Prime-Tass English-language Business Newswire
November 4, 2004

Armenian govt approves ending ArmenTel’s GSM monopoly

YEREVAN, Nov 4 (Prime-Tass) — The Armenian government has approved the
removal of Armenian national telecom company ArmenTel’s exclusive right
to provide GSM, mobile satellite and mobile radio communication
services by amending the company’s license, Armenia’s Justice Minister
David Arutyunyan told reporters Thursday.

Arutyunyan added that the company would keep its monopoly on IP
telephony voice transmission services.

Arutyunyan said that the government decision was subject to the
president’s confirmation. It was not clear when Armenia’s President
Robert Kocharian might consider the issue.

In 1997, Greek company Hellenic Telecommunications Organization SA
(OTE) paid U.S. USD 142.470 million to gain control of a 90% stake in
ArmenTel. It bought a 41% stake from the Armenian government and a 49%
stake from Trans-World Telecom.

According to the agreement between OTE and the Armenian government,
ArmenTel was granted the right to a monopoly for 15 years, but in
September 2003 the government initiated a procedure to amend ArmenTel’s
license due to the allegedly low-quality services it provided.

Arutyunyan said earlier that Armenia’s government deemed necessary to
set up conditions for creation of the country’s second mobile operator.

End