Beeline Didn’t Notice ‘Orange Revolution’ In Armenia


Nov 6 2009

The entrance of Orange Armenia, the third mobile operator in Armenia,
in the market didn’t change a thing in the sector, said Director
General of ArmenTel (trademark: Beeline) Igor Klimko.

Speaking with journalists today, Klimko stated that both in the
internet services and the mobile communications markets ArmenTel’s
plans and rates are more competitive. "Many expected it, but an orange
revolution didn’t take place. To say that a new operator appeared,
which could offer dumping prices, would be wrong. Particularly,
this refers to the internet," Klimko said.

According to the latter, if we become intimately acquainted with
the mobile communications tariffs offered by their competitor, we
could see they are not engaging in predatory pricing (a term used in
economics which denotes the practice of selling a product at a very
low price in order to oust the competition). "Those offers [referring
to predatory pricing] are correct concerning operators in the market,"
Klimko stated.

"In the mobile communications sector, for several months, ArmenTel
dictated the fashion," Klimko said, mentioning For You and For
You-Exclusive "revolutionary" packages, in particular.

As for internet services, the company’s director general doesn’t
consider the price offered by Orange Armenia a serious threat to

In this contex,t Klimko presented some numbers for comparison: ArmenTel
offers unlimited internet at 12,500 AMD per month and a modem at 18,000
AMD. While Orange Armenia’s modem for internet connection is 35,000
AMD, and the monthly rate for internet services is set at 9,000 AMD.

At the same time, ArmenTel’s director general appealed to Orange
Armenia’s potential subscribers to get better acquainted with the
tariffs offered by Armenia’s newest operator in the internet and
mobile communicationss market.

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