Rostelecom Armenia Focuses on IPTV Services

Armenia’s telecom market has developed rapidly in recent years. The competition is extremely tough. Rostelecom provides broadband internet access, VoIP and new generation IPTV services for customers in Armenia. The company focuses on IPTV services and is gaining more and more market share. Recently, ZTE Technologies interviewed Hayk Faramazyan, CEO of Rostelecom Armenia. He talked about Rostelecom Armenia’s latest developments, most demanded services, main challenges, growth opportunities and new trends in the IPTV market. He also shared with us his expectations for ZTE and outlook for Rostelecom Armenia.

Q: What are the characteristics of Armenia’s telecom market?

A: The telecom market in Armenia has been developing rapidly over the past 10 to 15 years. Armenia is considered as one of the leaders in implementation of innovative technologies in telecoms.
The market is extremely competitive. There are five major players: Vivacell-MTS, which has the largest market share in telecoms and provides 2G, 3G and LTE; Beeline, which provides 2G, 3G and ADSL/VDSL and voice services; Orange Armenia, which provides 3G+ services; UCom, which has an FTTH network and provides broadband internet, VoIP and IPTV; and Rostelecom Armenia, which provides broadband internet, VoIP, and next-generation IPTV.

Q: What are some of the latest developments of
Rostelecom Armenia?

A: From December 18, 2012, GNC-ALFA CJSC has provided telecommunication services for Armenina through a subsidiary called Rostelecom Armenina.
As one of the leading telecommunications companies, Rostelecom Armenia provides broadband internet access, VoIP and new generation IPTV services.
From 2012 to 2013, the company made large-scale investments in network development and expansion. In particular, major investments were made in fiber-to-the-home (GPON) network in a number of cities in Armenia.
Starting from 2014, the company provides services in 20 cities of Armenia including Yerevan. The network of Rostelecom Armenia is solely based on fiber-optic cable (FOC) infrastructure covering 80% of the territory of RA and spreading for over 3000 km.
It is connected to region’s main terrestrial cable networks and largest traffic exchanges. It has interconnection with Georgia.
In 2014 Rostelecom has built 40 GB/s network covering all municipalities of Yerevan and providing high-speed internet connection to all customers.
The state institutions of Armenia, international organizations, corporations, and local financial institutions are all corporate clients of Rostelecom Armenia.

Q: How is the competition in the field of IPTV?

A: Competition in this field is diverse, and there are five leading companies providing internet services. IPTV services are provided by two of them Rostelecom and Ucom. There are also around 10 small IPTV providers in the regions of Armenia. In case of Rostelecom, the services are available in 20 cities of Armenia including capital city Yerevan.
Ucom is the leading IPTV provider, but Rostelecom is expanding its market share aggressively and is considered as one of the leaders in IPTV market as well. Some other providers have started IPTV pilot projects, but they only cover very small areas and have up to 1% market share.

Q: What major challenges do you face in the IPTV market? What is your market strategy?

A: Rostelecom’s IPTV services have always been very innovative and customer oriented; that’s the reason Rostelecom Armenia is considered the fastest growing telecom company in Armenia.
We face a variety of challenges related to current trends and regional specificity. Our marketing strategy is based on two main factors: customer needs and international innovation trends. These core issues are drivers of Rostelecom success in Armenia. With ZTE’s new IPTV platform, we will introduce new unprecedented services and applications in the Armenian market. We aim to make the TV set an interactive smart box through which the customer can access TV live channels, VoD, Apps and internet.

Q: What Rostelecom Armenia’s services are most in demand?

A: Armenian customers are very demanding, and their demands on IPTV and internet services are similar to those in developed countries.
They need high speed stable and high quality internet services and IPTV designed for advanced users. Our customers are very sensitive to IPTV quality of service. Every malfunction in the network or platform results in dissatisfaction and customer complaints. We have the highest quality IPTV service in the country in order to meet customer expectations.

Q: Where do you see the future growth opportunities in Armenia?

A: Main drivers of Rostelecom expansion in Armenia are investments in innovations, development of intelligence countrywide, and integration of society in political and economic life through smart and IP solutions.
We are sure that IPTV will have great success as the old technologies like cable TV will lose their positions thus leaving the space for new technology. We believe that within the next five years we will double IPTV users every year.

Q: You are planning to launch a new IPTV platform with ZTE. How will this new platform differ from the existing one?

A: Rostelecom’s IPTV platform will be smarter than the existing platform and will have some new and trendy tools, such as apps, YouTube, TVOD, TSTV, and VOD. With all its innovative solutions, the new IPTV platform will become more accessible in Armenia, especially in regional areas.
We are sure that cooperation with ZTE Corporation will be mutually beneficial for both companies and Rostelecom’s customers in Armenia will be provided the best and “smartest” IPTV in the region very soon.

Q: What new trends do you see in the IPTV market?

A: IPTV local market trends are in common with international trends and now cable changes to IP and trends go to TSTV, TVOD and other solutions. Anyway, these changes and developments will also be affected by solvency in the country and investments will be done in consideration with the local market trends.

Q: What are your expectations for the future partnership between Rostelecom Armenia and ZTE?

A: Future strategic partnership between Rostelecom and ZTE will continue in direction of IPTV expansion, implementation of additional services and core cooperation for the benefit of Armenian customers.

Q: How will Rostelecom Armenia develop over the next five years?

A: Rostelecom Armenia will expand both qualitative and quantitative key services and indicators. We will expand our presence in regional areas, develop new product lines, and continue investing in innovative technologies in local telecom market.