Idea changes re-brands to Orange

APA - Austria Presse Agentur
opublikowano: 20-04-2005, 14:09

Warsaw (Puls Biznesu) – PTK Centertel, the operator of Idea mobile owned by TPSA telecom (whose strategic investor is France Telecom) signed an agreement wit Orange Brand Services to implement in Poland the brand. Licence fee amounts to 1.6 percent of annual sales, which last year amounted to PLN 5.6 billion (EUR 1.3 billion).

Warsaw (Puls Biznesu) – PTK Centertel, the operator of Idea mobile owned by TPSA telecom (whose strategic investor is France Telecom) signed an agreement wit Orange Brand Services to implement in Poland the brand. Licence fee amounts to 1.6 percent of annual sales, which last year amounted to PLN 5.6 billion (EUR 1.3 billion). ‘I’m sure that the change of the brand will positively influence operating activity of the company. Basic advantages include attractive roaming offers, access to telephones created especially for Orange, and in the future the opportunity to use their experiences at UMTS’, Jean-Marc Vignolles, PTK Centertel managing director enumerated.

He did not say when the new logo would appear on products and outlets. When similar agreements were signed in Slovakia and Romania, it took 6-12 months to rebrand. Meanwhile, PTK Centertel management did not confirm that the Idea brand would disappear from the market.

The decision adversely affected TPSA. ‘We lowered the price by 3 percent. The reason are higher costs connected with the implementation of a new brand. Besides, rebranding always is a risk, and no potential advantages are to be seen. PLN 90 m of annual fee to use the brand may be financed via increasing Centertel market share just by 0.5 percent but the expenditures will never pay back. Whether the brand is Idea or Orange, the operator will have the same number of clients’, Krzysztof Kaczmarczyk, DB Securities analyst commented.

(PLN 1 = EUR 0.239)Poland/Enterprises/Telecommunication

 

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Podpis: APA - Austria Presse Agentur

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