INTERNET PRICES WILL DROP IN ARMENIA, SAYS ANALYST

Tert
Nov 5 2009
Armenia

Armenian Public Services Regulatory Commission (PSRC) member Samvel
Arabajyan, in an interview with local Armenian daily Capital, announced
that interesting developments in the internet services market can be
expected; lowering of the cost of internet, in particular.

"I believe that there will be a drop in wholesale internet prices,
and as a consequence, a drop in retail prices as well. During the past
two years, there has been the following dynamic: wholesale internet
traffic doubles every year. The increase in the number of customers
results in an increase in internet traffic.

"The practice is such that internet prices are dependent on the volume
of traffic: the larger the volume, the lower the cost. I think that
within 1 to 1.5 years’ time, the volume of internet traffice will
double in Armenia. If today we use around 1.5 Gbit/sec traffic,
in 1.5-2 years, internet traffic will be around 3-4 Gbit/sec. The
increase in traffic raises its own problems. I think it’s already
time to take steps toward shaping our own content.

"There must be data centres in Armenia, mainly to install ‘mirror’
pages of websites mostly used inside the country. Endlessly adding
incoming traffic and creating new links are not possible. It’s
necessary to use our own content, which will promote a drop in internet
prices, and an increase in speed and reliability," said Arabajyan.