RUSSIAN MOBILE NETWORK TO INVEST $1BIL IN VIETNAM
VietNamNet Bridge
17:07′ 13/09/2007 (GMT+7)
Vietnam
PM Nguyen Tan Dung witnesses the signing ceremony between Vietnamese
and Russian companies.
VietNamNet Bridge – Vimpelcom, the second-largest provider of mobile
services in Russia, has stated that it will establish GTel Mobile
and invest $1 billion in Vietnam in the next several years to provide
technology to develop GSM-based mobile network in the country.
According to the company’s official website, in connection with the
visit of the Vietnamese Prime Minister to Russia, Vimpelcom signed
a principal agreement to establish a mobile telecommunications joint
venture in Vietnam under the name of GTel Mobile.
Vimpelcom reveals that the other participants in the joint venture
will be a company owned by the Ministry of Public Security of Vietnam
and The Millennium Global Solutions Group, Inc., a US company.
The principal agreement states that VimpelCom will invest up to $1
billion over the next several years in the development of a GSM mobile
network and provide technical and operational expertise to the joint
venture. In accordance with Vietnamese investment laws, VimpelCom
will own a minority voting stake in the joint venture. However, the
principal agreement says that VimpelCom will hold a majority of the
economic interest in the joint venture and will exercise significant
influence over the joint venture’s operations.
"We are very excited about this transaction, our first expansion
outside of Russia and the CIS.
Vietnam is a very attractive market, with a growing population of
approximately 85 million people and mobile penetration of approximately
32%. The country has joined the WTO and the economy is developing
rapidly. Overall we view this as a great growth opportunity for
VimpelCom and its shareholders," said Alexander Izosimov, CEO of
VimpelCom.
The establishment of the joint venture and the terms being discussed
by the parties remain subject to negotiation and execution of final
joint venture documents, receipt of regulatory approvals (including
licenses and frequencies) and corporate approvals of the parties.
The VimpelCom Group includes cellular companies operating in Russia,
Kazakhstan, Ukraine, Uzbekistan and Tajikistan, and recently acquired
companies in Georgia and Armenia.
VimpelCom is recognised for introducing two digital cellular
communications standards in Russia. It built the first dual band
GSM-900/1800 cellular network in Russia and leads the development and
emergence of the mass consumer market for wireless telecommunications
in Russia with prepaid products.
The VimpelCom Group’s cellular licence portfolio covers a territory
with a population of about 240 million. Geographically it covers
76 regions of Russia with 139 million people, representing 95% of
Russia’s population as well as the entire territories of Kazakhstan,
Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia.
As of March 31, 2007, VimpelCom’s total number of subscribers in
Russia and the CIS was 56.8 million (45.8 million of them are active,
including 38.6 million in Russia, 3.5 million in Kazakhstan and 2.0
million in Ukraine).
VimpelCom was the first Russian company to list its shares on the
New York Stock Exchange (NYSE) in November 1996. Its ADSs (American
Depositary Shares) are traded under the symbol "VIP".
From: Emil Lazarian | Ararat NewsPress
