registration document France Telecom 2009 - Orange.com

6 OVERVIEW
overview of the Group’s Business
OF BUSINESS
Armenia
Signifi cant investments were made in 2009 in order to offer
various additional services, expand the network bandwidth and
ensure good quality of service. At the end of 2009, 3G coverage
reached 90% of the population, with more than 85% on
HSDPA. In order to offer unbundling to its Internet customers,
Sonaecom is installed in 192 switches. In addition, Sonaecom’s
fi ber network covers 200,000 households.
In 2010, Sonaecom will pursue its strategy of making Optimus
the leading integrated telecoms operator in Portugal and will
continue to invest in its network to keep up with the expansion
in its customers’ uses. With respect to FTTH, Sonaecom will
pursue its prudent roll-out policy.
Armenia
The Economic Environment and
the Telecommunications Market
Armenia has a population of 3.2 million, including 1.2 million in
the capital, Yerevan.
The country was hit hard by the economic crisis in 2009 .
Until Orange’s entry, Armenia’s mobile telecommunications
market was occupied by two players, Beeline (a subsidiary of
Russian player Vimpelcom, a shareholder of Armentel, the
incumbent , which has a virtual monopoly on fi xed-line businesses)
and Vivacell (a subsidiary of Russian operator MTS). The second
operator to enter the market, Vivacell has managed to achieve
market leadership, with an 80% share in the mobile market.
Mobile penetration was roughly 80% when Orange Armenia
entered the market.
Armenia’s Internet market is relatively underdeveloped, and is
fragmented between various access providers offering fi ber
optic access and WiMax services, while the ADSL offer is
monopolized by BeeLine.
Orange’s Activities in Armenia
Orange Armenia was granted a license to operate mobile
communication services in the 900, 1,800 and 2,100 MHz
bands on November 19, 2008, for a period of 15 years. The
license cost 51.5 million euros.
Orange Armenia, a wholly owned subsidiary of the France
Telecom Group, launched its operations on November 5, 2009,
with a range of services covering voice and mobile broadband,
using a new-generation 2G/3G HSPA network and a fully
integrated and convergent solution (intelligent network, addedvalue
services).
At the time of the launch, coverage extended to 83% of the
population via 300 sites in service, offering excellent high-speed
wireless quality.
Thanks to the attractiveness of its offers and its marketing
strength, Orange Armenia had 150,000 active (voice) customers
by the end of 2009, most of them prepaid, as well as 10,000
mobile broadband customers. This was in line with – or a shade
above – expectations.
Distribution
Distribution: from the moment of its launch, Orange Armenia
had a large distribution network comprising 38 stores under its
brand (of which 29 under franchise), 1,500 indirect points of
sale and 2,500 points of sale for prepaid top-ups.
Orange Armenia has also diversifi ed its means of payment: in
stores, via machines (500 payment points), in banks and at
ATMs, as well as electronic top-ups (e-top-ups).
Outlook
Orange Armenia intends to continue rolling out its network
infrastructure and opening new points of sale in 2010 .
Armenia’s total telecommunications market was worth about
350 million euros in 2009.
Dominican Republic
The Economic Environment and the Telecommunications Market
Z KEY MACROECONOMIC DATA 2009e 2008 2007
Population (in millions) 9.0 8.9 8.8
Growth in GDP (%) 0.5% 5.3% 8.5%
GDP per person (PPP, $) 8,672 8,619 8,133
Source: IMF, October 2009
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM