Orange set to invest 22m euros in 3G services

Mobile telephony operator Orange Romania on Tuesday launched 3G telecommunication services in Bucharest and Timisoara. In July the firm plans to expand coverage to Brasov and Cluj-Napoca, as well as to another 16 cities by the end of the year, following investments worth approximately 22 million euros.

Richard Moat, Orange Romania CEO, estimated the company would have around 250,000 users of EDGE/3G services by yearend. The breakeven point for this business segment should be reached within three years, he said.

According to Orange officials, there are about 100,000 users of EDGE at the moment. The 3G technology provides users with fast access to data and image transfers, as well as mobile access to the Internet at a data transfer speed of up to 384 kbps, compared with 220 kbps through the EDGE technology.

The first 3G services were launched in Romania by Vodafone (Connex) in late April 2005.

An essential point in the operator”s strategy designed to rapidly increase its customer base for 3G services, is the fact that the services will be available for all the operator”s customers, including those using a pre-paid card and can used without taking a monthly subscription.

The services are also available by a monthly plan of $28, including free minutes for voice and video calls, as well as access to other services provided by the operator.

Alternatively, Orange customers can choose to activate the “video” option, offered for an additional 8 dollars per month, free video call minutes and unlimited access to live TV broadcasts.

The tariff of a video call in the Orange network ranges between 0.2 and 0.22 dollars per minute.

“We believe the entertainment and multimedia services, accessible through Orange World portal, together with video calls, will be the most appealing aspects of the 3G technology,” said Andreea Zega, Content & Multimedia Division Manager with Orange Romania.

Video calls between Orange and Vodafone Romania customers will be possible after the two operators sign an interconnection agreement, which is to be finalised during the summer, according to Marian Velicu, VP Strategy, Regulation and Public Affairs with Vodafone Romania.

Orange also launched services and products aimed at companies using 3G technology. adrian.seceleanu@zf.ro