PJSC VimpelCom Company Overview

PJSC VimpelCom is a Russian telecommunications company that has a significant presence in various countries. It was founded in 1992.

The company has a diverse portfolio of brands, including Beeline, Kyivstar, and Wind. These brands operate in over 14 countries across Europe, Asia, and Africa.

PJSC VimpelCom offers a range of telecommunications services, including mobile and fixed-line voice, data, and internet services. This allows customers to stay connected and access the digital world.

The company has a significant customer base, with over 200 million subscribers across its operations.

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VimpelCom JSC was officially registered on September 15, 1992. The company's history began in 1991 with the organization of a group of technical experts led by Dmitry Zimin inside the A. L. Mints RTI.

The first experimental AMPS network in Russia was launched in June 1992, with a capacity of 200 subscribers. The first call on the network was made on July 12, 1992.

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In 1993, VimpelCom received a license to create and operate an AMPS cellular network in Moscow, and by the fall of that year, the number of base stations in the network had increased to five, with 400 subscribers.

By the end of 1999, VimpelCom became the leader of the Moscow cellular market, serving 352 thousand subscribers and having a market share of 47%.

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In June 1992, a switch and a base station were installed on the building of the Ministry of Foreign Affairs in Moscow, marking the beginning of the first experimental AMPS network in Russia with a capacity of 200 subscribers.

The first call on the network was made on July 12, 1992.

VimpelCom JSC was officially registered on September 15, 1992.

The company's history began in 1991 with the organization of a group of technical experts led by Dmitry Zimin inside the A. L. Mints RTI.

At the first stage of creating a cellular network, American businessman Augie K. Fabela II, owner of the family company Plexsys, served as a partner.

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On June 1-2, 1994, an act of acceptance of the system for the operation of a new network for 10,000 subscribers was signed, marking a significant milestone for VimpelCom.

The official start of commercial activity under the Bi Line trademark was a major step forward for the company.

VimpelCom's network was transformed into a digital network of the DAMPS standard by March 1995, following the start of this transformation in September 1994.

This transformation was a crucial step in expanding the company's services and improving the overall user experience.

For the first time in the Russian market, a round-the-clock reference and information service of subscribers was introduced in August 1995, providing subscribers with unparalleled support.

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In 1999, VimpelCom became the leader of the Moscow cellular market. It served 352 thousand subscribers.

VimpelCom's market share was 47% by the end of 1999. This was a significant milestone for the company.

A dual-band GSM-900/1800 network was put into commercial operation for the first time in Russia on July 5, 1999. This marked a major achievement in the development of mobile technology in the country.

In 1998, Telenor made a significant move by acquiring 25% + 1 share of VimpelCom.

This strategic partnership marked a new era for the company, as it began to develop the mass market.

VimpelCom and Telenor signed a partnership agreement on December 1, 1998.

The development of the mass market was further facilitated by the introduction of the Bi + package of services, designed for a wide range of consumers.

For the first time in Moscow, an advance payment system was offered using payment cards, revolutionizing the way people accessed services.

This innovative approach helped VimpelCom to expand its customer base and increase its market share.

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PJSC VimpelCom has a rich history, and here are some key milestones that highlight the company's growth and achievements.

The company was officially registered on September 15, 1992. This marked a significant step in its development.

The first experimental AMPS network in Russia was launched in June 1992, with a capacity of 200 subscribers. This innovative move paved the way for future growth.

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The first call was made on the network on July 12, 1992, marking a historic moment in the company's history.

VimpelCom was the first among Russian companies to launch a full-scale GPRS network into pilot commercial operation in June 2001. This achievement showcased the company's commitment to staying ahead of the curve.

On October 18, 1999, a new stage in the development of the mass market was reached, with the launch of the "box." For the first time in the history of cellular communications in Russia, a set of a DAMPS phone and a $10 payment card could be purchased for $49.

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PJSC VimpelCom offers a wide range of services under the Beeline trademark, including mobile and fixed telephony, long-distance and international communication, data transmission, and Internet access. Their services cater to a large subscriber base of 56.575 million.

Beeline provides integrated services such as cloud services, converged solutions, and wireless and wired Internet access. This includes fiber, Wi-Fi, and third and fourth generation networks.

The company has also been working on improving its digital interaction with customers, launching a new version of its personal account in the summer of 2013. This new version has gained great popularity, with the number of regular users increasing significantly to about 2 million as of November 2013.

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Tele2 increased its LTE base stations by a quarter, reaching 65,056 RES, but still lags behind MTS by 2.9 thousand LTE BS.

PJSC VimpelCom, the company behind the Beeline brand, is actively preparing for the launch of 5G networks.

In January, Beeline announced an agreement with Huawei to jointly study and test 5G technologies, aiming to develop their networks on the path to 5G.

This partnership is part of VimpelCom's digital transformation strategy, and will help create solutions that meet market requirements.

As of June, PJSC VimpelCom had 52,318 LTE base stations, a 20% increase from the beginning of the year.

Beeline is working closely with Huawei to determine the steps needed to develop their networks for 5G.

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Beeline, a brand under PJSC VimpelCom, offers a wide range of services to its subscribers. These services include mobile and fixed telephony, long-distance and international communication, data transmission, and telematics communication services.

PJSC VimpelCom has a large subscriber base, with 56.575 million subscribers. This is a significant number, and it's clear that Beeline is a popular choice for communication services.

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Beeline's services also include internet access based on wireless and wired solutions, including fiber, Wi-Fi, and third and fourth generation networks. This means that subscribers can choose from a variety of options to stay connected online.

Some of the specific services offered by Beeline include cloud services and converged solutions. These services are designed to make it easier for subscribers to manage their communication needs.

Here are some of the services offered by Beeline:

Beeline has launched a Smart City in Novosibirsk Akadempark, a large-scale project aimed at creating a high-tech ecosystem for residents and businesses.

This project is a result of a partnership between Beeline and the city administration, with the goal of improving the quality of life for residents and making the city more attractive for investors.

The Smart City will feature a range of innovative services, including a mobile app that allows residents to report issues and request services from the city authorities.

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Residents will be able to use the app to report issues such as potholes, broken streetlights, and other problems, and receive updates on the status of their requests.

The app will also provide residents with access to a range of city services, including utility payments, parking, and public transportation information.

Beeline has already started implementing the project, with the first phase including the deployment of a network of IoT sensors and cameras to monitor the city's infrastructure.

These sensors and cameras will provide real-time data on the condition of the city's roads, bridges, and other infrastructure, allowing city authorities to respond quickly to any issues that arise.

The project is expected to improve the efficiency of city services, reduce costs, and enhance the overall quality of life for residents.

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VimpelCom ceased to provide D-AMPS services on the night of November 16-17, 2007, due to the end of the license.

All subscribers were switched to the standard service.

VEON's subsidiary in Russia, PJSC VimpelCom, has entered into a long-term master agreement with Service-Telecom for the continued use of tower infrastructure.

The initial term of the agreement is 8 years, with multiple 8-year extensions at the discretion of PJSC VimpelCom.

By 2029, Service-Telecom will execute a new build-to-suit (BTS) program comprising up to 5.0k sites for VEON in Russia.

This master agreement allows Service-Telecom to pursue investments in network roll-out and upgrades for VEON.

Both parties have a framework to collaborate on potential future tower infrastructure market consolidation in Russia.

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PJSC VimpelCom has a history of receiving complaints from citizens regarding its communication services. In 2019, Roskomnadzor considered over 6.4 thousand appeals, with 1,678 of them related to VimpelCom.

The company has also faced issues with antimonopoly legislation. In 2019, the Federal Antimonopoly Service (FAS) recognized VimpelCom, along with MTS and Tele2, as violators of the Law on Protection of Competition.

These violations involved the establishment of discriminatory conditions when forming tariffs for SMS mailings for state and commercial organizations, putting consumers in an unequal position.

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VimpelCom received a license to create and operate an AMPS cellular network in Moscow on January 11, 1993.

The license was a significant milestone for the company, marking the beginning of its operations in Moscow.

By the fall of 1993, the number of base stations in the network had increased to five.

This rapid expansion was a testament to the company's growth and commitment to providing reliable services to its subscribers.

The number of subscribers to the network reached 400 by the fall of 1993, demonstrating the increasing demand for mobile services in Moscow.

This marked a significant achievement for VimpelCom, showcasing its ability to scale and meet the needs of its growing customer base.

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On October 7, 2019, Beeline confirmed the leak of its client database, which contained information about millions of wired internet users.

The leaked database was distributed by a large Telegram channel, which made the database and a program to work with it available for free download.

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The database included information about the names and surnames of customers, contract numbers, home and work addresses, and contact phone numbers.

However, it did not contain passport data of subscribers and their passwords to personal accounts.

Beeline initially denied the leak, stating that any information about the appearance of a database with information about wired internet subscribers was false.

Despite Beeline's denial, the database was still available for free download, weighing approximately 2 GB and distributed in password-protected form.

The database contained over 8.7 million records, exceeding the number of customers announced by distributors, but it's worth noting that several contracts can be registered per person.

Beeline is investigating the incident together with competent authorities and departments to prevent the disclosure of personal information not only of its own customers, but also of subscribers of other telecom operators.

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The Federal Antimonopoly Service (FAS) recognized VimpelCom, MTS, and Tele2 as violators of the Law on Protection of Competition.

In May 2019, FAS found that these mobile operators established discriminatory conditions when forming tariffs for SMS mailings for state and commercial organizations, putting consumers in an unequal position.

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VimpelCom made a significant acquisition in Uzbekistan in 2006, purchasing a 100% stake in Bakri Uzbekistan Telecom LLC (Buztel), the fourth largest mobile operator, for $60 million.

The company also acquired a 60% stake in Tacom LLC, a cellular operator in Tajikistan, for $12 million in 2005. This deal gave VimpelCom access to licenses for various cellular services in Tajikistan.

VimpelCom's expansion plans in the region were ambitious, with negotiations underway to purchase Sky Mobile, the largest cellular operator in Kyrgyzstan, for a deal that could range from $400 million to $500 million.

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In 2016, Tele2 and VimpelCom agreed to unite their networks in 27 regions of Russia.

These regions include Irkutsk, Saratov, Tver, St. Petersburg, and the Leningrad region, among others.

The partnership allows the companies to share passive and active infrastructure, including communication channels and switching equipment, as well as 2G, 3G, and 4G frequencies.

This joint effort is expected to reduce operating and capital costs for both companies by sharing the costs of network maintenance and modernization.

The agreement does not apply to Moscow and the surrounding region, nor does it include Tele2's 450 MHz frequencies, which are not yet part of a commercial network.

By unifying their networks, Tele2 and VimpelCom aim to streamline their operations and achieve cost savings, which will be beneficial for both companies in the long run.

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VEON is shifting to an asset-light strategy by divesting its Russia tower assets.

This decision allows VEON to crystalize the value of its tower infrastructure portfolio, which it can now trade at a significant discount. The company trades at an EV/EBITDA multiple of ~3.8x, compared to the 11.7x it received for its tower infrastructure.

By selling its tower assets, VEON can use the proceeds to de-lever its balance sheet, which currently operates under a capital structure with Net Debt / EBITDA of ~2.4x.

VEON can also use the sale proceeds to invest in its active network, improving the experience of its end users in Russia.

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VimpelCom completed the acquisition of a 100% stake in Bakri Uzbekistan Telecom LLC (Buztel), the fourth largest mobile operator in Uzbekistan, for $60 million in January 2006.

Buztel was previously owned by Altimo. VimpelCom also acquired Unitel LLC, the second largest mobile operator in Uzbekistan, for $200 million plus debt obligations of about $7.7 million in February 2006.

The acquisition of Buztel was announced on January 18, 2006, and it officially joined Beeline in Unitel in 2006.

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In 2010, Vimpelcom Ltd went on a share buyback spree to acquire all remaining shares of OJSC VimpelCom at a price of RUB 11,800 per share.

The buyback process was initiated on May 25, 2010, and the redemption price was set at the market value of the share of OJSC VimpelCom, determined as of February 28, 2010 by an independent Russian appraiser.

VimpelCom Ltd also bought back American depositary shares at a price of 590 rubles, which was approximately $19.11 at the exchange rate as of May 25, 2010.

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The valuation was supplemented by a cost analysis carried out by Deloitte & Touche, adding credibility to the buyback process.

By August 9, 2010, VimpelCom Ltd had completed the acquisition of all shares of Vimpel-Communications Open Joint Stock Company, including those represented in the form of American depositary shares.

The company paid minority shareholders and holders of ADS of OJSC VimpelCom as of July 14, 2010, and their shares were credited to VimpelCom Ltd on August 9, 2010, making VimpelCom OJSC a 100% subsidiary of VimpelCom Ltd.

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PJSC VimpelCom has had its fair share of leadership changes over the years. Alexander Izosimov was appointed CEO in 2003.

In this role, he was tasked with leading the company forward. Joe Lunder was named Chairman of the Board at the same time, bringing his expertise to the table.

As CEO, Izosimov was also appointed as the General Director of OJSC in October 2003, further solidifying his position within the company.

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Leadership in MMS Technology Launch in Russia was a notable achievement. In May 2002, MMS technology was launched in the Bi Line GSM network for the first time in Russia. This pioneering move showcased the company's ability to innovate and take risks. The successful launch of MMS technology in Russia demonstrated the company's commitment to staying ahead of the curve.

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VimpelCom became the first Russian company to be listed on the NYSE after a 90-year hiatus in 1996.

Alexander Izosimov was appointed CEO of VimpelCom in October 2003.

Joe Lunder was named chairman of the board of VimpelCom in October 2003, alongside Alexander Izosimov's appointment as CEO.

VimpelCom's shares were listed on the NYSE under the symbol VIP, in the form of American Depositary Receipts (ADR) of the 3rd level.

Alexander Izosimov took on the role of General Director of OJSC VimpelCom in October 2003.

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VimpelCom underwent a successful rebranding in 2005, which was recognized by experts as extremely successful. The British agency Wolff Olins, known for designing the album covers of The Beatles, led the rebranding effort.

This change in brand led to a significant increase in VimpelCom's income. The same agency rebranded AFK Sistema, including MTS, VimpelCom's main competitor, in 2006.

VimpelCom operates under the Beeline brand as the third-largest wireless carrier in Russia.

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In 2008, VimpelCom started operating in the corporate user market in Russia under the single Beeline Business brand, combining all products and services of Golden Telecom and Corbina Telecom.

This move marked a significant shift in the company's strategy, allowing for a more streamlined approach to serving corporate clients.

The Beeline Business brand has been successful in Russia, allowing VimpelCom to expand its reach and offer a more comprehensive range of services to its corporate customers.

The company also launched commercial operation of the third generation (3G) network in several major Russian cities, including St. Petersburg, Nizhny Novgorod, Samara, and Chelyabinsk.

VimpelCom's licenses cover territories with a total population of about 340 million people, making it a major player in the Russian telecommunications market.

The company is also a world leader in the number of roaming partners and countries, with a strong presence in the global market.

Since 2007, VimpelCom has been expanding its network, introducing GSM-1800 in several regions, including the Jewish Autonomous Region, Koryak Autonomous District, and Magadan Region.

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VEON's PJSC VimpelCom operates under the Beeline brand and is the third-largest wireless carrier in Russia. They provide wireless services to a significant portion of the Russian population.

Service-Telecom partners with PJSC VimpelCom to offer passive infrastructure across various regions in Russia. This partnership has been a crucial aspect of their operations.

PJSC VimpelCom's Beeline brand has a strong presence in Russia, serving millions of customers. Their partnership with Service-Telecom has helped them expand their reach.

Service-Telecom's passive infrastructure services have been instrumental in supporting PJSC VimpelCom's local operations in Russia. This collaboration has been a key factor in their success.

VEON's divestiture of its Russia tower assets has allowed the company to adopt an asset-light strategy, crystalizing the value of its tower infrastructure portfolio. This move has resulted in a considerable discount to the EV/EBITDA multiple it received for its tower infrastructure, trading at ~3.8x.

The company has also used the proceeds from the sale to de-lever its balance sheet, reducing its Net Debt / EBITDA ratio to ~2.4x. This financial maneuver has improved VEON's capital structure.

In 2007, VimpelCom purchased a 100% stake in Golden Telecom for $4.3 billion, expanding its portfolio of assets.

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VimpelCom became the first Russian company to be listed on the New York Stock Exchange in 1996. This marked a significant milestone for Russia's financial market.

The listing occurred on November 15, 1996. VimpelCom was the first company of the new Russia to be listed on the NYSE after a 90-year hiatus.

Shares of VimpelCom were placed on the stock exchange under the symbol VIP. They were in the form of American Depositary Receipts (ADR) of the 3rd, highest, level.

Performance Indicators are essential for tracking the success of financial transactions. They provide a clear picture of the financial health of a company.

Key performance indicators (KPIs) for financial transactions include transaction volume, transaction value, and settlement rate. These metrics help businesses understand their financial performance and make informed decisions.

A high transaction volume indicates a high level of business activity, while a high transaction value suggests a significant amount of money is being transferred. Settlement rates can also be used to measure the efficiency of payment processing.

Businesses can use these KPIs to identify areas for improvement and optimize their financial processes. By monitoring their performance indicators, companies can reduce costs, increase revenue, and improve customer satisfaction.

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Buying a 100% stake in an operator can be a significant financial move, and VimpelCom took this step in 2007. They purchased a 100% stake in Golden Telecom for $4.3 billion.

This transaction was officially announced on December 21, 2007.

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In a recent financial transaction, PJSC VimpelCom's active mobile network infrastructure will remain in its possession. This means VEON will retain control of its existing infrastructure.

The majority of PJSC VimpelCom's rooftop towers will also not be sold to Service-Telecom. This is a significant aspect of the deal.

Service-Telecom will own the passive infrastructure, which is a key part of the transaction. This highlights the distinction between active and passive infrastructure.

VEON's retention of active infrastructure is a notable aspect of the deal. It suggests a strategic decision to maintain control over its existing network.

The exclusion of active infrastructure from the sale is a crucial detail.

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In October 1993, Afk Sistema acquired a controlling stake in VimpelCom.

Sistema made this significant move during the same period the Bi Line network was officially announced.

Georgy Leonardovich Vasiliev became the Chairman of the Board of Directors following Sistema's acquisition.