INTERNET SERVICE MARKET TO BE LIBERALIZED IN ARMENIA BY LATE 2007

Noyan Tapan
May 24 2007

YEREVAN, MAY 24, NOYAN TAPAN. ArmenTel company intends to renounce its
exclusive rights to provide Internet services, including IP service,
by late 2007, as a result of which other companies will emerge in
this market next year.

Member of the RA Public Services Regulatory Commission Samvel Arabajian
stated this at the May 24 press conference. According to him, now the
commission is carrying out work aimed at solution of problems related
to market organization and licensing. The commission is discussing
with ArmenTel company the opportunity of using a post-payment system
for some phone services.

To recap, unlike ArmenTel, the IP service providing companies, whose
operation was suspended in early 2007 by the commission’s decision,
use the post-payment system (when the subscriber pays after being
provided services).

General executive director of ArmenTel Oleg Bliznyuk said that the
new companies to emerge in the market after liberalization of this
sector have to provide high-quality services, give the necessary
financial guarantees and have a transparent behavior in the tax field.

In the words of Samvel Arabajian, ArmenTel has not yet submitted to the
commission a bid on new tariffs for fixed-line phone communication,
although discussions on this issue are being held. In his opinion,
the sides should first of all reach an agreement on methods to be used
in connection with a transfer to rebalanced tariffs. The commission
representative stated that the public will be informed about the
economic substantiation of new tariffs’ formation.