Effects of liberalization of telecom markets in developing countries: Armenia 1998–2008 case study

This paper discusses the path of telecom market development in Armenia since its wider opening to private participation in 1998 and the recent fast development in the sector due to elimination of monopoly in providing main telecom services. Investigation covers Internet and mobile markets and draws comparatives with other countries of the region, covering telecom market development (penetration) indicators and technical characteristics. Prospects of telecom market further development are presented in the light of overall Information and Communication technology sector development policy and strategy adopted by the Republic of Armenia. It is argued that small economies lacking natural resources cannot maintain their competitiveness and sustain steady economic growth in the long run without ensuring free and effective telecom market functioning. Expansion of telecommunication market is an important precondition for carrying out ldquosecond generationrdquo market reforms and this paper sheds light on policy perspectives the country has got on the way of telecom market development. The paper also includes telecom market growth forecasts, based on the framework of sustainable development program adopted by the government.