ORANGE PLEDGES $80US-MIL. INVESTMENT IN NETWORK COVERAGE IN ARMENIA

World Market Research Centre
Global Insight
September 17, 2009

France Telecom’s Armenian unit, Orange Armenia, is to invest around
$80US million on services and coverage in the country in 2009, reports
ARKA. Company General-Director Bruno Duthoit is quoted as saying that
Orange Armenia intends to become an innovative mobile operator in
the country, and will be aided in this by parent group France Telecom.

Significance: Orange is due to launch operations in Armenia in the
fourth quarter of 2009 and has indicated that it plans to do so
as a competitive, low-cost operator, while also placing much focus
on mobile internet services (see Armenia: 10 June 2009: ). Mobile
penetration in Armenia was around 79% at the end of the first half
of 2009, indicating that there is limited room for organic subscriber
growth and therefore placing quite a task in front of Orange if it is
to make inroads. The market is currently led by MTS-owned Vivacell,
with around 81% of the market, while VimpelCom’s Armentel has 19%.