Банкеръ Weekly

Briefs

GLOBUL STARTS BY SAME RATES FOR ALL CONVERSATIONS

After starting commercial activities the second local GSM-opration GloBul will introduce same rates for its subscribers not only for conversations vis its own network, but also for the clients of MobilTel, Mobikom, and Bulgarian Telecommunication Company (BTC), the BANKER weekly learned. This means that the Greek company will eliminate the difference in the prices, charged by the two GSM-operators. The same rates will be applied to conversations between GSM and Mobikom, as well as calls from GSM to stational BTC phones.
GloBul's representative office, however, refused to give any information about the commercial strategy of the mobile operator, but unofficial company statements confirm these intentions. The tariff rate of the second GSM-operator will be unified and will probably approximate the so-calle universal regime of MobilTel, which charges BGL0.36 per minute for a conversation between GSM cliensts. In the same regime, a connection between MobilTel and BTC or Mobikom clients, costs BGL0.58/minute.
The company's losses from the unification of prices will be covered by the huge budget for expenses, which the Greek telecom OTE has allotted to GloBul for the next few years. According to experts, the GSM-operator's plans for affirmation on the Bulgarian market envision losses within 5 years.
The intention of GloBul's managers to unify prices seems more than logical, having in mind that they have so far failed to negotiate advantageous terms for their future clients with the competitors MobilTel, Mobikom, and BTC. At the official presentation of the company more than a month ago its Executive Director Nikis Avgerinos said Globul was ready to build a telephone exchange for 120,000 clients, adding that by the year-end its capacity may even be expanded.

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