INTERNET ACCESS FOR SOUTH-CAUCASUS COUNTRIES DEPENDS ON UTCG DECISION ON PRICES FOR INTERNATIONAL COMMUNICATIONS

Arka News Agency, Armenia
Jan 17 2007

YEREVAN, January 16. /ARKA/. The Internet access for the South-Caucasus
countries and particularly Armenia, depends on the decision that the
United Telecommunication Company of Georgia (UTCG) will make on the
prices for international communications.

The UTCG and the "Fopnet" Georgian company are currently negotiating
over mutual recalculation of prices for the internet cable servicing,
press-secretary of "ArmenTel" company Hasmik Chutilian reported.

UTCG intends to increase the price for cable servicing; the cable is
owned by the "Fopnet", Chutilian said.

According to her, the "ArmenTel" company constantly communicates with
UTCG and keeps an eye on the negotiations.

The outcome of the discussions and the adopted decision will determine
whether Armenia, Azerbaijan and other countries of the region will
get Internet from Russia through Georgia, Chutilian said.

She pointed out that the Internet supply currently is not under the
direct threat of interruption.

The Georgian online media continues spreading the information on the
UTCG threats to block the Internet access for Armenian and Azerbaijani
users and stop the "Fobnet"-owned cable servicing.

The decision was made due to the indebtedness of "Fopnet" to the UTCG
amounting about $1.7mln.

The 130-kilometer optical fiber cable is drawn along the Black Sea
bottom from the Russian Novorossiysk city to the Georgian Poti port
and connects Russia with Armenia and Azerbaijan.

UTCG is a major telephone company in Georgia, having about 350,000
subscribers.