Vienna Economic Forum Invest in Moldova February 20 th -21 st, 2008 Case of Orange Moldova Bruno Duthoit

2 Vienna Economic Forum, February 20 th – 21 st 2008 A few words about telecommunications environment in Moldova A regulatory environment close to European Union  Agency for Regulation (NARTI)  New Telecommunications Law (end 2007) A market very liberalized  4 actors in mobile domain (3 GSM, 1 CDMA)  Diversified actors on Internet fixed market  On traditional voice fixed domain, incumbent operator still prevailing Fast development  Mobile penetration: from 32% in 2005 to 55% in 2007  Internet broadband: from 0.3% in 2005 to 5% in 2007  Fixed penetration, still growing: 31% in % of GDP dedicated to telecommunications: a record in Europe !

3 Vienna Economic Forum, February 20 th – 21 st 2008 The Case of Orange Moldova (1/2) Company created in 1998 (15 years GSM license) France Telecom Group as the main shareholder Joined Orange international brand in April 2007 Major objectives  Boost penetration of mobile in Moldova  Boost usages (voice, data) among customers  Introduce innovative services Moldovan mobile market is already at a very good European level

4 Vienna Economic Forum, February 20 th – 21 st 2008 The Case of Orange Moldova (2/2) Some figures for 2007:  1.2 million clients (67% market share) +45% year on year  1.2 billion minutes +60% year on year  140 MUSD turnover +37% year on year  54 MUSD investment +160% year on year, 39% of turnover  450 people Orange Moldova met very favorable environment for its development  Very high productivity of staff  the best for France Telecom Group  Fast growing market  No obstacles for growth  Very favorable tax system

5 Vienna Economic Forum, February 20 th – 21 st 2008 Why Moldova is an attractive country for investment? (1/2) We can say that today Moldova is a big opportunity for investors The major assets of the country are  Number 1  Number 2  Number 3  Number 4  Number 5 The workforce (education, flexibility) A unique human and geographical cross road, between CIS and European Union Chisinau: the critical mass Market will grow fast: huge reserve for GDP increase General business environment: no problem without solution Tax system: the best in Europe  a clear message to investors

6 Vienna Economic Forum, February 20 th – 21 st 2008 Why Moldova is an attractive country for investment? (2/2) In conclusion: dare to go to Moldova, you will not regret!