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World Markets Research Centre
Global Insight
June 25, 2010
Orange Armenia Pledges US$62-Mil. Investment in 2010, Doubles 3G Speeds
BYLINE: Michael Lacquiere
The France Telecom unit has experienced a strong proportion of mobile
internet users within its subscriber base.
France Telecom's Armenian unit, Orange Armenia, has made a number of
strategic announcements. The operator has indicated that it is
doubling the maximum speed of its mobile internet with the launch of
new 3G modems supporting HSPA technology. The operator is doubling its
mobile internet speed from 7.2 Mbps to 14.4 Mbps.
IHS Global Insight Perspective: Orange Armenia is doubling its top
mobile internet speed from 7.2 Mbps to 14.4 Mbps.
Significance: Orange Armenia has noted that around 40% of its revenues
in the country comes from mobile internet services, a figure much
higher than the broader group average of around 10-15% of revenues.
Implications: With mobile penetration in Armenia at 98% at end-2009,
it is understandable that the operator is investing in mobile internet
and interest in 4G services may yet follow.
Outlook: Orange has also launched High-Definition (HD) voice services
in Armenia, offering improved voice quality on its mobile networks.
HD-compatible handsets have been imported to Armenia and are currently
available in Orange shops. Armenia has become the second country in
which Orange offers HD voice following the launch of similar services
in Moldova. However, Orange has ruled out the possibility of entering
Armenia's fixed-line voice market. Orange has reiterated that its
investments in Armenia in 2010 will total almost 50 million euro
(US$61.6 million) following investments of 140 million euro in 2009.
Outlook and Implications
Continued Orange Enthusiasm in Armenia: Orange's enthusiastic foray
into Armenia shows no sign of abating. Having gained its 2G and 3G
licences in October 2008, it launched commercial services in November
2009, even though mobile penetration in the country at end-2009 was
around 98%, leaving very limited scope for it to make an impression on
the country's subscriber market. Similarly, the operator's launch of
3G services came over a year after the service was pioneered by the
country's dominant duopoly. However, its investment in 2009 was
US$61.6 million, compared to capital expenditure (capex) of US$46.7
million from the country's largest mobile operator by subscriber
numbers, K-Telecom, owned by Russia's Mobile TeleSystems (MTS), while
the country's second-largest operator, VimpelCom's Armentel, reported
capex of only US$9.2 million in 2009. With operations in several dozen
countries, France Telecom's
Armenian unit helps to expand its footprint and generates
opportunities through roaming and international calls. Orange Armenia
therefore compliments the existing international scale of France
Telecom'soperations, rather than being a standalone unit aimed at
dominating the Armenian market.
Strong Mobile Internet Demand: Orange Armenia has noted that around
40% of its revenues in the country come from mobile internet services,
a figure much higher than the broader group average of around 10-15%
of revenues. The statistic suggests that although a relatively minor
player in terms of subscriber numbers in Armenia, Orange has sought to
target a smaller niche of high-end customers. The provision of HD
voice services also suggests that the provision of high-quality
services is being prioritised over mass-market uptake of lower-end
services. Such a strategy gives grounds to believe that Orange would
also be interested in 4G LTE services when the licences for such
services eventually become available in Armenia. K-Telecom is
currently the only operator to have confirmed that it has plans for
such a service launch, but the popularity of mobile internet in
Armenia, coupled with the high 2G penetration rate, suggests that 4G
will prove popular.
From: A. Papazian
Global Insight
June 25, 2010
Orange Armenia Pledges US$62-Mil. Investment in 2010, Doubles 3G Speeds
BYLINE: Michael Lacquiere
The France Telecom unit has experienced a strong proportion of mobile
internet users within its subscriber base.
France Telecom's Armenian unit, Orange Armenia, has made a number of
strategic announcements. The operator has indicated that it is
doubling the maximum speed of its mobile internet with the launch of
new 3G modems supporting HSPA technology. The operator is doubling its
mobile internet speed from 7.2 Mbps to 14.4 Mbps.
IHS Global Insight Perspective: Orange Armenia is doubling its top
mobile internet speed from 7.2 Mbps to 14.4 Mbps.
Significance: Orange Armenia has noted that around 40% of its revenues
in the country comes from mobile internet services, a figure much
higher than the broader group average of around 10-15% of revenues.
Implications: With mobile penetration in Armenia at 98% at end-2009,
it is understandable that the operator is investing in mobile internet
and interest in 4G services may yet follow.
Outlook: Orange has also launched High-Definition (HD) voice services
in Armenia, offering improved voice quality on its mobile networks.
HD-compatible handsets have been imported to Armenia and are currently
available in Orange shops. Armenia has become the second country in
which Orange offers HD voice following the launch of similar services
in Moldova. However, Orange has ruled out the possibility of entering
Armenia's fixed-line voice market. Orange has reiterated that its
investments in Armenia in 2010 will total almost 50 million euro
(US$61.6 million) following investments of 140 million euro in 2009.
Outlook and Implications
Continued Orange Enthusiasm in Armenia: Orange's enthusiastic foray
into Armenia shows no sign of abating. Having gained its 2G and 3G
licences in October 2008, it launched commercial services in November
2009, even though mobile penetration in the country at end-2009 was
around 98%, leaving very limited scope for it to make an impression on
the country's subscriber market. Similarly, the operator's launch of
3G services came over a year after the service was pioneered by the
country's dominant duopoly. However, its investment in 2009 was
US$61.6 million, compared to capital expenditure (capex) of US$46.7
million from the country's largest mobile operator by subscriber
numbers, K-Telecom, owned by Russia's Mobile TeleSystems (MTS), while
the country's second-largest operator, VimpelCom's Armentel, reported
capex of only US$9.2 million in 2009. With operations in several dozen
countries, France Telecom's
Armenian unit helps to expand its footprint and generates
opportunities through roaming and international calls. Orange Armenia
therefore compliments the existing international scale of France
Telecom'soperations, rather than being a standalone unit aimed at
dominating the Armenian market.
Strong Mobile Internet Demand: Orange Armenia has noted that around
40% of its revenues in the country come from mobile internet services,
a figure much higher than the broader group average of around 10-15%
of revenues. The statistic suggests that although a relatively minor
player in terms of subscriber numbers in Armenia, Orange has sought to
target a smaller niche of high-end customers. The provision of HD
voice services also suggests that the provision of high-quality
services is being prioritised over mass-market uptake of lower-end
services. Such a strategy gives grounds to believe that Orange would
also be interested in 4G LTE services when the licences for such
services eventually become available in Armenia. K-Telecom is
currently the only operator to have confirmed that it has plans for
such a service launch, but the popularity of mobile internet in
Armenia, coupled with the high 2G penetration rate, suggests that 4G
will prove popular.
From: A. Papazian