France Telecom to enter Armenian mobile phone market in Oct-Nov

Interfax, Russia
May 5 2009

France Telecom to enter Armenian mobile phone market in Oct-Nov

YEREVAN May 5

FTA Telecom (Orange-Armenia), a structure of France Telecom’s Orange
SA, will begin providing mobile phone services in Armenia in
October-November 2009, Armenian Transportation and Communications
Minister Gurgen Sarkisian said at a press conference on Tuesday.

Draft work is currently under way and equipment is being installed, he
said.

The global financial crisis has not affected France Telecom’s plans in
Armenia he said. The company will invest some $75 million in creating
a mobile network in Armenia this year.

Orange SA won a tender for the right to provide cellular services in
Armenia on October 7, 2008 and registered FTA Telecom, which will use
the Orange brand in Armenia. Orange offered the highest price of 51.5
million euros in the tender. The company will receive a 15-year
license to work in GSM standard with the opportunity to provide 3G
services.

The Armenian Public Services Regulation Commission issued a
preliminary license for communications services in the country to FTA
Telecom in November 2008.

At present, two companies provide GSM standard cellular services in
Armenia: Armentel (BeeLine trademark), a wholly owned subsidiary of
Russia’s VimpelCom (RTS: VIMP), and K-Telecom (VivaCell trademark), in
which Russia’s MTS (RTS: MTSS) owns 80%.

Communications operator and Internet provider Orange SA has 90 million
subscribers and provides services in 23 countries.