MOBILE REVENUES IN ARMENIA GROW 32.8% IN 2008
by Seth Wallis-Jones

Global Insight
Global Markets Research Centre
February 9, 2009

The RA National Statistics Society has released data on Armenian
telecoms revenues in 2008, reports the ARKA news agency. Total telecoms
revenues were 169.1 billion dram ($552US million), up by 14.9% in a
year. This was driven by mobile revenues, which rose by 32.8% to 112
billion dram (66.2% of the total). Internet and data revenues also
grew rapidly, up by 52.3% year-on-year (y/y), although still only
amounting to 4.686 billion dram. TV broadcast revenues were up by
7.3% to 3.386 billion dram while fixed-line revenues fell by 18.2%
to 43.8 billion dram.

Significance:Fixed telephony revenues are rapidly falling as mobile
telephony takes over–in 2007 a 3.4% increase was recorded in the
fixed-line subscriber base, but this data would indicate that this
situation has reversed–although some loosening of Armentel’s monopoly
has occurred in recent years, which may have helped depress prices
with new VoIP services being established. With a relatively small and
rapidly shrinking revenue base for fixed services, it may be difficult
for Armentel’s fixed-line businesses to maintain a firm position in
the market from which additional services, such as broadband and video,
can establish a major role and replace revenues.