Delta Partners invests in Russia's $35bn telecom market with Virgin Group

Delta Partners has invested in Trivon Group, a Swiss based telecom holding company providing internet access services in main Russian regions, jointly with Virgin Group and Eurasia Capital Management.

Virgin Connect will provide broadband Internet connectivity, voice and value added services to both residential and corporate markets.

The company, which holds the requested licenses and frequencies for WiMAX-based services is currently deploying its WiMAX network in 32 Russian regions including main cities such as Moscow and St. Petersburg.

With a population close to 140 million, Delta Partners estimates the Russian telecom market at more than $35bn.

"We truly believe there is a huge opportunity to generate value for Russian customers through the deployment of innovative propositions that will significantly contribute to the rapid development of the local broadband market," said Kristoff Puelinckx, Managing Partner, Delta Partners.

"While the broadband market in Russia is still under-penetrated, it is expected to reach 35% penetration in the next five years. This presents huge potential in establishing a global brand-name in an emerging market such as Russia." added Puelinckx.

Delta Partners' vast experience in broadband roll outs in the Middle East and Africa supports the company's role as a co-investor.

Providing strategic support and leveraging its unique combination of strategic advice and a hands-on pragmatic approach, Delta Partners will fully support the management team led by Mr. Rostislav Gromov, General Director of Trivon's Russian Operation, in the commercial expansion of Virgin Connect.

"I am delighted to announce Virgin's first business in Russia - Virgin Connect. We have entered Russia with Virgin Connect because we believe the potential for growth in the Russian broadband market is extremely exciting. Virgin's fundamental business principle is: "Delivering an outstanding customer experience". Virgin Connect will demystify the complex tariff jungle and bureaucracy seen in the market over the last years. We will provide a fresh and human customer experience to Russians and believe that Trivon Group is the ideal partner to deliver this. Virgin Connect plans to gain a market share of 10% within 5 years in this promising market", states Sir Richard Branson, founder of the Virgin Group.

"We are proud to have been entrusted by Sir Richard and his group to bring the values that Virgin stands for - fun, innovation, quality, value for money, customer service and importantly being the customer champion - to Russia with the launch of Virgin Connect - the first Virgin branded venture in Russia" said Markus Mueller, Chairman and CEO of Trivon Group.