Newsfeed

Converse Bank announces second launch of "Team of the Future" program in 2014

VivaCell-MTS supported MES in the creation of backup server center for the Government of RA

Azerbaijan panic-stricken by Lithuania-Artsakh Parliamentary Friendship Group's visit to Artsakh

Political expert: California Senate-adopted Resolution - AJR 32 demonstrates Armenian lobby's muscle

Doubled data and off-net minute inclusions for Orange Panther customers

Hakob Injighulyan's brother refutes information that Hakob is currently in Romania

VTB Bank (Armenia) takes the lead in brand awareness among Armenia's banks

Beeline Regular and Premium unlimited mobile internet services become available for postpaid subscribers

Despite protests of environmentalists, Mego Gold Company gets permission to launch construction of third Tukhmanuk tailing dump

The 6th Pan-Armenian Barbeque Festival will be held in Akhtala on 6 September

Artak Zakaryan: Turkey's efforts cannot help resolve Karabakh conflict

Davutoglu says Ankara will do everything to end "occupation of Azerbaijani territories and Nagorno Karabakh"

President Bako Sahakyan addresses people on occasion of the Day of the Artsakh Republic

Armenian Center of Culture and Education in Israel to organize action demanding recognition and condemnation of Armenian Genocide

Armenia verifying reliability of the reports on an Armenian civilian's crossing the border with Azerbaijan

President of Armenia: Artsakh's independence - irreversible reality now

Nalbanian cannot say when Erdgoan will accept Serzh Sargsyan's invitation

Rostelecom announces new reduced tariffs starting 1 Sept 2014

VTB Bank (Armenia) funds repair and equipment of math classroom at secondary school No.21

Tickets of "Armenia" train running Yerevan-Batumi-Yerevan become cheaper

All outgoing calls to Beeline fixed-line network to cost 5 AMD per minute starting from 1 Sept 2014

Hakob Injighulyan is currently in Romania

Prime Minister of Georgia: Kazbegi Checkpoint on Georgian-Russian border will operate in limited emergency regime

Ilham Aliyev speaks of foreign forces' attempts to destabilize the political atmosphere in Azerbaijan

Armenian citizens' visa-free stay in Georgia to last 90 days within half a year

March of Peace, Unity and Solidarity in Yerevan

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

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