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Virgin Group enters Russia through WIMAX

Pavel as Business

Май|15|2008

Virgin Group enters Russia through the new broadband company operated by Trivon. Today they announced the nationwide launch of its high-speed broadband WiMax network under the brand «Virgin Connect».

As well as the international experience contributed by its shareholders, Trivon believe in strong local knowledge. In accordance with this belief, a highly experienced local team has been hired from Russia, led by Rostislav Gromov, as General Director of Trivon’s Russian operations.

Trivon has launched its network in 32 Russian regions including Moscow, St. Petersburg and the 20 largest cities where it holds the required licenses and frequencies for WiMAX-based services. The company has started delivering services to customers in Moscow region, Belgorod, Orenburg and Ufa.

“We have entered Russia with Virgin Connect because we believe the potential for growth in the Russian broadband market is extremely exciting. Virgin‘s fundamental business principle is: “Delivering an outstanding customer experience”. Virgin Connect will demystify the complex tariff jungle and bureaucracy seen in the market over the last years. We will provide a fresh and human customer experience to Russians and believe that Trivon is the ideal partner to deliver this. Virgin Connect plans to gain a market share of 10% within 5 years in this promising market”, said Sir Richard Branson, founder of the Virgin Group.

Commenting this news, I just want to notice what is it really so logical and really clever action of Virgin Group in 2 aspects.

First — Virgin enters Russian market through move into innovation market which still rather free and going to rise up very fast during the next 5 years. It means that comparing with some other international Telecom- or Internet-companies which mostly underestimate Russian market and its local competitors, Virgin understand as well as its real potential also the strong local companies and don’t waste time moving on market when WiMax is still innovation product.

Just for example: in Moscow it is already possible to pay 14 euros and to buy 1 month unlimited Wi-Fi 24hours/per day in GoldenWiFi network. By the way - this post now is writing using this network and GoldenWiFi is the World’s largest urban wireless network and includes the greater part of Moscow’s city center and many other areas of the city with 7000 hotspots. It is much more developed wireless Internet coverage even comparing with many EU-capitals.

Second — most of business consultants for development of project were hired from Russia. It means that Virgin can control the situation themself and at the same time - receive great experience and knowledges from people who “feel” the market.

I know Sir Richard Branson - the founder of Virgin Group - just by his book “Screw it, let’s do it. Expanded” which I have read 2 months ago. All these “WiMax networks” are still a bit “virtual” and Virgin Group will need at least 2-3 months after official “press-release” announcing to launch real product on market. But inspite of it, I already start respect Virgin and its founder who act wisely not only in “books” but also in real: first steps of Virgin Group in entering Russian market and the way they do it differs from most of steps other international Telecom- or Internet-companies, which still (unfortunately) value it in key of many old prejudices or sometimes even arrogantly and conceitedly(as excellent example - old story with “strange” behaviour of Lycos Europe and Lycos.ru project).

Who know, perhaps in two year on Russian TV there will be such adspots:

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