YEREVAN, MAY 5, NOYAN TAPAN. "I consider it as a challenge that ArmenTel company (Beeline brand) and K-Telecom company (VivaCell brand) are not interested in participating in discussions on the Armenian telecommunication system," the RA minister of economy Nerses Yeritsian stated at the press conference during the "without-tie" meeting of heads of the IT sector in Tsakhkadzor on May 1-3. In his words, it means that "we have not made such decisions and envisaged such actions that may affect these companies". The minister said that with time these companies will become interested in participating in discussions either forcedly or by finding their interest in such participation. The main problem raised during the discussion "Telecommunication and Security" was related to such factors as the quality and price formation of Internet access and data transmission services. It was noted that although the sector of Internet services has been liberalized, ArmenTel CJSC does not actually provide other provider companies with channels for rendering "last mile" Internet access services for the ultimate user, as well as avoids connecting its channels to the networks of these companies and provides itself Internet access and data transmission services via the fixed-line phone network. This creates some conditions for ArmenTel to have a natural monopoly and provide the indicated services at the lowest price, which makes it impossible for other companies to compete with ArmenTel in the sector of "last mile" services and attract investments to this sector. According to N. Yeritsian, it is inexpedient to set up a corporation with the aim of creating a second network of this kind - with state's participation as there are this sector's companies in the world, with their capitalization amounting to that of big oil companies. "I have not arrived at a final conclusion about which is more expedient: to apply stricter regulation of ArmenTel or to have a resource for the creation of competitive or alternative possibilities," the minister said, adding that it is necessary to hold discussions and form an idea about Internet channels of what capacity and quality Armenia will need in ten years if it adopts a concept of IT sector's development. In order to form such an idea, it is necessary to conduct research with the involvement of the private sector and the state, and these sides should adopt a coordinated approach. In the words of the minister, "it is likely that recognizing ArmenTel's natural monopoly will be the cheapest option for us", and some steps may be taken with respect to this company for regulation of the sector of Internet access and data transmission services. At the same time, he believes that "unfortunately, the problem will be solved painfully and at someone's expense".

---