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Third Mobile Operator In Armenia Will Have To Fight For Clients

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  • Third Mobile Operator In Armenia Will Have To Fight For Clients

    THIRD MOBILE OPERATOR IN ARMENIA WILL HAVE TO FIGHT FOR CLIENTS

    ArmInfo
    2008-07-29 16:09:00

    The third mobile operator in Armenia will have to fight for
    clients since the mobile communication market in Armenia is close to
    saturation, Director General of ArmenTel CJSC (Beeline brand) Neicho
    Velichkov told ArmInfo Tuesday. He said the two mobile operators in the
    market fully satisfy the potential clients in Armenia. 'International
    calculations of the market show that the actual limit of the people
    who want to have mobile phones is some 80-85%. If the population of
    Armenia is some 2.5-2.8 million people, the new operator will have
    little place to act since our client base is about 800,000 people
    that of VivaCell is some 1.4 million people', N.

    Velichkov said. He explained that when mobile penetration exceeds
    100% in big cities, particularly, in Moscow, it is connected with
    the ratio of the operating SIM-cards to the officially registered
    ones and not to the real number of residents.

    In such situation, he said, only mobile content i.e. games, music
    and others, as well as Internet connection, may attract subscribers,
    however, the existing operators provide also the given services.

    In addition, N. Velichkov said, the payback period of investments
    in mobile communication is 3-3.5 years in average. Given the tender
    terms by the Armenian Public Services Regulatory Commission saying
    that a third operator will have to invest 200 million dollars within 3
    years, there is hardly ever a company to find it reasonable investing
    so much having so limited number of clients.

    'Nevertheless, we do not want to have new ambitious players in
    the market.

    We are ready for competition, combined market formation favorable
    both to operators and naturally to subscribers', he said.
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