MAXIMUM TARIFFS FOR WHOLESALE INTERNET FIXED FOR DOMINATING PARTICIPANTS IN THE MARKET IN ARMENIA

ArmInfo
2009-11-18 14:59:00

ArmInfo. Public Services Regulatory Commission of Armenia (PSRC) has
fixed maximum tariffs for transit of the international IP-traffic
(wholesale Internet sales). The tariffs have been fixed for the
dominating participants in the market – ArmenTel CJSC (subsidiary of
the Russian VimpelCom) and Fibernet Communication LLC.

According to the investigation by PSRC, these companies held 53,9%
and 46,1% of the indicated market, respectively (based on the data
for the 1st half year, 2009). According to the decision, the companies
should leave 10% of their cables’ carrying capacity as a reserve. The
decision takes effect on January 1, 2010. The decision does not cover
the third supplier of external Internet in Armenia – GNC Alfa Company,
as this company is not registered as a dominating market player (the
company started its activity on October 15, 2009). The maximum tariff
per 1 MB/sec will be calculated by the formula 374 x E x 28820, where
E is the Armenian dram rate to US dollar, published by Central Bank
on the day 25 of the month preceding the reporting month, and 28820 –
is the operator’s margin (in drams). The figure 374 derived as 280,4
(the average traffic purchase price abroad) divided by 0,9 ( with
account of 90% of the potentially acting cable capacity) multiplied
by 1,2 (with account of 20% of VAT). So, the maximum tariff per 1
MB/sec, calculated at 384,68 AMD/$1, published by CB on October 26,
will make up 172,69 thousand drams, or about $450.

Currently, ArmenTel’s tariffs for wholesale Internet per 1MB/sec vary
from 431,4 thousand drams (during purchase of 1 MB) to 306 thousand
drams (during purchase of 77824 – 102400 MB), VAT inclusive. Fibernet
tariffs make up 251 thsd drams (during purchase of 1 – 100 MB/sec) and
231,6 thsd drams (during purchase of 101 -155 MB/sec), VAT exclusive.