The Unification of Orange Armenia and Ucom will give Birth to a Reliable Operator with 20% Coverage of Telecom Market

The unification of Orange Armenia and Ucom will give birth to a reliable operator with 20% coverage of the telecom market. Customers will get the opportunity to use of convergent services through the complementary activities of the two companies. Market coverage and provision of converged services are the reasons for 100% vend of Orange Armenia to Ucom.

During the July 22 press conference Orange Armenia CEO Francis Jelitber said that in the modern world telecom operators are inclined to provide their clients with fixed and mobile network and TV. France has been introduced a system that comprises all 4 components - fixed network, mobile network, TV and fixed Internet.

About a year ago Ucom Company was granted a license on providing mobile operator services. The company has even registered the "011" code. In 2013 Ucom acquired the permission to provide 4G tech mobile operator services. In 2016 the company is going to launch high-quality services through LTE. Ucom built an optical-fiber network and has been providing internet, TV and fixed telephony services through one channel. As of June 2015, the company had over 100 thsd subscribers and over 800 employees.  Cooperating with the largest global companies, Ucom has managed to gain stable positions on the Armenian telecommunication market.   

According to the Ranking of Retail and Service Outlets of Armenia by the Agency of Rating Marketing Information (ArmInfo), at the yearend of 2013 the loss of Orange Armenia totaled 3.8 billion AMD, and the accumulated loss - 12.4 billion AMD. At the yearend of 2013, the ROI and ROE of Orange Armenia amounted to negative 8% and negative 10%, respectively. As regards Ucom, its net profit at the yearend of 2013 amounted to 884.2 million AMD (almost 7-fold year- over-year growth (from the negative level). At the same time, Ucom's ROI and ROE made up 3.4% and 5.4%, respectively. Orange Armenia has been operating on the Armenian market since 5 November 2005, and Ucom was founded in 2007.