There is no Internet exchange point used by all Armenian ISPs. However, most ISPs
are interconnected, and local traffic is not charged yet. The Armenian top-level domain
‘‘.am’’ is administrated by the Armenian Internet Society. 28
The provision of VoIP services has raised a number of conflicts between the incumbent operator, new market players, and regulatory authorities. At present, ISPs and
other private service providers are allowed to freely use the incumbent’s fixed network
for the provision of VoIP services. According to data provided by the Public Services
Regulatory Commission, from May 2007 to May 2008, 108 companies were granted
authorization to provide VoIP services. 29
There are two mobile telephony operators in Armenia: Beeline and Vivacell-MTS,
both controlled by Russian companies. Vivacell-MTS entered the market in 2005 under
the name K-Telecom. 30 Each mobile operator in Armenia serves approximately 1 million users. 31 The cost of mobile communication services varies from USD 0.10 to
0.16 per minute. A third mobile operator (Orange France Telecom) recently obtained a
license to operate in the country and is expected to enter the market by the end of
2009. Its entry might reduce mobile communication costs.
Legal and Regulatory Framework
In June 2001, the government issued a Concept Paper announcing that ICT is a priority for the country’s economic development. Pursuant to a presidential decree, the government created the ICT Development Supporting Council (ITDSC), an advisory body
chaired by the prime minister. The ITDSC was established as a communication platform for stakeholders to propose and discuss issues in the area of telecommunications
policy and regulation. In 2003, the government launched the ‘‘E-Armenia’’ initiative.
However, progress toward implementing the proposal and the Concept Paper was
interrupted by the parliamentary election in 2003 and presidential election in 2004,
and little progress has been made on relaunching either initiative since. 32
Finally, in July 2008 the government approved the Concept Paper on Development
of the ICT sector in Armenia. In contrast to the Concept Paper of 2001, the former lays
out short- and long-term action plans with fixed timetables for fostering an information society and ensuring sector competitiveness.
The Law on Electronic Communications adopted in July 2005 regulates electronic
communications in Armenia. The Ministry of Transport and Communications is responsible for formulating sector policy and setting universal service objectives.
In 2006, the Public Services Regulation Commission (PSRC) took on the role of
the regulatory authority for telecommunications in line with the Law on Electronic
Communications. 33 The Telecommunications Department of the PSRC develops and
enforces a package of important regulations, including criteria for license holders
and their reporting standards, standards for cost accounting and archiving, quality of
Armenia
141
are interconnected, and local traffic is not charged yet. The Armenian top-level domain
‘‘.am’’ is administrated by the Armenian Internet Society. 28
The provision of VoIP services has raised a number of conflicts between the incumbent operator, new market players, and regulatory authorities. At present, ISPs and
other private service providers are allowed to freely use the incumbent’s fixed network
for the provision of VoIP services. According to data provided by the Public Services
Regulatory Commission, from May 2007 to May 2008, 108 companies were granted
authorization to provide VoIP services. 29
There are two mobile telephony operators in Armenia: Beeline and Vivacell-MTS,
both controlled by Russian companies. Vivacell-MTS entered the market in 2005 under
the name K-Telecom. 30 Each mobile operator in Armenia serves approximately 1 million users. 31 The cost of mobile communication services varies from USD 0.10 to
0.16 per minute. A third mobile operator (Orange France Telecom) recently obtained a
license to operate in the country and is expected to enter the market by the end of
2009. Its entry might reduce mobile communication costs.
Legal and Regulatory Framework
In June 2001, the government issued a Concept Paper announcing that ICT is a priority for the country’s economic development. Pursuant to a presidential decree, the government created the ICT Development Supporting Council (ITDSC), an advisory body
chaired by the prime minister. The ITDSC was established as a communication platform for stakeholders to propose and discuss issues in the area of telecommunications
policy and regulation. In 2003, the government launched the ‘‘E-Armenia’’ initiative.
However, progress toward implementing the proposal and the Concept Paper was
interrupted by the parliamentary election in 2003 and presidential election in 2004,
and little progress has been made on relaunching either initiative since. 32
Finally, in July 2008 the government approved the Concept Paper on Development
of the ICT sector in Armenia. In contrast to the Concept Paper of 2001, the former lays
out short- and long-term action plans with fixed timetables for fostering an information society and ensuring sector competitiveness.
The Law on Electronic Communications adopted in July 2005 regulates electronic
communications in Armenia. The Ministry of Transport and Communications is responsible for formulating sector policy and setting universal service objectives.
In 2006, the Public Services Regulation Commission (PSRC) took on the role of
the regulatory authority for telecommunications in line with the Law on Electronic
Communications. 33 The Telecommunications Department of the PSRC develops and
enforces a package of important regulations, including criteria for license holders
and their reporting standards, standards for cost accounting and archiving, quality of
Armenia
141