eased Armenia’s economic transition. The Nagorno-Karabakh war with neighboring
Azerbaijan and uneasy political relations with Turkey have further complicated this
process. Russia remains Armenia’s main strategic partner in the region, and the two
countries are parties to a bilateral military agreement. Armenia is also seeking close
political, economic, and strategic ties with the United States and NATO. Although the
government has implemented far-reaching economic measures, including joining the
World Trade Organization in 2002, poverty in Armenia remains widespread, and its
economy is critically dependent on foreign support.
Internet in Armenia
The number of Internet users in Armenia increased from 161,000 in 2006 to 172,800 in
2008—the latter figure represents 5.8 percent of the population. 1 Armenia has 90,000
Internet subscribers, representing 2.97 percent of Armenia’s population. Low-speed
dialup access still dominates among private users (about 80–85 percent) and most companies use DSL and Wi-Fi broadband access. In addition, official sources suggest that
Internet penetration is less than 4 percent. 2 In June 2007, the incumbent operator of
the telephone network (Armentel) introduced DSL services—they represent approximately 76 percent of the capital city of Yerevan’s population and 15 percent of the
population of rural areas. 3 Local statistics show that fixed-line penetration amounted
to around 18 percent, 4 while international sources point to 19.7 percent. 5
Owing to the high level of urbanization in the country, the percentage of access to
basic telephony appears high. While it has been officially estimated that 95 percent
of households in the capital and 75 percent of households in other major cities have
access to public telephone networks, 6 in reality only 40 percent of households have
individual telephone connections, and the quality of service is extremely poor.
KEY INDICATORS
GDP per capita, PPP (constant 2005 international dollars)
5,377
Life expectancy at birth (years)
72
Literacy rate (percent of people age 15þ)9 9
Human development index (out of 179)
83
Rule of law (out of 211)
125
Voice and accountability (out of 209)
145
Democracy index (out of 167)
113 (Hybrid regime)
Digital opportunity index (out of 181)
117
Internet users (percent of population)
5.8
Source by indicator: World Bank 2009a, World Bank 2009a, World Bank 2009a, UNDP 2008, World
Bank 2009b, World Bank 2009b, Economist Intelligence Unit 2008, ITU 2007, Miniwatts Marketing
Group 2009.
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