World Markets Research Centre
Global Insight
May 6 2009

Orange Planning $75US-mil. Investment in Armenia During 2009

by Michael Lacquiere

France Telecom will invest some $75US million in its Armenian unit
this year, according to Armenian Minister of Transport and
Communication Gurgen Sargsyan. The operator, which will offer services
under the "Orange" brand, is likely to launch services in October or
November 2009, having gained its licence, the country’s third, in
October 2008.

Significance:With mobile penetration in Armenia having reached around
70% at the end of 2008, through the efforts of existing duopoly
Vivacell and Armentel, it is unlikely that Orange will make a massive
impact in terms of subscriber numbers and revenues. However, the
presence of a third operator will increase the competitiveness of
pricing, which will be of benefit to customers. France Telecom
reported a 7% drop in first-quarter earnings, on sluggish performance
in its business, Spanish and Eastern European operations, but has
pledged to continue investment in 2009, with capital expenditure
(capex) at 12% of revenue this year (seeFrance: 29 April 2009:). The
$75US-million investment in Armenia will not represent a massive
financial burden on the company, given that its total group capex in
the first quarter was 1.49 billion euro ($1US.98 billion).

From: Emil Lazarian | Ararat NewsPress