Rumor has it that “ArmenTel” is being sold and even some “ArmenTel” workers are confirming that. They are sure that the potential buyer is a Russian company, but they don’t know who yet. According to our sources, the Russian “VimpelCom” operator, which represents the “B-line” trademark in Russia, plans to purchase 90% of “Armentel” stocks belonging to the Greek OTE company.
However, if so, we must take into account the current competitive growth in Russia’s communications field. The other companies will never allow “VimpelCom” to easily enter the market of another country. On May 23, the European Bank for Reconstruction and Development (EBRD) provided an 8-year 112 million dollar credit to Russia’s largest mobile phone operator-“Mobile TeleSystems” (MTS) and has prolonged the former 250 million dollar credit term. On the EBRD web site, you read the following: “This credit is aimed towards broadening the MTS network in all regions of Russia and some CIS countries, to reconstruct and make technological reforms in financing.” It’s quite possible that “ArmenTel” fits in with the company’s plans.
It is worth mentioning that before “K-Telecom” entered the Armenian mobile phone market, there were rumors going around claiming that two Russian companies can make some investments at the same time. Currently, it appears that this is much more probable. One company will purchase “ArmenTel”, while the other will broaden its network in Armenia with the money provided by the EBRD. Russia will also get something out of this, not only economy-wise, but rather politically. Russia will also have control on Armenia’s communications field.
What about the OTE company? Will it really give up on a company, which is the 2nd largest taxpayer in Armenia? In just three months, the “ArmenTel” joint-stock company paid 3,807,495,000 AMD to the state, of which 1,557,420,000 was simply tax, including profit and income taxes. The latter is often looked at as an argument against selling “ArmenTel”. But let’s take a look at it from another side. When “K-Telecom” entered the market last July, “ArmenTel” started going through some heavy times. Until then, the public hadn’t seen any “ArmenTel” commercial. Not only did the company start publicity and broadcasting commercials, but it also started fixing low prices and coming up with different announcements. Based on the data of the Economic Competition Protection Committee, “K-Telecom” has 52.7% global, mobile connection, in other words, more than “ArmenTel”. The Armenian government, which is the 10% shareholder, is pressuring “OTE” too. The regulatory contract signed in November 2004 permits the third operator to enter Armenia’s market starting from 2009. It’s obvious that all this has reduced the super profits that “ArmenTel” earns. “OTE” will be able to work more freely by freeing itself from “ArmenTel”. Perhaps the Greek side is currently thinking about the amount that any Russian company will pay for purchasing “ArmenTel”. The transaction may be postponed, but the sides will finally come to terms.
“168 Hours” couldn’t get any information from “ArmenTel” about the transaction; the workers said that only the shareholder has the right to give information. The shareholder still doesn’t say a word. The workers are currently thinking about how they will work under the management of the new shareholder, what the salaries will be and whether or not they will gain something after the arrival of the new owner.