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|  Romania
the awakening giant of Europe |
 Looking for lost prosperity - 1997 : A mixed performance - Rebuilding the Country -
Major Infrastructure Projects March On - The Tough Game - No Pain, No Gain -
The Young Wolves of the Private Sector - What's Next? 
Interview with
Mr Silviu Agapi,
general Manager of ROMTELECOM
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Question: There are many important matters that we would like to discuss with you. First, can you make a short historical background of your company, referring also to the different stages of restructuration that took place in your company?
Answer: Romtelecom has a short history. Before 1991, it belonged to the Ministry of Transport and Telecommunications. In 1991, a big step was done, the Ministry of Communications was founded, and so Romtelecom went under that. Simultaneously, the plans for developing new strategies took place. The plans were made for long term. Beginning with 1991, all the technology had to be changed into digital one from the analogic one. The second plan was the plan itself because it was approved by the Government, being the Directory Strategic Plan, made until 2005.It was realised in a professional way, covering the main strategic needs for communications. Romtelecom was the initial operator for the basic services and the other communications operations were developed on liberalised base.
So, all the basic services in telephony are under monopoly until 2005.
Romtelecom tried to restrict itself in order to improve the training, personal skills, etc.
All our network was analogical, only one site was automatic, so, of course that we try to develop the network and to eliminate all the restrictions. Now we are in the final phase of introducing the optical fibber network in Romania. which allow us to make digital transmissions in all the cities in Romania. This means almost 7.000 km of micro-fibbers.
We are using Siemens and Alcatel equipments. Beginning of this year we started the privatisation process that meant a lot of effort in developing the network and to make the company more attractive. Being a regie autonome, like we were is somehow restrictive because of the limit of the loans. Being a stock joint company, we can invest more and we can obtain more. Romtelecom was never in the position of being sustained by the state. On the contrary. In order to fix our problems, we have to change many things that cost a lot, but we can manage.
Q: As you said, the most difficult is to change the mentality of the employees. What will you do about it?
A: I know that the lack of the commercial attitude is linked to the ownership problem and I expect the privatisation to change this. Efforts were done in order to improve the image of this aspect. We also modify the salaries to improve the attitude of our people. Now we are introducing many management tools, technically much more important which allow many changes in the company. We introduced new organisation skills that helped us realise all those changes we were talking about. So, many progresses were done.
Q: Regarding to what you were just saying, that Romtelecom was only
30% private, I understand that you are looking for strategic partners. Which would be the main criteria in choosing these partners and what do you expect from them?
A: We expect, from potential partners, financial capacities, tools and, of course, knowledge. The partners have to have experience in both international and local operations. So, what we need is money for different fields, because in Romania, we have to develop some new sectors that request modern technology. The fact, also, that 5% is giving to motivate our people to be on the reform side. All this mechanism to improve the company was already done in other companies with success.
| Q: And Romtelecom is already present in the mobile phone field.
A: Yes, we are present in the analogical telephonie. We have licence for DCS that is going to operate starting with next year.
Q: Now more as a personal matter, since you are the general manager of Romtelecom, what was the most challenging problem that you had to solve? And how would you describe the consequences from the end?
A: The most difficult problem that I faced was in 1996, when the financial capacities were limited. The consequences of becoming a regie autonom were that we couldn't benefit of any commercial loans. I mean, we could benefit only of loans guaranteed by the state. Because the state's capacities were limited and there were, also, some others priorities, we were able to finance only a part of our programs, I think that was the most challenging problem that I had to solve, and the fact of transforming the company instead of privatisation was a political choice made me unable to do anything about it. And, we also, had to try to change the people's point of view regarding the transformations, to make them be more motivated and well -prepared for these things. They have to understand what is happening with them and how the future looks like.
Q: I understand that Romtelecom has succeeded in the past and that the people are very happy about their management.
A: Yes, this is true and is very important for us that they are happy. In the past years, there were problems in almost all Romanian economical sectors, but not in Romtelecom. This is their merit, too.
Q: Now, what would be your message to them, to tell them that the fear to come to Romania was yesterday, not today?
A: It was yesterday, indeed. We have an important delay because of the lack of political will. But, my message to them is that the telecommunication market is open and that is plenty of room for spectacular developing. Romtelecom is a company that is transforming by itself from a very rigid system to a modern and active operator. We need very strong partners, because we have good people, well trained that can make our company a serious partner to any big partner. We have a big market, easy to extend. So, there is a very important willing to progress in this field. So, they are welcome here because we are a serious and productive partner, also co-operative in the very good way |
© World INvestment NEws, 1998.
This is the electronic edition of the special country report on Romania
published in FORBES
Magazine's enriched with complementary information,
such as full interviews, detailed company files and more.
June 1 st 1998 issue
Developed by AgenciaE.Tv |
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