Vivacom

Vivacom

Type
Industry	telecommunications
Founded	1992
Headquarters	Sofia, Bulgaria
Key people	Atanas Dobrev, CEO
Products	Satellite television, IPTV, Fixed line, Mobile telephony, Internet service provider
Revenue	€411.5 million; BGN 802.4 million (2015)
Number of employees	5 905
Website	vivacom.bg

Vivacom (Bulgarian: Виваком) is the brand name of the Bulgarian Telecommunications Company EAD (BTC), the largest telecommunications company in Bulgaria and a former state-owned monopoly. It was founded as a joint stock company in 1992 as part of the split of Bulgaria's post and telecommunication services into separate companies. Currently, Vivacom is leading the market in providing various telecommunication services, including fixed-line, mobile, Internet, radio and TV broadcasting, and data transmission services. The company is headquartered in Sofia, Bulgaria, employs around 6,000 people (5905 in 2016), and owns a mature distribution network with over 240 retail outlets. Vivacom’s customer base includes both business and residential subscribers. It serves 1.4 million fixed phones and provides broadband Internet access to 1 000,000 households and free Internet access at more than 4,000 public locations in Bulgaria. Vivacom’s 3G network coverage expands to 99.99% of the population and 99.65% of the territory of Bulgaria.

The Bulgarian Telecommunications Company was established in 1992 as part of the separation of the state-owned enterprise Bulgarian Posts and Telecommunications into different companies.

In June 2004, the Bulgarian government sold 65 percent of BTC’s capital to Viva Ventures Holding, a subsidiary of the US private equity fund Advent International, for €280 million. In January 2005, the Bulgarian state made a public offering of the remaining shares and offered 34.78 percent of the company's capital (2,869,573 shares) on the Bulgarian Stock Exchange – Sofia. In May 2005, the BTC was granted a license for the development of third-generation mobile telecommunication systems under the UMTS standard, class B (2x5+5 MHz). The permit is valid for a period of 20 years and the license fee is BGN 42 million.

In November 2005, the company launched its mobile services under the ‘Vivatel’ brand, Bulgaria's third mobile operator. It later became the fastest growing mobile operator in the country. In August 2007, the company was sold again. AIG Investments, through its subsidiary AIG Capital Partners Inc., acquired a majority stake in BTC for a total price of €1,080 million (BGN 2,112 million). In January 2009, the BTC announced a merger with its subsidiary BTC Mobile (Vivatel). The aim of the consolidation was to improve management efficiency, optimize costs, secure sustainable growth, and introduce a single brand.

In September 2009, BTC and Vivatel united under a new brand - VIVACOM.

In late 2012, VTB Capital, the investment arm of Russia’s second-largest bank, has led a consortium (Viva Telecom Bulgaria EAD) to buy a controlling stake in BTC. The consortium included a local partner, Mr. Tzvetan Vassilev. In November 2012, Viva Telecom Bulgaria EAD acquired a 93.99 percent stake in the Bulgarian Telecommunications Company. The transaction became a fact as a result of the approval of a comprehensive scheme for the sale and restructuring of the company. The deal received approval from the European Commission and other regulatory authorities. Local experts state that the purchase of VIVACOM was among the most complicated deals in Bulgaria.