ICON COMMUNICATIONS PLANS TO COVER ARMENIA WITH ITS WIMAX NETWORK IN 2010

Noyan Tapan
Oct 21, 2008

YEREVAN, OCTOBER 21, NOYAN TAPAN. iCon Communications company, which
was registered in Armenia in late 2007, plans to start operating in
January 2009 and provide Internet services by WiMAX technology in
Yerevan starting from April of the same year and througout Armenia
starting from 2010. Through its network, the company will offer
broadband wireless Internet services, Internet phone connection
services, as well as services on construction and operation of separate
corporate virtual networks. Aram Kablanian – the CEO of the company,
the founder of Virage Logic company (U.S), which has an Armenian
subsidiary – stated this at the October 20 press conference.

He said that 4 million dollars has already been invested for the
construction of a wireless network in Yerevan with equipment of
Alcatel-Lucent and Siemens, which will also be used for ensuring a
connection with a speed of up to 20 megabits/sec between the network
and ultimate users. The total amount of investments for the network’s
installation will make about 10 million dollars.

In response to questions of NT correspondent, A. Kablanian said iCON
Communications will use international channels of ArmenTel and Fibernet
as an international access communication line. According to him,
the prices of iCON Communications’ services will be announced after
some additional studies necessary for the determination of the speed
of services to be included in various packages. The company envisages
having 10 thousand users at the end of the first year after starting
the provision of Internet access services. It intends to operate for
all groups of users, also rendering Internet access services by a
prepayment/limitless use scheme and for resale.

Studies conducted by iCON Communications show that although the number
of Internet users in Armenia grew in 2007 by 909% as compared with
2003 and made 172.8 thousand users, the index of users per capita
makes 5.8%, whereas the same index makes 9.8% in Azerbaijan, 7.8%
in Georgia and 21.9% worldwide.

According to the studies, 80% of about 700 private users surveyed use
a dial-up connection when receiving Internet services. 50% of them
use the Internet every day, 60% – at home, 16% – at work, another 16%
– at Internet clubs. They would like the speed of Internet access
services to increase, while connection interruptions and prices
to decline. 24% of about 200 corporate users of the Internet said
that the availability of a second (independent) Internet connection
line is preferable for their organization, while 46% considered it
necessary. The share of organizations having a reserve connection line
does not exceed 30%. Corporate users expect positive changes related
to Internet speed, interruptions of the connection, and prices. In
the opinion of 41% of corporate users, today the prices are not in
line with the quality of services provided.