Biz-lib.com: New Report Says Armenia’s Telecommunications Sector Set

Biz-lib.com: New Report Says Armenia’s Telecommunications Sector Set to Grow

Business Wire; Jul 15, 2005

“2005 Central Asian Broadband and Internet Markets”, a new report
offered by Biz-lib.com, suggests that Armenia’s telecommunications
sector is steadily growing. With almost 600,000 fixed-line subscribers
for a population of about 4 million people, the level of investment
in infrastructure and new services has begun to increase.

The report warns, however, that there are major structural issues to
be addressed in the sector. ArmenTel, the country’s national telecom
provider, has exclusive rights to the provision of all telecoms
services, including public switched telephony services and mobile
telephony, in Armenia until 2013.

The report notes that Internet services are outside ArmenTel’s
monopoly. The country’s Internet market is small (penetration 7.5%),
but has been developing steadily. However, there are still several
major obstacles in the way of improved Internet connectivity. Not
unexpectedly, these include poor telecom infrastructure; expensive
telephone lines; the high cost of computer equipment relative to
an average worker’s salary; political unrest in some regions of the
country, which impedes infrastructure reform and intimidates potential
sponsors and donors, and a heavy dependence on international funding,
making long-range planning difficult.

Full details of this latest Biz-lib.com analysis can be found at
Jennifer Cowlard
[email protected] Tel: +44 1494 771734 Fax: +44 1494 778994

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