Vivacom

Bulgarian Telecommunications Company EAD (VIVACOM)
Joint Stock Company
Industry telecommunications
Founded 1992
Headquarters Sofia, Bulgaria
Key people
 Atanas Dobrev, CEO
Products fixed line telephony, Internet services, mobile telephony (as Vivatel)
Revenue Decrease €411.5 million; BGN 802.4 million (2015)[1]
Number of employees
 5 905
Slogan United communications
Website vivacom.bg

VIVACOM (Bulgarian: Виваком) is the brand name of the Bulgarian Telecommunications Company EAD (BTC), the largest telecommunications company in Bulgaria and a former state-owned monopoly. It was founded as a joint stock company in 1992 as part of the split of Bulgaria's post and telecommunication services into separate companies. Currently, VIVACOM is leading the market in providing various telecommunication services, including fixed-line, mobile, Internet, radio and TV broadcasting, and data transmission services. The company is headquartered in Sofia, Bulgaria, employs around 6,000 people (5905 in 2016[2]), and owns a mature distribution network with over 240 retail outlets. VIVACOM’s customer base includes both business and residential subscribers. It serves 1.4 million fixed phones and provides broadband Internet access to 1 000,000 households and free Internet access at more than 4,000 public locations in Bulgaria. VIVACOM’s 3G network coverage expands to 99.99% of the population and 99.65% of the territory of Bulgaria.[3]

History

The Bulgarian Telecommunications Company was established in 1992 as part of the separation of the state-owned enterprise Bulgarian Posts and Telecommunications into different companies.[4]

In June 2004, the Bulgarian government sold 65 percent of BTC’s capital to Viva Ventures Holding, a subsidiary of the US private equity fund Advent International, for €280 million. In January 2005, the Bulgarian state made a public offering of the remaining shares and offered 34.78 percent of the company's capital (2,869,573 shares) on the Bulgarian Stock Exchange – Sofia. In May 2005, the BTC was granted a license for the development of third-generation mobile telecommunication systems under the UMTS standard, class B (2x5+5 MHz). The permit is valid for a period of 20 years and the license fee is BGN 42 million.

In November 2005, the company launched its mobile services under the ‘Vivatel’ brand, Bulgaria's third mobile operator. It later became the fastest growing mobile operator in the country.[5] In August 2007, the company was sold again. AIG Investments, through its subsidiary AIG Capital Partners Inc., acquired a majority stake in BTC for a total price of €1,080 million (BGN 2,112 million).[6] In January 2009, the BTC announced a merger with its subsidiary BTC Mobile (Vivatel). The aim of the consolidation was to improve management efficiency, optimize costs, secure sustainable growth, and introduce a single brand.

In September 2009, BTC and Vivatel united under a new brand - VIVACOM.

In late 2012, VTB Capital, the investment arm of Russia’s second-largest bank, has led a consortium (Viva Telecom Bulgaria EAD) to buy a controlling stake in BTC. The consortium included a local partner, Mr. Tzvetan Vassilev. In November 2012, Viva Telecom Bulgaria EAD acquired a 93.99 percent stake in the Bulgarian Telecommunications Company. The transaction became a fact as a result of the approval of a comprehensive scheme for the sale and restructuring of the company. The deal received approval from the European Commission and other regulatory authorities.[7] Local experts state that the purchase of VIVACOM was among the most complicated deals in Bulgaria.[8]

Currently, the owner of 76% shares of VIVACOM is the Russian businessman Dmitry Kosarev. Brothers Velchev with Spas Rusev are trying to usurp company. Kosarev`s attorneys are successfully resist seizure and suing with Mr. Rusev and Velchev brothers at the courts of six jurisdictions.

As of 2016, EMPRENO has filed a lawsuit and is taking other legal actions against several parties that are responsible (VTB managers Nick Hutt, Alexey Yakovitsky and Yury Soloviev), according to EMPRENO, for attempted take-over of EMPRENO's assets.,,[9][10][11]

Supervisory board

Board of Directors

VIVACOM Fund

Every year VIVACOM supports numerous projects related to significant causes in social life. In 2012 VIVACOM Fund distributed BGN 1.7 million to support sports, culture, education, health, and social projects.[12]

Culture

VIVACOM Art Scena is one of VIVACOM Fund's leading social projects in the field of culture. In 2010 the telecom supported the project of the Sofia Municipality and the Camera OOD producer company for a free summer open-air stage offering the citizens and visitors of Sofia a varied cultural program. During the same year, thanks to the support from VIVACOM, a unique Christmas tram could be seen in the streets of Sofia. It offered numerous surprises to children and their parents. It has become a tradition for VIVACOM to support the Museum and Gallery Night Project in the city of Plovdiv.

Education and Health

VIVACOM was a partner of the Teach for Bulgaria Foundation in the 2012 campaign for raising funds for a summer school for over 200 children.

At the end of June 2010, the first VIVACOM Institute for Children’s Mental Health and Development was open. A team of speech therapists, psychologists, and neurologists will take care of children with dyslexia and autism.

In September 2010, the company supported the participation of seven Bulgarian students in the Laser Physics and Applications XVI International School on Quantum Electronics. VIVACOM also gave students from the Technical University in Sofia the opportunity to attend courses led by VIVACOM professionals.

Sports

In 2010, the company organized the Fourth State Streetball Championship – over 3 000 participants took part in the contest. VIVACOM traditionally supports golf and athletic tournaments and also invests in the Bulgarian automobile sports. In 2015, the company became majority shareholder of the popular Bulgarian football club Levski Sofia, acquiring approximately 27% of the club shares.

Social Campaigns

The charity initiative Zhalti Stotinki is a traditional initiative of VIVACOM for accumulating funds for the building of family type centers for the accommodation of children deprived of parental care. Employees of VIVACOM also help with renovation of orphanages for children at risk as part of the VIVACOM Cares initiative. VIVACOM also supported the exhibition of the photographer Mitko Momchev and the raised funds were donated for a complicated surgery of a famous Bulgarian astronomer.

References

  1. ↑ https://vivacom.bg/Content/files/ir/reports/report_56_en.pdf
  2. ↑ Studio X Creative. "Домашен & мобилен телефон, високоскоростен интернет от VIVACOM" (PDF).
  3. ↑ Studio X Creative. "Домашен & мобилен телефон, високоскоростен интернет от VIVACOM" (PDF).
  4. ↑ Historical summary – Bulgarian Posts website
  5. ↑ Official website (English)
  6. ↑ Studio X Creative. "Who are we".
  7. ↑ Bulgaria's Vivacom gets court approval for restructuring Reuters
  8. ↑ “Probably the Most Complicated Deal in Bulgaria Ever” Boyanov & Co.
  9. ↑ "VTB has appointed the winner of the auction three months ago," - said the businessman Dmitry Kosarev, 16.11.2015
  10. ↑ Kosarev: VTB appointed auction winner three months ago, 16.11.2015
  11. ↑ RUSSIA!: Bulgaria’s Vivacom Shareholder Sues VTB for Alleged Fraud March 28, 2016
  12. ↑ VIVACOM Fund, official website of VIVACOM

External links

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