FRANCE TELECOM PLEDGES TO LAUNCH AS LOW-COST OPERATOR IN ARMENIA
Michael Lacquiere

World Markets Research Centre
Global Insight
May 21, 2009

Orange Armenia, the Armenian mobile unit of France Telecom, will
launch operations before the end of 2009, according to company director
Bruno Dutoit. He added that the group is looking to pursue close ties
with subscribers, to which end it will focus on offering affordable
services. Development of the operator’s infrastructure is currently
under way.

Significance: Dutoit’s words give some indication of the likely
strategy of the new operator once it enters the market, and should it
proceed to pursue a low-cost strategy this would be likely to have a
knock-on effect on its existing rivals in the market, K-Telecom and
Armentel. Such an approach would be welcomed by subscribers, and also
by Armenian Transport and Communications Minister Gurgen Sargsyan, who
has previously expressed his hope that the presence of a third operator
would naturally help to pressure the current duopoly into lowering
tariffs and improving service quality (see Armenia: 7 October 2008).