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Major Armenian IT And Telecommunications Companies Release Year-End

MAJOR ARMENIAN IT AND TELECOMMUNICATIONS COMPANIES RELEASE YEAR-END STATISTICS
Artur Papyan

/PanARMENIAN.Net/
08.02.2010 GMT+04:00

Revenues from communications services (not including VAT, at current
prices) totaled at 164 422 million Armenian drams in 2009, even as
recession hit the Armenian economy in a year of global financial and
economic crisis.

Meanwhile, according to data from Armenian National statistical
service, revenues from provision of internet services more than
tripled in 2009 reaching 10 404.2 million drams. Revenues from mobile
communications services made 105 766.6 million drams, while fixed line
phone service revenues closed at 40 341.2 million. Lucine Harutyunian,
19, was named the 200 thousandth subscriber of Orange-Armenia, having
bought a SIM card in a shop. At an official event organized by Orange,
she was presented with a notebook and a subscription to Orange’s
"Internet Now" tariff plan.

/PanARMENIAN.Net/ Orange Armenia CEO Bruno Duthoit said the number
of subscribers exceeded their expectations by as much as 10 percent
as he handed the gifts to Lucine Harutyunian.

Orange, a key brand of France Telecom group, entered the Armenian
market with its mobile and internet offerings on November 5th, 2009.

Within the past 3 months the company has been able to ensure an
estimated 7 percent market share of mobile user market. VivaCell-MTS
continues to remain the market leader by a large margin, having
announced 2 million 70 thousand subscribers at the end of 2009.

Beeline brand with over 502 thousand active subscribers (the latest
data is only available for third quarter of 2009 so far).

Meanwhile, Orange came out with a new offering on Monday, which is
geared towards further enlarging the market share of the brand. The
new offer – "Free minutes for you and your friends", will be valid
through February 28th. While the offer lasts, Orange customers can
‘invite’ new friends to join the network, and get 300 minutes of free
talking time with them.

Beeline, a trademark represented by ArmenTel company, also came up
with a new offer this week, enhancing its tariff plan "For you –
Exclusive" by increasing the starting balance (from AMD 200 to 400).

The tariff plan "For you – Exclusive" combines advantages of a
single service operator: balanced prices for calls to mobile and
fixed networks, as well as data transfer services. The service has
been attractive to subscribers so far, PanArmenian.net was told by
the press-service of ArmenTel. "For you – Exclusive" accounted for
a significant number of growth of Beeline subscribers since December
2009.

***

The electronic governance system will be introduced in Armenia in
January 2012. An inter-agency working group met this week to elaborate
the concept of introducing e-governance within a three-year Armenia-EU
program by September 2010.

Secretary of the National Security Council Arthur Baghdasaryan, who
chaired the working group meeting, said new governance system will
cover central government as well as local self-government and will
ensure that businesses can communicate with state bodies via e-mail.

According Baghdasaryan, the new governance system will reduce
corruption risks and eliminate red tape.

However, exchange of official documentation via electronic means of
communication requires due level of protection and security. Draft laws
on "Information Databases" and on the "Personal Data Protection" will
be elaborated and submitted to the RA government to address the need.

***

Data security is also one of the concerns which Microsoft is pitching
as a justification for submitting a program to combat software piracy
in Armenia to the relevant government bodies. The director of Microsoft
office in Armenia Grigor Barseghyan told PanArmenian.net that Microsoft
losses are estimated to be as much as $50 million US in the Armenian
market, which also translates to lost taxes for the state.

"Serious discussions were triggered around the program in the Ministry
of Economy, which resulted in a decision by Prime Minister to set up
a related inter-ministerial commission," Mr. Barseghyan said.

According to him, the commission will examine the problems in
legislation, issues of international cooperation and protection of
the rights of Armenian developers.

Pirated software also presents serious challenges to data security,
according to the director of Microsoft in Armenia. "Hacker attacks
are often possible because of unlicensed software use. That is why the
government should become an example of the use of licensed programs,"
Barsegyan insisted. Microsoft possesses data, according to which
only 30 percent of computers in state institutions have licensed
software installed.

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