Announcement

Collapse
No announcement yet.

Interview With VivaCell General Manager Ralph Yirikyan

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Interview With VivaCell General Manager Ralph Yirikyan

    INTERVIEW WITH VIVACELL GENERAL MANAGER RALPH YIRIKYAN

    ArmInfo
    2008-08-26 17:49:00

    ViVa Cell intends to invest approximately USD 60 mln in its
    infrastructure

    What is the volume of investments into VivaCell infrastructure planned
    for the current year? Is MTS Group participating?

    We intend to invest approximately USD 60 million. This entire amount
    is to be covered solely by VivaCell, without any participation from
    other sources.

    Being a part of MTS group, we are happy to be able to maintain our
    network by our own efforts, as well as to expand and improve, which
    is indispensable to keep pace.

    Which are the leading directions for investments?

    Expanding our telecommunications network is on top of the
    priorities. Our ambition is to be available for the whole Armenian
    population. If there's a point on the map where we are not reachable,
    we consider it as a challenge. We give major attention as well to
    keep up the quality of connection at the appropriate level; we also
    invest in upgrading our hardware and software. Besides, we are focused
    to accomplish our own 3G network. We also pay major consideration to
    staff management and trainings.

    When is 3G due to be launched? What are the designed location and
    the expected structure and number of the subscriber base?

    We plan to finish deploying the network by the end of the year, or
    within the first two months of 2009 utmost. At the first stage we
    plan to enable the capital Yerevan and two major cities of Gyumri and
    Vanadzor. As for target market, we have expectations from the business
    sector, yet the 3G in Armenia is relatively new, thus the network will
    probably serve business centers and their roundabouts. But the service
    is hihgly probable to be attractive for non-business subscribers. Last
    but not least, the demand of the new service will be determined by our
    tariff policy, which we haven't yet planned. As soon as we do that,
    we'll be able to speak extensively and precisely.

    Will you heed the existing market prices?

    To define the most reasonable tariff package, we study the experience
    of telecom operators abroad, as well as the demand rates. Our prices
    may exceed the existing ones, be lower or equal to them. There is a
    certain competition in the market, but our tariffs will be modified
    not only by the prices of our competitors, but also by the quality
    of our services and the demand for them.

    Which are your technical partners in building up 3G?

    At present we collaborate with Alcatel and Ericsson. There are several
    other telecom equipment providers, but their names are rather not to
    be revealed for a while - we'll announce them as soon as the system
    is effective.

    Do you follow expanding your GPRS network?

    We have already shifted to a more advanced EDGE standard. Here we go
    on expanding, as the demand is evident.

    President of MTS Mr. Melamed spoke about possible cooperation with
    Comstar-OTS in the field of Internet services. Is it active now?

    There are no negotiations at the moment, but we don't exclude any
    option for collaboration, if it is mutually profitable.

    What's the current stage of the rebranding campaign? Will VivaCell
    be substituted by MTS, or you will retain your original trade mark?

    Our rebranding campaign is a gradual one. Now it is undergoing
    co-branding, as we expose VivaCell and MTS logos together, which
    will lead eventually to MTS logo and brand alone. During co-branding,
    we will try to migrate the qualities of VivaCell, its attributes and
    public perception, into the new brand of MTS. To evaluate our next
    steps in that direction we will undertake several market surveys and
    studies to find out which brand is more favored by our customers,
    and their opinion will be very valuable to us. The final decision
    on whether to change the brand or to migrate fully from co-branding
    to the MTS brand will in many ways depend on this. The duration of
    the co-branding campaign is not limited - it may last from a few
    months to more than a year. It all depends on when the opinion of
    our subscribers will be fully clear to us.

    Generally, which brand is more likely to be successful in Armenia -
    an Armenian or a foreign one?

    It is the quality of s ervice and products which support the
    brand. There are foreign brands highly favored by Armenian customers,
    and there are ones they definitely reject.

    Does one need to carry on corporate social responsibility programs
    to achieve brand success?

    Those programs are valuable, as they asisst in gaining confidence and
    popularity in the world of business, and among the population. Still,
    they are important, but not crucial. The main thing is to make evident
    the work which is carried out to support the brand in the market. If
    a company makes it clear that it fulfills all its commitments,
    leading a transparent and honest business with everybody - be it a
    customer, a market partner or a supplier - the brand is supposed
    to be successful. It was not for nothing that VivaCell gained
    the reputation it has today - it is the inevitable result of our
    commitment, achievements and consistency.

    Average cell phone usage per capita in Armenia has been behind of that
    in most of CIS countries - less than 200 minutes per month. What is
    the current situation?

    Among VivaCell customers this index has exceeded 200 minutes and
    still tends to grow - we consider it in our budget drafts. I wouldn't
    like to indicate the exact number we will reach by the end of the
    year - it would mean to undertake a commitment, which might not
    be accomplished. But I assure you that by the end of=2 0the year
    the figure will be over 200. Also, the average will not be backed
    by Yerevan only, as we've got large numbers of active users in the
    regions too.

    What is the mobile penetration rate today in Armenia?

    If we take the whole number of the subscribers of both operators
    as 2,2 mln and consider the population as 2,8 mln, then we'll
    get the percentage of 78,5%. Along this, it is widely known that
    certain groups of people hardly become mobile phone users - little
    children and the elderly people, as well as the population that is
    categorized below the poverty line. Together they make about 15% - 20%
    of the population. Thus, practically the saturation point is clearly
    within sight. But it is possible to surpass the practical limit -
    and exceed the threshold of 100%. You know that a considerable number
    of subscribers utlize several SIM-cards or dual ones.

    Do you think that the third operator will be at first partly employed
    the same way?

    It is possible, because it's natural. The initial period is always
    a trial one - we made it the same way. The difference today is
    there's a larger scale of possibilities to subscribe to more than
    one operator. And, though narrow, there still remains a gap between
    potential clients and actual ones. Most of them are inclined to
    use a cell phone, but have doubts about financial reasonability. We
    set affordable tariff packages for them, which helps them to make a
    turnaround in their point of view.

    Does it imply that the new entrant also will set low-cost prices for
    a start?

    We cannot anticipate what the strategy of the third operator will be,
    however and regardless of everything VivaCell was and will always be
    offering state of the art services with competitive prices.

    Who is more likely to fulfill the vacancy - a giant enterprise or a
    relatively modest one? There are both kinds on the list...

    It is difficult to make predictions now. But one thing is obvious -
    as soon as the third operator steps in, the choice for the customer
    will grow and each customer will have more varieties and options
    to choose from. The whole economy will benefit, and not only the
    telecommunication field. The new entrant will launch a large promo
    campaign, import new equipment, build its infrastructure and create
    new jobs. For all that large sums will be spent, custom duties will be
    paid, then the company will become a regular taxpayer, its employees
    will pay income tax. To conclude, new operator will spend many efforts,
    but everyone will benefit.

    What are your plans for charity programs before the end of the year?

    Let me correct you. What we do is not charity, but Corporate Social
    Responsibility. When, for example, we help repairing a hospital or a
    kindergarten, it is an expression of a responsibility20and obligation
    that we feel as a corporate citizen towards the society we live in,
    the society which keeps our business going. One needs to understand
    - no one is going to help the country the way its people will. We
    Armenians are responsible to build a future for our country - and
    the responsibility is ours alone.

    Thank you
Working...
X