Proceedings

complex given that information regarding market and demand are plentiful (Banker et
al., 2002). But in this entire "landscape" appears the national regulatory authority,
which complicates much more the situation.
For Romtelecom, the operator designated as having significant power on relevant
retail markets, the regulatory authority established by Decision no. 1949 / 2007
control formula for price rising. Maximum average annual increase of prices is
determined by the consumer price index communicated by the National Institute of
Statistics.
In addition, any price change, introduction of new packages of services or discounts
should be communicated to the ANCOM. Authority has the right to verify if, through
its prices, Romtelecom fails obligation not to practice dumping prices, which aim at
limiting the entry or restricing competition.
Price checking by ANCOM is made based on information supplied by the operator in
its separate financial statements. Moreover, Romtelecom has the obligation to
transmit, at authority request, information on monthly traffic registered for different
categories of subscribers, identified by combinations or packages of services and
available options in the operator offer. If violations of obligations imposed are found
after this control, ANCOM can impose an appropriate change of prices or withdraw
the service packages.
The considerations explained above are only part of regulations imposed on the
company studied. We limited our description just to those that have a direct impact on
management accounting system and performance measurement system. Under these
circumstances, we ask ourselves: how company's performance can be managed in
these conditions? In the next section we will discuss the information collected and
draw some conclusions from the conducted study.
DISCUSSION AND CONSLUSIONS
Opening competition was a turning point in terms of how Romtelecom understood the
articulation of its actions by reference to the competitive environment in which
operated, an environment that no longer resembles to the one in which activated for a
long time. These changes have required the entity greater flexibility in its actions in
order to meet the needs of users of its traditional services (fixed telephony). In the
following, we are answering to the two questions addressed at the beginning of this
paper.
(a) to which extent telecoms regulations affect the management control practices
and thus performance measurement system?
Management control system of Romtelecom is strongly influenced by these
regulations, the freedom company has to choose and implement performance
management tools is strongly limited.
Performance measurement has suffered, especially when we talk about divisional
performance. Most regulations are affecting revenues, as well as costs of each
division and thus their profits. Because financial indicators that are based on profit,
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