ARMENTEL AND K-TELECOM STILL HAVE NO INTENTION TO
PARTICIPATE IN DISCUSSIONS ON DEVELOPMEMT OF ARMENIAN
TELECOMMUNICATION SYSTEM, MINISTER OF ECONOMY SAYS
ARMENTEL AND K-TELECOM STILL HAVE NO INTENTION TO
PARTICIPATE IN DISCUSSIONS ON DEVELOPMEMT OF ARMENIAN
TELECOMMUNICATION SYSTEM, MINISTER OF ECONOMY SAYS
05-05-2008 14:00:00 | Armenia | Economy
YEREVAN, MAY 5, NOYAN TAPAN. "I consider it as a challenge
that ArmenTel company (Beeline brand) and K-Telecom company
(VivaCell brand) are not interested in participating in
discussions on the Armenian telecommunication system," the RA
minister of economy Nerses Yeritsian stated at the press
conference during the "without-tie" meeting of heads of the IT
sector in Tsakhkadzor on May 1-3. In his words, it means that
"we have not made such decisions and envisaged such actions that
may affect these companies". The minister said that with time
these companies will become interested in participating in
discussions either forcedly or by finding their interest in such
participation.
The main problem raised during the discussion
"Telecommunication and Security" was related to such factors as
the quality and price formation of Internet access and data
transmission services. It was noted that although the sector of
Internet services has been liberalized, ArmenTel CJSC does not
actually provide other provider companies with channels for
rendering "last mile" Internet access services for the ultimate
user, as well as avoids connecting its channels to the networks
of these companies and provides itself Internet access and data
transmission services via the fixed-line phone network. This
creates some conditions for ArmenTel to have a natural monopoly
and provide the indicated services at the lowest price, which
makes it impossible for other companies to compete with ArmenTel
in the sector of "last mile" services and attract investments to
this sector.
According to N. Yeritsian, it is inexpedient to set up a
corporation with the aim of creating a second network of this
kind - with state's participation as there are this sector's
companies in the world, with their capitalization amounting to
that of big oil companies. "I have not arrived at a final
conclusion about which is more expedient: to apply stricter
regulation of ArmenTel or to have a resource for the creation of
competitive or alternative possibilities," the minister said,
adding that it is necessary to hold discussions and form an idea
about Internet channels of what capacity and quality Armenia
will need in ten years if it adopts a concept of IT sector's
development. In order to form such an idea, it is necessary to
conduct research with the involvement of the private sector and
the state, and these sides should adopt a coordinated approach.
In the words of the minister, "it is likely that
recognizing ArmenTel's natural monopoly will be the cheapest
option for us", and some steps may be taken with respect to this
company for regulation of the sector of Internet access and data
transmission services. At the same time, he believes that
"unfortunately, the problem will be solved painfully and at
someone's expense".