GTEL-Mobile has new CEO

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Ahmed Abou Doma, executive vice president and head of the Asia and Africa business unit, said: "The Vietnamese market and the whole IndoChina cluster is a strategically crucial geographical segment for our business and we are glad to welcome such a high-level professional on board. I am sure that Michael’s broad international telecom experience, deep knowledge of the Vietnamese and Indochina markets and strong expertise will allow us to strengthen VimpelCom’s position in the whole region and particularly - in Vietnam”.

Cluzel said: “In such a highly-competitive environment we will try to make the best use of the investment package to better serve all consumers across Vietnam with quality services and better value. Our operational focus will be made primarily on expanding and developing the network coverage and quality, improving services and launching commercial operations all over the country.”

He said that during the next one year G-TEL Mobile planned to establish up to 5,000 cell sites nationwide, to expand our distribution network to up to 50,000 points of sale and enlarge the number of Beeline staff to over 1,000 employees.

“We believe that we are well positioned to offer an exceptional experience to our customers and strengthen our presence in this strategic market because we benefit from being a part of a leading global telecom company,” he affirmed.

In April 2011 Vimpelcom Ltd. has agreed with its local partner in Vietnam - Vietnamese state-run Global Telecommunications Corporation (GTel) on a financing plan for GTEL-Mobile, that could result in providing investments in total of up to $500 million through 2013.

The Russian company has completed the first stage of the financing plan by paying $196 million for newly issued shares and thereby increasing its stake in GTEL-Mobile from 40 to 49 per cent. All proceeds from this financing will be used for GTEL-Mobile development.

Going forward VimpelCom has agreed to invest another $304 million under this plan, which would increase its economic interest in GTEL-Mobile from 49 to 65 per cent. The additional financing and equity increase are subject to satisfaction of certain performance targets by GTEL-Mobile and receipt of further regulatory approvals. With this new financing the total amount of VimpelCom's investment in Vietnamese operations could reach up to $1 billion, including all the investments already made.