Mobile Wars: Armenia's telecom companies in row over Smartphone sale

Mobile Wars: Armenia's telecom companies in row over Smartphone sale


Keen rivalry continues among Armenia’s telecom companies as besides offering more competitive price plans and discounts for their customers at least two of them are now also competing in selling mobile phones in their service centers.


Armenia’s largest mobile network operator, Russian-owned VivaCell-MTS, and Orange Armenia, a mobile network launched by the French telecommunications giant in Armenia last November, have recently engaged in fierce competition over the sale of Android-based HTC Smartphones in Armenia.

(Google Android is an open source operating system which has many advantages such as voice control, an impressive use of popular Google applications, namely Google Earth, Google Maps, Google Search, possibility to access Gmail and other web-based mail accounts directly, automatically pulling in contacts from multiple sources including Facebook, easy use of social networks, etc.)

On May 17, VivaCell-MTS and HTC, a global designer and producer of smartphones, announced the start of sales of HTC Android-powered smartphones in VivaCell-MTS service centers across Armenia. Under a cooperation agreement signed between the two companies on April 10, VivaCell-MTS is considered to be the official strategic partner and retailer of HTC products in Armenia. At the initial phase VivaCell-MTS offers HTC Tattoo and HTC Hero handsets, for 135,000 and 195,000 drams (about $350 and $557), respectively.

Meanwhile, about two weeks earlier Orange had already announced the launch of the sales of Android-based HTC smartphones. “Thus, Orange is the first mobile operator offering in the Armenian market a handset operating with the very innovative Android system,” the company said in a press release.

Orange shops now sell only HTC Tattoo handsets for 149,000 drams (or $387).

However, Andrey Kormiltsev, Country Manager, HTC Russia and CIS, said at a press conference in Yerevan on May 17 that the launch of HTC smartphones in Armenia by Orange Armenia about ten days before was the result of misunderstanding. Kormiltsev, however, did not say whether companies other than VivaCell-MTS had the right to sell HTC phones on the Armenian market in the future.

The VivaCell-MTS Office and the Unicomp store are indicated in the Where to Buy section on the HTC Company’s official website (www.htc.com) as places where one can purchase HTC products in Armenia. Six HTC models are on sale at Unicomp.

Orange Armenia public relations officer Lilit Martirosyan told ArmeniaNow that Orange had purchased smartphones from its European partners and not from Unicomp as it is being alleged.

“France Telecom (Orange is part of this group) and HTC are global partners and we have no legal or other problems in selling these smartphones,” said Martirosyan, adding that HTC Desire handsets will also be on sale soon.

According to Orange Armenia’s representative, it is yet early to say whether smartphone handsets are in good demand in Armenia or not, as they have been on sale for only less than a month now.

VivaCell-MTS public relations officer Vahe Isahakyan, for his part, told ArmeniaNow that he could not comment on Orange’s actions. He also said that Android-powered smartphones purchased from their shops have a 12-month official guarantee and can be repaired in all countries where the HTC Company operates.

The third company running a mobile phone network in Armenia, Beeline, says it does not yet intend offering smartphones at its shops. The Russian-owned company’s press secretary Anush Beghloyan said that now only Beeline phones are on sale at their shops, for 990 drams (about $2.60) a month. And this offer, she said, has a completely different target group of customers.