Pan ARMENIAN Network, Armenia
July 16 2005
ARMENIA’S TELECOMMUNICATIONS DEVELOPING STEADILY
16.07.2005 06:11
/PanARMENIAN.Net/ “2005 Central Asian Broadband and Internet
Markets”, a new report offered by Biz-lib.com, suggests that Armenia’s
telecommunications sector is steadily growing. The level of investment
in infrastructure and new services has begun to increase. The report
warns, however, that there are major structural issues to be addressed
in the sector. ArmenTel, the country’s national telecom provider,
has exclusive rights to the provision of all telecoms services,
including public switched telephony services and mobile telephony,
in Armenia until 2013. The report notes that Internet services are
outside ArmenTel’s monopoly. The country’s Internet market is small
(penetration 7.5%), but has been developing steadily. However,
there are still several major obstacles in the way of improved
Internet connectivity. Not unexpectedly, these include poor telecom
infrastructure; expensive telephone lines; the high cost of computer
equipment relative to an average worker’s salary; political unrest in
some regions of the country, which impedes infrastructure reform and
intimidates potential sponsors and donors, and a heavy dependence
on international funding, making long-range planning difficult. A
permanent Internet link was established for Azerbaijan in 1995
through the country’s Academy of Science. The country has had dial-up
Internet access since 1991. By early 2005, Internet penetration was
around 6%. Georgia established a permanent link to the international
Internet backbone in 1995, after having had non-permanent, dial-up
Internet access since 1991. Internet use remains low (penetration
5%), but the market has shown growth and strong competition between
ISPs. There are a handful of broadband services in place.