Karabakh Telecom holds monopoly in telephony

08-02-2008 11:54:28 – KarabakhOpen

On February 7 the Public Services and Fair Competition Regulatory
Commission held a meeting in which Karabakh Telecom, the only mobile
and fixed-line telephone operator and internet provider of Karabakh,
was defined as a monopolist. The company came up with an initiative,
and the commission met the initiative. `The status of a monopolist
supposes more responsibility and transparency of the company’s
activities. Besides, the company thereby assumes responsibility for the
development of the entire sphere,’ said the chair of the Commission
Vache Adamyan.

The commission also affirmed the order of financial statements of
Karabakh Telecom, which will include detailed information about
expenditure and profit, which will be released.

Karabakh-Open.com asked if Karabakh Telecom has proposed a change of
tariffs and per minute pay as the fixed line telephone network is being
digitalized. Vache Adamyan said the commission has received no proposal
yet. The spokesman for Karabakh Telecom stated that the company is
currently working out the bid which includes both a subscription fee
and per minute pay.

According to the chair of the commission Vache Adamyan, the commission
will study the justification of tariffs proposed by Karabakh Telecom
and will make a decision proceeding from the interests of consumers and
the company.

`Monopoly does not mean that the company will create obstacles for
other operators. The law on fair economic competition provides for
remedies against monopolies which create obstacles to other companies.
Misuse of monopoly is fined 500 million drams,’ said Vache Adamyan in
an interview with Karabakh-Open.com.

He also informed that although the Commission welcomes digitalization
of fixed-line telephone, it has observed several technical
shortcomings, namely the CDMA system was not used, Free Phone services,
as well as other services are not provided. The spokesman for Karabakh
Telecom said the company will study the observations of the Commission
and try to eliminate the drawbacks.

At the same time Karabakh Telecom pays the biggest volume of fixed
charge ` 15.4 million drams. It became known during the meeting of the
commission that according to the law on fixed charge, the company whose
activities are regulated by the commission pays a fixed charge for
sustaining the commission. Currently the government finances 30 percent
of expenditure of the commission.

From: Emil Lazarian | Ararat NewsPress