Armenia’s govt wants ArmenTel to vacate some GSM 900 channels
Prime-Tass English-language Business Newswire
October 11, 2004
EREVAN, Oct 11 (Prime-Tass) — Armenia’s national telecommunications
company ArmenTel might have to vacate some of its GSM 900 channels for
the use of a new second mobile operator and allow it to use ArmenTel’s
fiber-optic communications line, Armenia’s Justice Minister David
Arutyunyan told a press conference on Monday.
The government and ArmenTel have been discussing these and other
proposed measures aimed at depriving the company of its ‘exclusive
rights’ rather than stripping it of its monopolistic status, Arutyunyan
said. The talks are expected to be completed by October 28.
Arutyunyan said that ArmenTel’s giving up some of its GSM 900
frequencies for the use of the second mobile operator was meant to
create conditions for effective competition. He added that ArmenTel
currently occupies most of the GSM 900 frequencies, and given the
current situation the second operator would not have enough frequencies
to provide services.
Neither would it be able to operate without using the fiber-optic
communications line to which ArmenTel has exclusive rights, Arutyunyan
said.
There are also dozens of other issues that the government and the
company still have to agree on, Arutyunyan said.
Arutyunyan said the government and ArmenTel have agreed that two
mobile operators are enough for Armenia’s telecom market. A larger
number of operators might lead to a slowdown in the development of
the market, since smaller companies might not have enough funds to
invest in networks.
While the coming of the second operator should lead to a decrease in
tariffs, the government is to ensure that operators do not engage in
price dumping to squeeze out competitors, Arutyunyan said. This does
not mean, however, that telecom tariffs will be fixed, he added.
The Armenian government decided last year to amend ArmenTel’s license,
which stipulates the company’s right to a monopoly for 15 years, but
postponed introducing the amendment from October 12 to October 28,
according to the government press service’s report on October 7. End