Nikolai Pryanishnikov is first vice president of VimpelCom, which operates mobile-telephone services under its popular BeeLine brand name. Pryanishnikov spoke about some new services the company is providing, including mobile e-mail and domestic and international automatic roaming.

Telecoms Russia: You have introduced a new service – mobile e-mail. Is it in demand?

Nikolai Pryanishnikov: Yes. Our subsidiary, BeeOnLine, launched this service. At this point, it is too early to forecast how many clients it might attract. Judging by the first responses, there is some interest. But in all likelihood, it will be in demand and will be popular because of its obvious benefits – the possibility of using a mobile phone for sending e-mail messages. Imagine a situation where you need to send an urgent e-mail but don't have a PC at hand. I believe the service will be particularly popular among the young who have assimilated such things as SMS and e-mail as habitual elements of their lifestyle.

TR: In October, the company launched domestic and international automatic roaming for Bee+ GSM subscribers. Tell us about this service.

NP: This is a tremendously important service. Until recently, Bee+ was perceived as something cheap and easy to use, though lacking sophistication. But the package has gained popularity, and the number of Bee+ users currently stands at several hundred thousand people. First of all, it is attractive because it allows effective spending control (online control, which is not present in other packages), zero subscription fee and attractive per-minute rates ($0.12 within the BeeLine network; $0.05 at night). The product is particularly attractive for those who need mobile phones for brief conversations and are on a budget. Now the Bee+ GSM package includes domestic and international roaming and a number of other services, like automatic caller ID, WAP and many others. In combination with earlier benefits, the new services, first of all roaming, make the product truly unique.

TR: The Personal Digital Services provided by Vimpelcom's BeeOnLine subsidiary has no analog on the Russian market. Do you plan to introduce other innovative services?

NP: Yes, Personal Digital Services has no analog here, though such services are rather popular in the West. BeeOnLine offers a total of 600 different information channels. Clients can choose to subscribe to a package ("Neo," "Soho," "City") or to receive specific information on queries. Also, BeeOnLine offers the "Address" service that is designed to help people orient themselves in Moscow. The list of services will be expanding. We have already introduced the "ringtone" service which allows to order new ringtones via SMS. For sports fans, we're introducing SMS-broadcast service, i.e. online reports on soccer and tennis. And mobile translation services are already available.

TR: In September, ZAO VimpelCom, member of the VimpelCom group and operator of Bee Line GSM, opened its first affiliate in Tver Oblast – the first step of the company's expansion into the provinces. What are your plans?

NP: During the first three weeks of September, VimpelCom-R, which is actively expanding into the regions, launched five affiliates for commercial use – in Tver, Vladimir, Ryazan, Kaluga and Lipetsk. We're determined to keep up this high tempo in the future. VimpelCom-R is setting up affiliates in other regions where its license is valid, specifically in the North Caucasus, the Volga area and Siberia. Areas where the company is licensed to operate accommodate 68 percent of the country's population, some 100 million people. Toward the end of this year, BeeLine GSM networks will appear in Novosibirsk, Kemerovo, Rostov, Nizhny Novgorod, Belgorod, Samara, Novokuznetsk, Saratov, Smolensk and many other cities. The program of regional expansion, supported by Alfa-Group, is estimated to cost $337 million. All affiliates will operate the BeeLine GSM brand.

TR: What are the main trends of the sector?

NP: In the next two or three years, growth will shift into the provinces. Moscow's market will be gradually approaching saturation; however, Moscow and Moscow Oblast will remain the major area of business for domestic mobile providers for a long time. The market will expand at a good pace, and the favorable macroeconomic situation in the country will further stimulate its development.

The market will continue to consolidate. The three companies, Vimpelcom (BeeLine), MTS and Telecominvest, will dominate the market. They have already announced their countrywide ambitions, obtained appropriate licenses and possess sufficient investment resources to deploy regional networks.

TR: Which factors, political or other, hamper development of the telecom market in Russia? Do you think the current Russian legislation needs some changes to improve conditions?

NP: Laws on the telecoms industry, and, probably, Russian legislation as a whole, need further perfecting. First of all, the licensing policy of the regulatory bodies must become more transparent. Laws need to be enacted to stimulate investments and increase investment attraction of the telecom industry.

TR: Do you consider the Russian telecoms industry to be attractive for investors?

NP: The market is quite attractive for investors. First, it is an "infrastructure" industry, like highway building or air transport. It is running ahead of other segments. Second, telecoms worldwide represent a dynamic market that is actively progressing and developing. Russia is no exception. Last year alone BeeLine and MTS attracted a total of $500 million through share placements on the New York Stock Exchange. For BeeLine, that was a second placement; in 1996, Bee Line became the first Russian company to be listed on the world's most prestigious exchange.