Ministry says H1 investments in Armenia’s telecoms up 40%

Prime-Tass English-language Business Newswire
September 7, 2004

YEREVAN, Sept 7 (Prime-Tass) — Investment into the telecommunications
sector in Armenia rose over 40% on the year in January-June to
U.S. USD 41.5 million, the Economic Development and Trade Minister
Tigran Davtyan told reporters Tuesday.

Of the total, direct investments amounted to USD 21 million,
Davtyan said.

The major investor in the sector was Greece’s Telecommunications
Organization (OTE), he also said adding that the company continues
to invest in the sector.

“The increase of OTE’s investments testifies that the company is ready
for the fact that ArmenTel will not keep its monopoly in the Armenian
telecommunications sector for a long period of time,” Davtyan said.

ArmenTel is an Armenian telecommunications company, which was granted
the right to a monopoly for 15 years in 1997.

On September 8, 2003, the government decided to deprive ArmenTel of
its monopoly license, but the decision has not yet been enforced due
to ongoing lawsuits.

OTE controls a 90% stake in ArmenTel, while the remaining 10% is held
by Armenian government.

According to a financial statement provided by OTE, ArmenTel’s
operating revenue rose 22.7% on the year to 21.1 million euros in
the second quarter. End