24 Base Stations Of Komstar OTS’ WiMax Network Put Into Operation In

24 BASE STATIONS OF KOMSTAR OTS’ WiMAX NETWORK PUT INTO OPERATION IN ARMENIA

Noyan Tapan
Oct 22, 2008

YEREVAN, OCTOBER 22, NOYAN TAPAN. Komstar-OTS OJSC (Russia) and its
Armenian subsidiary Cornet-AM company have launched a WiMAX network
of 24 base stations that covers Yerevan (6 stations) and another 18
cities in Armenia, the president of Komstar-OTS Sergei Pridantsev
and the director general of Cornet-AM Boris Demirkhanian announced
at a joint press conference on October 21.

According to S. Pridantsev, this is the first network in the world
to be completely built based on WiMAX technologies. It covers an area
where 60% of Armenia’s population lives.

B. Demirkhanian said that it is envisaged increasing the number
of stations to 40 in order to expand the area covered by the
network. Investments of 4.6 million dollars have been made in the
construction of the currently operating network. The amount of
future investments will be determined based on the results of the
network’s operation in 2008 and the development tendencies of Armenian
telecommunication market. The base stations of the network are linked
to each other by fiber-optic and radio relay lines which are either
rented lines or Komstar OTS’s own ones. Komstar-OTS conducts a policy
of ensuring similarity of the prices of services provided in Armenia.

Komstar OTS’s network in Armenia enables to deliver complex services:
digital phone connection, conference connection, and organization
of corporate networks. The company currently offers its services to
corporate users, but it has the strategic goal of servicing private
users as well.

The director general of Cornet-AM informed those present that the
company currently has more than 600 subscribers and over 1,000
connection points that ensure the connection of their services. The
company plans to increase the number of subscribers by at least
400 until late 2008. S. Pridantsev pointed out the development
disproportion between the capital city and marzes (provinces) from
the viewpoint of Internet access. Only 4% of the country’s population
has an Internet access now. In his opinion, taking into account the
fact that "the region is developing normally, the level of access may
reach at least the current level of fixed-line phone connection access
which is over 20%". The matter concerns broadband Internet access.

In the words of B. Demirkhanian, in the summer of 2008, Cornet-AM
submitted a bid to the RA Public Services Regulatory Commission with
the request to receive permission for provision of fixed-line phone
services for 60 thousand phone numbers.

It is noteworthy that Komstar-OTS is the biggest operator of fixed-line
phone communication in Moscow. Using the base network of fixed-line
communication, it provides phone, data transfer, Internet access,
digital television and other services to retail operators, corporate
customers and private users. In addition to the indicated base
network, a WiMAX network will be launched soon. The ultimate users
of the company’s services provided by fixed phone lines make up 97%
of Moscow households. Besides, the company provides telecommunication
services in 67 cities in five okrugs (regions) of Russia, as well as
in Ukraine. Komstar-OTS is likely to enter Kazakhstan’s market as well.