Brief Overview of Armenia=s Telecommunication Services Market
Source: U.S. Embassy, Yerevan
Author: George Isayan, BISNIS Representative
Date: August 1999
Telecommunications services in Armenia, including satellite connections and Internet services are provided by the Greek-Armenian company Armentel. Ninety percent of Armentel's shares belong to Greece's state-owned telecommunications company OTE for which it paid $142.5 million, with the remaining 10 percent belonging to the government of Armenia. In 1997, the company was licensed by the Ministry of Communications of Armenia and given 15 year monopoly rights on international telecommunications services in the country. Armentel itself sets tariffs for the use of satellite channels. Basic tariffs are set in the license agreement that gives Armentel the monopoly rights. Because of the monopoly, no other company is able to provide international satellite services. The EBRD is planning to purchase 9% stake in Armentel by paying $17.6 million. This deal may reduce the mobile phone and data transmission monopolies to 5 years.
Sales Prospects
Modern Telecommunications Equipment:
Armenia's telecommunications network is outdated. Currently, Armentel is upgrading the country's telephone network by installing new digital telephone stations.
Internet Services:
The primary Internet providers in Armenia are Arminco and Infocom, both the local companies, use Armentel's satellite channels for connecting to the Internet. There is a growing number of Internet users in both the residential and business sectors. Due to inconsistent service the potential exists for competitors of Arminco and Infocom to enter the market.
Key Contacts
Armentel - Armenia Telephone Company
Kiriakos Khristodulidis, CEO
2 Aharonian Street, Yerevan-14, Armenia
Tel: (374-2) 288-761
Fax: (374-2) 151-001
AATV Communications Armenian American JV
Wireless Cable TV
Shane Sorg, President
8 Hanrapetutian St., Yerevan- 10, Armenia
Tel: (374-2) 545-454
Fax; (374-2) 151-675
E-mail: aatv@mbox.amilink.net
Infocom
A. Gabrielian, CEO
22 Sarian St., Yerevan-2, Armenia
Tel: (374-2) 530-369
Fax: (374-2) 528-856
E-mail: bit@mbox.amilink.net
Arminco
A.Alexanian, CEO
26 Isahakian St., Yerevan-9, Armenia
Tel: (374-2) 526-313
Fax: (374-2) 285-082
root@arminco.com
Telecommunications: Promising Leads
SUBJECT: (TOP) ARMENIA. TRADE OPPORTUNITY - WIRELESS CARDS
1. 463/01/P0013
2. 032499
3. ISAYAN
4. 463
5. M
6A. CONTACT:
6B. MR. GRIGORI SAGHYAN, TECHNICAL DIRECTOR
6C. ARMINCO
28 ISAHAKIAN STREET, YEREVAN - 09, ARMENIA
7. PHONE: (374-2) 526-326
8. FAX: (374-2) 285-082
8A. E-MAIL: GREGOR@ARMINCO.COM
9. 101
9A.
10A. N/A
11. COMMENTS:
PRODUCT DATA
A. DETAILED PRODUCT DESCRIPTION: "WAVELAN" 11 MBIT WIRELESS CARDS,
MANUFACTURED BY LUCENT TECHNOLOGIES, INC.
B. B. PRODUCT SPECIFICATIONS/TECHNICAL DATA: N/A
C. QUANTITY: 10-100
D. U.S. DOLLAR VALUE: UP TO $100,000
E. PURCHASE NEEDED BY: MULTIPLE, DURING THE YEAR
F: OTHER INFORMATION: N/A
RESPONSE DATA
A. RESPONSE LANGUAGE: ENGLISH
B. BEST WAY TO RESPOND: FAX, E-MAIL
C. FROM MANUFACTURERS ONLY: N/A
D. INFORMATION DESIRED FROM U.S. FIRM: PRICE LIST
E. PRIMARY BUYING FACTOR: PRICE
F. OTHER INFORMATION: N/A
COMPANY DATA
A. TYPE OF BUSINESS: PRIVATE, JOINT STOCK COMPANY
B. YEAR ESTABLISHED: 1992
C. NUMBER OF EMPLOYEES: 50
D. ANNUAL SALES: N/A
E. MEMBER OF BUSINESS CHAMBER: N/A
BANK NAME AND ADDRESS: ARMECONOMBANK
23/1 AMIRIAN ST., YEREVAN, ARMENIA
G. U.S. FIRMS REPRESENTED: N/A
H. OTHER INFORMATION: N/A
POST REMARKS: ARMINCO IS ONE OF THE LARGEST INTERNET SERVICES PROVIDER IN
ARMENIA. THE COMPANY'S CLIENTS INCLUDE MAJOR LOCAL BUSINESSES, BANKS, AND
INTERNATIONAL ORGANIZATIONS.
PLEASE CONTACT THE COMPANY DIRECTLY, AND
SEND A COPY OF YOUR RESPONSE TO:
AMEMBASSY YEREVAN
ATTN: GEORGE ISAYAN - BISNIS REPRESENTATIVE
C/O AMERICAN EMBASSY YEREVAN
DEPARTMENT OF STATE
WASHINGTON DC 20521-7020
TEL: (374-2) 524-661/151-551
FAX: (374-2) 151-550