CBOSS also wants Armentel

http://cnews.ru/news/line/index.shtml?2006/06/20/203970, June 20, 2006

As Cnews came to know, non-telcos are going to participate in the tender for the purchase of 90% of Armentel, an Armenian wireline and wireless carrier. Among them is CBOSS, well known in the market as a developer of billing systems for telecom.

According to the CBOSS source, who wished to remain anonymous, the company has made a bid and is now going to compete with such giants of the country’s telecom market as Rostelecom, Vimpelcom and MTS.

Though analysts find the whole situation rather funny, CBOSS doesn’t deny it cherishes a hope for victory, underlining that the company’s tender bid is rather compelling.

As for the reasons that made the billing developer enter this battle, our source notes that CBOSS is not going to leave the IT development industry as this business shows a high level of profitability and growth potential. However, along with some other telecom providers, the company believes it is able to hold the carrier’s shares.

The company considers the participation in the tender as a way to promote its products. “CBOSS has business management know-how and experts in telecom business administration, that is why we are sure of our strength and competence”, our interlocutor said.

We would like to remind you that the current senior vice-president of CBOSS is Alexander Prikazchikov, who used to be the head of ReCom, a subsidiary of MTS. Cnews made a guess that it was the very person who took the initiative to participate in the tender for the purchase of Armentel, and our guess was supported by our CBOSS source. “Yes, it’s Alexander Prikazchikov’s initiative, but it is not nostalgia. It is complete confidence in his own abilities and willingness to show how to operate and manage a telecom company. His knowledge and expertise are quite sufficient”.

Our source also explained that the company “offered a market price for Armentel, but nothing is known about other bids”. As for the company’s advantages as a potential buyer, it was said that “CBOSS has expertise and unique competence in the telecom industry in general and particularly in the Armenian market which It knows from the inside. CBOSS has its own opinion on the development of telecom business in this country, whose spirit and culture are close to Russia”. According to our source, "CBOSS is sure that it will be more efficient in managing Armentel than Russia’s telecom giants, judging by recent stock exchange bulletins of some of these companies”.

If CBOSS wins the tender, one of the first steps to the carrier’s business development will be the recall of monopolistic conditions for Armentel. “In the market, CBOSS wants to compete by using its expertise and efficient management rather than exclusive conditions and political ties”.

Cnews asked CBOSS for official comments regarding its participation in the tender for the purchase of Armentel. However, the company has neither confirmed, nor refuted our information. We are going to keep an eye on the situation.