UPC, ranking second on the domestic TV services market, hasaggressively slashed prices for its cable TV services and servicepackages including Internet and has come to offer fixed telephonyfor free, under certain conditions, as part of an action that seemsto have as a strategic goal blocking Romtelecom growth and takingon RCS&RDS. The company controlled by Liberty Global US groupcut tariffs for analogue cable TV from 20 RON to 15 RON, with themove most likely targeting small cities, seriously hurt byrecession, where price is the most important criterion in selectinga TV operator. At this value, of 15 RON, UPC has the lowest tariffon the market for analogical cable TV as compared with its rivalsof RCS&RDS and even NextGen, Romtelecom's cable TV company.Yet, what prompted UPC, one of the companies that is not known onthe market for its aggressive price strategies, but on thecontrary, to resort to this method to gain new clients and keep theones whose contracts expire? One of the reasons UPC officials wouldundoubtedly quote is the company's restructuring moves of recentyears. However, nobody cuts prices just because the organisation isbetter structured. Indeed, in the case of UPC, too, it is pressuresfrom rivals that are forcing the operator to come to theoffensive.
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