`ArmenTel’ to lose all its monopoly rights on October 1

Mediamax Agency, Armenia
Aug 24 2007

`ArmenTel’ to lose all its monopoly rights on October 1

Yerevan, August 24 /Mediamax/. The Commission on Regulation of Public
Services (CRPS) of Armenia made a decision today, according to which
`ArmenTel’ Telecommunication Company will lose all its monopoly
rights on October 1 of 2007.

Mediamax reports that, by another decision, the CRPS assessed as the
existing tariffs for the fixed telephone connection `balanced’.

As the Chairman of the CRPS Robert Nazarian stated, in the course of
the 45-day negotiation process the specialists of the Commission came
to the conclusion that some of the calculations, presented by
`ArmenTel’, are not grounded, and the CRPS made a decision to
operatively solve the issue of liberalization of the
telecommunications market of Armenia, and only after that return to
the issue of reconsideration of the tariffs.

Robert Nazarian also noted that during the negotiations with the
representatives of `ArmenTel’, an agreement was reached on not
changing the existing tariffs in the course of six months following
October 1 of 2007.

The General Director of `ArmenTel’ Oleg Bliznyuk stated today that
the new tariffs, proposed by the Company, were the most optimal ones
both for `ArmenTel’ and for the subscribers, and that the decision of
CRPS on not accepting a number of arguments of the company was
ungrounded.

Oleg Bliznyuk stressed that the renouncement of monopoly is a
demonstration of good will by `ArmenTel’. He noted that starting from
October 1, it will become an `absolutely commercial’ Company,
however, this does not mean that `ArmenTel’ will renounce its social
programs for pensioners and needy layers of the population.

Talking about the coming developments in the telecommunication sphere
in Armenia, Oleg Bliznyuk noted that `there will be no universal
happiness on October 1, and it is very important that the market
become not only free, but also a civilized’.

`Everything changes, and everyone changes. Here the bride did not
want to get married, but the most important thing is not to be left
on the shelf, and she got attracted to money. We want to become a
real man, but some want to get married’, General Director of
`ArmenTel’ noted.

Mediamax recalls that on July 12 the General Director of the Armenian
VivaCell mobile operator Ralph Yirikian refuted the statements on the
possible sale of the Company. He compared VivaCell `to an 18-year-old
young lady, who has many worshippers, who want to tie their lives
with hers’. However, he noted, `the lady does not want to get
married, but she wants to realize her plans’. Lately, there were a
number of statements appearing, according to which the Russian MTS
mobile operator is holding negotiations on the purchase of VivaCell.