ADC reduces tariffs

Interview of Chief Commercial Director of Armenian Datacom Company (ADC) Avetik Kalantaryan to Mediamax Agency and Itel.am portal

- ADC announced reduction of prices for internet connection on November 1. What changes did the company’s tariffs undergo and what did allow ADC taking this step?

- Reconsideration of tariffs was the response to reduction of prices for wholesale internet by “ArmenTel” and FiberNet, which provide for international internet exit. This, in its turn, is based on the initiative of the Armenian government and the operator community, targeted at the necessity of reconsidering the prices for internet services.

Thus, ADC informed on reduction of its tariffs on November 1. This creates a new and interesting situation in the market and represents significant assistance for both the IT market and other enterprises.

The most important change is reduction of tariffs for internet flows with the fixed speed (reduction of tariffs given different volumes of flows makes from 15-39%). The tariffs for distributed internet services, which are more convenient for the business community, have reduced by 10-51%.

Besides, we have created new products. For instance, “Internet Office” service, which was previously provided with 1.4 distribution ratio, will now be provided with the ratio of 1.2, which means impetuous growth of the service quality.

At the same time, taking into account the demand among small and medium enterprises, we have created “Internet Office Quadro” product, the distribution ratio of which makes 1.4. “Internet Office Quadro” is approximately 2 times cheaper, as compared to the service of “Internet Office”. 

Besides, the ratio of “Internet Office Mini” service distribution has also changed (it was 1/8, now it is 1/6). By the way, internet network with the speed of 1.5-2Mb, provided within the framework of the given service, has already decreased by 20% in price.

- Recently the third operator GNC Alfa Company, which provides for international internet exit, entered the market. Will you cooperate with the new operator?

- The entry of GNC Alfa Company made us very happy. This company put forward an offer, which differed from the previous ones both in terms of quality and price.

Now both ADC and many other companies hold walks with GNC Alfa, aiming at using the services of the latter.

- GNC Alfa entered the market after reduction of tariffs by “ArmenTel” and FiberNet. Is a new reduction of tariffs in the nearest future possible?

- The conjuncture of Armenian internet services’ market constantly changes. New companies with innovative services, new networks and technologic solutions appear, and this, of course, influences the behavior of all market participants.

This fall, we witnessed two important events: entry of GNC Alfa and Orange Armenia companies to the Armenian market, and the fact has undoubtedly influenced the tariffs for internet services.

- Is the Armenian conjuncture of wholesale internet market far from the European level?

- I assure you that in Armenia the prices for internet will never be and cannot be equal to European ones, North-American ones, or even Russian prices. The main reason is the transmission cost, which will always be included in the prime cost.

Reduction of prices depends of increase of the number of internet protocols, entering Armenia. For instance, if there are 10 operators, providing for international exit to internet mains, the prices may really reduce significantly.

- ADC stopped provision of “Internet office for providers” service. Why?

- This service represented supply of high speed internet to licensed operators with the option of multi-sharing. We provided this service with distribution of 1/3. At present, because of abrupt reduction of prices for internet with fixed speed, this service loses its expediency. 

- Since recently, ADC started also entering the market of “home” internet, providing the service of Fastclick, due to which internet becomes available through an electricity socket. How do the matters stand with this service?

- This service is yet of pilot status. Large-scale provision of Fastclick will be launched in the nearest future. At present, we carry out works on testing, the results of which are quite satisfying.

It is known that expansion of operators, who posses cable networks, requires more time and expenses. We are glad to realize that there is volume demand for quality services among individual subscribers.

Being a beginner in the given segment of the market, we decided to enter it with a new technologic solution, which does not have its precedent in our region.