VIVACELL TARGETS 3G LAUNCH IN ARMENIA BY END-2008
World Markets Research Centre
Global Insight
June 25, 2008
Armenia’s leading mobile operator by subscriber numbers, K-Telecom, has
indicated that it will launch 3G services by the end of 2008, reports
ARKA, quoting company General Director Ralph Yirikian. K-Telecom will
initially offer 3G in three large cities, although these were not named
by Yirikian. The operator is owned by Russia’s Mobile TeleSystems (MTS)
and operates under the "VivaCell" brand, but is currently undergoing
a rebranding which will eventually see it called MTS-Armenia.
Significance:Both K-Telecom and its only rival GSM operator, Armentel,
gained their 3G licences in October 2007, with Armentel announcing in
March that it expected to launch 3G services by mid-2008 (seeArmenia:
14 March 2008:). The rivalry between the pair is given added spice
by the fact that Armentel’s owner, VimpelCom, is also the major rival
to MTS in the massive Russian mobile market. A third GSM operator is
due to be licensed in Armenia before the end of 2008, but although a
penetration level of around 57% at the end of 2007 leaves room for
subscriber uptake, it is highly unlikely that any new player will
make a serious challenge to the existing duopoly.