Internet price in Armenia the highest in the region and the level of penetration the lowest

Yerevan /Mediamax/. Duopoly of wholesale internet has led to the result that internet penetration in Armenia is the lowest and the price the highest in the region.

Mediamax reports that the report of the Armenian office of Academy for Educational Development (AED) and U.S. Agency for International Development (USAID) on Armenia’s telecommunication sphere and the activity of Public Services Regulatory Commission’s (PSRC) Telecommunication Department reads this. The report was presented at the Forum of IT Leaders of Armenia in Dilijan on July 4-5.

According to the report, 5.8% of the population uses internet in Armenia, while in Azerbaijan the given index makes 12.7%, in Georgia – 8.9%, in Iran – 34.9% and in Turkey – 36.9%.

The monthly fee for unlimited internet provided by ADSL technology and at the speed of 1 Megabit per second makes $80 in Armenia, $10 in Georgia, $40 in Azerbaijan and $28 in Turkey.

The authors of the report suggest PSRC jointly the State Commission for the Protection of Economic Competition (SCPEC) regulating the tariffs.

“Besides, providers should gain the chance to rent “ArmenTel” resources at prices, based on prime cost, and thus organize own exit to international mains”, the report notes.

The authors of the report also point to the fact that the fines, applied by PSRC, do not depend on the incomes of operators and terms for eliminating the violations, recommending making legislative changes for the danger of being fined to keep operators from frequent and prolonged violations.

The report notes that the disputes among operators and providers are regular and often remain unsolved, as a result of which there is the necessity for the PSRC to organize discussions with interested parties, aiming at elaborating procedures to settle arbitration disputes.

The authors of the report also point to the necessity to implement the function of mobile number portability (MNP) in Armenia and suggest PSRC starting discussions to define terms for MNP implementation.