Russia’s largest mobile phone company, MTS, has bought Armenian operator VivaCell, continuing its expansion into the fast-growing CIS markets.
VivaCell cost MTS over $400 million dollars, a price analysts call fair, considering the high-growth potential in Armenia. Less than 40% of the population uses mobile phones in a country of over 3 million people. VivaCell now controls over two thirds of the Armenian market. Last year MTS's main rival VimpelCom bought Armentel, Armenia's fixed-line and mobile operator, for $US 450 million.