Alcatel to Develop Mobile Network for VimpelCom in Georgia

Alcatel will supply VimpelCom?s subsidiary in Georgia, Mobitel, with GSM/GPRS/EDGE end-to-end solutions to launch a mobile telecommunications network throughout Georgia, according to the deal signed by the two companies on October 11.

Russia?s Vimpel-Communications (VimpelCom) bought 51% of Georgian cellular operator Mobitel for USD 12.6 million in July 2006. Mobitel, which was founded in 2003 but has never conducted any operations, owns the GSM-1800 cellular license.

“We consider Georgia as one a strategic mobile markets and hope to win a leading position in this market. To reach this objective, VimpelCom will do everything required to commercially launch a new network within a short time frame,” Sergey Avdeev, executive vice-president of VimpelCom, said.

?We are committed to enabling Mobitel to become a stronger competitive operator in Georgia by introducing innovative services, whilst ensuring long-term investment protection,” Johan Vanderplaetse, vice-president for Alcatel activities in the CIS, said.

Currently there are two mobile phone operators in Georgian: Geocell and MagtiCom.

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

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