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Armenia Telecom operator fined for abuse of dominant role

Date: 5/27/2008 6:45:41 PM

The commission to protect economic competition today fined ArmenTel for abusing its dominant position in the mobile services market. As a fine, ArmenTel will have to pay 1% of its 2004 profit from mobile services.

The commissions resolution states that between June 30 and July 10, 2005, ArmenTel did not provide its mobile subscribers an acceptable level of service. This puts ArmenTel in violation of Armenian legislation and the license regulating the companys activities.

Representatives of ArmenTel acknowledged shortcomings in their operations. However, they rejected the claims regarding the companys dominant role. The companys lawyer, Artag Khachatryan, said that the mobile operator Vivacell, which entered the market on July 1, has already become a significant competitor for ArmenTel.

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