ArmenPress
June 25 2004

GOVERNMENT, OTE SEEK OUT OF COURT SETTLEMENT OF THEIR DISPUTE

YEREVAN, JUNE 25, ARMENPRESS: Armenian justice minister David
Harutunian is currently negotiating in London with representatives of
the Hellenic Telecommunication Organization (OTE) in an effort to
reach an out-of-court settlement of the bitter dispute between the
government and OTE’s subsidiary ArmenTel operator.
The OTE subsidiary is accused by Armenian government of abusing
the 15-year exclusive rights granted in 1998, failing to provide good
quality communication and maintaining high cost of its services.
These charges are denied by the Greek side, which says the government
itself violated the 1998 takeover contract. Earlier this year the OTE
and Armentel filed a lawsuit to the London-based International Court
of Economic Arbitration, seeking hundreds of millions of US Dollars
in million in compensatory damages.
Harutunian is negotiating with the newly appointed chief manager
of Armentel, Vasily Fetsis. Armenpress learned from well-informed
sources that an amicable settlement of the dispute is possible in the
event of mutually beneficial proposals, which were not disclosed yet.
For the Armenian side this means good quality communication.
OTE’s priority in Armenia’s market is to enlarge the network of
mobile phone communication, that will allow it to improve its
financial standing, but despite this change in its policy Armenian
government decision stripping ArmenTel of its lucrative monopoly on
mobile phone services and Armenia’s Internet traffic with the outside
world enters into force on June 30.
Armentel says it has invested some $217 million in Armenia’s
telecommunications and plans to invest another 25 million euros this
year to expand mobile phone network.