ARMENTEL DEALT $1US-MIL. FINE FOR INTERNET DOMINANCE
by Michael Lacquiere

World Markets Research Centre
Global Insight
August 4, 2008

Armenian fixed-line incumbent Armentel has been fined around 300
million dram ($1US million) for abuse of its dominance of the domestic
internet market, reports ARKA. The fine was imposed by Armenia’s
State Commission for Protection of Economic Competition, whose chief,
Armine Hakobyan, reported that it was handed out as a result of the
"unequal conditions for providers and operators" created by Armentel’s
‘Hi-Line’ internet service. The service offers cheap internet, but
Armentel has not leased its lines to rivals to enable them to provide
similar services. The operator now has 15 days to settle the matter.

Significance:The fine represents success for rivals, such as Arminco,
CrossNet and Web, which have frequently complained of a lack of
access (seeArmenia: 29 July 2008:). While Armentel had insisted
that it would respond to all applications for network sharing from
local internet service providers, news of the fine is a positive
step forward for the country’s internet market, indicating that,
as well as measures to liberalise the marketde jure, the regulator
is willing to act in order to ensure thatde factoliberalisation also
occurs. The process of equalising competition will take some time,
but progress is undoubtedly being made.