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Armentel to lose mobile monopoly May 31

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  • #1

    Armentel to lose mobile monopoly May 31

    Eh, about bloody time.

    Now there are lawsuits going both ways...I hope Armenia doesn't get screwed (again) in all of this.

    A country who should bank on IT and the world of communications can absolutely not afford such a bad service.


    **************************************************



    Interfax
    March 2 2004

    Armentel to lose mobile monopoly May 31

    Yerevan. (Interfax) - The government of Armenia has approved a
    resolution to strip national operator Armentel of its monopoly on
    mobile telephony and external Internet access services, Justice
    Ministry spokesman Ara Sagatelian told Interfax.

    The resolution takes effect on May 31, he said. It restricts the
    company's monopoly by amending the relevant license, which was issued in 1997 and granted monopoly rights for 15 years.

    The resolution will go into effect if, before May 31, an arbitration
    court in London does not issue a ruling that goes against this
    resolution, Sagatelian added.

    He said the resolution was passed because the company violated its contractual obligations. The government thinks the company provides poor quality mobile services, and has not met obligations on investment in the country's telephone network.

    The Armenian government and Greece's OTE, which owns 90% of Armentel, are currently in the middle of a court battle, accusing one another of violating agreements. The government owns 10% of Armentel.

    OTE bought 90% of Armentel at the end of 1997 for $142.47 million. The sales contract granted Armentel a 15-year monopoly on the telecoms market. OTE promised to invest $200 million in Armenian telecommunications in the first five years of operations.
    Last edited by xBaron Dants; 03-07-2004, 09:07 PM.
    Tags: None
  • #2
    Wow....I'm going to lose my sleep tonight.

    ****************************************

    From a1plus.
    news
    | 21:58:13 | 12-03-2004 | Social |

    ARMENIAN GOVERNMENT VERSUS ARMENTEL
    As it is known, Armenian government basing on conclusion of a special commission set to scrutinize ArmenTel company activity decided to make amendments to license No 60, under which the company has been granted monopoly in the sphere of telecommunications.

    On Friday, Justice Minister David Harutyunyan presented the amendments to journalists.

    According to the commission, ArmenTel has been violating the law and the government decided to strip the company of its monopoly on mobile communication, the minister said.

    ArmenTel is obliged turn telephone stations of 800 villages into digital regime by the 2004 December. Other obligations are also imposed on the company.

    The government decision will be enforced from June 30, 2004.

    David Harutyunyan said ArmenTel had appealed to international arbitration. If the arbitration decision is against Armenia, the republic will have to mitigate its demands or pay the compensation of 300 million USD, the company wants.
    ****************************************

    THREE HUNDRED MILLION??? It won't happen.....right?

    Comment

    • #3
      Do you think if Armenia gives the license to someone else it will stop monopolies from occuring?

      Comment

      • #4
        Re: Armentel to lose mobile monopoly May 31

        Originally posted by Baron Dants Eh, about bloody time.

        Now there are lawsuits going both ways...I hope Armenia doesn't get screwed (again) in all of this.

        A country who should bank on IT and the world of communications can absolutely not afford such a bad service.


        **************************************************



        Interfax
        March 2 2004

        Armentel to lose mobile monopoly May 31

        Yerevan. (Interfax) - The government of Armenia has approved a
        resolution to strip national operator Armentel of its monopoly on
        mobile telephony and external Internet access services, Justice
        Ministry spokesman Ara Sagatelian told Interfax.

        The resolution takes effect on May 31, he said. It restricts the
        company's monopoly by amending the relevant license, which was issued in 1997 and granted monopoly rights for 15 years.

        The resolution will go into effect if, before May 31, an arbitration
        court in London does not issue a ruling that goes against this
        resolution, Sagatelian added.

        He said the resolution was passed because the company violated its contractual obligations. The government thinks the company provides poor quality mobile services, and has not met obligations on investment in the country's telephone network.

        The Armenian government and Greece's OTE, which owns 90% of Armentel, are currently in the middle of a court battle, accusing one another of violating agreements. The government owns 10% of Armentel.

        OTE bought 90% of Armentel at the end of 1997 for $142.47 million. The sales contract granted Armentel a 15-year monopoly on the telecoms market. OTE promised to invest $200 million in Armenian telecommunications in the first five years of operations.
        The same monopoly that was in effect created by the government to begin with...
        Achkerov kute.

        Comment

        • #5
          Originally posted by Mikoyan Do you think if Armenia gives the license to someone else it will stop monopolies from occuring?
          Monopolies do not occur because of 'capitalism', but because of government.

          Under the free market, monopolies naturally fix themselves as more people enter into the line and drive the price down.
          Achkerov kute.

          Comment

          • #6
            Governments are the only things that can stop monopolies, otherwise every market would be dominated by a monopoly. And you only have private enterprise monopoly under capitalism, so i dunno how you suggest capitalism isnt to blame.

            You can of course have a state monopoly, but this isnt so bad as it means greater accountability in more developed countries.

            Armenia has a private monopoly on telecommunications and a state monopoly over petroleum, scum bastaard Serj

            Comment

            • #7
              have you guys heard about a joint Armenian-Russian company that will use france telecom technology and has asked the government to allow it to enter into the telecommunications field. it promises to invest initially 70 million euros and to get 95% movile coverage. i hpe this will work out and those damn greeks will lose the license.

              i just have one question to ask. what exactly was the government smoking when they gave armentel a 15 year monopoly?

              Comment

              • #8
                They say it was a political move so that greek would be pro-Armenian in the EU if Armenia gave the contract to the greeks.

                They been smoking capitalism

                Comment

                • #9
                  Originally posted by Mikoyan

                  They been smoking capitalism
                  Haha. You actually got me to chuckle on that line.

                  Well, giving the Greeks (or anybody) a monopoly is never the best decision, but if you think about it, how many people WOULD actually have been willing to invest in Armenia then, when you consider that people aren't actually lining up to invest in Armenia now? The monopoly was probably one of the only incentives that would make the deal more appealing.

                  Tigran, I hadn't heard about the Russian-Armenian company...Any more details?

                  Comment

                  • #10
                    Telecom Start-Up Offers Alternative Wireless Network For Armenia

                    By Atom Markarian

                    A newly created company has moved to take advantage of the government’s efforts to break the ArmenTel operator’s controversial monopoly on mobile phone communication in Armenia, promising to pour tens of millions of dollars into the underdeveloped sector.

                    The firm called Unified Communications Systems (UCS) has asked President Robert Kocharian to allow it to enter the business, its executive director told RFE/RL on Tuesday. Eduard Hakobian said the telecom start-up is ready to make 60 million euros ($75 million) worth of investments in conjunction with a Russian firm for creating an attractive alternative to ArmenTel’s expensive and limited wireless services.

                    “We envisage to use state-of-the-art technology and equipment designed by [the French telecom giant] Alcatel,” he said. “That company has drawn up a business plan according to which our network would cover 95 percent of Armenia’s territory.”

                    According to Hakobian, the new operator would need nine months to put the plan in practice and would charge subscribers considerably less than ArmenTel does.

                    UCS’s bid for an operating license comes after the Armenian government decided in principle late last month to revoke ArmenTel’s 15-year legal monopoly on wireless communication and Internet connection with the outside world which had been granted to its parent company, the Hellenic Telecommunications Organization (OTE). The implementation of the decision was suspended until June 30 pending the outcome of the government’s legal battle with OTE in the International Court of Economic Arbitration in London

                    OTE argue that the exclusive rights were a key term of their $200 million purchase of ArmenTel in 1998 and that their unilateral abolition is therefore illegal. The government, for its part, accuses the Greeks of abusing the monopoly and failing to honor their contractual obligations regarding capital investments and network capacity.

                    It is unclear who owns UCS and whether any senior government official has a stake in it. Hakobian referred to it as a “Armenian-Russian-American joint venture registered in Armenia.” He said it also has ambitious plans to set up shop in neighboring Georgia.

                    Comment

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