RESULTS OF TENDER FOR ARMENIA’S THIRD MOBILE OPERATOR EXPECTED IN OCTOBER
Michael Lacquiere

World Markets Research Centre
Global Insight
June 24, 2008

Armenia’s Ministry of Transport and Communications has indicated that
the results of the tender for the country’s third mobile licence will
be announced in early October. Various press reports quote Transport
and Communications Minister Gurgen Sargsyan as saying that a package
of the necessary terms and documents has already been approved by the
government. Companies will have 10 days to submit applications once
the tender is announced, after which they will be considered by the
Public Services Regulatory Commission.

Significance: Sargsyan has stressed his optimism that the tender will
attract international interest, mentioning that European companies
are likely bidders, while Asian companies, including those from Iran,
are also expected to participate. He asserted that the tender would
be "open and transparent", with "quality, price and image" among the
selection criteria to be used. The third operator will eventually join
Armentel, owned by Russia’s VimpelCom, and Vivacell, owned by Russia’s
Mobile TeleSystems (MTS) on the Armenian GSM market. Armentel General
Director Neycho Velichkov is quoted in ARKA as suggesting that his
company’s service package, which includes 3G and converged services,
will benefit it in the face of fresh competition from the new operator.