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Centertel puts on an Orange face

Centertel, the TP SA-owned mobile operator, will soon exchange its 'Idea' brand for 'Orange' - a brand belonging to TP SA's parent company, France Telecom.

"Centertel and Orange Brand Services ... have signed an agreement giving Centertel the right to operate under the Orange brand," TP SA said in a statement.

The company added that Centertel would pay 1.6 percent of its revenue for the right to the name.

"We expect to acquire new clients, especially the most valuable ones who are still using other operators' services," said Centertel spokesman Jacek Kalinowski.

The telecom said the deal had been declared fair by an independent auditor, and that the company's audit committee had approved the move unanimously. It was not revealed when Centertel would launch the brand.

"It hasn't been decided yet. As the practice in other countries shows, such operations may take between a few months and even over a year," Kalinowski said.

Centertel had signaled earlier that it wanted to adopt the global brand, and according to many analysts, such a move may put pressure on Poland's other operators to look for similar rebranding deals.

"Vodafone and T-Mobile will probably try to rebrand Polkomtel and PTC as soon as possible," independent IT and Telecom expert Tomasz Kulisiewicz said. He added that in Slovakia and Hungary the other operators responded to rebranding moves within a week.

Orange's global rivals Vodafone and Deutsche Telecom both have minority stakes in operations in Poland but thus far have not managed to launch their brands herelargest European Union newcomer. Poland's mobile market has roughly 60 percent penetration - far less than the EU average, leaving lots of room for growth in a country of 38 million people.

In 2004, Centertel recorded revenues of zł.5.6 billion. TP SA, 47.5 percent owned by France Telecom, has become increasingly dependent on Centertel for growth in sales and profits as fixed-line sales continue to stagnate.

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