Beeline gets down to business

The Vietnam-based mobile service provider has just become a sponsor of well-known England-based Manchester United football team for the 2011-2012 soccer season.

Each year Beeline will have to pay the Reds around $3 million within the three year deal term.

“We know that this partnership will bring great benefits to both partners. We’re looking forward to breaking new ground with Beeline,” said the team’s commercial director Richard Arnold.

The deal will give the club’s estimated 16 million fans in Vietnam a chance to see all the goals scored by the Reds, as well as exclusive interviews, news and behind-the-scenes access – bringing them closer to Old Trafford than ever before.

“We are very excited to be working with Manchester United on a range of activities that will be mutually beneficial and will bring this legendary club closer to this football-loving country,” said Michael Cluzel, head of Indochina Cluster of Russia-based VimpelCom and CEO of Beeline Vietnam (the Gtel-Mobile joint venture).

“This step also demonstrates Beeline’s commitment to the Indochina region in general and Vietnam in particular. We are planning to kick-off various activities for our customers here,” said Cluzel.

According to brand design firm Left Brain Connectors’ chairman Pham Viet Anh brand success linked closely to good business models, revenue and profit figures.

“If Beeline was not good with these factors, Manchester United’s reputation would not help it enhance position in the Vietnamese market,” said Anh.

Beeline came into existence in the Vietnamese market in mid 2009 and planned to become one of top network players in the country.

In early 2010, Beeline reported two million subscribers which retrenched to around 200,000 nearly one year later.

In early May 2011, Beeline aired its plan to pump $500 million more into the Vietnamese market until end of 2013 and become the fourth largest network player in the country.

The initial share of $196 million out of $500 million investment was used to hike VimpelCom’s share in the Gtel-Mobile joint venture to 49 per cent.

The remaining $304 million will be disbursed in the condition Beeline reaches certain business targets with concrete figures being withheld.

According to Ministry of Information and Communications figures, by December 2010 Beeline was at the bottom of Vietnam’s seven mobile network players with just a 0.2 per cent market share.

Beeline will need to fiercely compete with VietnamMobile which gained 3.1 per cent of market share, S-Fone with 1.7 per cent and EVN Telecom with a 1.4 per cent market share.

Reality shows that Beeline installed 2,500 base transceiver stations by end of the first quarter 2011 which will reach 5,000 in 2012 parallel to opening more customer service centres in Hanoi, Ho Chi Minh City and Danang.