CRPS Considered The Mutual Complaints Of The "ArmenTel" And VivaCell

CRPS CONSIDERED THE MUTUAL COMPLAINTS OF THE "ARMENTEL" AND VIVACELL MOBILE OPERATORS

Mediamax Agency, Armenia
April 4 2007

Yerevan, April 4 /Mediamax/. The Commission for Regulating Public
Services of Armenia (CRPS) considered today the mutual complaints of
the two mobile operators – "ArmenTel" and VivaCell.

Mediamax reports that, according to the decision, made by the
Commission, the VivaCell Company must in the course of one day place
information in its website on the tariffs, applied within the framework
of the "Optima +" tariff plan, as well as to inform the CRPS on any
changes in the tariff plans of the company in written form. At that,
the CRPS established that VivaCell should also notify its subscribers
about tariff changes in all the service centers.

The Commission made a decision to partly suspend the "Family and
Friends" service, which the "ArmenTel" Company has been providing
starting from March 1 of 2007 concerning the international calls,
and charged the company to present grounds to CRPS in the course of
10 days, according to which the 27 drams per minute tariff within
the framework of the "Family and Friend" service is not dumping.

The Commission decided that the VivaCell Company should in the course
of 10 days present to the CRPS grounds for their statement, according
to which the 27 drams per minute tariff, established by "ArmenTel"
within the framework of the "Family and Friends" service is dumping.

Mediamax reports that the General Director of the "ArmenTel" CJSC Oleg
Bliznyuk stated that the tariff, established within the framework of
the "Family and Friends" service is not unprofitable for the Company,
it continues to bring profit and, consequently, cannot be considered
dumping. The General Director of "ArmenTel" stressed that the new
owners of the Company have always been for the reduction of tariffs,
which will allow making the mobile service more available for the
citizens of Armenia.

"When we entered the market, we announced right away that we will not
be earning money by means of increasing the prices", Oleg Bliznyuk
stated.

"Our calculations evidence that the given tariff is over the prime
cost of the service. If we can provide this service by this price,
and the other operator cannot, it is not our problem", the General
Director of "ArmenTel" stated.

The General Director of VivaCell Company Ralph Yirikian refused to
comment on the statements of Oleg Bliznyuk, noting that he will be
following the decision of the CRPS. He also noted that in the nearest
future he plans to give a news conference and to tell about the plans
of VivaCell.