rvic

e

Pro

mot

ions

Oth

er b

undl

ed s

ervi

ces

(fixe

d te

leph

ony,

CA

TV)

1

2

3

4

5

Top 2 Box (%important + veryimportant)

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

%

Importance of Selection Criteria for Dedicated Internet Services

When you selected your dedicated Internet conneciton, 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.

Reference: households with dedicated Internet connections, N = 1122


3927

33

4835

40

4642

33

44

14

1216

13 15

48

5 3 42 4 2 20,41 2 1,1

43

0%

20%

40%

60%

80%

100%

Overallsatisfaction with

suppliers

Romtelecom UPC (Astral) RDS-RCS Other suppliers

DNK

Not at all

2

3

4

Very satisfied

Overall Satisfaction with Dedicated Internet Service Supplier

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

Reference: households with dedicated Internet connection from respective suppliers

[N = 26] [N = 171] [N = 360] [N = 460][N = 1017*]

* Some respondents were not able to indicate the name of the supplier they use for dedicated Internet connection, consequently total answers is different from total

reference base


3727 31

47

33

39

3842

32

43

14

1916

13 14

44

5 4 31 2 1 15 8 4 4 6

4

0%

20%

40%

60%

80%

100%

Satisfaction withquality of service

(all suppliers)

Romtelecom UPC (Astral) RDS-RCS Other suppliers

DNK

Not at all

2

3

4

Very satisfied

Satisfaction with Service Quality of Dedicated Internet Service

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

[N = 26] [N = 171] [N = 360] [N = 460][N = 1017*]

* Some respondents were not able to indicate the name of the supplier they use for dedicated Internet connection, consequently total answers is different from total reference base

Reference: households with dedicated Internet connections from respective suppliers


43 4132

38 33 34

34 3946

25

5644

14 1410

13

11

15

4 25

6

41 213

3 4 5 6 30,51

0%

20%

40%

60%

80%

100%

TV cable Fiber optics xDSL(ADSL,SDSL, HDSL)

Radio Satellite UTP/FTPcable

DNK

Not at all

2

3

4

Very satisfied

Overall Satisfaction with Dedicated Internet Supplierper type of connection

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.

[N = 365] [N = 9] [N = 421][N = 273] [N = 41] [N = 16]



4435

24

38 33 33

3142

49 25

56

41

15 1315

13

11

14

5 3 5 31

19

4 6 7 6 81

0%

20%

40%

60%

80%

100%

TV cable Fiber optics xDSL(ADSL,SDSL, HDSL)

Radio Satellite UTP/FTPcable

DNK

Not at all

2

3

4

Very satisfied

Satisfaction with Service Quality from Dedicated Internet Suppliersper type of connection

Using the same scale, how satisfied are you with the service quality from the respective supplier?

[N = 365] [N = 9] [N = 421][N = 273] [N = 41] [N = 16]

Reference: households with dedicated Internet connections


Overall Satisfaction with Dedicated Internet Supplier – all suppliers -

Please indicate on a scale from 1 to 5 where 1 is not at all and 5 is very satisfied, how satisfied you are with your dedicated Interned supplier services in relation to the following criteria:

31

30

25

32

36

24

23

26

22

34

25

34

32

30

27

30

24

29

27

19

28

27

16

18

15

13

16

16

17

18

19

17

15

19

5

5

7

4

9

5

4

9

9

7

12

6

7

1

2

3

1

12

5

3

8

5

3

11

4

5

14

13

14

21

16

12

17

16

18

19

13

17

38

27

32

20

18

10

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

Bandwidth

Real speed of transfer

Technical support and emergency troubleshooting time

Price of subscription

Bundled services (fixed telephony, CATV)

Service availability in the area (offers available)

Costs of installation

Protection against virus, spam, hacking

Existence and availability of customer service

Contractual gurantees of service parameters

Promotions

Time to installation

Flexibility of prices and conditions

very satisfied 4 3 2 not at all DNK



Please indicate on a scale from 1 to 5 where 1 is not at all and 5 is very satisfied, how satisfied you are with the services of your dedicated Internet supplier in relation to the following criteria:

4.12

4.04

3.94

3.90

3.84

3.81

3.80

3.71

3.69

3.57

3.47

3.38

3.96

4.01

1 2 3 4 5

Price of subscription


Bandwidth


Real speed of tranfer

Availability of service in the area

Supplier reputation

Technical support and emergency troubleshooting

Contractual guarantee of service parameters

Flexilibity of prices and conditions

Existence and availability of customer service

Protection against virus, spam, hacking

Bundled services (fixed telephony, CATV)

Promotions

average value (1=not at all satisfied...5=very satisfied)

Overall Satisfaction with Dedicated Internet Supplier – all suppliers -



Overall Satisfaction with Dedicated Internet Supplier (1) average value (1=not at all...5=very satisfied)

Please indicate on a scale from 1 to 5 where 1is not at all and 5 is very satisfied, how satisfied you are with your dedicated Internet supplier in relation to the following criteria:

4,14

4,05

3,75

4,20

3,96

3,80

3,72

3,81

3,51

3,88

3,64

3,56

3,38

3,32

3,12

3,42

3,89

3,99

1 2 3 4 5

Bandwidth

Real speed of transfer

Contractual guarantee of serviceparameters

Teechnical support andemergency troubleshooting time

Protection against virus, spam andhacking

Availability of service in the area(offers)

RDS (N=360) UPC-Astral (N=171) Romtelecom (N=26)



Overall Satisfaction with Dedicated Internet Supplier(2) average value (1=not at all...5=very satisfied)

Please indicate on a scale from 1 to 5 where 1is not at all and 5 is very satisfied, how satisfied you are with your dedicated Internet supplier in relation to the following criteria:

4,43

3,93

3,88

3,89

3,84

3,27

3,80

3,90

3,53

3,31

3,35

3,00

3,46

3,23

3,60

2,88

4,40

3,94

1 2 3 4 5

Subscription price

Flexibility of prices and conditions



Existence and availability ofcustomer service

Promotions

RDS (N=360) UPC-Astral (N=171) Romtelecom (N=26)


VII.c. Intentions to change the providers or types of

dedicated Internet access


Intentions to Change the Providers or Types of Dedicated Internet Access Connections

The main obstacle against changing the dedicated Internet access connection in case of dissatisfaction with the providers’ services is the lack of an alternative (almost half of the respondents stating that they do not have anyother alternative in the area they live in). The next reason is “idleness” (15%) and, almost equally important (11%), the fact that “they do not know other offers” and “the too high cost of changing the provider”.

Only 9% of the dedicated connection users intend to change their current connection within the next 12 months.Among them, 41% intend to purchase a TV cable connection, and 36% have a UTP/FTP cable connection from a local network.

The main reasons for changing the provider are related to the “insufficient speed for the current needs”, “instability of the current connection” and financial reasons (high tariffs practiced by the current provider and emergence of more profitable offers).

In case of a 5% increase in the tariffs for dedicated access connection, only 10% of the users consider renouncing the current connection. In case of a 10% increase in the tariffs for the dedicated connection, only 20% of the users consider renouncing the current connection. But in case of a 20% increase in the tariffs for the dedicated access connection, the percentage of those users who consider renouncing the current connection is significantly higher -40%.

The typical behavior in case of tariff increase is changing the provider and maintaining the current type of connection. Only 13% of the respondents intend to change their current dedicated access connection type.

Only 4% of the users will no longer use the Internet in case of tariff increase.


42%

15%

11%

11%

7%

6%

6%

2%

2%

No alternative in my area

Out of convenience

I am not aware of other offers

Costs of switching is too high

All suppliers offer low quality

All suppliers offer high tariffs

Too much time to installation

Other

DNK

You indicated that you were disatisfied with the services of your currentInternet dedicated supplier. Why have you not given up their services sofar?

Reference: respondents who indicated their dissatisfaction with their Internet dedicated

supplier (answers 1, 2 or 3 to satisfaction to supplier question), N=212

Obstacles against Switching Internet Dedicated Connection Suppliers

Low tariffs (4 answers)Contractual restrictions (2 answers)Good data transfer speedOther household member makes this decisionNew connectionI need InternetI will give up (2 answers)



Intention to Giving Up the Dedicated Connection over the following 12 Months

41%

36%

12%

7%

4%

TV cableUTP/FTP cable(neighbourhood

Fiber optics

xDSL(ADSL,SDSL, HDSL)

Radio

Certainly yes3%

Certainly no65%

Probably no26%

Probably yes6%

Which connection?

N=100

Reference: households with Internet dedicated connection, N=1122

Do you intend to give up any of dedicated connections of your household in the following 12 months?

What type(s) of connection do you have in your household?

More than one answer, assisted answer


3%

3%

4%

6%

32%

26%

60%

65%

100%

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


Monthly limited subscriptionand pay for additional traffic

Subscription for traffic payas you go

Certainly yes Probably yes Probably no Certainly no

Intention to Giving Up Internet Dedicated Connection over the following 12 Months per Type of Subscription

Do you intend to give up your Internet dedicated connection over the following 12 months?

What type of subscription do you currently have for your Internet dedicated connection?

Reference: households with Internet dedicated connections, per type of

subscription

[N=68]

[N=928]

[N=9]


Main Reason for Giving Up the Internet Dedicated Connection

What is the main reason why you intend to give up this connection?

22%

17%

14%

10%

8%

7%

4%

5%

13%


Unstable connection

Too high tariffs as compared to benefits

Better alternative offers

Personal reasons (change of residence, etc.)

Low quality of technical support


Other

DNK

Reference: respondents who indicated that they probably or certainly give up the Internet

dedicated connection over the following 12 months (N=100)

One single answer, assisted


29%

5%

15%

17%

5%

5%

2%

15%

23%

15%

8%

8%

14%

14%

43%

14%

23%

3%

11%

14%

6%

9%

11%

9%

14%

7%23%

23%

14,3%


Difficulties in downloadingbig files

Unstable connection

Too high tariffs ascompared to benefits

Low quality of technicalsupport

Better alternative offers

Personal reasons

Other

DNK

TV cable (N=41)

Fiber optics

xDSL(ADSL. SDSL, HDSL) (N=7)

UTP/FTP cable (N=35)

Main Reason for Giving Up the Internet Dedicated Connection per Type of Connection

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

What type of Internet connection does your household have?

Reference: respondents who indicated that they would probably or certainly give up an Internet

dedicated connection over the following12 months

One single answer, assisted

Probably or certainly giving up to...


Intention to Giving Up Supplier for a Subscription Increase by 5% / 10% / 20%?

Would you give up the services of your Internet dedicated supplier if they increased tariffs by 5%? What about 10%? What about 20%?

5%

7%

17%

5%

13%

23%

26%

34%

24%

49%

31%

20%

14%

14%

16%

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

5% increase

10% increase

20% increase

Certainly YES Probably YES Probably NO Certainly NO DNK

Reference: households with Internet dedicated connection, N=1122


Intention to Switch Suppliers if Internet Dedicated Supplier Increased Tariffs

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

50%

26%

5%

5%

1%

12%

57%

17%

6%

4%

13%

60%

13%

5%

4%

2%

16%

,4%

2%

,2%

I would switch suppliers and keep the same type ofconnection

I would switch to a dedicated connection (cable,xDSL, etc)

I would switch to a fixed line or ISDN dial-upconnection


I would switch to a GSM-CSD/GPRS mobile dial-upconnection

I would switch to a EDGE/3G/CDMA mobile dial-upconnection

DNK

5% increase(N=111)

10% increase (N=233)

20% increase (N=450)

Reference: respondents who would give up Internet dedicated connection subscription for an increase of tariff by 5%/10%/20% (N=450)

One single answer

VIII. Existence of previous connections in the household


Existence of Previous Connections in the Households

23% of the Internet users have had, before the current connection, other connections which they renounced in time. The maximum speed of the connections they have renounced was below 64 kbps for one quarter of these, and below 256 kbps for more than half of these.

The highest level of renouncing Internet connections is recorded in the case of fixed line dial-up connection (51%), followed by the dedicated access connection through UTP/FTP cable (21%).

Those who renounced the fixed line dial-up connection chose the TV cable connection (34%), the UTP/FTP cable connection (28%) and the optical fiber connection (20%).

We find the same structure of options in the case of those who renounced the UTP/FTP cable connection. This market of UTP/FTP cable connections provided by local networks is the most dynamic of all dedicated access connections markets, with a high level of provide renunciation, but a high level of fidelity for the connection type.


No; 71%

DNK; 6%

YES, I used another connection I gave up;

23%

Have you Ever Given Up an Internet Connection?

Before the current Internet connection you use, did you use other types of connections that you have given up in the meantime?

Reference: household Internet users, N=1351


0,3%

0,7%

0,3%

0,7%

4%

2,0%

20,7%

4,6%

6,9%

2,3%

51,3%

6,6%

fixed line dial-up

ISDN

GSM-CSD/GPRS mobile dial-up

dedicated (unspecified)

CATV

fiber optics

radio

satellite

xDSL

UTP/FTP cable for neighbourhood network

other

DNK

Type of Internet Connection Respondents Gave Up

What type of Internet connection did you use before (the last one you gave up, if you used more than one)?

Reference: respondents who previously used another connection and gave it up, N=304

Total dedicated connections:

35%

Total dial-upconnections :

61%

One single answer


1%

2%

6%

3%

28%

20%

2%

3%

8%

34%


ISDN



TV cable

Fiber optics



Satellite


Types of Connections that Respondents Who Gave Up Fixed Dial-Up Connection Currently Have

What type(s) of connection(s) does your household have? Reference: respondents who used to use a dial-up connection before and gave up, N=156

10% have fixed dial-up/ISDN connection

5% have mobile connection

90% have dedicated connection



28%

28%

1%

2%

1%

6%

1%

4%

7%

27%




TV cable

Fiber optics



Satellite

UTP/FTP cable(neighbourhood network)

Other

Types of Connections that Respondents Who Gave Up Dedicated Connection Currently Have

What type(s) of connection(s) does your household have? Reference: respondents who previously used dedicated connection and gave up, N=109

7% have fixed dial-up connection

5% have mobile connection

92% have dedicated connection



33%

2%

5%

2%

2%

17%

3%

10%

30%

fixed dial-up


3G/CDMA/EDGE mobile dial-up

TV cable

Fiber optics


Satellite


Other

Type of Connections Owned by Respondents Who Gave Up an UTP/FTP Cable Connection

What type(s) of connection(s) does your household have? Reference: respondents who previously used UTP/FTP cable connection and gave up, N=63



DNK; 26%

2048 kbps (2Mb/s); 5%

Other width; 2%

64 kbps; 9%

128 kbps; 8%

256 kbps; 18%

<64 kbps; 17%

1024 kbps (1Mb/s); 6%

512 kbps; 9%

Maximum Speed of Dedicated Connection Previously Owned

What was the maximum speed (best effort) of your previousconnection?

Reference: respondents who used to use a dedicated connection in the household and gave up,

N=109


Maximum Speed of Dedicated Connection Previously Owned As Compared to Current Speed

What was the maximum speed (best effort) of your previous connection?

For the dedicated Internet connection you indicated, please tell me the bandwidth or the maximum guaranteed speed.

Reference: respondents who used to use a dedicated connection in the household and

gave up

Numer of cases (N)

3 4 4 7 3 3 2 2 20211 2 13 6 12 2 2 4 11 1 1 3 1 2 1

11 2 2 1 2 1 1 2

114 10 9 19 10 6 5 25

Maximum guaranteed(best effort) speed ofcurrent connection

DNK 32 kbps64 kbps128 kbps256 kbps512 kbps1024 kbps (1Mb/s)2048 kbps (2Mb/s)>2048 kbps (>2Mb/s)OtherTotal

ValidN N N N N N N N N

<64 kbps 64 kbps 128 kbps 256 kbps 512 kbps

1024kbps

(1Mb/s)

2048kbps

(2Mb/s) Other DNK

What was the maximum speed (best effort) of your previous connection?


Reasons for Giving Up the Last Internet Dedicated Connection

Think about the last Internet dedicated connection you gave up; what are the main reasons why you gave it up?

37%

24%

10%

7%

7%

6%

3%

3%

10%

6,4%

speed too low for need

too high costs compared to benefits

change of residence

increase in subscription

supplier bankruptcy

technical problems with the connection

better alternative offers

low quality of services

supplier increased tariffs for additional traffic

other

Reference: respondents who previously used an Internet dedicated connection in the household,

N=109


IX. Intention to purchase a new Internet access

connection


Intention to Purchase a New Internet Access Connection

11% of the Internet users intend to purchase a new Internet connection within the next 6 months.

Among them, 30% currently use a fixed line dial-up connection, 31% use a TV cable dedicated access connection, and 20% use a UTP/FTP cable dedicated access connection. The type of connection that is preferred by the users who want to purchase a new connection is the TV optical fiber (34%), followed by CATV (14%).

More than 60% of those who want to purchase a new connection would choose a broadband connection.


NO; 81%

DNK; 8%

YES; 11%

Intention to Acquire a New Internet Connection over the following 6 months

Do you intend to acquire a new Internet connection over the following 6 months? Reference: household internet users, N=1351


1%

2%

5%

3%

20%

4%

7%

2%

31%

30%

fixed dial-up

ISDN



TV cable

Fiber optics



Satellite


Type of Connections Owned by Respondents Who Intend to Acquire a New Internet Connection

Do you intend to acquire a new Internet connection over the following 6 months?What type(s) of connection(s) does your household have?

Reference: respondents who intend to acquire a new connection over the following

6 months, N=151



3%

1%

34%

2%

19%

3%

11%

14%

2%

5%

1%

5%

fixed dial-up

ISDN



dedicated (unspecified)

CATV

fiber optics

satellite

xDSL

UTP/FTP cable neighbourhood network

other

DNK, did not decide

Types of Connections Respondents Intend to Acquire

What type of connection do you intend to acquire?

Reference: respondents who intend to acquire a new Internet connection over the following 6 months, N=151

One single answer


74%

48%

7%

23%

35%

84%

94%

3%

17%

9%

4%3%

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

Certainly YES

Probably YES

Probably NO

Certainly NO

Yes, intends to acquire a new connection No DNK

Intention to acquire a new dedicated connection over the following 6 months as compared to intention to give up current connection

Do you intend to give up your dedicated connection over the following 12 months?Do you intend to acquire another Internet connection over the following 6 months?

Reference: Internet users of dedicated connections, N=1122

Does the respondent intend to give up the current connection?

N=35

N=65

N=290

N=732


DNK; 11%

2048 kbps (2Mb/s); 15%

Other width; 7%64 kbps; 4%

128 kbps; 5%

256 kbps; 10%

<64 kbps; 2%

1024 kbps (1Mb/s); 24%

512 kbps; 22%

Real Speed of Data Transfer Desired for the New Dedicated Connection

What guaranteed (real) speed of transfer do you want from your new connection ?

Reference: respondents who intend to acquire an Internet dedicated connection over the following 6

months, N=107


Real Speed of Data Transfer Desired for the New Dedicated Connection as Compared to the Current Real Speed

Please tell me the real speed of your Internet dedicated connection.

What is the guaranteed (real) speed of transfer you wuold like from the new connection ?

Number of cases (N)

Reference: respondents who intend to acquire an Internet dedicated connection over the following 6

months, N=107

1 11 1 12 2 15 1 4 2 3 1 1

11 1 1 1 2 4

1 1 1 2 1 11 1 1 1 48

30 4 8 6 8 3 5 4 2

Desired speed for new connection

At least 64 kbpsAt least 128 kbpsAt least 256 kbpsAt least 512 kbpsAt least 1024kbps (1Mb/s)2048 kbps (2Mb/s)Other

DNKTotal

ValidN N N N N N N N N

DNK <32 kbps 32 kbps 64 kbps 128 kbps 256 kbps 512 kbps

>2048kbps

(>2Mb/s) Other

Current real speed

X. Profile -- Internet users vs. Non-users


Profile of Internet Users vs. Non-Users

No significant gender-based differences.

A significantly higher percentage of Internet users (inside and outside the household) are single, compared to non-users, and the highest percentage are young (the average age of the person who uses the Internet at home is 32 years old, and of the person who uses the Internet in general is 30 years old, compared to 53 years old – the non-user’s average age).

Internet users are mainly from the urban areas (89% of those who use the Internet at home and 74% of those who use the Internet in general).

More than 85% of Internet users have high-school and higher education, the percentage of those with higher education being over 30%, compared to 6% - the percentage of non-users with higher education.

The Internet user lives mainly in households consisting of 3 or 4 members.

The income per capita of the households including Internet users is significantly higher that that of non-users (RON 272). Also among the Internet users, the income per capita makes the difference between those who use the Internet at home (RON 589) and those who use the Internet in general (RON 497).

The age, education and income make the difference between the Internet user and non-user.


Gender of Respondents

45%

51%

50%

44%

55%

49%

50%

56%

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

Total sample (N=10929)

Household Internet Users(N=1470)

Internet Users out ofHousehold (N=831)

Non-users (N=8500)

Male Female

Note: Out of total sample (representative for entire population), 128 persons did not answer the question “Have you personally used the Internet over the last 6 months, irrespectively of location?” and “Do you personally use Internet in your household?” and consequently could not be qualified as either user or non-user


Marital Status of Respondents

What is your marital status?

63%

49%

40%

68%

19%

45%

54%

11%

17%

4%

5%

21%

1

1

1

1

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


Household Internet users(N=1470)

Internet users out ofhousehold (N=831)

Non-users (N=8500)

married single widowed/divorced DNK


Age of Respondents

How old are you?

27%

58%

67%

17%

32%

33%

26%

33%

40%

7%

7%

49%

1

2

1

1

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


Household Internetusers (N=1470)


Non-users (N=8500)

16-34 years 35-54 years over 54 years DNK Average age

48,3 years

30,62 years

52,74 years

32,28 years


Residential area

52%

89%

73%

44%

48%

11%

27%

56%

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




Non-users (N=8500)

Urban Rural

Do you live in the urban or rural area?


Area of Development

17%

14%

13%

18%

13%

16%

15%

12%

16%

8%

13%

17%

11%

6%

7%

11%

9%

10%

11%

9%

13%

16%

18%

12%

12%

9%

10%

12%

10%

23%

13%

8%

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




Non-users (N=8500)

NORTH-EAST SOUTH-EAST SOUTH SOUTH-WEST WEST NORTH-WEST CENTRE BUCHAREST


Respondents’ Level of Education

What is the last level of schooling you have graduated?

11%

%

%

14%

19%

6%

9%

23%

15%

4%

7%

18%

8%

7%

6%

9%

26%

40%

40%

23%

7%

8%

8%

7%

12%

35%

30%

6%

1

1

1

1

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




Non-users (N=8500)

primary school/none secondary school (5-8 grades)crafts school 10 grades (no high school diploma)high school professional or technical undergraduate schooluniversity DNK


Respondents’ Occupation

What is your current occupation?

4% 3%3%

3%

6%

19%

16%

3%

5%

7%

4%

7%

8%

3%

13%

8%

10%

14%

13%

5%

6%

16%

8%

28%

29%

2%

39%

6%

5%

48%

9%

10%

10%

9%

1

2

11%

2%

2%

1%

2%

2%1%

2%2%

1

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




Non-users (N=8500)

Business (co) owner Free lance professional Manager/directorEngineer, doctor, architect, professor, economist Public adminstration Technician, assistant, school teacher

Skilled worker Housewife/Unemployed StudentRetired Other DNK


Size of Households

How many persons live in your household, including yourself ?

12%

4%

9%

13%

33%

22%

24%

36%

23%

36%

31%

20%

18%

27%

22%

16%

14%

11%

13%

15%

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




Non-users (N=8500)

1 person 2 persons 3 persons 4 persons more than 4 persons DNK


Average Income per Household Member

14%

4%

6%

16%

22%

7%

12%

26%

19%

11%

14%

21%

12%

12%

11%

12%

12%

19%

21%

10%

9%

24%

20%

6%

12%

24%

16%

9%

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


Household Internetusers (N=1470)


Non-users (N=8500)

100 RON or less 101-200 RON 201-300 RON 301-400 401-600 RON 600+ RON DNKAverage income per household

member

326 RON

497 RON

272 RON

589 RON

quantitative study on access to internet services market

Documents