Businessweek

VimpelCom Ltd., a telecommunications service operator, provides voice and data services through a range of traditional and broadband mobile and fixed-line technologies. The VimpelCom Group includes companies operating in Russia, Italy, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Cambodia, Laos, Algeria, Bangladesh, Pakistan, Burundi and the Central African Republic. The company also holds equity shareholdings in companies operating in Canada and Zimbabwe. The operations of these companies cover a territory with a total population of approximately 767 million, as of December 31, 2012. The company provides services under the ‘Beeline,’ ‘Kyivstar,’ ‘djuice,’ ‘banglalink,’ ‘Mobilink,’ ‘Telecel,’ ‘Leo,’ ‘Djezzy,’ ‘Wind’ and ‘Infostrada’ brands. As of December 31, 2012, the company had 214 million mobile subscribers. The company’s operations are divided into the five following business units: the Russia Business Unit; the Europe & North America Business Unit; the Africa & Asia Business Unit; the Ukraine Business Unit; and the Commonwealth of Independent States (CIS) Business Unit. Business Mobile Telecommunications Business The company offers the following mobile telecommunications services to subscribers: mobile telecommunications services under contract and prepaid plans for both corporate and consumer segments; value added and call completion services; value added services including messaging services, content/infotainment services, data access services, financial value added services (which help customers manage their credit balances), location based services (which monitor subscriber locations), media, content delivery channels and mobile financial services (such as mobile bill payment); access to both national and international roaming services which allow subscribers and subscribers of other mobile operators to receive and make international, local and long distance calls while outside of their home network; wireless Internet access; and other services. Fixed-line Telecommunications and Fixed-line Internet Business The company offers voice, data and Internet services to corporations, operators and consumers using a metropolitan overlay network in major cities throughout Russia, Italy, Ukraine and the CIS. In Italy, the company also uses LLU, which allows to use connections from Telecom Italia’s local exchanges to the customer’s premises. In fixed-line/mobile integrated business structure in Russia, Ukraine and the CIS, fixed-line telecommunications use inter-city fiber optic and satellite-based networks. Its fixed-line business in Russia, Ukraine and the CIS is organized into three categories: Business and Corporate Services, providing a range of telecommunications and information technology and data center services to companies and high-end residential buildings; Carrier and Operator Services, which provide consolidated management of relationship with other carriers and operators. The two main areas of focus in this line of business are: provisioning a specific range of telecommunications services to other mobile and fixed-line operators and ISPs in Russia and worldwide; and optimizing costs and ensuring the quality of long distance voice, Internet and data services to and from subscribers of other telecommunications operators and service providers worldwide by means of interconnection agreements; and Consumer Internet Services, which provide fixed-line telephony, Internet access and home phone services (on a VoIP and copper wire basis) to customers in Russia, Ukraine, Uzbekistan, Armenia and Kazakhstan. In Italy, the company’s fixed-line business uses an integrated network infrastructure with approximately 21,600 kilometers of fiber optic cable backbone and approximately 1.450 LLU sites for direct subscriber connections. Its fixed-line business in Italy is organized by the following services: Consumer Voice Offerings; Corporate Voice Offerings, which provide fixed-line voice services, data services, value added services and connectivity services to corporate subscribers, including large corporate subscribers, SMEs and SOHOs; and Internet and Data Servic