World Markets Research Centre
Global Insight
May 7 2010

Orange Armenia Pledges US$50-mil. Network Investment in 2010

BYLINE: Michael Lacquiere

Orange Armenia’s chief executive, Bruno Duthoit, has indicated that
the operator will invest around US$50 million in network development
during 2010, reports Prime-Tass. Orange is aiming to expand its
network coverage from the current level of 83% to 93% by August 2010.
In the longer term, Duthoit has stated that Orange Armenia intends to
become profitable by mid-2011.

Significance:Having only launched commercial operations in late 2009
in a market in which the penetration level was already approaching
100%, Orange is understandably playing catch-up with bigger rivals
K-Telecom and Armentel, but its investment plans indicate that it is
nevertheless eyeing growth. The operator has pursued a strategy of
low-cost pricing, aimed at generating subscriber uptake rather than
massive revenue generation, and this prioritisation of subscriber
numbers will be further aided by the expansion of its network
coverage.

From: Emil Lazarian | Ararat NewsPress