ORANGE THE WINNER OF THIRD OPERATOR TENDER

ARKA
Oct 7, 2008

YEREVAN, October 7. /ARKA/. At its sitting today, tender commission
for the election of the third mobile operator in Armenia acknowledged
the French company Orange the winner of the license on providing
global mobile communications services and using radio frequencies,
said Susanna Tonoyan, the press-secretary of the RA Ministry of
Transport and Communications.

The French company Orange (the main brand of France Telecom) offered
the highest price for the GSM-license, â~B¬51.5mln, followed by
M$A Tele2 AB (Sweden), â~B¬45.6mln, and CEO Blackrock Communication
(England and Ireland), â~B¬31.66mln.

"According to the established order, Orange has to register a local
company in Armenia and after a number of procedures, until December
15, get the final license," said Tonoyan.

Under Armenian law, Orange will receive a license to own and operate a
telecommunications network throughout the republic, as well as provide
any services in the telecommunications field, GSM communications,
including 3G, voice and other services on data transmission.

The companies will also be provided with a range of radio frequencies
and the possibility of providing cell phone numbers starting with +374
(0) 55 374 (0) 95. The license will be valid for 15 years. The company
is obliged to invest â~B¬200mln in Armenia in a two-year term, and
the quality of the equipment has to be approved by the RA Government.

Gurgen Sargsyan, the RA Minister of Transport and Communications
stated yesterday the company will be able to offer its services in
Armenia six months after being licensed. Jean-Michel Serre, the Orange
Director of International Business Development in Europe and Asia,
stated the company intends to become a leader in Armenia.

Armenia announced a tender for the third mobile operator this July. 17
companies applied for the tender, but three companies preliminarily
qualified – Orange (France Telecom, France), CEO Blackrock
Communication (England and Ireland) and M$A Tele2 AB (Sweden).

Two mobile operators are currently working in Armenia – ArmenTell
(VympelCom, the Beeline brand) and VivaCell-MTS (MTS).

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