Russian VimpelCom Invests in Georgia’s Cellular Market

Vimpel-Communications (VimpelCom) said on July 12 it has bought 51% of Georgian cellular operator Mobitel for USD 12.6 million.

Mobitel, which was founded in 2003, but has never conducted any operations, owned GSM-1800 cellular licenses.

“Upon closing of the transaction, VimpelCom plans to hold a tender for purchase of equipment and start construction and development of the network,” the company said in a statement.

VimpelCom is a leading mobile phone service provider in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the ‘Beeline’ brand in Russia and Kazakhstan.

“We are pleased to announce our entry into Georgia… This market undoubtedly has big development potential. With VimpelCom’s entry into Georgia, the total population of our license area is about 237 million. In line with VimpelCom’s CIS expansion strategy, this is the fifth CIS country outside of Russia in which VimpelCom will have operations,” Alexander Izosimov, Chief Executive Officer of VimpelCom, said.

Currently there are two mobile phone operators in Georgian: Geocell – with 55% market share and MagtiCom – with 45% market share, according to independent sources, the company said.

The penetration rate of cellular services in Georgia is about 30%, according to the VimpelCom.

This post is also available in: ქართული (Georgian) Русский (Russian)