Armenia's participation in the Asia-Europe Telecommunications system (AET) has
been a subject of debate for a few years now. The government expressed its intention
to take part in the project. Armenia was scheduled to become a full participant
in the program in April 2001. However the Greek state company OTE, the owner
of 90% of the shares of ArmenTel, Armenia's telecommunications operator, has
refused to implement the project, citing the absence of relevant provisions
in its investment program.
Meanwhile, settlement of this issue will make it possible for Armenia to join the Europe-Caucasus-Asia system, which may be very profitable for the country. As the David Rostomyan, advisor to the minister of Transport and Communication of Armenia, said, at present the Republic receives communication through a junction in Jrveghe from which signals are sent to Yerevan and then to Meghri by optic-fiber cable. About 150 km of optic-fiber cable must be laid to the town of Marand in Iran in order to join the AET system.
Implementation of the project will also improve the quality of Internet communication. In addition, as a transit state, Armenia will receive 20% of all payments for telecommunications traffic. The annual volume of phone calls from the U.S and Europe to Iran is known to reach 5-6 million minutes. According to the preliminary data, the cost of the project will total $1-1.2 million USD.
ArmenTel, Greek Telecommunication Company, has finished laying
optic-fiber cable to the border with Georgia and is now examining the possibility
of joining the communications systems of Russia, Bulgaria and Georgia to improve
the quality of Armenia's telecommunications system. Mr. Zakharyan, minister
of Transport and Communication of Armenia, has underlined that the government,
owning 10% of ArmenTel's shares, would do its best to include the project in
the company's future investment programs. He said that implementation of the
project has strategic importance for Armenia and demands Armenia's participation.