Orange rebrand still on hold
By Maria Kowalewska
The rebranding of PTK Centertel's Idea mobile phone network as Orange may be further delayed, according to analysts who say that the current wireless market saturation is not conducive to sudden brand changes.
The move to rebrand Idea has been anticipated since France Telecom, which holds a 34% stake in the Polish operator, announced in 2001 that its worldwide mobile assets would be taken over by its mobile unit Orange, a move that was initially anticipated in 2002. The remaining stake in PTK Centertel is held by TPSA, whose strategic investor is also France Telecom.
During a recent meeting, TPSA's management said that no decision on the rebranding had been made and that it would depend on whether it made sense in terms of the value it would add to the offering since Idea is a well-known brand name.
"Right now no decision has been made regarding the rebranding of Idea," said Jacek Kalinowski, Centertel's spokesman, "Nothing seems to be standing in the way of new clients joining the network under its present name, and its success is undeniable."
No one at Orange's headquarters in the United Kingdom responded to a phone call or an e-mail seeking comment.
Meanwhile, a source inside TPSA said that France Telecom is keen to focus its attention on the fixed-line telecoms firm and will try to maintain Centertel's current market status.
"France Telecom has financial problems and has had record-breaking losses," said the source, who asked not to be identified. "Right now it wants to concentrate on TPSA and doesn't want to lose a profitable source."
Another analyst, who asked not be named, said that rebranding Centertel now might be an expense that France Telecom would be happy to avoid.
Bob Creamer, a telecoms analyst at Raiffeisen Capital and Investment Polska said the present situation on the cellular market is not favorable to brand changing and the success of a possible Idea relaunch as Orange would depend on the level of mobile penetration on the local market.
"With growth still to come, one could try rebranding at an early stage, while at a higher level of penetration a new name would not matter to the clients anymore," he said. "But at the current stage where the level of mobile penetration is approximately 40% and where most subscribers are expected to be signing up within the next two years, the timing to change brands would be very odd."
