Armenian broadband access provider UCOM has completed the merger and reorganisation of its recently acquired Orange Armenia unit, which will allow it to improve the quality and range of services provided by the enlarged company. The news of the merger – carried out in accordance with all applicable legislation, including the local Transfer Act – was confirmed via Orange Armenia’s website.
As previously reported by CommsUpdate, in August 2015 Orange Group of France signed an agreement with UCOM to sell 100% of its mobile subsidiary Orange Armenia. No financial details of the deal were disclosed, although Orange is known to have spent upwards of USD350 million in the venture – including its mobile licence. Orange Armenia launched on 5 November 2009 and today provides a range of 3G/3.5G voice and data services over a network which covers more than 97% of the Armenian population. The French giant said at the time that whilst Orange Armenia had performed well in terms of subscriber growth and profitability, it lacked ‘the necessary scale to carry out by itself the massive investments required to enable it to offer its customers convergent services’. The sale to UCOM, which was established in 2009 and has built up a fibre-to-the-home (FTTH) network with more than 75,000 residential customers, has effectively created a new converged player which is able to offer a range of fixed and mobile services.