Telecom operators warn GEO 114 might put at risk investments and mobile communication services, EY release says

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The telecom operators believe the level of taxes set for the telecom industry by Emergency ordinance 114/2018 may put at risk the investments in developing the electronic communication networks as well as the mobile communication services, Alex Milcev with EY Romania says in a company release on Friday.

“Starting in 2019, the telecommunication companies in Romania face a new challenge – GEO 114.2018. GEO 114 brings amendments to the legislation on electronic communication (GEO 111/2011), by increasing the level of taxes for the operators in this sector. Thus, in view of granting or extending the licenses for radio frequencies, the levels have been set at 2% and respectively 4% of the turnover. Also, the monitoring tariffs set by ANCOM increase significantly from 0.4% to 3% of the operators’ turnover. To these costs for extending the licenses, sanctions might be added of up to 10% of the turnover. The operators in Romania admit that such levels are prohibitive and could put at risk not only the investments in developing the electronic communication networks, but also the mobile communication services. Furthermore, they consider the tariff increase for the final consumers,” the release reads, according to realitatea.net.

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