ARMENIA: BRIEF
OVERVIEW OF THE COMMUNICATIONS SECTOR
January
2003
Source:
U.S. Embassy in Yerevan, Armenia
INTERNATIONAL COPYRIGHT,
U.S. AND FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE,
2003. ALL RIGHTS RESERVED
OUTSIDE OF THE UNITED STATES.
1. EXECUTIVE SUMMARY.
THIS REPORT PROVIDES A BRIEF OVERVIEW OF THE COMMUNICATIONS
SECTOR IN ARMENIA AND HIGHLIGHTS OPPORTUNITIES FOR AMERICAN COMPANIES.
MORE INFORMATION ON COMMUNICATIONS AND OTHER SECTORS IS
AVAILABLE AT THE COMMERCIAL SERVICE ARMENIA'S WEBSITE AT
WWW.BUYUSA.GOV/ARMENIA. END
SUMMARY.
-----------
AT A GLANCE
-----------
2. ARMENIA HAS ABOUT
520,000 TELEPHONES; THE AVERAGE TELEPHONE DENSITY IS 53 PER 100
FAMILIES; INTERNATIONAL CONNECTIONS TO OTHER NIS COUNTRIES ARE BY
LANDLINE OR MICROWAVE, AND TO OTHER COUNTRIES BY SATELLITE AND BY
LEASED CONNECTION THROUGH THE MOSCOW INTERNATIONAL GATEWAY SWITCH.
BROADCAST STATIONS: ALMOST 100 PERCENT OF THE POPULATION
RECEIVES ARMENIAN AND RUSSIAN TV PROGRAMS (SOME AREAS ALSO RECEIVE
TURKISH, IRANIAN, GEORGIAN, AND AZERBAIJANI TV BROADCASTS).
PRIVATE TV BROADCASTING STATIONS, CABLE NETWORKS, AND INTERNET
PROVIDERS ARE INCREASING IN NUMBER.
----------------------------------------------------
TABLE 1. GENERAL
INFORMATION ON COMMUNICATIONS IN ARMENIA
----------------------------------------------------
CATEGORY/YEAR
1998
1999
2000
2001
NUMBER OF
908
916
909
901
ENTERPRISES
LETTERS SENT,
MILLION
0.7
0.9
1.1
1.6
NEWSPAPERS AND
MAGAZINES, MILLION
11.8
11.3
10.1
9.3
PARCELS, THOUSAND
2.2
2.8
4.4
5.2
MONEY TRANSFERS
7.0
6.3
4.9
4.8
AND PENSION ALLOWANCES,
MILLION
TELEGRAMS,
121
104
92
88
THOUSAND
AIR MAIL (TONS)
212
375
316
168
LONG-DISTANCE CALLS,
MILLION 53.5
47.0
39.3
41.6
INTERNATIONAL CALLS,
MILLION 24.4
16.1
18.4
16.0
TOTAL NUMBER OF
556
542
527
520
TELEPHONES, THOUSAND
TELEPHONE DENSITY
56.5
52.8
53.5
53.6
(NUMBER OF PHONES PER
100 FAMILIES)
NUMBER OF TV
STATIONS
120
120
127
139
NUMBER OF CELL
7.2
7.9
17.4
25.2
PHONES, THOUSAND
SOURCE: NATIONAL
STATISTICS SERVICE OF ARMENIA
----------
BACKGROUND
----------
THE GREEK STATE-OWNED
OTE ENTERPRISE OWNS 90 PERCENT OF THE SHARES OF ARMENTEL, WITH THE
REMAINING 10% OWNED BY THE ARMENIAN GOVERNMENT.
ARMENTEL HAS A 15-YEAR MONOPOLY RUNNING THROUGH 2013 ON ALL
TELECOMMUNICATIONS IN THE COUNTRY, AS WELL AS ON COMMUNICATIONS LINES
THAT ALLOW ACCESS TO THE INTERNATIONAL MARKET.
ACCORDING TO THE
PRIVATIZATION AGREEMENT SIGNED BETWEEN ARMENTEL AND THE GOVERNMENT,
ARMENTEL HAS COMMITTED TO INVEST USD 300 MILLION BY 2008.
ARMENTEL STATES THAT IT HAS ALREADY INVESTED APPROXIMATELY
US$130 MILLION, WHILE THE GOVERNMENT ARGUES THAT ACTUAL INVESTMENTS TO
DATE HAVE BEEN FAR LESS AND HAVE NOT MET THE COMPANY'S INVESTMENT
COMMITMENT. THE MAJORITY
OF THE PHONE LINES ARE DIGITALIZED, AND ARMENTEL HAS COMMITTED TO
PROVIDE CELL PHONE SERVICE ON THE WHOLE TERRITORY OF ARMENIA BY THE
END OF 2004.
--------------
CURRENT STATUS
--------------
MANY INTERNATIONAL
DONORS AND FOREIGN GOVERNMENTS HAVE SUGGESTED THAT THE GOVERNMENT OF
ARMENIA MAY WISH TO PURCHASE BACK THE TELECOMMUNICATIONS MONOPOLY
RIGHTS FROM ARMENTEL, OPENING UP THE SECTOR TO COMPETITION. ARMENTEL
HAS BEEN ACCUSED OF CHARGING UNREASONABLY HIGH PRICES TO OTHER
TELECOMMUNICATIONS SERVICE PROVIDERS SUCH AS THE DOMESTIC CABLE
COMPANY AND INTERNET SERVICE PROVIDERS (ISPS).
INTERNET SERVICE PROVISION IS NOT WELL DEVELOPED, LARGELY DUE
TO ARMENTEL'S MONOPOLY ACCESS TO INTERNATIONAL GATEWAYS AND THE
INTERNET BACKBONE.
---------------------------------------------------
TABLE 2. TOTAL
REVENUES OF COMMUNICATIONS SECTOR IN ARMENIA (THOUSAND USD)
---------------------------------------------------
1999
2000
2001
TOTAL COMMUNICATIONS
24908,6 25929,3
32101,7
SECTOR
MAIL
207,8 494,8
601,7
TELEGRAPH
70,7
62,1
58,6
LONG-DISTANCE AND
16172,4 16419,0
21467,2
INTERNATIONAL PHONE
VOICE WIRE COMMUNICATION
184,5 156,9
144,8
SUBSCRIBER FEES
8272,4 8665,5
9663,8
SOURCE: NATIONAL
STATISTICS SERVICE OF ARMENIA
------------------------------------
OPPORTUNITIES FOR
AMERICAN COMPANIES
------------------------------------
-
THE UPGRADING AND DIGITALIZATION OF ARMENIA'S
TELECOMMUNICATIONS NETWORK COULD CREATE PROCUREMENT OPPORTUNITIES FOR
AMERICAN COMPANIES.
-
IN SPITE OF ARMENTEL'S MONOPOLY, INTERNET SERVICE PROVISION IS
STEADILY DEVELOPING.
-
ACCORDING TO ARMENTEL'S MONOPOLY AGREEMENT, IF ARMENTEL
DECLINES TO PROVIDE ANY TYPE OF TELECOMMUNICATIONS SERVICE, IT LOSES
THE MONOPOLY RIGHT FOR THAT PARTICULAR SERVICE.
-
OPPORTUNITIES EXIST FOR AMERICAN COMPANIES IN THE
WIRELESS-CABLE TELEVISION SECTOR.
CURRENTLY, ONE AMERICAN COMPANY, AATV, PROVIDES 24-CHANNEL
WIRELESS- CABLE SERVICE IN YEREVAN.
THE MINISTRY OF TRANSPORTATION AND TELECOMMUNICATIONS HAS
ADVOCATED INCREASED COMPETITION IN THE CABLE TELEVISION SECTOR.
-
ARMENTEL IS CURRENTLY CONSIDERING SALE OF SOME OF ITS SHARE.
CS ARMENIA WILL CLOSELY WATCH THIS DEVELOPMENT AND WILL NOTIFY
THE U.S. BUSINESS ON ANY OPPORTUNITY.
