Armenia is a landlocked country that lies in the mountainous region of South Caucasus in Eurasia. The modern Republic of Armenia declared independence from the Union of Soviet Socialist Republics on 23 August 1990, becoming the first non-Baltic country to do so. According to the Constitution, Armenia is a presidential representative democratic republic. EU relations with Armenia are governed by the EU-Armenia Partnership and Cooperation Agreement (1999), which allows for wide-ranging cooperation in the areas of political dialogue, trade, investment, economy, lawmaking and culture. Armenia's inclusion in the European Neighbourhood Policy (2004) and the Eastern Partnership have demonstrated the EU's willingness to move its cooperation with the EU beyond the terms of the Partnership and Cooperation Agreement.  

In 2011, the Gross Domestic Product of Armenia reached EUR 7.6 bil. The electronic communications market in the same year equalled EUR 320 mil., forming 4.2 % of the total GDP. Armenia adopted the Law on Electronic communications in 2005. In the area of electronic communications, the policy-making governmental body is the Ministry of Transport and Communication, and the National Regulatory Authority is the Public Service Regulatory Commission (PSRC). The PSRC is a multi-sector regulator in the area of public services which, besides electronic communications, is also regulating a broad spectrum of other activities encompassing electric power, natural gas, thermal energy and water supply. It was established in 1997 as the energy sector regulator, and in the following years other sectors were included in its scope. In 2004, with the adoption of the Law on Public Services Regulatory Commission, the telecommunications sector was included along with other public services.