The installation of a fixed telephone line costs 900 lei as from July 1, as against 1,800 lei until present. The national telecommunications operator Moldtelecom announced reductions both for individuals and economic entities, Info-Prim Neo reports. Iurie Ungureanu, the general counselor of Moldtelecom, has told Info-Prim Neo that the fee was reduced because the fixed-line telephone market is oversaturated. “It is a strategy aimed at attracting new clients,” the quoted source said. Ungureanu also informed that the measure forms part of a telephonization project initiated in 2005. Under the project, one third of the population would be connected to the fixed-line telephone network by 2010. Presently, 31 out of 100 people have a fixed telephone. This means that the objective was practically achieved, Ungureanu said. At the same time, the Moldtelecom counselor stressed that there is a category of people that cannot afford paying the connection fee and this initiative is intended for them. Asked to forecast the effect of price reductions, Iurie Ungureanu said that a survey carried out by Moldtelecom found out that about 100,000 people want to install a fixed telephone at the new price. The installation of the fixed telephone lasts between 24 hours and one month. The length of the works depends on the used technology. The installation of a CDMA wireless telephone lasts for a day, while of the traditional phone – for two-four days. If a new telephone line must be set up, the installation works can last for a month. The state is the founder and only stockholder of the national telecommunications operator Moldtelecom. The Chisinau press has lately reported that the company could be privatized. President Vladimir Voronin said that Moldtelecom would be sold for not less than 1 billion euros. The fixed-line telephone penetration rate in 2007 was 31.5%. The fixed-line phone segment made up 43.4% of the market, a decrease of 4% compared with 2006. The mobile telephone segment made up 43.8% of the market, an increase of about 2%.