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. Last Updated: 07/27/2016

Vimpelcom Says Market Still Hot

Mobile telephone provider AO Vimpelcom said Wednesday that competition between providers was heating up in Moscow but new users were still snapping up phones and it was not substantially cutting prices.

Vimpelcom, which operates under the BeeLine trade mark, announced plans for mobile Internet services and new tariffs with limited hours of cheap calling, generally late at night.

"If somebody expected that we would announce price cuts of a third at the press conference today, they did not hear that," deputy chief executive Nikolai Pryanishnikov told journalists.

Pryanishnikov blamed capital costs for 1999's result, a $40 million net loss on operating revenues of $239 million, and said Vimpelcom would invest $100 million in its GSM network in 2000.

But the Moscow mobile market, which Vimpelcom and Moscow TeleSystems roughly equally divide, was growing rapidly and calling prices were not dropping below cost, he added. Mobile subscriptions had hit 1 million and were growing at 100,000 per month, he said.