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WHERE THE ABSORPTION WILL LEAD TO
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy23618.html
Published: 15:36:21 - 04/10/2011
The Ucom company, operating in the field of telecommunications,
absorbed another provider, this time it was iCON. Prior to that
Ucom had engulfed the Armenian-American enterprise Netsys. By the
way, iCON is also based on foreign capital. In fact, in the field
of telecommunications, a process of absorption by Ucom of other
enterprises with foreign capital is ongoing. By the way, as reported
by the press, the actual owner of Ucom is the head of the Committee
of State Revenue Gagik Khachatryan, though there is no official
confirmation.
Ucom entered the Armenian market at a high speed, offering cable
internet, fixed telephony and internet television. Moreover, everything
was of high quality and with low prices. Because of this the company
managed in a short period to take a place in the communications market,
and now it is trying to expand the range of services.
In particular, the company offers a complete package of Netsys Internet
services: Dialup (phone internet) or high-speed DSL, WiMAX, Internet
services, mail and hosting (space on the Web) and registration of
domain names for servers and WEB MAIL. In fact, Ucom has incorporated
all of these services in its package.
iCON, in turn, provides mobile internet connection, which Ucom did
not have. And now Ucom can provide these services too.
In business this is quite a regular and natural process, of course,
but it can produce the opposite effect. A process of consolidation
is happening in the communications market in Armenia, though it is
one of the few markets where there is a subjective diversification.
Consequently, the matter shall be subject of study by the Commission
for the Protection of Economic Competition.
It is not excluded that the short-term economic benefits will stagnate
in the area, as happened in other monopolized industries also.
Similar processes have occurred recently in the market of eggs. One
of the companies dumped the prices, but the Anti-Monopoly Commission,
in fact, thwarted the attempts.
The Armenian economy is not competitive enough, and therefore there
should be a policy that would not hit the competition. And it was not
that Ucom monopolizes the market, though it is a logical desire for
business. It is about government regulation and clear mechanisms to
regular business for the desires not turn into a destructive process.
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy23618.html
Published: 15:36:21 - 04/10/2011
The Ucom company, operating in the field of telecommunications,
absorbed another provider, this time it was iCON. Prior to that
Ucom had engulfed the Armenian-American enterprise Netsys. By the
way, iCON is also based on foreign capital. In fact, in the field
of telecommunications, a process of absorption by Ucom of other
enterprises with foreign capital is ongoing. By the way, as reported
by the press, the actual owner of Ucom is the head of the Committee
of State Revenue Gagik Khachatryan, though there is no official
confirmation.
Ucom entered the Armenian market at a high speed, offering cable
internet, fixed telephony and internet television. Moreover, everything
was of high quality and with low prices. Because of this the company
managed in a short period to take a place in the communications market,
and now it is trying to expand the range of services.
In particular, the company offers a complete package of Netsys Internet
services: Dialup (phone internet) or high-speed DSL, WiMAX, Internet
services, mail and hosting (space on the Web) and registration of
domain names for servers and WEB MAIL. In fact, Ucom has incorporated
all of these services in its package.
iCON, in turn, provides mobile internet connection, which Ucom did
not have. And now Ucom can provide these services too.
In business this is quite a regular and natural process, of course,
but it can produce the opposite effect. A process of consolidation
is happening in the communications market in Armenia, though it is
one of the few markets where there is a subjective diversification.
Consequently, the matter shall be subject of study by the Commission
for the Protection of Economic Competition.
It is not excluded that the short-term economic benefits will stagnate
in the area, as happened in other monopolized industries also.
Similar processes have occurred recently in the market of eggs. One
of the companies dumped the prices, but the Anti-Monopoly Commission,
in fact, thwarted the attempts.
The Armenian economy is not competitive enough, and therefore there
should be a policy that would not hit the competition. And it was not
that Ucom monopolizes the market, though it is a logical desire for
business. It is about government regulation and clear mechanisms to
regular business for the desires not turn into a destructive process.