COMMISSION FOR PROTECTION OF ECONOMIC COMPETITION OF ARMENIA FINED ‘ARMENTEL’ CJSC TO THE SUM OF $277 FOR UNFAIR COMPETITION

Arminfo Agency
2007-05-02 14:26:00

The Commission for Protection of Economic Competition of Armenia
resolved today to fine the "ArmenTel" CJSC to the sum of 100,000
drams ($277) for unfair competition. The Commission Chairman Ashot
Shahnazaryan said at today’s session that the Company misleads the
consumers. In particular, the matter concerns the "Family and the
Friends" service, according to which the Company offers to create a
group of five subscribers and talk by tariff of 27 drams per minute
within the group, that is cheaper by 50% than the Company’s average
tariff. However, A. Shahnazaryan said, the advertising spot does
not indicate that besides the per minute payment, the subscribers
should also settle the subscriber payment every month at the rte of
300 drams. By estimations of the Commission specialists, the tariff
of the "family and the Friends" costs now not 27 drams but 39,8 drams
on average, taking into account the subscriber payment.

Director General of "ArmenTel" Oleg Blizniuk does not agree with the
Commission decision and considers it "one-sided". "We advertise only
one of the price proposals of one of the already functioning tariff
plans, which includes 27 drams as well. We do not advertise the tariff
plan in whole, but introduce some changes to it", O. Blizniuk said. He
explained that 300 drams of the subscriber payment by the tariff plan
are fixed not just for the "Family and the Friends" service. This
amount is permanently present in the tariff plan irrespective of
changes of the prices for any calls.