Tweet
CONSOLIDATION OR LIQUIDATION: ARMENIAN PROVIDERS DISCUSS POSSIBILITY OF SELLING OR MERGING ASSETS
Hmayak Ohanyan
news.am
June 15 2010
Armenia
The emergence of new players in the Armenian ISP market shattered the
positions of the traditional operators. And in light of recent events,
the consolidation can become а lifebelt keeping the sinking companies
on surface.
It is interesting that some of the providers were discussing the
possibility of selling or merging assets yet last year, and the first
large takeover took place already this January - the truth to be told
- not in the capital, but in the regional market: Apaga Technologies
acquired the telecommunications infrastructure of Shirak Technologies,
one of the largest operators in Gyumri and Shirak Marz.
The structural changes of the large players are also on the way. MTS,
which owns 80% stake in VivaCell-MTS operator, and COMSTAR-UTS, which
owns 100% in Cornet, announced the launch of COMSTAR-UTS products and
services rebranding to the MTS brand, and this, of course, will reflect
the Armenian market. This announcement became the logical extension
of increasing the MTS stake in COMSTAR-UTS to 61.97 %. In fact, a
convergent operator is being formed in Armenia, which is serving more
than 2 million mobile subscribers, owns number capacity to deliver
fixed-line voice services across the republic, operational WiMAX
network in 20 cities, and an army of corporate and home Internet users.
It's not that obvious who will manage the new operator. Ralph Yirikian,
who doesn't have enough experience in managing convergent business,
will hardly retain the position of General Manager.
It won't be easy for the traditional operators to compete with the
newly formed giant, and in this context the consolidation is considered
the best scenario.
From: A. Papazian
Hmayak Ohanyan
news.am
June 15 2010
Armenia
The emergence of new players in the Armenian ISP market shattered the
positions of the traditional operators. And in light of recent events,
the consolidation can become а lifebelt keeping the sinking companies
on surface.
It is interesting that some of the providers were discussing the
possibility of selling or merging assets yet last year, and the first
large takeover took place already this January - the truth to be told
- not in the capital, but in the regional market: Apaga Technologies
acquired the telecommunications infrastructure of Shirak Technologies,
one of the largest operators in Gyumri and Shirak Marz.
The structural changes of the large players are also on the way. MTS,
which owns 80% stake in VivaCell-MTS operator, and COMSTAR-UTS, which
owns 100% in Cornet, announced the launch of COMSTAR-UTS products and
services rebranding to the MTS brand, and this, of course, will reflect
the Armenian market. This announcement became the logical extension
of increasing the MTS stake in COMSTAR-UTS to 61.97 %. In fact, a
convergent operator is being formed in Armenia, which is serving more
than 2 million mobile subscribers, owns number capacity to deliver
fixed-line voice services across the republic, operational WiMAX
network in 20 cities, and an army of corporate and home Internet users.
It's not that obvious who will manage the new operator. Ralph Yirikian,
who doesn't have enough experience in managing convergent business,
will hardly retain the position of General Manager.
It won't be easy for the traditional operators to compete with the
newly formed giant, and in this context the consolidation is considered
the best scenario.
From: A. Papazian