ARMENTEL TO BE STRIPPED OF ITS MONOPOLY IN 2007

Arka News Agency, Armenia
Dec 19 2006

YEREVAN, December 18. /ARKA/. ArmenTel’s monopoly on Armenia’s
telecommunications is to be voided before November 14 2007.

Armenia’s state commission on public utilities decided at its Monday’s
session to strip ArmenTel of its sole right for providing International
Voice Gateway services. The decision is to take force in ten days
after the decision release.

The decision has been worked out by joint efforts of the commission,
ArmenTel’s experts, Russian VympelCom and representatives of Armenian
Transport and Communication Ministry.

Samvel Arabajan, a member of the commission, said the move marks
the completion of the first stage of telecommunication market
liberalization aimed at ridding it of monopolization.

He said that although deadline is November 14, 2007, it is planned
to complete all technical and legislative work by August 2007.

Oleg Bliznyuk, ArmenTel CJSC general executive director, in his turn,
expressed hope for market liberalization completion by the next year’s
September and voiced favor for civilized competition.

ArmenTel CJSC is one of Armenia’s two mobile communication operators
and the monopolist on stationary telephone communication. The company
has 400 000 mobile communication subscribers and 600 000 stationary
communication subscribers.

>>From November 2006, 90% of ArmenTel’s stakes belong to Russian
VympelCom (Bee Line brand). The remaining 10% belong to Armenian
government.

VympelCom authorities and Armenian government are now negotiating
over the sale of these 10 %.