ZF English

Orange will only conduct necessary acquisitions

25.04.2008, 19:54 6

Mobile telephony operator Orange Romania does not rule out the acquisition of GSM retail companies on the local market, and will only do so because of market evolution.
"So far we have not had to make such moves. Considering that there is a balance between our own network and our partners, which are strong, and with whom we have signed long-term contracts, such as Euro-GSM and Fonomat, and given that we have very stable regional partners, it has not been necessary for us to take such a step," says Florin Popa, sales and distribution manager at Orange Romania.
"The fact that we have not bought players on the GSM retail market does not mean that we won't do so, if it becomes necessary in the right market context. So far, we have not had to do so, but if we do, we will take this step, and see what the future has in store for us," explains Popa.
Lately, the local GSM retail market has seen several deals whereby local entrepreneurs have sold their businesses. Vodafone purchased the network from its partner Petrocom, as well as 66% in the Proton retailer, at the time an Orange dealer. The Fonomat network, held by the GED Capital fund, absorbed the Plus GSM network, founded by Cluj-based Razvan Ciuc. Germanos bought the Tel Sim GSM retailer.
According to Florin Popa, each operator has outlined their own retail strategies, and Orange has not made any acquisitions, unlike Vodafone, as that would not assist the company's sales target.
"I think every operator has had their own path when it comes to developing their store networks. We have opted for a balanced development, after weighing up very carefully the importance of direct and indirect channels, our own retail, as well as indirect retail, because we realised that if you don't have that balance, when the market matures you are in danger of throwing indirect retail (i.e. partner stores) off balance through expansion in your own network-something we don't want to happen," adds the Orange executive. Orange currently has a 77-store network, but estimates it could reach 100 units by yearend.

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