PSRC rules that ArmenTel and FiberNet communication halve price of 1 megabit/sec internet connectivity to 174,000 drams

YEREVAN, November 18, /ARKA/. Armenia’s Public Services Regulatory Commission (PSRC) has ruled today that ArmenTel and FiberNet Communication companies, two biggest wholesale Internet providers, must half the price of 1 Megabit/sec connectivity to 174,000 Drams.

Samvel Arabajian, a PSRC member, told journalists that the reduction of price will result in reduction of Internet prices for end users in the first months of 2010, but declined to predict how much they may fall.

‘Until now with the effective prices the profitability rate for providers was 55%, now after this decision it will fall to 12%,’ he said, adding that the main function of the PSRC is to prevent companies from making super profits.

His remarks were retorted by David Sandukhchian, head of ArmenTel’s legal department, who said the PSRC’s decision ignores the interests of investors because a 12% profitability rate would scare investors away from Armenian market.
There are three wholesale Internet providers in Armenia-ArmenTel, (operating under Beeline trademark),
FiberNet Communications and GNC Alfa. ($1- 387.48 Drams).  -0-