Launch of Yerevan’s public transport system

Why was Telcell selected?

Many people naturally wonder how Telcell became the company involved in such a large-scale project. In 2021, the Yerevan Municipality announced an OPEN PUBLIC TENDER FOR THE IMPLEMENTATION OF A UNIFIED PUBLIC TRANSPORT TICKETING SYSTEM AND SELECTION OF A FINANCIAL OPERATOR.

One of the key requirements was that the candidate organization must have experience implementing similar projects in at least three cities. At that time, there were no operators in Armenia that met this requirement. Through cooperation with experienced international subcontractors, Telcell became the winner of the tender.

As a result, in January 2023, we signed a contract with the Yerevan Municipality, taking responsibility for the implementation and technical maintenance of the unified ticketing system.

Contract terms

The contract between Telcell and the Yerevan Municipality is valid for five years, from January 9, 2023, to January 9, 2028. Upon expiration of the contract, we are obligated to transfer the entire implemented system to the municipality free of charge, including all installed scanners, fare gates, servers, and software. The entire system will become municipal property, and the municipality will assume responsibility for its operation.

An investment of 1.5 billion AMD

Under the terms of the contract, the project is financed entirely by the system operator: Telcell. To date, we have invested approximately 1.5 billion AMD, covering the purchase and installation of equipment and infrastructure.

It is important to emphasize that this project is being implemented using our own funds, without utilizing any resources from the city budget. Moreover, the investment continues to grow every day.

What is Telcell’s investment spent on?

We have installed scanners and modern fare gates, ordered from international partners, at all stations of the Yerevan Metro. Instead of tokens, passengers now use QR tickets, transport cards, and bank cards. Metro stations and public transport vehicles are equipped with modern technological solutions.
We have also installed validators — scanning devices — in all buses and trolleybuses across Yerevan, allowing passengers to scan QR tickets, transport cards, and bank cards.

The system software was developed by our partner, BPC O-City. All contractors and technologies were strictly coordinated with the Yerevan Municipality. It is important to note that Telcell works with experienced partners who have implemented similar systems in at least three cities with fleets exceeding 200 vehicles, as required by the tender conditions. The system fully complies with the municipality’s requirements, from introducing new fare structures to supporting social benefit programs.

The costs of implementing and maintaining the system are covered by Telcell and are not included in the new ticket fares. Telcell does not charge any commission on ticket sales; the full amount is transferred to the municipality. In addition, the company covers all operational expenses, including bank card acquiring fees, scanner network maintenance, software support, cash collection, and other related costs.