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Vimpelcom Shares Its Plans For Ukraine.

Vimpelcom Shares Its Plans For Ukraine.

15 November 2008

Russian mobile operator Vimpelcom (VIP) is going to launch its Russian brand BEE-LINE GSM in Ukraine (on the base of newly acquired operator URS) by the end of 1H06. The company plans to acquire 4-5 mln subscribers in Ukraine during the next 2-3 years. Concorde Capital: ASTELIT?s positive market expansion experience in 2005 suggests that VIP has a good chance to pick up new subscribers in Ukraine. However, ASTELIT found its niche by providing wide range of additional services, while for VIP it will be much harder to differentiate itself on the almost saturated Ukrainian market. Moreover, with Ukrtelecom?s expected entrance onto the mobile market, competition is going to be fierce. VIP also faces some risks related to Telenor?s challenge of its URS acquisition.

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