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The company with Lebanese capital, whose executive director is Ralph Yirikian (also general manager of Armenia’s leading mobile phone operator VivaCell-MTS), entered the Karabakh communications market in 2002. The company got a few tens of thousands of fixed-line telephone numbers, an old automatic telephone station, Soviet-era telephone operators as well as a monopoly in the telecom market. Since then the company has invested more than $38 million: cellular communication emerged in Karabakh and now 60,000 people of the republic’s 140,000-strong population use mobile phones.

However, the contract for the work of Karabakh Telecom was concluded in unclear conditions that were far from market relations. The owner of the company, Pierre Fattouch from Lebanon has invested considerable funds in the business, but nothing is known about the terms of his agreement with the authorities of Karabakh of that time. It is not known what share the government or perhaps its individual members have in dividends from this apparently lucrative business. What is said is that the contract was signed with the then President of Karabakh Arkady Ghukasyan and Prime Minister Anushavan Danielyan. Another thing that is known is that it’s already eight years that the government of Karabakh has tried not to interfere with Karabakh Telephone’s matters and the company’s pricing policies despite the fact that the operator holds a monopoly on the market.

The presence of such a contract was confirmed at the July 11 joint press conference of Karabakh Prime Minister Ara Harutyunyan and Karabakh Telecom CEO Ralph Yirikian. The head of the Karabakh government confirmed that the contract does exist, but “we will not publish it based on political considerations.”

The press conference followed a protest by Karabakh youth in social networks. A page “No to Plunder” was started on Facebook and a lot of internet users unhappy with the quality of telecom services have quickly responded by joining it. Communications services in Karabakh really lack in quality and Yirikian ascribes it to the fact that since Karabakh is an unrecognized state, the company has to purchase internet from the satellite, which is quite expensive. There is no wireless internet provider in Karabakh. And prices for mobile phone connection are on the average twice as high as in Armenia.

Yirikian promises that very soon prices for telecom services in Karabakh will be lowered, the quality of connection will be improved and wireless internet will become available.

One question still remains: who and by what right gets astronomical revenues from Karabakh Telecom? Yirikian argues that he is not a shareholder of Karabakh Telecom, did not sign the contract and is working on a voluntary basis without receiving any salary. Besides, Yirikian allocates part of the company’s revenues for charity.

It is believed in Karabakh that the otherwise reasonable protest campaign was abused and directed against Yirikian. It is even said that at one point he intended to resign. At the beginning of this month employees of the company raised their voice in support of Yirikian, who enjoys great respect and love of the people, and stated that his resignation must not be allowed. It was Yirikian who introduced the culture of business and corporate social responsibility in Karabakh.

Premier Ara Harutyunyan said at the press conference that they have nothing against Yirikian. Simply, he said Karabakh Telecom should revise its pricing policy and improve quality. However, he did not deny rumors that French Orange may appear on the Karabakh market. The Karabakh premier only said that it would be politically very difficult for the unrecognized Nagorno-Karabakh Republic.