Orange Armenia, fully owned by the telecom giant France Telecom, started operation of a GSM network in Armenia on November 05, 2009. Company’s network covers almost 90% of the Armenian population, providing access to telecom services in 500 communities (towns and cities). Orange delivers 2,5G and 3G+ services, and offers roaming in 92 countries. During 2009, 140 million dollars have been invested in Armenia, some 50 million dollars will be invested till the end of 2010. Orange Armenia launched its services in a year after the obtention of the license and seven months after the date of signing contract with CBOSS.
Demographic, economic and geographical parameters are an important element for a telecom company to operate on a market efficiently. At the beginning of 2009, the Armenian population was only 3,2 mln with a relatively low income. According to the research of the World Bank 2009, the gross national income per capita was only USD 3, 350 which is more than seven times less than that of developed countries in Europe. Fifty percent of the population is concentrated in Yerevan, the capital of Armenia. At the moment when Orange entered the Armenian telecom market, the latter was already divided between two major players: VivaCell-MTS owned by MTS and holding more than 79% of the market share, and ArmenTel owned by Vympelсom. Cellular service penetration exceeded 85% and ARPU was not more than AMD 4 000 (EUR8-9).
To enter such a saturated low-capacity market, Orange Armenia, as a ‘third operator’ had to have maximum efficiency of its start-up project, which was to be based on minimum time-to-market of the full range of up-to-date telecommunication services. This was the main criteria for selecting the vendor of technology for automation of Orange business processes. As a result of open tender, Orange Armenia signed a contract with CBOSS which earlier had cooperated with France Telecom operators in Europe.
Though technical requirements of the tender was provided for the supply of separate components, CBOSS offered CBOSSconvergence3, a solution that enabled automation of basic business processes: postpaid, prepaid and hybrid billing, customer care, network management, analytical reporting and CRM, all of which were based on one software and hardware complex. France Telecom well understood the perspectives of principles used in the CBOSS solution; however they became convinced that the principles could be implemented only after demonstration of the CBOSSconvergence3 operation after the example of one of the CBOSS customers which, thanks to the CBOSS solution, was the regional leader on competitive market.
Orange Armenia was the first company at which France Telecom deployed a fully convergent solution.
When entering the Armenian market, Orange Armenia formed a well-balanced product portfolio including high-quality voice services, broadband mobile Internet access, and variety of VAS offering. As a result, after six-month commercial operation, Orange Armenia maintained active presence in all targeted market segments and had the largest customer base for mobile internet in the country.
For the considered period, total base of telecom service users has exceeded 300,000 subscribers, 30,000 of which were mobile Internet customers. In many remote villages Orange mobile Internet was the only choice of broadband internet.
Radu Spataru, IT Director at Orange Armenia, says,”Time-to-market (ТТМ) directly depends on project complexity, number of project vendors engaged and systems to be deployed. The TTM in Armenia was the shortest one as compared to the similar parameter of other FT companies.In addition to advantageous technology of CBOSS, its engineers considerably contributed to the project success. We established nearly friendly relationship with them. It was easy to find a common language with them, hadall-round support, promptly solved all issues and responsible parts never played the game of ‘problem ping-pong’. This is especially important in the case of implementation to be carried out by a ‘start-up’ team composed of specialists in various fields. Now we have gained knowledge and can operate autonomously, but support of CBOSS specialists at the beginning of the project was the invaluable help.”
Since the project start date, Orange has opened more than 40 outlets applying unified principles of decoration, merchandizing, and service organization. The outlets operateon the basis of the “one stop shop” concept, which is unique for Armenian cellular operators. They sell not only customer care services but also equipment and accessories.
Orange uses the CBOSS Business Intelligence solution for informationand analytical supportof its activity. During the project, the ERP system installed at Orangewas successfully integrated with the CBOSS billing system providing the aggregated data for generation of reports in compliance with rules established in Armenia, IFRS and the requirement to maintain KPI accordingto the FT standards. At the same time, CBOSS implemented the optional functionality of creating inter-group reporting without billing procedure. The reporting is created on the basis of data exported from on-line CBOSS reporting, which ensures timely delivery of information to management.
The Orange Armenia – CBOSS projectis an example of successful implementation of convergence at all levels of conducting a telecom operator business: development and implementation of new products, promotion of sales, organization of internal business processes.
Commenting on the project, Bruno Duthoit, Orange Armenia Chief Executive Officer, says, “The reason why we selected CBOSS was, first of all, convergence. The second reason was the possibility of continuous supervision by CBOSS specialists, and the third reason was the price. We are satisfied with operation of the CBOSS solution and thank CBOSS for its comprehensive and all-round support, swift response in each situation despite of any difficulties.The important thing for us as a start-up is that during launch of new projects no additional investment was required and there were not over-the-budget expenses for development and support. We thank CBOSS for the job done.”