Government baulks at ArmenTel price hike plan

21 Sep 2006

Senior government officials in Armenia have opposed plans put forward by the country’s national operator ArmenTel to significantly raise the cost of fixed line services in the country. The monopoly operator submitted its proposal to the regulator in August, despite the fact that its Greek parent the Hellenic Telecommunications Organisation (OTE) was pressing ahead with plans to sell its 90% stake in the telco to another foreign investor. OTE has short-listed four foreign firms for the stake, but has yet to announce the winner. Prime Minister Andranik Markarian has now voiced his opposition to the hike, arguing that it would significantly push up the cost of dial-up internet access to the detriment of the development of IT in Armenia.