Major Armenian IT and telecommunications companies release year-end statistics

Revenues from communications services (not including VAT, at current prices) totaled at 164 422 million Armenian drams in 2009, even as recession hit the Armenian economy in a year of global financial and economic crisis.

Meanwhile, according to data from Armenian National statistical service, revenues from provision of internet services more than tripled in 2009 reaching 10 404.2 million drams. Revenues from mobile communications services made 105 766.6 million drams, while fixed line phone service revenues closed at 40 341.2 million. Lucine Harutyunian, 19, was named the 200 thousandth subscriber of Orange-Armenia, having bought a SIM card in a shop. At an official event organized by Orange, she was presented with a notebook and a subscription to Orange’s “Internet Now” tariff plan.

February 8, 2010

PanARMENIAN.Net - Orange Armenia CEO Bruno Duthoit said the number of subscribers exceeded their expectations by as much as 10 percent as he handed the gifts to Lucine Harutyunian.

Orange, a key brand of France Telecom group, entered the Armenian market with its mobile and internet offerings on November 5th, 2009. Within the past 3 months the company has been able to ensure an estimated 7 percent market share of mobile user market. VivaCell-MTS continues to remain the market leader by a large margin, having announced 2 million 70 thousand subscribers at the end of 2009. Beeline brand with over 502 thousand active subscribers (the latest data is only available for third quarter of 2009 so far).

Meanwhile, Orange came out with a new offering on Monday, which is geared towards further enlarging the market share of the brand. The new offer - "Free minutes for you and your friends", will be valid through February 28th. While the offer lasts, Orange customers can ‘invite’ new friends to join the network, and get 300 minutes of free talking time with them.

Beeline, a trademark represented by ArmenTel company, also came up with a new offer this week, enhancing its tariff plan "For you - Exclusive" by increasing the starting balance (from AMD 200 to 400). The tariff plan "For you - Exclusive" combines advantages of a single service operator: balanced prices for calls to mobile and fixed networks, as well as data transfer services. The service has been attractive to subscribers so far, PanArmenian.net was told by the press-service of ArmenTel. "For you - Exclusive" accounted for a significant number of growth of Beeline subscribers since December 2009.

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The electronic governance system will be introduced in Armenia in January 2012. An inter-agency working group met this week to elaborate the concept of introducing e-governance within a three-year Armenia-EU program by September 2010.

Secretary of the National Security Council Arthur Baghdasaryan, who chaired the working group meeting, said new governance system will cover central government as well as local self-government and will ensure that businesses can communicate with state bodies via e-mail. According Baghdasaryan, the new governance system will reduce corruption risks and eliminate red tape.

However, exchange of official documentation via electronic means of communication requires due level of protection and security. Draft laws on “Information Databases” and on the “Personal Data Protection” will be elaborated and submitted to the RA government to address the need.

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Data security is also one of the concerns which Microsoft is pitching as a justification for submitting a program to combat software piracy in Armenia to the relevant government bodies. The director of Microsoft office in Armenia Grigor Barseghyan told PanArmenian.net that Microsoft losses are estimated to be as much as $50 million US in the Armenian market, which also translates to lost taxes for the state.

“Serious discussions were triggered around the program in the Ministry of Economy, which resulted in a decision by Prime Minister to set up a related inter-ministerial commission,” Mr. Barseghyan said.

According to him, the commission will examine the problems in legislation, issues of international cooperation and protection of the rights of Armenian developers.

Pirated software also presents serious challenges to data security, according to the director of Microsoft in Armenia. "Hacker attacks are often possible because of unlicensed software use. That is why the government should become an example of the use of licensed programs," Barsegyan insisted. Microsoft possesses data, according to which only 30 percent of computers in state institutions have licensed software installed.

Arthur Papyan / PanARMENIAN News