Companies@UA: База компаний Украины

Hanoi. July 20 (Interfax) - GTEL-Mobile, a joint venture between Russian "big three" mobile operator VimpelCom and Vietnamese state-run Global Telecommunication Corporation, began providing mobile communications services under the Beeline brand in Vietnam on Monday, company representatives told journalists at the launch ceremony in Hanoi.

Investment in the first phase of the project totaled $267 million, which was VimpelCom's contribution to the joint venture's charter capital.

Total investment will amount to $1.8 billion over 15 years. Investment may come in various forms and is not limited to financial investment, one representative said.

The Vietnamese market has huge potential for growth, VimpelCom's vice president for international business development Vladimir Ryabokon said. Cell phone penetration currently stands at 55%. The company targets a 2%-4% share of the national market, the bulk of which is made up of people under the age of 25. Eventually the company believes it can win 20% market share among the younger generation.

VimpelCom has a 40% interest in the joint venture. The network in Vietnam is the Russian company's second in Southeast Asia. Last July VimpelCom entered the Cambodian market via the purchase of a 90% stake in Sotelco from its largest shareholder, Alfa Group. In May 2009 the network in Cambodia began commercial operation.

VimpelCom is the second largest mobile operator in the CIS by subscriber base. It provides services under the Beeline brand to over 63.5 million people in Russia, Kazakhstan, Uzbekistan, Tajikistan, Georgia, Armenia and Ukraine. The company also provides fixed-line services through Golden Telecom, which it acquired in early 2008.