‘ARMENTEL’ CJSC LOST ALL KINDS OF MONOPOLIES FOR TELECOMMUNICATIONS IN ARMENIA STARTED OCTOBER 1, 2007

ArmInfo News Agency, Armenia
Oct 1 2007

ArmInfo. According to the decision of RA Public Services Commission,
the "ArmenTel" CJSC (subsidiary enterprise of "VympelCom" OJSC)
has lost all kinds of monopolies for telecommunication services in
Armenia started October 1, the Commission told ArmInfo today.

According to the source data, he Commission’s decision on introduction
of the relevant changes to the Company’s license No 60 was approved
on August 24, 2007, and it takes affect from today. It means that the
telecommunications market in the republic is completely liberalized
from now on. The monopoly was given to the "ArmenTel" at the end, 1997,
till 2013. In particular, the "ArmenTel" refuses from monopoly on the
main and minor telecommunication and telephone services it possessed,
including the local, intercity and international telecommunication
and telephone services, services for lease of the telephone lines,
the international transit and satellite services, the public mobile
communication, the voice data transfer via Internet (IP-telephony),
video transmission services (broadband).

Director General of "ArmenTel" CJSC Oleg Blizniuk told journalists
earlier that the Company refuses of the monopoly voluntarily and
welcomes a healthy competition. However, he added, it is important
for the market to become not only free but civilized. He said that
a new era starts in Armenia in the area of telecommunications.

Meanwhile, he added, started October 1, the "ArmenTel" becomes an
absolutely commercial company, free of many social liabilities. So,
any projects related to investments, will be considered from the
viewpoint of the capital payoff, first of all.

Meanwhile, the Commission added that according to the agreement between
"ArmenTel" CJSC and the Armenian government, a new cell operator may
appear in Armenia only beginning from January 1, 2009.

To note, the "ArmenTel" CJSC , the owner of which is "VympelCom" OJSC,
and the "VivaCell" Company , 80% of shares of which is outbid by the
MTS Russian cell operator, are functioning in the Armenian market of
cell communication at present.