Britain’s Virgin Group made its Russian debut on Thursday, breaking into the country’s expanding Internet business a few months after it unveiled big plans for Russia, including setting up an airline by 2010.
Virgin Group’s billionaire founder Richard Branson said in a statement:
“I am delighted to announce Virgin’s first business in Russia. Virgin Connect will demystify the complex tariff jungle and bureaucracy seen in the market over the last years.”
Virgin Connect plans to take 10 percent of Russia’s broadband Internet market within five years, relying heavily on local players for help.
Russia’s telecoms market, like the airline sector, is on Russia’s list of ‘strategic industries’ and therefore off limits to foreign control, but working with a locally established partner, Swiss-based Trivon AG, Virgin said it had acquired all the licences to launch the Internet venture in 32 Russian regions and Russia’s 20 largest cities.
Rostislav Gromov, general director of Russian satellite broadcasting operator Orion Express, last month became the head of Virgin’s partner in the Internet venture.