NEW MARKET ENTRANT ADC PROMISES FASTER, CHEAPER SERVICES

TeleGeography, DC
May 1 2007

Former monopoly ArmenTel and alternative telco Fibernet face fresh
competition in the Armenian fixed line internet access market in the
shape of Armenian Datacom Company (ADC). The newcomer launched on 27
April and promises to deliver faster, cheaper services in the near
future. ADC, an Armenian-Norwegian closed joint venture founded in
2006, has set up a USD3.4 million fibre-optic network in the capital
Yerevan, initially targeting business users. It has access to its
own satellite, bypassing the need to use ArmenTel’s limited capacity
satellite – which is used by other companies providing internet
services in the country. ADC plans to invest a further USD1.5 million
in the short term to improve services and is already promising cost
savings for users: ‘Unlike our competitors’, our network will provide
internet access and data transmission services at prices that will
be lower by 25%,’ a spokesman said.