The Romanian networking industry is going through significant changes this spring, as top players clash over a market for Internet networking equipment that may exceed 100 million euros this year, according to analysts.
The top two networking equipment suppliers, Cisco Systems and Nortel Networks are doing their best to grab as large a slice of the market as possible. Cisco is reorganising and enlarging its team, a strategy also being carried out by Nortel Networks. The latter has however launched an additional challenge, as it is bringing the ex-manager of its competitor on board.
Nortel Networks hired Dan Garlasu, the man who established Cisco Systems' Romanian office and worked for the company for nearly six years. Garlasu is set to become country manager for Nortel as of June 1, 2004. "Dan Garlasu's was a personal decision," Bogdan Constantinescu, Cisco Systems representative told Ziarul Financiar.
Sources close to the telecom industry suggested that Cisco Systems Romania accounted for more than 50% of the Romanian market in Internet networking equipment and its clients have included MobiFon and Astral Telecom.
Nortel is Cisco's main rival on the Romanian market.
"The communications market should be worth somewhere in the region of 4.5bn euros this year, according to estimates from the relevant authorities. This market includes the investments that operators will be making to expand their networks, which will probably reach 500 million euros. This includes both voice and data equipment," Dan Garlasu, former head of Cisco Systems Romania, explained. These 500 million euros also include the Internet networks sector, which analysts estimate as standing at $100 million.
iuliana.cerchez@zf.ro
