“The Armenian-Norwegian “Armenian Datacom Company” (ADC) offers rapid and cheap Internet connection in Yerevan and the suburbs,” as stated on the ADC website. This is a promise that may be fulfilled and has caused confusion among Internet service providers. “ADC” is even offering lower prices than “ArmenTel”.
We heard different comments as we listened to different “interpretations” on the price. ADC is applying new techniques for new subscribers. It sells one line to a couple of subscribers and generally only one subscriber can use it. This is exactly how ADC lowers its price for the Internet. For the subscriber this means having a slow Internet connection, which the ADC subscriber will see after subscription. It is clear that this mysterious Armenian-Norwegian organization has already violated the law, and the Economic Competition Protection Commission (ECPC) may apply mechanisms of fining and sanctioning based on the articles about careless advertisements.
Another state supervising body – the Public Services Regulatory Commission – must be aware of the bargain price of the services of ADC and prohibit them to apply a damping policy. Based on the comments of local providers, this organization has completely passed damping and the regulatory commission must apply sanctions by law. According to our sources, ADC is backed by mayor of Yerevan Yervand Zakharyan. Interestingly, will former mayor Robert Nazaryan, who has taken on the responsibility of regulation, impede the business of the current mayor? According to our sources, this Armenian-Norwegian company was founded through the means of the municipality and the purpose was not supposed to be Internet service, rather the supply of lines. The one-window principle of the municipality to limit ties with citizens presupposed that district councils would also be provided with an Internet connection. ADC receives connection from the Norwegian satellite and doesn’t pay “ArmenTel” for connection lines. In the future, the company plans to co-operate with “Fibernet”, a second operator. Too bad that things are not going that well for “Fibernet”; this company just isn’t able to enter the market and thus the tie between Armenian Communication and Transportation Minister Andranik Manukyan (“Fibernet” belongs to the latter) and mayor of Yerevan Yervand Zakharyan doesn’t develop. Nobody is against having cheap Internet connection, but not at the expense of a deceiving price.