communication services by the end of June 2009. 16 Nonetheless, as the networks of all
operators are connected to ArmenTel’s infrastructure, the incumbent will continue to
dominate and benefit from interconnection fees.
Although ISPs are increasingly building their own fiber-optic networks, cable infrastructure is still underdeveloped in Armenia. Over the last three years, more than three
ISPs have extended their network to cover the capital, while networks in rural areas
have been developing at a much slower rate.
Satellite services are relatively well developed in Armenia; however, the demand for
them is not significant because of their higher cost. Home users utilize satellite services
almost exclusively for television. Downlink satellite services are widely used by ISPs in
the capital city and rural areas because they provide the only means of supplying Internet services without requiring physical networks. Nonetheless, the development of
two-way satellite services in Armenia has been affected not only by their high cost but
also by administrative barriers to importing and using radio equipment.
The majority of the main ISPs are owned by Armenian entities. The main ISPs in the
country are ArmenTel (operates under the Beeline brand), 17 Arminco LLC, 18 WEB
LLC, 19 Xalt LLC, 20 Netsys LLC, 21 ADC CJSC, 22 Cornet-AM CJSC, 23 Fibernet Communication LLC, 24 and Freenet Armenia. 25 There are numerous small ISPs supplying Internet services to large companies or to certain geographic areas. However, their number
is decreasing as a result of strong competition, and they recently introduced high license fees and state duties (regulated by the Law on State Duties), which have led to
increasing consolidation in the market. At least two foreign ISPs are expected to enter
the market in 2009.
Most ISPs gain access to the international backbone by way of ArmenTel’s fiber-optic
cable (Trans Armenia Optical System) 26 with 155 Mbps capacity, which connects to the
Georgian Optical Highway and then to Russian and European channels. The second
national backbone, routing through Iranian territory, commenced operations in September 2008. ArmenTel bought this cable, which connects to Sovintel (VimpelCom’s
subsidiary). 27 The third international route over the TRASEKA fiber-optic cable is
owned by the state and is operated by Fibernet LLC on the basis of a 25-year concession agreement.
As an alternative route, ArmenTel utilizes the Teleglobe satellite connection, limited
to 2 Mbps. Major ISPs such as Arminco and WEB LLC have built their own infrastructure, mainly fiber-optic networks and wireless networks, and also use satellite connections (usually via PlanetSkye and SatGate).
There are three nonprofit fiber-optic networks constructed with the assistance of
foreign and international organizations that supply Internet services to scientific and
educational institutions: ARENA Foundation, National Foundation for Science and
Advanced Technologies, and Academic Scientific Research Computer Network of
Armenia (ASNET-AM).
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Armenia
operators are connected to ArmenTel’s infrastructure, the incumbent will continue to
dominate and benefit from interconnection fees.
Although ISPs are increasingly building their own fiber-optic networks, cable infrastructure is still underdeveloped in Armenia. Over the last three years, more than three
ISPs have extended their network to cover the capital, while networks in rural areas
have been developing at a much slower rate.
Satellite services are relatively well developed in Armenia; however, the demand for
them is not significant because of their higher cost. Home users utilize satellite services
almost exclusively for television. Downlink satellite services are widely used by ISPs in
the capital city and rural areas because they provide the only means of supplying Internet services without requiring physical networks. Nonetheless, the development of
two-way satellite services in Armenia has been affected not only by their high cost but
also by administrative barriers to importing and using radio equipment.
The majority of the main ISPs are owned by Armenian entities. The main ISPs in the
country are ArmenTel (operates under the Beeline brand), 17 Arminco LLC, 18 WEB
LLC, 19 Xalt LLC, 20 Netsys LLC, 21 ADC CJSC, 22 Cornet-AM CJSC, 23 Fibernet Communication LLC, 24 and Freenet Armenia. 25 There are numerous small ISPs supplying Internet services to large companies or to certain geographic areas. However, their number
is decreasing as a result of strong competition, and they recently introduced high license fees and state duties (regulated by the Law on State Duties), which have led to
increasing consolidation in the market. At least two foreign ISPs are expected to enter
the market in 2009.
Most ISPs gain access to the international backbone by way of ArmenTel’s fiber-optic
cable (Trans Armenia Optical System) 26 with 155 Mbps capacity, which connects to the
Georgian Optical Highway and then to Russian and European channels. The second
national backbone, routing through Iranian territory, commenced operations in September 2008. ArmenTel bought this cable, which connects to Sovintel (VimpelCom’s
subsidiary). 27 The third international route over the TRASEKA fiber-optic cable is
owned by the state and is operated by Fibernet LLC on the basis of a 25-year concession agreement.
As an alternative route, ArmenTel utilizes the Teleglobe satellite connection, limited
to 2 Mbps. Major ISPs such as Arminco and WEB LLC have built their own infrastructure, mainly fiber-optic networks and wireless networks, and also use satellite connections (usually via PlanetSkye and SatGate).
There are three nonprofit fiber-optic networks constructed with the assistance of
foreign and international organizations that supply Internet services to scientific and
educational institutions: ARENA Foundation, National Foundation for Science and
Advanced Technologies, and Academic Scientific Research Computer Network of
Armenia (ASNET-AM).
140
Armenia