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Comstar Completes Armenian WiMAX Network Buildout

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  • Comstar Completes Armenian WiMAX Network Buildout

    COMSTAR COMPLETES ARMENIAN WIMAX NETWORK BUILDOUT

    Business Monitor International
    Emerging Europe Telecommunications Insights
    August 1, 2008

    Comstar United TeleSystems (Comstar UTS) of Russia has completed
    the buildout of a wireless network based on the 802.16e standard in
    Armenia. The network has been built for the Armenian ISP Cornet,
    a subsidiary of transit operator Callnet in which Comstar UTS has
    owned a 75% stake since October 2006. Cornet has a licence to use
    the 3.6-3.8GHz frequency band across the whole of Armenia.

    The network consists of 24 base stations, which are connected to each
    other via radio relay lines and leased telecommunications channels from
    incumbent ArmenTel (a VimpelCom subsidiary). Airspan Networks of the
    US was contracted in Q407 to supply and install the network. Comstar
    UTS has also installed two data transmission nodes based on equipment
    supplied by Cisco Systems.

    The WiMAX network will be used to provide high-speed internet access,
    deliver multimedia content, offer VoIP services and data transmission
    and create VPNs for residential and corporate customers. As the
    network is based on the 802.16e standard, Cornet will be able to
    offer a broad range of fixed-mobile convergence services as well as
    stand-alone mobility products. Comstar UTS reports that, earlier this
    year, Cornet applied to the Public Service Regulation Committee for
    the right to own 60,000 telephone numbers; the company is now working
    to launch voice services using this numbering resource.

    Wireless Broadband To Raise Penetration Growth Of Fixed-line Telephony
    Market, 2002-07 Telecoms6_20080715 Source: ITU; BMI Research; e =
    estimate

    Armenia is poorly served by basic telephony and internet access
    services, despite considerable efforts by ArmenTel in recent years to
    modernise and upgrade its network. The International Telecommunication
    Union (ITU) believes that there were less than 100,000 internet users
    in Armenia at the end of 2007, with broadband subscribers numbering
    less than 5,000. Basic fixed-line availability is also poor; the number
    of fixed-lines grew from 542,800 at the end of 2002 (17.8% penetration)
    to 594,400 at the end of 2005 (19.7% penetration), according to the
    ITU. BMI estimates that this figure had risen to 609,000 by the end
    of 2006 and to almost 620,000 by the end of 2007 (20.7% penetration),
    based on the reported number of customers served by ArmenTel.

    Callnet is one of four licensed long-distance operators in Armenia
    and serves approximately 75% of the country's banking and financial
    institutions market. Consequently, the new mobile WiMAX network is
    expected to meet with considerable interest from the corporate sector,
    as well as the transportation and logistics sectors.
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