ArmenTel reports rising mobile subs in 2014 as data revenues climb

6 Mar 2015

Armenian fixed and mobile operator ArmenTel, which trades under the Beeline banner of its Russian parent Vimpelcom, says its cellular subscriber base climbed by 11.9% last year to over 770,000, up from 688,000 at end-2013. Presenting the telco’s financial and operational achievements in 2014, CEO Andrei Pyatakhin said turnover derived from mobile internet services increased by USD900,000 in FY 2014, to USD6 million, although operating revenue from fixed telephony services declined 6% from USD81 million to USD76 million over the twelve-month period. Mr Pyatakhin attributed the decline in fixed line revenue to the global trend of declining demand for fixed telephone services, as people switch to mobile / over-the-top (OTT) applications allowing free communication, such as Viber or Skype.

ArmenTel, a wholly owned subsidiary of Vimpelcom, invested USD14 million in the development of its services in FY 2014, USD3 million more than was invested in FY 2013, Pyatakhin said. ‘Thanks to the investment, a high speed fibre-optic internet service based on [fibre-to-the-building] FTTB technology was launched, digitisation was continued in provinces, the number of mobile basic stations was increased and an IPTV service was offered in Armenia,’ he said. Moreover, Pyatakhin noted that CAPEX totalled USD6 million in the fourth quarter alone, while ArmenTel also paid taxes to the government exceeding AMD14 billion (USD29.2 million). In the press conference, Pyatakhin said that 2014 was marked by the implementation of a new client-based strategy to improve customer loyalty.