VimpelCom Changes Cooperation Conditions with Dealers

MOSCOW, Oct 2 (Prime-Tass) -- Russia's second largest mobile operator VimpelCom has amended its terms of cooperation with dealers, the operator's spokeswoman Yulia Ostroukhova said, Vedomosti business daily reported Monday.

Starting October 1, VimpelCom stopped paying fixed commissions to dealers for each subscriber signed up. Instead, dealers will get 50% of the sum the subscribed user pays to VimpelCom for services within six months after SIM card activation, Ostroukhova said, the daily reported.

Under the previous scheme, if the subscribed user did not use VimpelCom's services within one year, the dealer had to return the commission to the operator, Ostroukhova said, adding that about 40% of commissions were usually returned to the operator.

In Moscow the scheme was adopted almost a year ago, while it became valid throughout Russia starting October 1, Ostroukhova said, the daily reported.

VimpelCom's key rival, Russia?s largest mobile operator Mobile TeleSystems (MTS), has been working with dealers under the scheme adopted by VimpelCom since January 1, the daily reported. The new scheme allowed for improving the "quality" of users and decreasing operators' spending on signing up new users, MTS' Vice President Mikhail Shamolin said, quoted by the daily.

Mobile services penetration in Russia amounted to 100% as of August 31, basing on active SIM card, according to Advanced Communications & Media (AC&M). Analysts estimated the real mobile penetration at about 70%.

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Posted to the site on 2nd October 2006