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IP Telephony Licences In Armenia Present Challenge To Armentel's Fix

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  • IP Telephony Licences In Armenia Present Challenge To Armentel's Fix

    IP TELEPHONY LICENCES IN ARMENIA PRESENT CHALLENGE TO ARMENTEL'S FIXED-LINE DOMINANCE
    by Michael Lacquiere

    Global Insight
    October 8, 2007

    Armenia's Public Services Regulatory Commission (PSRC) has issued the
    country's first IP telephony licences, reports ARKA. The licences for
    long-distance voice communication have been awarded to Global Colline,
    Tarcom and Anatel, which will all need to apply to fixed-line incumbent
    Armentel for operation of telephone numbers to be enabled.

    Significance:The provision of IP telephony in Armenia has been a
    contentious issue, with Armentel earlier this year provoking the
    ire of some 200 IP telephony providers by disconnecting operators
    attempting to provide the service (seeArmenia: 30 January 2007:).

    This action was initially supported by the PSRC, but the operator
    later relented and has promised to end its monopoly of the country's IP
    telephony network. Earlier this month, Armentel also ended its monopoly
    in a number of other telephony spheres in the country, including
    the local, intercity, and telephony spheres; the leased-line market;
    the international transit and satellite services market; the public
    mobile communication market; and the broadband video-transmission
    services market (seeArmenia: 3 October 2007:).

    This action had been agreed to by Armentel as part of the deal struck
    earlier this year, which saw it fully acquired by Russia's VimpelCom.

    The implementation of IP telephony by rival operators could add some
    competition to the voice market, currently monopolised by Armentel with
    612,400 subscribers at the end of 2007. Penetration in the fixed-line
    sector is low at 20.4% at the start of the year and, as such, there is
    opportunity for Global Colline, Tarcom and Anatel to present some sort
    of challenge to the incumbent, not to mention choice for subscribers.

    From: Emil Lazarian | Ararat NewsPress
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