Beeline (telecommunications)
Encyclopedia
Beeline is the trademark of the third largest Russian telecommunication operator, VimpelCom . Its headquarters are located in Moscow. Beeline's brand was designed by Wolff Olins
Wolff Olins
Wolff Olins is a brand consultancy, based in London, New York City and Dubai. It employs 150 designers, strategists and account managers, and has been part of the Omnicom Group since 2001.-History:...

 as a re-brand for their old corporate identity, assisted by Marina Willerr.

Activity

As of January 2005, Beeline has more than 25 million subscribers in 74 of the 89 Russian regions and in Kazakhstan, and is less than 1% market share short of becoming the leader of the Russian cellular market in terms of subscriber base. Its revenue, profits and revenue per subscriber (ARPU) figures are slightly lower than competitor Mobile TeleSystems
Mobile TeleSystems
MTS is the largest mobile operator in Russia and CIS with over 102,4 million subscribers as of 31 December 2009.Having started in the Moscow license zone in 1994, МТS in 1997 received licenses for further areas and began expansion, later entering other countries of the CIS...

's figures, while being gradually improving in latest years.

Its current (as of July 2008) license portfolio covers a territory where 97% of Russia's population resides, as well as 100% of the territory of Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

, Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...

, Uzbekistan
Uzbekistan
Uzbekistan , officially the Republic of Uzbekistan is a doubly landlocked country in Central Asia and one of the six independent Turkic states. It shares borders with Kazakhstan to the west and to the north, Kyrgyzstan and Tajikistan to the east, and Afghanistan and Turkmenistan to the south....

, Tajikistan
Tajikistan
Tajikistan , officially the Republic of Tajikistan , is a mountainous landlocked country in Central Asia. Afghanistan borders it to the south, Uzbekistan to the west, Kyrgyzstan to the north, and China to the east....

, Georgia
Georgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...

 and Armenia
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...

.

VimpelCom was founded in 1992 and initially operated AMPS
Advanced Mobile Phone System
Advanced Mobile Phone System was an analog mobile phone system standard developed by Bell Labs, and officially introduced in the Americas in 1983, Israel in 1986, and Australia in 1987. It was the primary analog mobile phone system in North America through the 1980s and into the 2000s...

/D-AMPS
Digital AMPS
IS-54 and IS-136 are second-generation mobile phone systems, known as Digital AMPS . It was once prevalent throughout the Americas, particularly in the United States and Canada. D-AMPS is considered end-of-life, and existing networks have mostly been replaced by GSM/GPRS or CDMA2000...

 network in Moscow area. In 1996 became the first Russian company listed on the New York Stock Exchange .

In 1997 the company began GSM network roll-out. In 2001 it started GSM networks throughout Russia's regions, having gradually increased its regional presence to the majority of Russia's territory.

In 2004, VimpelCom, in its first move outside Russia's territory, acquired Kazakhstani cellular operator KaR-Tel (brand names K-Mobile and Excess).

In 2004, VimpelCom CEO Alexander Izosimov
Alexander Izosimov
Alexander Vadimovich Izosimov is a Russian businessman. He is the CEO of Vimpelcom since October 2003.-Career:Before 1996, Izosimov was with McKinsey & Co in Stockholm, Moscow and London....

, formerly a top Mars, Incorporated
Mars, Incorporated
Mars, Incorporated is a worldwide manufacturer of confectionery, pet food, and other food products with US$30 billion in annual sales in 2010, and is ranked as the 5th largest privately held company in the United States by Forbes. Headquartered in McLean, unincorporated Fairfax County, Virginia,...

 executive, was named the best Russian manager by the Managers Association of Russia.

In November 2005 VimpelCom stepped further with foreign acquisitions by acquiring 100% of Ukrainian RadioSystems, a marginal Ukrainian
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...

 GSM operator operating under Wellcom and Mobi brands. The deal has been surrounded by a controversy involving two major shareholders of VimpelCom: the Russian Alfa Group
Alfa Group
Alfa Group Consortium is one of Russia's largest privately owned investment groups, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, water utilities and special situation investments...

 and Telenor
Telenor
Telenor Group is the incumbent telecommunications company in Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor Group is mostly an international wireless carrier with operations in Scandinavia, Eastern Europe and Asia, working predominantly under the Telenor brand...

, the incumbent telco in Norway. Telenor is appealing a $1.7 billion court ruling against it.

In May 2010, Vimpelcom merged with Kyivstar to form the largest operator group in Russia and CIS countries. The new company Vimpelcom Ltd will be noted in New York.

On 17 March, the shareholders of VimpelCom voted in support of a $6 billion deal to acquire WIND Telecom, whose assets include Orascom Telecom, a significant shareholder in WIND Mobile. The parties are now moving to close the deal, likely sometime in the first half of 2011. This transaction would create the world’s fifth largest mobile operator by subscribers - more than 173 million subscribers.

VimpelCom's main competitors are Mobile TeleSystems
Mobile TeleSystems
MTS is the largest mobile operator in Russia and CIS with over 102,4 million subscribers as of 31 December 2009.Having started in the Moscow license zone in 1994, МТS in 1997 received licenses for further areas and began expansion, later entering other countries of the CIS...

 and MegaFon
MegaFon
MegaFon ,previously known as North-West GSM, is the second largest mobile phone operator in Russia. It works in the GSM and UMTS standard. Its main competitors are Bee Line GSM and Mobile TeleSystems ....

.

One of the internationally known shareholders of Vimpelcom is Telenor
Telenor
Telenor Group is the incumbent telecommunications company in Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor Group is mostly an international wireless carrier with operations in Scandinavia, Eastern Europe and Asia, working predominantly under the Telenor brand...

, Norwegian telecom conglomerate.

International branches

In October 2010, VimpelCom Ltd and Weather Investments
Weather Investments
Wind Telecom S.p.A. , is a privately held telecommunications investment company previously 97% controlled by the Sawiris family Wind Telecom S.p.A. (former Weather Investments S.p.A), is a privately held telecommunications investment company previously 97% controlled by the Sawiris family Wind...

 (led by Naguib Sawiris
Naguib Sawiris
Naguib Onsi Sawiris is an Egyptian businessman and politician. He was executive chairman of the telecommunications companies Wind Telecom and Orascom Telecom Holding before turning to politics in May 2011...

), declared their plans "to form what would become the world's fifth largest mobile telecommunication service provider in a deal valued at over $6.5 billion".

Ukraine

Beeline Ukraine (known as Ukrainian RadioSystems (URS) before February 2007) is a mobile operator in Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...

 with 2.22 million GSM subscribers (February 2007). The company operates under Beeline brand. According to company, its network currently covers 60% of the Ukrainian population.

The company was founded in 1995, and Motorola
Motorola
Motorola, Inc. was an American multinational telecommunications company based in Schaumburg, Illinois, which was eventually divided into two independent public companies, Motorola Mobility and Motorola Solutions on January 4, 2011, after losing $4.3 billion from 2007 to 2009...

 acquired 49% of the company in 1996. URS obtained a GSM-900 license in 1997, but Motorola
Motorola
Motorola, Inc. was an American multinational telecommunications company based in Schaumburg, Illinois, which was eventually divided into two independent public companies, Motorola Mobility and Motorola Solutions on January 4, 2011, after losing $4.3 billion from 2007 to 2009...

 backed off the venture the same year due to an alleged government favoritism to another mobile operator
Kyivstar
Kyivstar is the largest mobile phone operator in Ukraine, serving 24,944,592 subscribers as of October 2010. Kyivstar's wireless network operates using the GSM standard and provides coverage accessible by approximately 99% of the Ukrainian population....

. The Korean Daewoo
Daewoo
Daewoo or the Daewoo Group was a major South Korean chaebol . It was founded on 22 March 1967 as Daewoo Industrial and was dismantled by the Korean government in 1999...

 picked up the ownership, didn't do much to grow the business and sold it to a Ukrainian financial group in 2003. In November 2005, 100% of the company's ownership was acquired by the Russian VimpelCom for $230 million. The deal was surrounded by a controversy involving two major shareholders of VimpelCom: the Russian Alfa Group
Alfa Group
Alfa Group Consortium is one of Russia's largest privately owned investment groups, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, water utilities and special situation investments...

 and Telenor
Telenor
Telenor Group is the incumbent telecommunications company in Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor Group is mostly an international wireless carrier with operations in Scandinavia, Eastern Europe and Asia, working predominantly under the Telenor brand...

, a Norwegian telecom conglomerate.

Following the acquisition by VimpelCom, all of the company's services have been rebranded as Beeline', similar to a VimpelCom's major mobile assets in Russia.

Armenia

On 16 November 2006, VimpelCom acquired the 90% share of ArmenTel CJSC held by the Hellenic Telecommunications Organization SA (OTE
OTE
Hellenic Telecommunications Organization S.A. , usually known by its Greek initials OTE, is the dominant telecommunications provider in Greece. Formerly a state-owned monopoly, OTE was part-privatized in 1998 and is now listed on the Athens and New York Stock Exchanges...

) for €341.9 million. VimpelCom also took on ArmenTel's debts of €40 million. The remaining 10% share of the company is held by the Armenia
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...

n government. In 2008, ArmenTel's commercial services were rebranded as Beeline, bringing it into line with VimpelCom's existing networks in other countries.

Vietnam

In July 2009, VimpelCom co-operated with a Vietnamese telecommunication company, GTel Telecommunications to open a new mobile phone network in Vietnam, named Beeline Vietnam.

Laos

In 2011, Beeline entered Laos replacing former Tigo
Millicom
Millicom International Cellular, also known as Tigo, is a mobile phone network provider in America and Africa. Based in Luxembourg, the company provides mobile services in 14 countries. With operations across Central America, South America, South-east Asia, and Africa, using GSM, CDMA and TDMA on...

. Numbers on Beeline Laos is 020-7xxx-xxxx.

External links

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