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An economist. Selling of “Orange” is an absorption deal

July 27,2015 17:31

The press reads in these days that “Ucom” company is planning to buy “Orange Armenia”. On July 22, the CEO of “Orange Armenia” company, in a press conference, said that “Orange” has begun exclusive discussions with “Ucom” Company on selling of the company shares. In addition, it became known in May that the world-famous “Samsung” company is also leaving Armenia. And despite the “open skies” policy, major airlines are also leaving Armenia.

In the current situation, when foreign companies are leaving Armenia, “Aravot” talked to the economist Vilen Khachatryan. Vilen Khachatryan does not rule out the possibility that “Orange Armenia” company has covered its losses over the years of its activities in the sale price, in other words, the sale of the Company can be considered for them as a favorable transaction. “If “Ucom” also provides similar services in addition to the mobile connection, then a problem arises, in other words, we, so to speak, I do not want to say, are losing a mobile connection operator, but, however, this industry is increasingly growing. We are losing a certain services providing operator, this is a weakening of the competition. “Orange” operates not only in Armenia’s domestic market but also abroad, for example, the roaming for a person leaving for France is connected to “Orange”. Whether in Europe, where there are other branches of “Orange”, roaming services will not be higher after this.” The economist noted that the “Ucom” positions will become stronger from this transaction, “Ucom” is having service providing potential competent to “ArmenTel”. “This is not a deal on sale but a deal on absorption. In other words, he reaches, become stronger and also absorbed this operator through the sale, because, for example, “Ucom” was ahead in terms of Internet providing services, it is also ahead in the TV industry, and it enabled this Company to attach this sector of services to itself, as well. This will simply reinforce the “Ucom” positions. As to what extent the “Ucom” will be successful to provide the same service in compliance to the international business-experience to our country, I do not know. However, we are losing a major partner, which is attached to the European network, and it is a fact. And the circle that could bring investments from France loses one more clause”.

The economist believes that as a new company, “Orange” must be granted 5 years of privilege and when its positions are strengthened in the market, then they would begin paying taxed. “But this Company arrives in, everything starts normally, under the same conditions like “ArmenTel” and “VivaCell” over these years and have begun competing with them as equal. It does not stand the competition, our market is too small, in other words, we have only a limited number of customers, and it is unable to work on more customers and is unable to display itself in the market.”

The fact that the foreign companies are leaving Armenia, Vilen Khachatryan explains it by the business environment. As an example, he mentioned the neighboring Georgia, where the position for the business environment is higher, Georgia has a sea and the opportunities to go out to the European markets are more. “Even to the Russian market, Armenia has to pass through the Lars difficulties every time. Although, from the perspective of the airlines, it does not matter in which country it would be, simply the services should be provided normally, it is necessary to define low-cost air transport services. We were unable to attract these airlines, this is on the one hand, secondly, they say that the services at the “Zvartnots” are expensive, this is one of the problems, but, anyway, “Zvartnots” has, so to speak, an ideal geographical position for transportations.”

AMI CHICHAKYAN,

“Aravot” daily

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