It’s not the first time that GNC-Alfa changes the game rules on the Armenian Internet market. The first time, the company has significantly improved the wholesale Internet market by its entrance in 2009, building communication networks in Georgia and Iran and offering unprecedentedly low prices for wholesale Internet in Armenia. The company has quickly occupied a steady place on the market and today, as its leadership claims, occupies over 50% of the wholesale Internet market of Armenia.

The next time the company has changed the rules of the game was in December 2012, when GNC-Alfa began providing retail Internet services not in Yerevan but in country’s regions under Rostelecom brand. But GNC-Alfa differs from other large Armenian operators also because the company’s head office is situated not in the capital but in the city of Abovyan. The building of the company and the large number of cars parked in front of it look a little bit unusual against the “dozing” background of the city, but anyhow it proves that in our country it’s possible to conduct an effective business not only in Yerevan. GNC-Alfa CEO Hayk Faramazyan told iTel.am how to do it.

- Mr. Faramazyan, let me congratulate you on Rostelecom’s entrance to the Armenian retail Internet market. We haven’t had a chance to talk about yet.  Tell us please how did Rostelecom become interested in an Armenian operator?

- The owners of the company were looking for a strategic investor for the development of company’s business. As a result, we received the best proposal from Rostelecom and the latter acquired 75% share of the owner of GNC-Alfa.

Today, Rostelecom is an absolute leader on the Russian Internet market and occupies over 40% of the market, which exceeds the market share of its nearest competitor about 4 times. The controlling stake in Rostelecom belongs to the Russian Federation, but the company's shares are traded on the Stock Exchange as well.

I think that just like for all large telecommunication companies, Rostelecom as well viewed the expansion beyond national borders as a logical stage of development.

It should be noted that Armenia is the first market outside Russia for Rostelecom. Taking into consideration the strategic partnership between Russia and Armenia and Armenia’s favorable business climate, Rostelecom’s decision was quite logical.

Thus, the rebranding of GNC-Alfa began in December and we began sales on the retail market in Abovyan, Ashtarak and Gyumri. The list of cities will be expanded soon. The rich experience of Rostelecom on the Russian market is valuable for us both from the point of view of service and range of services.

- Why did you decide to begin from the regions? Is it economically effective at this moment or it was done out of long-term interests?

- Since we have begun our business as a backbone operator and we have a developed network in many cities across Armenia, it was decided to start with the regions.

We see quite a big demand in the regions, as well as a lack of quality and level of services which are provided in Yerevan.

As for the investment return, it certainly differs from that of the capital, but our business plan does consider the capital and the regions separately, and we will launch activity in the capital soon.

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