Romania Post sets up phone company

The Romanian Postal Service will start doing business in the market of land based phone-lines by setting up a company with SIF Banat Crisana (Financial Investment Company), SIF Oltenia, the Romanian Commercial Bank and the Romanian Industrial Group, as Bursa and Ziarul Financiar dailies write. According to the president of the Romanian Postal Service, the new company – ‘POSTelecom’ – will compete with RomTelecom due to ‘the superior quality of its services and smaller fees’. The Romanian Post Service will take an 80 million dollars loan from China’s Export-Import Bank, in order to buy the equipment necessary for POSTelecom’s infrastructure, as the president of the Romanian National Postal Company, Gabriel Mateescu said. The costs to get this business working for the first four years amount to 90 million dollars while the income was estimated to 137 billion dollars. The Chinese company Zhongxing Telecommunication Equipment will provide the equipments and the technology will come from China Unicom.