Tweet
ARMENIAN COMMUNICATIONS MINISTER WELCOMES THIRD MOBILE OPERATOR, PESSIMISTIC ABOUT INTERNET DEVELOPMENT PROSPECTS
by Michael Lacquiere
World Markets Research Centre
Global Insight
November 6, 2008
Transport and Communications Minister Guren Sargsyan has indicated
that he has high hopes for the mobile sector, following the award
of the third licence to France Telecom's Orange (see Armenia: 8
October 2008: ). In an interview with ARKA, he asserted that Orange's
entrance would increase competition and accordingly cause a reduction
in prices, improvement of quality, and widening of service range. He
pointed to the improvement in the mobile sector brought about by the
second player, VivaCell, back in 2005, as evidence of the benefit of
a new entrant.
Since breaking Armentel's monopoly, VivaCell has gone on to become the
leading player. Sargsyan noted, however, that more investment in base
stations will be needed to improve mobile quality. His assessment of
the internet sector was less positive: access is primarily provided
by two fibre-optic cable lines running through Georgia, with another
cable being laid. Fixed-line incumbent Armentel is also connected to
an alternative channel running through Iran, and although further
channels would be welcomed to improve speed and quality and reduce
prices, Sargsyan accepted that Armenia is hard to reach and therefore
internet access provision is limited. Moreover, there is limited
access to services for those living in regions beyond the capital
Yerevan. A government development programme is under way, aiming to
roll out fibre-based networks by 2012. Wireless broadband provision,
via WiMAX and Wi-Fi, would be welcomed, but satellite services are
deemed somewhat unreliable, as well as expensive.
by Michael Lacquiere
World Markets Research Centre
Global Insight
November 6, 2008
Transport and Communications Minister Guren Sargsyan has indicated
that he has high hopes for the mobile sector, following the award
of the third licence to France Telecom's Orange (see Armenia: 8
October 2008: ). In an interview with ARKA, he asserted that Orange's
entrance would increase competition and accordingly cause a reduction
in prices, improvement of quality, and widening of service range. He
pointed to the improvement in the mobile sector brought about by the
second player, VivaCell, back in 2005, as evidence of the benefit of
a new entrant.
Since breaking Armentel's monopoly, VivaCell has gone on to become the
leading player. Sargsyan noted, however, that more investment in base
stations will be needed to improve mobile quality. His assessment of
the internet sector was less positive: access is primarily provided
by two fibre-optic cable lines running through Georgia, with another
cable being laid. Fixed-line incumbent Armentel is also connected to
an alternative channel running through Iran, and although further
channels would be welcomed to improve speed and quality and reduce
prices, Sargsyan accepted that Armenia is hard to reach and therefore
internet access provision is limited. Moreover, there is limited
access to services for those living in regions beyond the capital
Yerevan. A government development programme is under way, aiming to
roll out fibre-based networks by 2012. Wireless broadband provision,
via WiMAX and Wi-Fi, would be welcomed, but satellite services are
deemed somewhat unreliable, as well as expensive.