Orange Has Intention of Long-Term Operation in Armenia

ORANGE HAS INTENTION OF LONG-TERM OPERATION IN ARMENIA, OFFICIAL OF
COMPANY SAYS

Y EREVAN, SEPTEMBER 19, NOYAN TAPAN. It is important how many
subscribers Orange company will have during the first year of its
operation in Armenia. Given the fact that France Telecom has long-term
operation plans in Armenia, the circumstance of having the maximum
number of subscribers in the long run by providing high quality
services is even more important, NT correspondent was informed by
Jean-Michel Serre, the chief deputy president for business development
in Europe, Eurasia and America of France Telecom group’s Orange
company. Orange is among the three companies that have passed to the
final stage of the government-held tender for a third mobile phone
communication operator in Armenia.

According to him, in the 40 days that remain for submitting a final
tender proposal, the company will conduct additional technical studies,
based on the results of which it will be announced how much time it
will take for Orange to introduce the mobile communication service
provision system and how much it will cost.

He assured NT correspondent that France Telecom has experience of
introducing new services of a mobile communication operator in various
countries, and sufficient resources which it will invest in Armenia in
case of winning the tender. In this case Orange will introduce the
2G/3G mobile communication service system, as well as Internet services
through mobile communication in Armenia, after which studies will be
done to determine the opportunities of providing other services, in
particular broadband Internet services.

Discussing Armenia’s legislative field and business practice in the
communication sector, J-M. Serre said: "I do not see any serious
problems at the moment. If problems arise in a country, we use our
experience and the necessary resources to deal with them. We have
introduced mobile communication networks in about 30 countries. Each
country has its own difficulties. I do not remember a case when we
failed to overcome a problem."

He also explained that the assortment of services to be included in
Orange’s package of mobile communication services depends on the market
of the given country. For example, in some countries the company
provides broadband Internet services (including to households), as well
as mobile and fixed-line phone services, so the package contains a wide
range of services as compared with countries where only mobile
communication services are provided.

It was mentioned that Orange builds broadband Internet service
provision networks by using nearly 30 technologies, which are
introduced in different combinations in different countries, even in
different areas of the same country or city – depending on local
conditions. According to J.-M. Serre, France Telecom has 4 thousand
experts working worldwide. They decide what combination of new
technologies and services has to be introduced in the given place. In
some countries Orange combines broadband Internet service provision by
itself and retail providers, while in others either of these ways is
used. Besides, there are countries where Orange uses channels of other
operators. In particular, in France where France Telecom provides
fixed-line phone services, Orange delivers broadband, 8 megabit/sec
Internet services by a prepayment-unlimited use system. In some other
countries services are provided by received and transferred data
volumes.

The official of Orange company told NT correspondent that every six
months France Telecom organizes shows of its services, every time
displaying about 20 new services. He added that Orange Business Service
package services are already availabale in Armenia, while official
presence of Orange company in Armenia will allow to promote and expand
their use.

J.-M. Serre said that wherever France Telecom starts its activities, it
becomes an industrial partner of the given state if its government
proposes some projects.

According to website, France Telecom group of companies
has 174 million users in 28 developed and developing countrues, with
two thirds of them being users of Orange’s services. The gross sales of
the group made 52.9 bln euros in 2007 and 26.3 bln euros in the first
half of 2008. As of June 30, 2008, France Telecom had 113.8 million
mobile communication subscribers and 12 million ADSL broadband Internet
service users. France Telecom is in third place in the world by its
sales in the mobile communication sector and in first place by sales in
Internet sector. It is the world leader in Internet phone connection
and television sectors.

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