Satellite Installation Costs Cut by Third in Armenia

YEREVAN, May 5. /ARKA/. The RA Public Services Regulatory Commission
amended the procedure of issuing permits for the use of radio
frequencies to reduce payments for permits and use of radio frequencies.

Chief of the commission’s Telecommunication Department Gevorg Gevorgian
reported that satellite communication can be used as an alternative to
ground-based wire communication systems for providing access to
wideband Internet, especially in the country’s remotest regions.

According to the amended procedure, 1mln drams and 400,000 drams are to
be paid for a permit to use a radio frequency and for 12-month
operation of a satellite station respectively. Depending on the number
of stations, the payment amount is reduced as follows: 2-10 stations `
500,000 drams for each, 11-20 stations ` 300,000 drams for each, 21-50
stations ` 200,000 drams for each.

The potential of modern Internet technologies can be fully realized
after the monopoly on outgoing data traffic is abolished in Armenia,
Gevorgian said.

Wide-scale use of satellite communication and expansion of
satellite-based services will promote economic competition, development
of the telecommunication market and, consequently, reduction in service
costs and better accessibility of the services.

Member of the RA Public Services Regulatory Commission Samvel Arabajian
pointed out two ways to provide outgoing data traffic for Internet
access and IP telephony, namely, fiber optic communication via Georgia
and direct satellite communication.

Georgia encounters regular problems with communication and repair time,
which actually deprives Armenia of Internet communication for certain
periods, Arabajian said. He also pointed out restrictions to outgoing
data transmission and quite high prices.

Fiber optic communication is quite acceptable only for some companies.
However, network delays are inadmissible for most users, Arabajian
said. Satellite stations will help create an alternative to fiber optic
communication, step up market competition and reduce prices, he added.

Arabajian said that the Commission’s decision cuts the costs of
satellite station installation by a third down to 1.8mln drams.

Commission chairman Robert Nazarian ordered monitoring of the new
prices. The monitoring results are to be summed up within six months.
The Commission’s telecommunication department will analyze the
efficiency of the decision. `0–