Orange gives gifts and wins the market

22-08-2007, 11:58

Warsaw (Puls Biznesu) – Orange preserved its leading position on the mobile market in the first half of the year. The way it  managed to do this raises doubts, however.

Orange and Plus mobile telecoms are fighting for the leading position in Poland. Orange, owned by TP group, has had troubles recently to keep the pace with its main rival. In the second quarter, it was close to losing the battle. The operator decided to get new clients in an unconventional and expensive way because the loss of the market would not be welcome by TP group which in turn would be dangerous for both TP managers and stock investors.

“This would be a negative signal for investors. Mobile services are the pearl in TP group which is quickly losing its fixed telecom clients. The operator must look for unconventional ways to get clients”, Andrzej Piotrowski, the director of eEconomy Institute at A. Smith institute center said.

In the second quarter, the operator decided to give free starters of its new offer Orange Go. It sent it free to its clients. It promised up to PLN 120 (EUR 31.2) bonus, 100 SMS monthly and free internet access. The only requirement was quick activation of the card – within 30 days. The mission was completed. Orange is still the leader on the mobile market. But it refuses to comment on the policy.

“According to stock market requirement we do not publish Orange results showing certain promotion periods”, Jacek Kalinowski, TP group spokesman said.

The majority of analysts expected that Polkomtel, the operator of Plus and Sami Swoi, would become the new leader in Poland. In the first three months of the year, the operator controlled by the state, gained 650,000 new clients while Orange only 260,000. In the second quarter both operators won about 250,000 clients each.

(PLN 1 = EUR 0.259)


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