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The tariffs for the wholesale internet in Armenia reduced by 50 % since January 1
6 minute read
YEREVAN, JANUARY 15, ARMENPRESS: In Armenia the tariffs for the wholesale internet have reduced nearly by 50 % since January 1. According to the decision, adopted by the Armenian Public Services Regulating Commission a maximum tariff – 174 thousand AMD per month, including VAT, has been set for the international transition “IP” services provided by “ArmenTel” and “FiberNet Communications” companies which occupy a dominating position in the internet market. It is almost twice less than the tariffs of the last year. The goal of adopting the decision was first to reduce the prices of the internet, and then not to allow the large representatives of the sphere to receive extra profit.
According to Press Secretary of “ArmenTel” company Anush Beghloyan, abrupt changes of tariffs have not yet been registered in the field of internet, but it is logical that such changes will take place. In response to the question whether “ArmenTel” will reduce the internet tariffs this year, A. Beghloyan answered that currently such changes are not expected, but the company is preparing new surprises for its subscribers within Hi-Line service.
Speaking of the decision of the Armenian Public Services Regulating Commission, A. Beghloyan noted that the maximum set price is very near to the price of the internet obtained on border, which affects the investment volumes negatively. Meanwhile they are necessary for regularly upgrading the equipments becoming obsolete very quickly in the conditions of technological developments.
Press Officer of “FiberNet Communications” company Michael Balayan noted that their company, too, has passed to the set prices from the first day of this year. He almost excludes new tariff reductions noting that it is just not possible any more. In this company the policy of investments connected with income decrease will be reconsidered too, but will be continued. In response to the question why no reductions were made before the decision of the commission, M. Balayan said that the money received earlier were directed toward investments, development of infrastructures and technical re-equipment.
Director of large internet-provider “Arminco” Andranik Alexanyan said that their company, too, has reduced the tariffs of the internet by nearly 20 %. According to him, internet tariffs have been reduced, but the expenses of the infrastructures hired for their transition, electricity and many other expenses have not been reduced, so it is not possible to reconsider the tariffs more than that.
A. Alexanyan underscored that the reduction of the prices must not take place at the price of the quality. Nevertheless, according to him, it is high time to say goodbye to the principle of “you are to pay a high price in order to have a good internet”. According to A. Alexanyan, the internet quality still raises discontent in Armenia, as it passes a long way before reaching here, which is having its consequences. The infrastructures are incomplete, and it is necessary to say a new thing in regard to legislation. The situation is expected to be corrected in case Armenia becomes a transit route for internet. Here the prices of that service go on remaining high compared with the neighbor countries, as Armenia gains internet just through them. In all cases A. Alexanyan sees a possibility of new reductions in spring connected with the development of competitiveness. He has some concerns that centralization tendencies are being registered in the internet market. In case of high prices of rent the small representatives of the market may gradually be pushed out, which can have negative impact.
Director of the Enterprises Incubator Foundation Bagrat Yengibaryan said that he sees such risks too, and noted that the more competitive ones will continue to operate in the field. Nevertheless, according to him, those changes also require new solutions and investments, which will promote the development of the field and competitiveness. Despite the crisis of 2009 and the nearly 15 % fall registered in economy, the growth in the sphere of IT has made 3.8 %. Internet prices have reduced nearly twice, which is expected to be of continuous nature. The entrance of “Orange” company has given a new impetus to the development of IT sphere, as a result of which the competitiveness wins. The number of subscribers making use of internet has been doubled this year by reaching to 15 thousand from 7.5 thousand.