Research: Internationalization of Russian Telecommunication Companies Vimpelcom and Rostelecom
Elisa Tilley
International Business Strategy
March 14, 2013
VIMPELCOM
VimpelCom provides voice and data services through a range of wireless, fixed, and broadband technologies under the "Beeline", "Kyivstar", "djuice", “Wind”, "Infostrada" “Mobilink”, “Leo”, “banglalink”, “Telecel”, and “Djezzy” brands. The company is listed as an ADS on the New York Stock Exchange under the symbol "VIP". The company operates in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Cambodia, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic, Italy and Canada, with 214 million mobile subscribers worldwide.
HISTORY
VimpelCom was founded by the Russian scientist Dr. Dmitri B. Zimin and the American entreprenuer Augie K. Fabela II in 1992 in Moscow. Mr. Fabela first visited Russia in 1991 where he saw the significant opportunity for wireless. Inspired to do what everyone said couldn't be done, Mr. Fabela and Dr. Zimin set out to accomplish their vision of bringing basic wireless communications to Russia. In 1993, VimpelCom launched its first commercial network, a five base station system in Moscow, limiting sales to only 1,000 mobile phones in order to ensure quality of service. In the mobile communications industry, VimpelCom thus operated as a first mover in Russia. The brand “Beeline”, which was intended to differentiate the company as a youthful and fun company, rather than a technical company, was introduced in late 1993. VimpelCom was the first Russian company to list its shared on the New York Stock Exchange in 1996, which helped to attract foreign investment. In 1998, the Norwegian communication company Telenor purchased 25 percent + 1 voting shares of VimpelCom for US$162 million.
INTERNATIONALIZATION
|Country |Kazahstan |
|Year of entry
International Business Strategy
March 14, 2013
VIMPELCOM
VimpelCom provides voice and data services through a range of wireless, fixed, and broadband technologies under the "Beeline", "Kyivstar", "djuice", “Wind”, "Infostrada" “Mobilink”, “Leo”, “banglalink”, “Telecel”, and “Djezzy” brands. The company is listed as an ADS on the New York Stock Exchange under the symbol "VIP". The company operates in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Cambodia, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic, Italy and Canada, with 214 million mobile subscribers worldwide.
HISTORY
VimpelCom was founded by the Russian scientist Dr. Dmitri B. Zimin and the American entreprenuer Augie K. Fabela II in 1992 in Moscow. Mr. Fabela first visited Russia in 1991 where he saw the significant opportunity for wireless. Inspired to do what everyone said couldn't be done, Mr. Fabela and Dr. Zimin set out to accomplish their vision of bringing basic wireless communications to Russia. In 1993, VimpelCom launched its first commercial network, a five base station system in Moscow, limiting sales to only 1,000 mobile phones in order to ensure quality of service. In the mobile communications industry, VimpelCom thus operated as a first mover in Russia. The brand “Beeline”, which was intended to differentiate the company as a youthful and fun company, rather than a technical company, was introduced in late 1993. VimpelCom was the first Russian company to list its shared on the New York Stock Exchange in 1996, which helped to attract foreign investment. In 1998, the Norwegian communication company Telenor purchased 25 percent + 1 voting shares of VimpelCom for US$162 million.
INTERNATIONALIZATION
|Country |Kazahstan |
|Year of entry