Orange Armenia CEO hopes for 4th mobile operator to “prove successful”

PanARMENIAN.Net - Ucom telecommunication company is expected to be granted a license to become the 4th mobile operator in Armenia. The decision is to be approved at a November 4 sitting of the Public Services Regulatory Commission (PSRC).

Currently, Armenian market has 3 mobile operators: ArmenTel (Beeline trademark), VivaCell-MTS, Orange Armenia.

At today’s (November 4) news conference, Orange Armenia CEO shared his views on Ucom’s entering the country’s mobile operators market.

As Francis Gelibter told a news conference, the decision was authored by the country’s leadership. However, he said, current operators’ views differ, being based not only on the Armenian market analysis, but rather on international tendencies. “There’s no precedent in the international practice where the 4th mobile operator would be a success in a country with a population under 10 million,” he said.

To prove his point, Gelibter cited negative examples of Holland, Switzerland, Austria and Moldova.

The Orange CEO was also concerned over the 4th operator’s intention to use LTE-based phones. “Current cost of such phones is 350 euros – an unaffordable sum in Armenian provinces – while Orange offers phones for AMD 1,” he said.

“We’ll see how Ucom will benefit the country after it’s given the license. Hope the initiative won’t end in failure,” the CEO concluded.

Ucom telecommunication company will be granted a license for use of 801-811/842-852 MHz radio frequency spectrum in provision of mobile connection services. The AMD 6,2 billion license will be valid from November 2013 through August 2018, with the service launch planned by January 1, 2015.

Under the license, the company will provide broadband wireless internet coverage in Yerevan and adjacent territories as well as 80% of Armenian provinces, with a right to offer mobile services in the areas indicated.

According to the National Statistical service, as of October 1, Armenia’s population is 3, 017 million, with 1, 913 million and 1, 103 million living in cities and villages respectively.

Ucom was founded in 2007 to offers a variety of traditional and innovative services in local telecommunication market. In collaboration with Ericsson Company, Ucom built a fiber optic network based on GPON (Gigabit Passive Optical Network) technology in Armenia.