New Mobile Operator Launched

Russia?s VimpelCom announced the launch of a new mobile phone operator in Georgia under the Beeline brand on March 15.

?Despite certain expectations, the company does not intend to wage a price war with other operators? Our major weapon is a promotional tariff, which actually does not differ much from the one already existing on the market,? the company?s top executive Roman Kalinin said in an interview with the Rustavi 2 TV business news program on March 15.

There are currently two mobile phone operators in Georgia: Geocell, which holds 55% of the market share, and MagtiCom, which has 45% of the market share, according to the VimpelCom.
 
Kalinin said that by the end of 2007 Beeline plans to hold at least 35% of Georgia?s market.

At this stage the operator will provide service only to consumers in the capital Tbilisi and the nearby town of Rustavi. Service expansion in Batumi is planned by May and the company expects to cover the entire country by 2008.
 
?Currently we are capable of serving 300 000 consumers in Tbilisi and Rustavi,? Kalinin said.
 
He also said that the company plans to invest ?about USD 100 per consumer.?

VimpelCom bought 51% of Georgian mobile 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.
 
?Expanding business throughout the CIS [Commonwealth of Independent States] is part of VimpelCom?s strategy, which led us to buy Mobitel,? Kalinin said.

VimpelCom includes mobile companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, and Armenia under the Beeline brand.

Tbilisi Mayor Gigi Ugulava attended the presentation of the new operator?s service on March 15.

?This is a good example not only of cooperation, but also of the fact that business has no borders, regardless of political relations,? Tbilisi Mayor Gigi Ugulava told reporters.