Communication (Armenian market)

History

2024: Telecom market growth by 4.1% to AMD 154.5 bln

According to the results of 2024, the costs of the telecommunications market in Armenia reached AMD 154.5 billion ($0.4 billion at the exchange rate as of July 1, 2025). Growth compared to the previous year, when the volume of the sector was estimated at 148.3 billion drams, was recorded at 4.1%. Such data are provided in the Nexign study, the results of which TAdviser got acquainted with in early July 2025.

The main source of revenue is mobile communications, which accounted for 59.4% in 2023. Another 18.5% of income was provided by fixed broadband Internet access services. The contribution of pay television amounted to approximately 6%, fixed telephony - 3.8%. The total share of all other services is estimated at 12.2%. It is reported that the penetration of mobile communications among the population of Armenia by the end of 2023 reached 133% (some residents own several SIM cards), and the penetration of mobile Internet - 102%.

The report says that the largest telecom providers in Armenia are focused on modernizing the network infrastructure in order to improve the quality of service, expand 5G coverage and provide innovative digital services. In particular, in November 2024, Ucom completed the first stage of the launch of the 5G network in nine cities of the country, including Gyumri, Vanadzor and Dilijan. Subsequently, the network was expanded to 11 more cities. At the same time, Telecom Armenia and MTS Armenia have received permits to use frequencies in the 700 MHz and 800 MHz bands, respectively, for the deployment of 5G services.

Since 2025, Starlink has begun to provide satellite Internet services in Armenia. The Commission for the Regulation of Public Services of the country in December 2024 approved two applications of Starlink AM LLC for the use of radio frequencies. The development of cloud technologies is observed: local companies and regulators are negotiating with international providers on the creation of local data centers to improve the stability of services in the region. Measures are being implemented to stimulate the use of artificial intelligence and other digital technologies in various sectors, including government procurement and business processes. This creates additional opportunities for telecom operators to provide their services.

The largest player in the telecom market of Armenia is Viva Armenia with revenue of 56.86 billion drams ($148.74 million). In second place is "Yukom" (Ucom) with a result of 38.31 billion drams ($100.21 million), while closes the top three "Telecom Armenia" ( Team Telecom Armenia) with 34.02 billion drams ($89 million).

The report says that the Armenian authorities support the processes of digitalization. Measures are being introduced to encourage the use of artificial intelligence and other digital technologies in various sectors, including public procurement and business processes. This creates additional opportunities for telecom operators to provide their services. In 2025, the country's operators and banks launched the eSIM Mobile ID service, which simplifies the online identification procedure for citizens and businesses. If earlier the operator could confirm the person's identity only if he had a physical SIM card, now this can be done for subscribers with eSIM.

At the same time, a comprehensive import substitution program for software and equipment is being implemented. Within the framework of the national strategy of technological development, Armenia seeks to reduce dependence on foreign products. For this, among other things, state support for local developers is carried out.^[1]

2023: Growth in the market for creation, broadcasting of television and radio broadcasts and telecommunications by 2.5% to AMD 161.72 billion

At the end of 2023, the volume of the market for the creation, broadcasting of television and radio broadcasts and telecommunications in Armenia amounted to about 161.72 billion drams ($0.42 billion at the exchange rate as of October 8, 2024). This is 2.5% more than the result for the previous year, when the total costs in these areas were estimated at 157.9 billion drams. Such data are given in the materials of the National Statistical Committee of the Republic, which TAdviser got acquainted with in early October 2024.

It is noted that the telecommunications segment of Armenia in 2023 accounted for 148.3 billion drams ($0.38 billion). Growth compared to the previous year was recorded at 5.5%. Wired telephony brought 5.41 billion drams (approximately $13.97 million), cellular communications - 42.2 billion drams ($108.92 million). On an annualized basis, there was a drop of 4.5% and an increase of 3.4%, respectively.

𝓲

Фото: Freepik

The report says that revenue in the segment of Internet access services was recorded at 75.04 billion drams ($193.69 million) - plus 10.4% compared to 2022. Maintenance and operation of cable television systems provided 8.43 billion drams ($21.77 million) - an increase of 8.3% year-on-year. Satellite communication (in addition to providing Internet access) accounted for 24.7 million drams ($63.76 thousand) - plus 8.3%.

If we consider the structure of revenue by type of activity, then in 2023 about 46.4% of the total market volume fell on providing Internet access. The share of cellular communications was 26.1%. The creation and broadcasting of television programs provided 6.7% of receipts, maintenance and operation of cable television systems - 5.2%. Wired telephone communication brought 3.4%, the creation and broadcasting of radio broadcasts - 1%. All other services combined were estimated to account for 10.6%.^[2]

Notes