ARMENTEL ANNOUNCES FIXED-LINE DIGITALISATION PLANS, REPORTS MOBILE SUBSCRIBER GROWTH
Michael Lacquiere

World Markets Research Centre
Global Insight
July 25, 2008

Armenian fixed-line incumbent Armentel has indicated that it plans to
have digitalised 80% of its fixed-line network by the end of 2008,
reports ARKA. At present, the network digitalisation rate stands
at around 58%. The operator aims to digitalise the entire network
next year. It will also offer CDMA internet services to fixed-line
subscribers at speeds of up to 115.2 Kbps. Armentel currently has
650,000 fixed-line subscribers, an increase of 30,000 since the
start of the year. It expects to gain up to another 35,000 by the
end of 2008. It has also reported that its mobile subscriber base has
increased to over 780,000 from 540,000 at the end of the first quarter.

Significance: The digitalisation of its fixed network should help to
facilitate internet service provision, allowing Armentel to maintain
its dominance in the sector. The operator’s subscriber gain in the
fixed-line voice market is impressive, given the usual trend for
fixed-to-mobile substitution. However, the arrival of a third mobile
operator, potentially in early 2009, will increase competition in the
sector and place pressure on Armentel in the fixed-line and mobile
sectors as voice telephony options increase for subscribers..

From: Emil Lazarian | Ararat NewsPress