Newsfeed

U.S. Embassy in Baku offers excuses: California Senate's decision does not represent national foreign policy

Eduard Sharmazanov: Robert Kocharyan said nothing new

A Radisson Hotel may open in Armenia

Armenia institutes a criminal case suggesting international terrorism over Azerbaijan's fire attacks on Armenian borderline villages

VTB Bank (Armenia) presents gifts to children of Full Life NGO's Inclusive Summer Camp

Azerbaijan transfers Hakob Injighulyan to a third country

Armenian analyst considers Edward Nalbandian's participation in Turkish president's swearing-in ceremony to be a diplomatic mistake

Union of Banks of Armenia hosts discussions on development problems of Armenia's financial and banking sector

Volunteers from the Diaspora visit VivaCell-MTS headquarters

Robert Kocharyan is not optimistic about prospects of final settlement of Karabakh conflict

Edward Nalbandian invites Erdogan to visit Armenia on 24 April 2015

Robert Kocharyan: The regime able to forget personal interests is doomed to success

Beeline cuts down tariffs for fixed-line telephony services

Expert: California Senate-adopted Resolution - AJR 32 is a response to Baku's blackmailing policy

Robert Kocharyan: It would be wrong thinking that Armenia's economy may gain from sanctions against Russia

Armenian Deputy Minister of Finance: The stadium will not pay off all debts of Armavia

Armenian Cause and Cyprus among key items on Ahmet Davutoglu's agenda

ACBA-Credit Agricole Bank issues student loans within 15 minutes

SCR CJSC to attend sitting of Traffic Safety Committee of Council for Rail Transport in Minsk on Sept 2-3

Edward Nalbandian makes a statement on the Resolution of California Senate recognizing the Independence of Artsakh

Expert: Yerevan's refusal to participate in Turkish president's swearing-in ceremony could put international pressure on Armenia

David Babayan: Azerbaijan's stand on Yazidis of Iraq describes it as a Nazi country

David Babayan: Recognition of NKR's independence by California is equivalent to recognition by a big and influential state

VTB Bank (Armenia) consumers may now get standing orders for paying for Beeline services

Anelik Bank presents a new credit product - Simple-Fast Extra

Alexander Manasyan: In big-league politics Erdogan's anti-Armenian statements are a trifle

Expert: Increase in water release from Lake Sevan endangers the lake ecosystem

Politician: Perhaps great powers have promised Armenia to pressure Turkey into opening Armenian-Turkish border

Armenian general suggests delivering a series of preventive surgical strikes at Azeri army's combat positions

General: Even Turkish instructors admit low combat effectiveness of Azeri army

Mika Stadium placed on auction

Resident of Artashat wounded in shooting

Armenian Foreign Minister to attend Erdogan's swearing-in ceremony

VTB Bank (Armenia) offers a new installment credit with 1% discount

Beeline provides its subscribers with free access to its website

ACBA-Credit Agricole Bank announces a CASHBACK QUEST contest for AmExR Cashback cardholders

Ameriabank launches AmeriaToken - innovative application for smartphones of customers using online services

Employees of Areximbank-Gazprombank Group join international Ice Bucket flashmob

Internet services will dominate over fixed line and mobile services in the coming years

  • by Erik Abrahamyan

  • Wednesday, March 5, 17:56

 Internet services will dominate over the traditional telecom services (fixed line and mobile) in the coming years. Cable TV and Internet services have the best prospects for growth in Armenian telecom sector. These are the findings of  the "Telecommunication in Armenia" research conducted by Ameria CJSC. The March 4 presentation covered the current state, challenges and development prospects of the telecommunication industry in Armenia. A total of 1,067 Yerevan residents aged 15-69 participated in the survey. The field work period was from December 2013 till January 2014.  
'

Haykaz Fanyan, Research Consultant, pointed out that in 2013 the mobile services industry revenues (VAT exclusive) totaled AMD 111 billion or USD 271 million (4.7% year over year growth). In 2012 the mobile services retail market accounted for AMD 90.6 bn vs AMD 68.8 bn during the first nine months of 2013. The mobile services market in Armenia is predominated by the Rule of Three and Four, meaning it is a stable competitive market with the share of the largest competitor (VivaCell MTS) around 4 times higher than the market share of the runner-up (Orange Armenia). To note, there are three mobile operators in Armenia: ArmenTel (Beeline brand) and the aforementioned two companies. 

He added that in 2013 the Armenian telecom industry revenues totaled AMD 173.73 billion or $424 million (VAT exclusive). As compared with 2012, this index grew by 5% or by AMD 8.52 billion ($13 million). According to the survey, when asked, "If you could switch to another mobile operator without changing your phone number, would you take the chance?", 52.8% of the respondents replied "Definitely no", 23.02% - "Probably no", 13.11% - "Not sure", 7.9% - "Probably yes", and only 3.15% said "Definitely yes". The mobile number portability service will not affect Yerevan's mobile market significantly. Although this option could be accompanied by price and non-price competition creating resonance in the market.  
Fanyan said that if the telecom industry is conventionally divided into 3 components, the fixed line services received 13% of total revenues in 2013 (down 2 pct points versus 2012), mobile services received 64% of the revenues (no changes versus 2012), Internet services 17% (no changes versus 2012) and other services obtained 6% (down 2 pct points versus 2012).

According to Ameria's estimations, cable television services market is the most rapidly growing market in the industry.  Revenues of this subsector grew four times in 2010-2013. The year over year growth made up 25% or AMD 2.8 billion.  According to Ameria specialists' projections, the number of cable TV subscribers in Yerevan only is going to increase by 38,000 in the coming years. 43.3% of households in Yerevan use Pay TV services, and 53.5% are still using analog TV only.

Beeline (41%) is in the lead on the broadband Internet retail market of Armenia by the number of subscribers. The following players rank next: Orange (21%), ViveCell-MTS (21%), Ucom (11%), Rostelecom (1%). The main internet services used by the population of Yerevan are social and dating websites (59%), Skype, Viber and other video call services (50%), download/watch movies and music (46%). Fanyan stressed that the fixed line phone communication in Yerevan is still topical: 68.7% of fixed-line users (about 91.5% of population) aged 15-69 use fixed-line services every day.      

55% of the households in Yerevan have only one computer device. Only 8.5% of households in Yerevan possess a laptop, a tablet and a PC at the same time. On the average, there is 1.15 cell phone per one mobile services user aged 15-69 in Yerevan, with 86% having 1 cell phone only, 11.96% having two cell phones and 1.7% having three cell phones.

To note, Ameria has been conducting such surveys for 1.5 years, with each of them touching on a particular segment. 

Send to a friend

To (e-mail)


Your name


Message


Comments

View comments (0)
  • READ ALL COMMENTS
  • POST A COMMENT

Be first to comment on this article

* Indicates required fields