Says Thomas Chanchanyan, mathematician, executive director of Antel company operating in the Silicon Valley
– The official circles have started speaking of the development of the IT sector much. Do you see any development in this sector?
– The IT is in the initial phase in Armenia, i.e. the phase of formation. A lot of work must be done. What can this country produce and offer to the market that can be competitive? In fact we don’t have any platform or system that would be really compatible. The small companies that have been established in Armenia must have their own IP. In fact the wealth of any company is the IP they produce, but it does not exist in Armenia.
– If so, what sense do the announcements of officials make, especially the prime-minister’s announcement saying that the IT sector should be declared a priority in the economy?
– I can’t answer this question as I don’t have direct contacts with the government, even though I have met the PM once. There is no competition in the IT sector in Armenia. The only company that can give something from Armenia is the Synopsis, which keeps employees, makes them work and sends the best of them to the Silicon Valley. During these years 7 Armenian engineers have moved to the Silicon Valley with their families. Unfortunately these children are already forgetting their native language. Armenia does not have representation in the Silicon Valley so far, but efforts have been made for that purpose. Our country must be interested in inflow of brains and attraction of best specialists, but the vice versa is happening. The outflow of minds from Armenia is becoming faster throughout the time. We have excellent specialists abroad and only one of them has returned to Armenia, and it was done with a lot of difficulties. The existence of the taxation policy is felt strongly especially by start-up companies. During the first years of foundation companies do not earn money and having this tax load in Armenia, many companies simply are established for example in Singapore, Israel or Korea, where the governments are helping them with any issue by freeing them from taxes for four years and giving other privileges. Several years ago I came to Armenia with recommendations and draft plan on what should be done in Armenia. Even more, I received offers for help from other countries as well, including Singapore. As for our government, it turned back from us. It is absurd to write in newspapers that we have IT business resources. Let me say that we simply don’t have such resources.
– Why are we speaking of developing this sector if we do not have potential?
– Armenia has great minds. There are young people who have the basic skills for this sector but there are not equipments or areas to use them. Specialists are taught at universities without having laboratories. The development of this sector should start from universities. All what universities have are inherited from the soviet times. The development should stat from universities. Of course they need money for that purpose. The IQ and skills of Armenian schoolchildren are higher than in other countries. However, there are no areas to use those skills. In American universities students first of all learn how to think independently and after that they work independently in the IT sector. It is encouraged in America.
– But in Armenia IT specialists have a high demand.
– IT sector is not a science direction; it is an art. The specialists of radio-physics have no other choice and they become IT specialists. Of course the IT sector is profitable but it loses scientists. In Armenia often people give up on the science because it is not profitable. In order to develop the IT sector a country should produce. Countries such as Lithuania and Estonia have their own production but we don’t. Why do we produce?
– Do you have innovations in the IT sector?
– We are working on IT systems. For example, it seems that mobile phones have a simple system, but in fact they are too complicated as they have algorithms and other components. After working on these separate components and putting them together in a system, it is used in production. It is very important to bring the produced products out for competition. From this prospective hardly Armenia can compete with the US. We have created long-distance wireless radios, which will be produced in the near future. If the mobile phones have the capacity to catch waves within the distance of 3 kilometers, our phones can be available within 100 kilometers. Of course I cannot say how we made it because it is science. This is the IP I was talking about. Unfortunately we could not write “Made in Armenia” on our innovation because of the high taxes.
– Don’t you have tax obligations in the Silicon Valley?
– Of course there are tax obligations everywhere, but in Armenia it is too much. One does not need much money to establish a company in the Silicon Valley, but in Armenia you need a lot of money to do that. Before we would establish the branch of our company in Armenia we are asked to give so much money, even more, the tax bodies asked us to give the tax payments for the first three months in advance. This is like we would lose one million drams for earning one dram. In other words, one should be either a patriot or mad to work in such conditions. Of course we do not complain about this in the presence of foreigners, but this is the reality. Businessmen with a lot of money will not come to Armenia because they will not be successful here. If the government works and makes efforts for the purpose of developing the IT sector instead of using mere words, in five years there may be positive developments in the IT sector.
– It is time not to cheat ourselves.
– It is surprising when I hear them saying that Armenia has 100 companies operating in the IT sector. These are consult companies that are buying products from abroad. First of all we have to improve the quality of our Internet connection. Armenia has the most expensive and slowest Internet connection in the region. We have huge Diaspora that we should attract. The government should simply attract the specialists that we have abroad. This concerns not only the IT but other sectors as well. Really I had a big desire to write “Made in Armenia” on our wireless radios. By the way, the US defense ministry has already bought our wireless radios for their military aircrafts. This is the only system in the world that may provide availability within the range of 100 kilometers. The other systems can be available maximum in 40 kilometers. I am concerned of the future of our country and would like our country to buy this system itself. I met prime-minister Tigran Sargsyan in November. He can listen to you with patience, he can be polite, you can even dink coffee with them, but it does not change anything.