IP Telephony Licences In Armenia Present Challenge To Armentel’s Fix

IP TELEPHONY LICENCES IN ARMENIA PRESENT CHALLENGE TO ARMENTEL’S FIXED-LINE DOMINANCE
by Michael Lacquiere

Global Insight
October 8, 2007

Armenia’s Public Services Regulatory Commission (PSRC) has issued the
country’s first IP telephony licences, reports ARKA. The licences for
long-distance voice communication have been awarded to Global Colline,
Tarcom and Anatel, which will all need to apply to fixed-line incumbent
Armentel for operation of telephone numbers to be enabled.

Significance:The provision of IP telephony in Armenia has been a
contentious issue, with Armentel earlier this year provoking the
ire of some 200 IP telephony providers by disconnecting operators
attempting to provide the service (seeArmenia: 30 January 2007:).

This action was initially supported by the PSRC, but the operator
later relented and has promised to end its monopoly of the country’s IP
telephony network. Earlier this month, Armentel also ended its monopoly
in a number of other telephony spheres in the country, including
the local, intercity, and telephony spheres; the leased-line market;
the international transit and satellite services market; the public
mobile communication market; and the broadband video-transmission
services market (seeArmenia: 3 October 2007:).

This action had been agreed to by Armentel as part of the deal struck
earlier this year, which saw it fully acquired by Russia’s VimpelCom.

The implementation of IP telephony by rival operators could add some
competition to the voice market, currently monopolised by Armentel with
612,400 subscribers at the end of 2007. Penetration in the fixed-line
sector is low at 20.4% at the start of the year and, as such, there is
opportunity for Global Colline, Tarcom and Anatel to present some sort
of challenge to the incumbent, not to mention choice for subscribers.

From: Emil Lazarian | Ararat NewsPress

Emil Lazarian

“I should like to see any power of the world destroy this race, this small tribe of unimportant people, whose wars have all been fought and lost, whose structures have crumbled, literature is unread, music is unheard, and prayers are no more answered. Go ahead, destroy Armenia . See if you can do it. Send them into the desert without bread or water. Burn their homes and churches. Then see if they will not laugh, sing and pray again. For when two of them meet anywhere in the world, see if they will not create a New Armenia.” - WS