World Markets Research Centre
Global Insight
April 8 2010

Armentel Plans to Triple 3G Capacity by End-2010

BYLINE: Michael Lacquiere

VimpelCom’s Armenian unit Armentel has announced plans to triple its
3G network capacity by the end of 2010. The operator launched 3G
services in October 2008, and reports that it currently has more than
100,000 mobile internet subscribers to its mobile internet services,
including 3G. No details have been given of the likely investment in
network expansion.

Significance:Although Armentel saw very little movement in its overall
subscriber base, which remained at around 545,000 at the end of 2009,
its fixed broadband subscribers numbers have increased almost
threefold, to 26,200, and the addition of 100,000 mobile internet
subscribers in just over the first year of operation is indicative of
the group’s attempts to broaden its portfolio. By establishing a base
of both fixed and mobile internet subscribers Armentel gives itself
the option of cross-selling products that will be targeted at higher
end-users. There is limited room for continued mobile growth in
Armenia, with penetration just nudging the triple-digit level at the
end of 2009, so the push into the mobile internet sphere is
well-timed, but strong competition is offered by Vivacell and Orange.