Azeri and Kyrgyz delegations for Eurasia Com strengthened even further!

Preparations for what turned out to be an extremely enjoyable weekend prevented me from blogging immediately about further welcome additions to both the Azeri and Kyrgyz delegations at our Eurasia Com conference (Istanbul, 31 March & 1 April). What I wanted to write on Friday afternoon was:

• We're delighted to welcome Mr Iltimas Mamedov, the Deputy Minister of Communication and Information Technologies of the Republic of Azerbaijan, to the panel of speakers.
• We're also pleased that the Kyrgyz contingent has been boosted by the confirmed participation of Mr Vitaliy Uvarov, General Director of Aktel/Fonex, a CDMA2000 operator with approximately 200,000 subscribers.

Eurasia Com: Azeri and Tajik delegations announced

This morning we have more good news about the size, diversity and seniority of the group set to assemble at our Eurasia Com conference in Istanbul (31 March & 1 April 2009). The already-strong panel of speakers is to be boosted by the presence of the General Directors of two of the Eurasia region's state-owned incumbent wireline carriers.

Tajiktelecom will be represented by Mr Rahmunali Hasanov, joined by his counterpart from AzTelecom, Mr Magomed Mamedov. With the Kyrgyz incumbent operator already represented by its General Director and CTO, and with Türk Telekom CEO Dr. Paul Doany opening the event with a Welcome Keynote Address, Eurasia Com 2009 is shaping up to be the biggest, best event we've ever hosted for telcos in the Central Asia and Caucasus regions.

Yesterday, I was pleased to learn that ECI Telecom, a leading supplier of networking infrastructure for carrier and service provider networks worldwide, had been signed up as a Eurasia Com sponsor. We look forward to introducing the ECI Telecom team on-site to the carrier delegations whose presence we are currently confirming. As a sponsor, ECI Telecom can expect to gain privileged access to new contacts from across this high-growth region. We urge other telecoms tech vendors interested in the region to avail themselves of this opportunity also.

Kyrgyz incumbent carrier: CEO-level support for Eurasia Com conference

Our 5th annual Eurasia Com conference (31 March & 1 April 2009, Istanbul) received a huge boost this morning. While we have done well in terms of attracting speakers and delegates from the mobile operators of the South Caucasus and Central Asia regions, it has frankly been rather more difficult to engage with the mainly state-owned incumbent carriers from that part of the world. Doing this more effectively is an ambition I've held for a couple of years now. I am convinced that many of our customers (telecoms tech vendors looking to access emerging markets regions worldwide) also find their business development in the CIS to be above-averagely challenging. My vision for this event, therefore, has been to gather every kind of telecoms operator from the region under one roof for a two-day one-stop-shop for our sponsors. The CIS markets' incumbent wireline carriers have been the one missing piece from this jigsaw.

That changed today with the confirmation of Mr Marat Mambetaliev, General Director of KYRGYZTELECOM as a member of the panel of speakers. We will now work to leverage this confirmation to encourage the participation of Mr Mambetaliev's counterparts from other countries in the region.

Bakcell CEO confirms company's involvement in Eurasia Com conference

I am pleased to announce here that Martin Quirke, the British CEO of Azeri GSM operator Bakcell has confirmed his intention to join the panel of speakers at our 5th annual Eurasia Com conference in Istanbul, 31 March & 1 April 2009. Martin and I are discussing how best he can contribute and Martin is considering possible presentation topics. Whatever his choice, I'm sure Martin will offer some useful insights for our delegates from the telecoms service providers of Turkey, the Caspian region and Central Asia.

Now that I am back on the subject of Eurasia Com and the region it serves, this is a good opportunity to attempt to clarify something I was musing about last week. I found myself wondering aloud here about the ownership of Kyrgyz MNO Megacom, which some have suggested is owned by Russian cellco MegaFon. This week, we were told directly by a contact at Megacom that the company is emphatically NOT owned by MegaFon, but that " [we] have... a partnership with Megafon in terms of technical support and roaming."

Untangling the mysteries of Kyrgyzstan

It seems I was a tad hasty yesterday when getting a little excited at the prospect of having found a new GSM operator in Kyrgyzstan. A Eurasia Com project research respondent had told us about a "new entrant" named "Nur Telecom". A few hours later, I caught up with a colleague whose role here is to watch CIS markets much more closely than I am able to throughout the year. Gemma Bunting, one of our Senior Research Analysts, reminded me of the perils of tracking the Kyrgyz market, notably the matter of how difficult it is for the casual observer to be 100% sure of which operators are owned by which investors.

Over the last couple of years, Gemma and I have spoken on a number of occasions about the curious case of BiTel, which continues to lead the Kyrgyz mobile market, despite losing market share to later entrant MegaCom. Ownership wrangles around BiTel have been hitting the headlines at our Global Mobile Daily and Mobile Communications Europe services for nearly the past three years.

In Dec 2005 we reported that Russian operator Mobile TeleSystems (MTS) had announced the acquisition of a 51% stake in Bitel for US$150 million. Late the same month, we picked up the story of BiTEl HQ being seized by police and having its services cut off. This appeared to be due to a dispute over which organisation had been the legal owner of the 51% sold to MTS. A Russian company, Rezervspetmet was alleging that it owned the 51%. MTS had bought their stake in BiTel from a group known as Alliance Capital. My understanding is that Rezervspetmet eventually prevailed, forcing MTS to write off the investment. By the Spring of 2007 we were reporting that MTS was to be sued for around US$170 million in relation to the failed acquisition in Kyrgyzstan.

By May 2008 we were picking up stories suggesting that Altimo might have been behind the successful attempt to prevent MTS gaining control of BiTel. Altimo is a Russian telecoms investment company which owns significant stakes in both of MTS's major rivals in the mobile space in the Russian Federation and across the CIS. Altimo owns 44% of Vimpelcom and 25.1% of MegaFon. If these allegations don't add up to a sufficiently tangled tale for your taste, I invite you to compare the names and logos of Russia's MegaFon and Kyrgyzstan's MegaCom:

The choice of colours is pretty close. Coincidence? Apparently not. In March last year, we reported that MegaCom's management had descided not to reveal the identity of its backers. However, in the same edition of Mobile Communications Europe, it was noted that MegaFon had admitted that it was "supporting MegaCom in developing its network". "According to MegaCom's [then] General Director, Oleg Primak," ran the story, "whoever is backing MegaCom has already invested US$25 million (€19.1 million) in the development of the network".

By April 2008 the magazine of the American Chamber of Commerce in Kyrgzystan was running an interview with the new MegaCom General Director, a Mr Andrey Silich, a former MegaFon employee. I've heard a number of people refer to Megacom as a MegaFon company/subsidiary.

I can't verify whether that it is really the case, but all of the above is certainly evidence of a strong link. Whatever the true story, it's another case of the Kyrgyzstan market being a bit harder than average to track for us and other industry watchers. Back, then, to the matter of mysterious 'Nur Telecom' (or Nurtelecom?). Gemma pointed out to me that by May of this year, Global Mobile Daily was reporting that BiTel had "changed its name to Nurtelecom and plans to apply for a new license to operate services this year". If that's true, it certainly begs the question of why the BiTel website is still live now. Confused? Me too. When I was trying to figure all of this out yesterday, I asked for help via the Eurasia Com LinkedIn group. The only response? A group member saying he'd heard rumours of Virgin Mobile starting up in Kyrgyzstan. My initial response to that is extremely sceptical. That said, it does seem like this is one market full of surprises.

I hope to learn more by encouraging the country's various players to have a presence at our Eurasia Com conference in Istanbul in the Spring. We'll keep you posted on that.

Discovering new mobile market entrants in Central Asia

As we speak to contacts across the Caspian Sea and Central Asia regions, we see that the competitive landscape in a number of these markets continues to change. A friendly contact in Kyrgyzstan flagged up the imminent market entry of a new GSM player, 'Nur Telecom'. We have also become aware of a CDMA operator which appears to have gone to market with services since we last gave our database of the region's companies a major update: a company named Sotel, using the Nexi brand appears to have built CDMA mobile and WLL networks and services. Finally, a look at the CDMA Development Group website reveals that another WLL player named 'Global Telecom' seems to be getting ready to go to market.

Meanwhile, a research respondent in Tajikistan alerted us of the presence of what he described as a "small company which is offering broadand services over the country's only WiMAX network".

We are digging out information of this sort on a daily basis as we work to create to make the 5th annual version of our regional conference yet more valuable than previous iterations.

Catching up on developments across Eurasia

We will very shortly be getting to work on the arrangements for our 5th annual Eurasia Com conference and exhibition in Turkey. The event will take place 25-26 March 2009, with Istanbul being the host city for the third consecutive year, following on from an initial two years in Almaty, Kazakhstan.

For us, the term 'Eurasia' maps quite closely to TeliaSonera's use of this sometimes ambiguous word. With reference to the company's TeliaSonera Eurasia business area, the giant Scandinavian telco, like us, seems to use the term 'Eurasia' in the geopolitical sense, i.e. as a (neutral) way of referring to the post-Soviet states, in particular the Central Asian republics and the Transcaucasian republics.

So, our Eurasia Com conference, as well as attracting plenty of delegates from the host country's operators (Turkcell, Turk Telekom, Avea etc.), is really designed to offer networking and learning opportunities to execs from the service providers of Caspian states (Armenia, Azerbijan, Georgia) and 'the -stans' of Central Asia: Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan, Uzbekistan. Mongolian delegates have also shown up in pretty good numbers for the last two years.

We find that a number of tech vendors we speak with find this to be an interesting but challenging region. Growth potential is good: mobile markets are some way from reaching European-levels of penetration, 3G networks are not yet ubiquitous, wireline teledensity is quite low. However, my own experiences of developing contacts in this part of the world make me realise that it's not always easy for some companies to explore the possibilities and do business with the operators that are taking advantage of the growth opportunities. So we believe that our event offers a uniquely valuable one-stop shop for vendors looking to make improve their connections in this region.

I am therefore working to catch up with any interesting developments that have taken place across these markets since we last visited Istanbul in April this year. A notable one is TeliaSonera's integration of two previously separate mobile operators in Tajikistan, Indigo and Somoncom. These two companies were among the assets the Scandinavian telco acquired when it bought U.S.-based MCT Corp. back in 2007. MCT also had stakes in Coscom of Uzbekistan (now rebranded UCell) as well as a smaller stake in Roshan of Afghanistan. According to a Global Mobile Daily report last week, Ucell have just launched 3G services in the cities of Tashkent and Samarkand. This leaves Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan and Turkmenistan as the region's markets that had not reported W-CDMA subscriptions to the World Cellular Information Service by June of this year. Turkey's 3G licensing process has been much delayed so, overall, I expect Eurasia Com to be attended by a lot of delegates who have yet to gain extensive experience working in a market where 3G services are available. If that translates into pent-up demand to learn from colleagues who do have useful experiences and insights to offer, we should see very lively networking and discussions.