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16:49
X5 RETAIL PREPARES TO LAUNCH VIRTUAL PROVIDER PROJECT

Moscow, July 28 (Interfax) - Leading Russian retail operator X5 Retail Group is preparing to launch a virtual cellular provider project, the group's general director for the supermarket format, Mikhail Susov, told Interfax. Susov is overseeing the project.

X5's head Lev Khasis announced earlier this summer that the company would be entering the cellular market with its own tariff. He said that a project for a Mobile Virtual Network Operator (MVNO) could be launched this year in conjunction with one of Russia's Big-3 cellular providers.

A source one cellular company confirmed to Interfax that the retail had yet to hold a tender to select a partner for a MVNO project.

The main shareholder in X5 Retail Group in Alfa-Group with a 47.9%. In addition, Alfa-Group has stakes in the two leading cellular providers have shares: 44% in VimpelCom and 25.1% in Megafon.

Other Russian retailers are developing virtual cellular projects. Auchan has its own MVNO with MTS while Eldorado is developing a similar project with Megafon. Partnerships between the retailers and providers usually develop in the following fashion: the former takes care of sales contracts (marketing, demand development, distribution) while the provider engages in the development of infrastructure, network support, subscriber support and servicing.

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