DUBLIN–(Business Wire)–
Research and Markets
(http://www.researchandmarkets.com/research/4ea6a4/armenia_telecoms) has
announced the addition of the “Armenia – Telecoms, Mobile & Internet” report to
their offering.

The telecommunications sector in Armenia went into decline following the
collapse of the former Soviet Union. Fixed-line teledensity fell by around 2%
partly due to the prevailing socio-economic instability in the region triggered
by the collapse of the Soviet Union. But more significant a factor was that the
country had failed to embrace any vigorous reform in the telecom sector. With
steadily improving economic conditions, the telecoms sector has nevertheless
been slow to respond. In the 2006/07 period positive signs were emerging for the
sector, however; despite fixed line expansion continuing to be flat, mobile
subscriber numbers were increasing by around 75% annually for a number of years,
helped no doubt by the introduction of competition into the mobile market in
2005. Growth in mobiles had slowed to 30% annually coming into 2009 as the
faltering Armenian economy started to have a negative effect on the telecom
market.

Armenias progress to a more competitive market has been slow. ArmenTel, the
countrys national telecom provider, was granted the exclusive right to provide
all telecommunications services in Armenia, including public switched telephony
services and mobile telephony, until 2013. As a consequence of this monopoly, no
other company was able to provide international satellite services. The one
segment of the market initially exempt from this monopoly was Internet services.

Greek company Hellenic Telecommunications Organisation (OTE) invested US$142.5
million in 1998 for a 90% equity stake in ArmenTel. The remaining 10% was
retained by the Government of Armenia. OTE agreed to develop and expand the
telecom infrastructure in Armenia, including the digitisation of the Public
Switched Telephone Network. OTE also agreed to invest US$300 million in the
countrys telecommunications network by 2003, of which US$100 million was to be
invested in ArmenTel.

However, amid growing dissatisfaction over the performance of the countrys
telecoms network, in November 2004 the government was under increasing pressure
to do something about the ArmenTel monopoly. It reached a compromise agreement
with ArmenTel to end its exclusive rights to provide a range of services,
including GSM mobile services, satellite and mobile radio communications
services in exchange for various other concessions, including the stipulation
that only one alternative mobile operator would be allowed to operate in Armenia
until 2009. ArmenTel was to also retain sole rights to Internet telephony and
the use of fibre optic cables.

The government subsequently made a controversial decision to choose Armenias
second mobile operator without transparent and competitive bidding; Karabakh
Telecom (KT), a little-known Lebanese-owned company, was officially awarded a
licence to operate a GSM network in Armenia.

OTE put its 90% equity in ArmenTel up for sale in June 2006, offered to the
market through a bidding process. Russian operator VimpelCom was the successful
bidder, finally acquiring the stake in November 2006. VimpelCom finalised the
deal in April 2007 acquiring the remaining 10% of the shares of ArmenTel from
the Government of Armenia to raise its equity holding in the company to 100%.

In December 2007 the Public Services Regulatory Commission (PSRC) said that the
government of Armenia planned to award a third mobile licence in 2008 based on
the GSM 900/1800 standard. There was to be a call for an international tender
with bidding for the licence which was due to start in May 2008 and to be
completed by August 2008. A new commission, to be established by the government,
would oversee the process. Orange Armenia was awarded a 15-year mobile operator
licence in November 2008. The newly licensed operator was 100% owned by France
Telecom (Orange).

Key Topics Covered:

1. Executive summary

2. Key statistics

2.1 Country overview

3. Telecommunications market

3.1 Overview of Armenias telecom market

4. Regulatory environment

4.1 Telecommunications Law 1998

4.2 Foreign investment

4.3 ArmenTel monopoly

4.4 Regulatory developments

4.5 Membership of World Trade Organization (WTO)

5. Fixed network operators in Armenia

5.1 ArmenTel

6. Telecommunications infrastructure

6.1 Local and national

6.2 International

7. Internet market

7.1 Overview

7.1.1 Internet statistics

7.2 WiMAX

7.3 VoIP

7.4 ISP market

7.4.1 Arminco Global Telecommunications

7.4.2 Armenian Freenet

7.4.3 Web Ltd (WEB.AM)

7.4.4 Armenian Datacom Company (ADC)

8. Mobile communications

8.1 Overview of Armenias mobile market

8.1.1 Mobile statistics

8.2 Major mobile operators

8.2.1 ArmenTel (ArmGSM)

8.2.2 K-Telecom (VivaCell)

8.2.3 Orange Armenia

For more information visit

http://www.researchandmarkets.com/research/4ea6a4/armenia_telecoms

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

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