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Sir Richard Branson’s Virgin Group has announced it will team up with Swiss telecom Trivon to launch Virgin Connect in Russia. Virgin Connect will deliver services over a WiMAX network that covers 32 regions throughout Russia. The venture will offer broadband, voice and other services.
Branson said, “I am delighted to announce Virgin’s first business in Russia – Virgin Connect. 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’.” He added, “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”.
Trivon, founded in ’04, has bought up several Russian communications operators. They grabbed up the 5.7-5.9GHz spectrum licence across Russia and also acquired a 5.9-6.4GHz spectrum in some regions to set the stage.
It’s a shrewd move. The venture wants to exploit a fragmented, underserved market which only has a 5% broadband penetration rate. The Russian market still suffers from the legacy practices of their monopolistic, post-Soviet era culture.
The company didn’t provide details about its service model yet but judging by the Virgin Group’s progressive approach to consumer services in other verticals, they could reshape the services industry in a region that lags far behind the rest of the developing world. I’m betting on Virgin’s succeeding and, in any case, this should be interesting. Stay tuned…
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Tags: Branson, customer experience, trivon, virgin connect
