ARMENIAN FIXED TELEPHONE NETWORK PASSED OVER TO RUSSIAN COMPANY

YEREVAN, JULY 26, NOYAN TAPAN. The Armenian fixed telephone network,
the monopoly of which belongs to ArmenTel, will be passed over to
the MTS company making part of the Sistema Russian holding. As NT
correspondent was informed from unofficial sources, ArmenTel will be
officially passed over in late August, after an agreement is signed
between the sides.

According to some information, the Russian side is already studying
ArmenTel’s activity on the spot for the purpose of assuming its
management.

As for the ArmenTel’s mobile communication, according to some Russian
media, it will be governed by an international consortium formed with
participation of the Indian VTEL Holding and Knigtsbridge companies.

To recap, the OTE Greek company, to which 90 percent of ArmeTel’s
shares belongs, sells its shares through an international tender,
the organization of which has assumed HSBC bank. The tender results
will be published in early August.