IPHONE VS. BLACKBERRY: NEW DEVELOPMENTS IN ARMENIA’S TELECOMMUNICATIONS MARKET

Tert
Nov 11 2009
Armenia

The competition between telecommunications operators in Armenia in
providing mobile and internet services might expand into the cell
phone product market beginning as early as next year.

The level of permeability in Armenia’s mobile communications market
is 80%, forcing telecommunications operators to come up with new
solutions in retaining and attracting customers.

For instance, Armenia’s newest telecommunications operator, Orange
Armenia, announced that it will be the official supplier of the iPhone
in Armenia. This means that after some time, those phones will become
available for customers for a cheaper price in the marketplace,
of course on the condition that those individuals buying the phone
become their customer by signing onto their plans.

Already Orange Armenia has begun to sell mobile phones that are cheaper
than the market price to its customers. The company, it turns out,
has exclusive contracts with a number of mobile phone manufacturers.

It’s no surprise then that iPhone’s competitor, Blackberry, will be
represented by VivaCell-MTS in the Armenian market. MTS has already
begun to sell these smartphones to individual customers in the
Russian marketplace.

In Russia, for instance, MTS sells the Blackberry Curve 8520 smartphone
for around $440 USD — about $100 USD cheaper than the price offered by
(other) retailers. Customers who purchase the Blackberry Curve 8520
receive other free services provided by MTS.

Russia’s VimpelCom (ArmenTel’s sole proprietor) sells Blackberry
phones in Moscow and St. Petersburg, and it’s not entirely unlikely
that those will be offered in Armenia as well.

Thus, the competition in the telecommunications market in Armenia
could, quite soon, move to the retail sector. As for what effect this
will have on importers of these products, only time will tell.