A NEW PLAYER IN ARMENIA’S INTERNET MARKET

Tert
Sept 18 2009
Armenia

The first signs of competition are appearing in Armenia’s internet
wholesale market. If so far the wholesale internet trade was
centralized in the hands of two companies, ArmenTel CJSC and FiberNet,
within the next month one more player, GNC Alfa Company, will appear
in the market.

This fact gives hope that finally, internet will be available in all
of Armenia, and the costs will be reduced to reasonable amounts. GNC
Alfa has already been granted a Public Telecommunications Network
License from the Public Services Regulatory Commission of the Republic
of Armenia.

GNC Alfa has already a constructed fiber-optic network, which stretches
along the Iran-Armenia gas pipeline. Soon construction of one more
cable to Georgia will begin. The latter will stretch along the roads
and the pipelines; construction is planned to be completed within
18 months.

According to the Minister of Transport and Communication of
the Republic of Armenia Gurgen Sargsyan, the new Armenia-Georgia
fibre-optic cable will meet both the present and future increasing
demand for internet, it will improve competitive atmosphere in
the field, and it will lead to a reduction in fees associated with
internet services.

Today Armenia only has seven exit-channels to the international
communication. One of the internet cables stretching to Georgia
belongs to FibreNet; the others, to ArmenTel.