ARMENTEL TO CUT INTERNET PRICES FOR LOCAL PROVIDERS
Michael Lacquiere

World Markets Research Centre
Global Insight
June 30, 2008

Armentel has indicated that it will reduce the price of internet
traffic in order to enable cheaper services to local providers. The
company has agreed with the country’s Ministry of Transport and
Communications to negotiate with international operators, according to
Operation Director Alexander Birman, as quoted in ARKA. The company’s
new internet prices will be announced in August 2008, according to
Anush Beglovan, the head of public relations.

Significance:Armentel has now come under pressure from Armenia’s
State Commission for Protection of Economic Competition (SCPEC)
to provide its "Hi-Line" internet services to internet providers
within 15 days. Should there be problems in making the necessary
investments to expand communication channels, SPCEC would consider
allowing providers to purchase equipment and install it on Armentel’s
network under rent conditions. Armentel’s Birman has indicated
that the company is prepared to lease its network if the necessary
technical and organisational conditions are in place. Regulatory
pressure gradually seems to be impacting on the Armenian market,
allowing greater competition in the internet sector as alternative
operators vie to gain access to the infrastructure of the incumbent
and former monopolist.