Orange(ORA: EN Paris) is in exclusive negotiations with Armenian triple-play operator Ucom for the sale of its mobile unit Orange Armenia, the French telco said in a statement.
The company pointed out that its main focus is to provide “high-quality…
Orange(ORA: EN Paris) is in exclusive negotiations with Armenian triple-play operator Ucom for the sale of its mobile unit Orange Armenia, the French telco said in a statement.
The company pointed out that its main focus is to provide “high-quality convergent services that combine the power of both mobile and fixed networks”.
It added that proposed merger of wireless carrier EE with BT in the UK and the acquisition of fixed-line player Jazztel in Spain are in line with this strategy.
However, in spite of the progress made in recent years in terms of subscriber numbers and profitability, “Orange Armenia does not have the necessary scale to carry out by itself the massive investments required to enable it to offer its customers convergent services,” the group said.
Orange Armenia, set up in 2009, deployed one of the country’s most extensive 3G+ networks both in the capital Yerevan and in rural areas. It had 630,000 customers in Armenia at the end of 2014, the company claims.
In 2013, Ucom paid AMD6.2bn (US$15m) for a mobile licence in the 801-811 MHz and 842-852 MHz bands, valid until 2018, in a bid to become the country’s fourth mobile operator after VivaCell-MTS, Vimpelcom-owned Beeline and Orange.
At the time, Orange’s then CEO Francis Gelibter expressed concerns about the local regulator’s decision to allow a fourth operator into the country.
Under the terms of its licence, Ucom will have to provide wireless broadband in Armenia’s capital city, Yerevan, and its metropolitan area by the start of 2016. By the beginning of 2017, it is required to cover the country’s main motorways and 80% of its populated areas.
Orange said that the sale of its Armenian business to Ucom would enable the creation of a strong local player capable of offering its customers a broad range of fixed and mobile services.
