A1 Belarus

Unitary enterprise A1 (Belarusian: Унiтарнае прадпрыемства «А1», A1) is the largest private telecom, ICT & content service provider in Belarus.[3] The company provides GSM 900/1800, UMTS (WCDMA/HSDPA/HSUPA/HSPA+) and 4G (via beCloud) services. A1 is the second-largest mobile network operator in Belarus.[4] A1 also provides ADSL, Ethernet and GPON Internet access services in all regional centers of Belarus, as well as in Bobruisk, Zhlobin, Rechitsa, Svietlahorsk and Dobrush, and IPTV digital television services under the VOKA brand. Until August 2019, the company conducted operations under the brand name velcom.

Unitary enterprise A1
Formerly
Mobile digital communication JV LLC, Unitary Enterprise velcom
Unitary Enterprise
IndustryTelecommunications
Founded30 July 1998 (commercial activities from 16 April 1999)
HeadquartersMinsk, Belarus
Key people
Helmut Duhs (CEO)
ProductsMobile and fixed connection services, online TV, entertainment content, ICT services
BrandsA1, VOKA
Revenue 426,1 million € (2019)[1]
190,9 million € (2019)[2]
Number of employees
~3000 people (as of the middle of 2019)
ParentA1 Telekom Austria Group (100%)
WebsiteA1.by

History
Company's logo before rebranding in 2008

The company began commercial operations to provide mobile communications services and sell mobile communications devices on 16 April 1999 under the brand name JV LLC Mobile digital communication, and became the first GSM carrier in Belarus (the country's first cellular operator was the NMT carrier BelCel).

Ten base stations (nine in Minsk and one in Oreshniki on the way to the National Airport Minsk) had been launched by the time commercial operations started. By the summer of 2000, all regional cities of Belarus had been connected to the network. Mobile communications services were available on the Minsk-Brest-Orsha highway and in settlements along the road. Since 23 April 2007, mobile communications have been available to 100% of Belarus's urban population. In April 2019, the operator launched the first GSM network in the Polesye State Radiation-Ecological Reserve.[5]

On 15 March 2001, the operator subscribers were enabled to send and receive texts (SMS),[6] and in June 2005, Multimedia Messaging Service (MMS) became available.

On 2 June 2003, the carrier launched the GPRS service. In December 2005, EDGE technology became available in three regions of Belarus.[7]

On 30 March 2006, the company became the country's first carrier to start testing the third generation of wireless mobile telecommunications technology. The 3G network was rolled out in only 27 days. The commercial operation of the 3G network in Minsk and Gomel started on 17 March 2010.[8] In February 2016, the company became the country's first carrier to launch a 3G network in the 900 MHz band, and in May 2019, it further improved the capacity of its 3G network being the first operator to add a fourth RF carrier in the 2100 MHz band to its base stations.[9]

velcom logo in 2008—2019

In November 2007, the company became part of A1 Telekom Austria Group as a result of the acquisition of 70% (in November 2007) and then the remaining 30% (in October 2010) of shares. Starting in June 2019, A1 subscribers will be able to use the Internet at domestic prices in the networks of the A1 Telekom Austria Group operators.[10]

In May 2008, the company had a rebranding campaign, changing its logo and name to Unitary enterprise velcom.[11]

In May 2009, the carrier signed an exclusive agreement with LLC JV BelCel on the provision of CDMA2000 broadband Internet access services (EV-DO Rev.A). The services were provided up until 16 May 2013.[12]

In 2014, the official online store was unveiled, VOKA digital television was launched, and construction of the company's proprietary data center began.

By 2017, velcom had evolved into a major player in the Belarusian fixed-line communications market through the acquisition of a number of Internet providers. Also in 2017, the carrier became the world's first carrier to launch a commercial fully virtualized core network.

In 2017, the company was licensed to commercially launch Belarus's first Narrow Band Internet of Things (NB-IoT) network.[13] As of 2019, the technology is available in Minsk and all regional cities of Belarus.

Since April 2018, velcom subscribers have benefited from making Wi-Fi calls using the VoWiFi (Voiceover Wi-Fi or Wi-Fi Calling) technology.[14] In the summer of 2018, velcom in partnership with JSC Reshenie Bank and Visa international payment system launched the virtual V-BANKING (rebranded A1 Banking in August 2019) cash back card to pay for a broad range of services.

On 21 March 2019, A1 started to provide data services using 4G technology.[15] By the end of 2019, 4G network has become available to A1 subscribers in all major cities in the 1800 MHz band. In December 2019, the company announced about three-year strategic partnership with infrastructure operator beCloud aiming to develop 4G mobile communications standard in Belarus.[16] Starting from 2020, A1 will provide its infrastructure for base stations, as well as transport network based on hybrid communications lines, radio relays and fibre optic lines to make 4G network in the 800 MHz band available in rural areas.

On 8 April 2019, the company announced a rebranding campaign. It had been using the dual brand velcom | A1 in communications between April and August 2019. The single brand A1 is used since 12 August 2019.[17]

In April 2019, the company started providing free Wi-Fi Internet access in 18 electric trains of Belarusian Railway.[18] In June 2019, the operator launched 38 new base stations along the railway tracks to improve the quality of mobile communication service in trains.

From April to May 2019, the company made mobile communication service available in all the tunnels of the Maskoŭskaja and Aŭtazavodskaja lines of Minsk metro.[19][20]

On 12 August 2019, A1 introduced the first smartphone under its own brand named A1 Alpha. On the same day the company launched virtual eSIM cards and in the same November gave opportunity to transfer to online eSIM in the user account.[21]

On 12 November 2019, A1 took part in signing a joint Belarusian-Austrian Declaration on strengthening cooperation in the sphere of communications, IT technologies and 5G technology development.[22] A1 has applied for frequency allocation subject to the international standards of 5G and is currently developing the architecture of the 5G network.

In December 2019, А1 was the first in the country to implement the VoLTE (Voice over LTE) technology.[23]

On 25 May 2020, A1 was the first in CIS to make a 5G SA VoNR (Vo5G) call.[24]

Owners and management

Prior to January 2005, Cypriot SB Telecom controlled 69.9% of shares in velcom, CJSC Beltechexport and Republican Unitary Enterprise Beltelecom had 30% and 0.1%, respectively. In January 2005, the state bought into the company: it acquired a 30.9% stake, whereas SB Telecom had 49%, Beltechexport 20%, and Beltelecom 0.1%.

In August 2007, SB Telecom increased its shareholding to 100%, paying U.S. $556 million.[25]

At the beginning of October 2007, Austria's A1 Telekom Austria Group signed a purchase agreement to buy 70% in the carrier from SB Telecom,[26] and in October 2010, it bought the remaining stake of 30%.

Helmut Duhs is the CEO of A1 as of 2020.

Operations

Mobile communications

A1 provides GSM 900/1800, UMTS (WCDMA/HSDPA/HSUPA/HSPA+) and 4G services in Belarus.

Subscribers benefit from core services (voice communications, data transfer, SMS, MMS, voice mail, etc.), as well as additional services (roaming, business and entertainment services).

Subscriber numbers
  • +375 29 1 xx xx xx
  • +375 29 3 xx xx xx
  • +375 29 6 xx xx xx
  • +375 44 4 xx xx xx
  • +375 44 5 xx xx xx
  • +375 44 7 xx xx xx
  • +375 29 9 xx xx xx

Due to the introduction of the Mobile number portability (MNP) service in the Republic of Belarus, subscriber numbers can be as follows:

  • +375 25 xxx xx xx
  • +375 29 xxx xx xx
  • +375 33 xxx xx xx

Fixed-line communications

The company started building its own fiber-optic network for its corporate customers in September 2014.[27]

In 2016–2018, velcom completed a series of transactions to acquire Belarusian Internet service providers – Atlant Telecom (Minsk),[28] Aichyna Plus (Minsk),[29] Belinfonet (Minsk), Garant (Gomel[30] and Vitebsk[31]), Ranak Media (Svetlogorsk). Furthermore, Business Network (Delovaya Set) Internet provider transferred most of its private and some corporate subscribers to velcom (Minsk).[32]

Currently, A1 provides GPON, Ethernet and ADSL Internet access services in all regional centers of Belarus, as well as in Bobruisk, Dobrush, Rechitsa, Zhlobin, Novopolotsk and Svetlogorsk.

As of 31 March 2020, A1's fixed-line subscriber base was approximately 384,500 users.[1] Most of the operator's Internet access rates are package offers, i.e. they imply simultaneous subscription to digital television services under the VOKA brand.[33]

Video service VOKA

Video service from A1 is available under the VOKA brand. A1's fixed-line Internet users benefit from the IPTV service and enjoy more than 160 channels (including 47 HD channels).[34] VOKA is also available in the networks of other mobile and fixed-line operators with the use of the OTT technology and offers more than 140 television channels (including 39 HD channels). VOKA features diverse interactive functionality: pause, fast forward and reverse, archives of TV shows, as well as the function to continue watching on another device. Also available to all users are movies, cartoons and series provided by online streaming services MEGOGO, Amediateka, START, ivi, The Walt Disney Studios movies and cartoons. The service is accessible from Android and iOS mobile devices, Smart TV running on Tizen, WebOS, Android TV, on RedboxMini, Xiaomi Mi Box 3, Apple TV (via AirPlay) boxes. Desktop users can access the video service via the VOKA application for Windows or on the website.

In 2018, VOKA launched proprietary media content: "Our Football" and "Our Hockey" offering broadcasts of games with Belarusian clubs and national teams, live streaming of concerts, music festivals, conferences and forums, as well as cyber sports tournaments in the section "Cybersport". Also available for users is CINEVOKA – Movies in Belarusian, a collection of popular movies with professional voice overs in the Belarusian language.[35] Since June 2019, ideo service users can watch popular HBO TV-series in Belarusian: the first season of the Sex and the City TV-series, the Chernobyl mini-series and the final season of the Games of Thrones series.

In 2018, video service began to produce their own content. So, in the section VOKA SHOW you can find reviews, mini-reality and TV-shows created exclusively for the platform.

On 28 January 2019, the VOKA video service presented the country's largest Ultra-High-Definition (4K) content library[.[36]

VOKA CINEMA

In August 2017, the VOKA CINEMA multiplex (until 12 August 2019 was called velcom cinema) was unveiled in partnership with the Silver Screen cinema chain. The facility includes seven high-tech movie theaters.[37]

The Silver ART project for art house enthusiasts has been available at VOKA CINEMA since 2018.[38]

In August 2019, the VOKA CINEMA unveiled Eastern Europe's first 270-degree ScreenX cinema screen offering panoramic visual.[39]

In September 2019, VOKA and Silver Screen launched the joint project Tuteishyn Studio to translate movie premieres into the Belarusian language.[40] Zeroville and The Wedding Year were the first to be dubbed.

VOKA Smartfilm

Since 2010, A1 in conjunction with the Ministry of Culture of the Republic of Belarus has held the annual mobile film festival. In 2016, it became an international event.[41] Every year, the film festival sees the number of entrants and countries grow consistently. In 2019, a total of 334 short films from over 60 countries entered the competition.[42] On 5 February 2020, mobile film submissions opened for the ninth edition of the VOKA Smartfilm International Mobile Film Festival.[43]

Esports

In February 2020, the Belarusian Esports Federation Republican Public Association was established and registered with the assistance of A1.[44] The non-profit organization was created to promote esports in Belarus, develop and support professional players, coaches and referees, hold competitions and further international contacts.

Data centre and ICT services

In September 2017, the company launched one of the country's largest data centers in Minsk. With an area of 7,500 square meters, the center took more than 2 years to build and cost U.S. $20 million.[45]

The A1 data center's Tier III Uptime Institute (UI) Design and Facility certificate attests to its failsafe operation. The center's four modules are designed for 800 server racks and have an optical ring of their own – 43 kilometers of network with a capacity of 1 Tbit/sec. To date, the 1st 200-rack module has been put into operation.

Currently, the data center provides the following services: server and network equipment colocation, lease of virtual resources for IT infrastructure (VMware platform-based IaaS), data backup and recovery (Baas based on Veeam Backup and Restore products), lease of server and network equipment (HaaS), Veeam Cloud Connect-based cloud storage, Exoscale-based voblaka virtual infrastructure, as well as the use of Microsoft software products on a subscription basis and extended technical support and maintenance of Oracle databases.

In March 2019, security services were added to the range of functionality available to users. The A1 data center was certified by the Operational and Analytical Center under the President of the Republic of Belarus and launched the Cloud-62 service designed for legal entities working with confidential information with a high protection status.[46]

In August 2019, the A1 data center successfully confirmed the compliance certificate with the international standard ISO 27001.[47]

Solar power plant

In the summer of 2016, velcom launched a solar power plant comprising 85,000 solar panels.[48] near Bragin (Gomel Region). The plant was built in the area that was affected by the Chernobyl disaster and is therefore unfit for agriculture. To connect all of the solar modules, velcom laid about 800 km of cable lines.

In October 2017, velcom launched the first solar-powered base communications station in Belarus in the Luban District of the Minsk Region.[49]

Statistics

As of 31 March 2020, the company had more than 4.872 million mobile subscribers. Some 384,500 users were subscribed to fixed-line Internet and TV services. The company's share in the country's mobile communications market stood at 42%.[1]

2G is available on 97.7% of the territory of the country with 99.9% of the population (100% of urban residents). 3G is available on 97.1% of the country's territory. As of June 2010, the company operated 3,301 base stations and 28,754 transmitter receivers in 1,360 settlements across the country,[50] as well as eight switches: three in Minsk and one in each regional center.

The company's subscribers benefit from international roaming services in 191 countries of the world in 382 carriers' networks.[51] Unitary Enterprise A1 has a proprietary network of sales centers consisting of 90 offices in 32 cities of Belarus.[52] The dealer network includes more than 500 mobile shops throughout the country.

Year 2007 2008 2009 2010 2011 2012 2013
Wireless Subscribers, mln (Mobile Market Share) 3,059 (43,4%[1]) 3,698 (44,8%[1]) 4,102 (42,7%[1]) 4,354 (41,9%[1]) 4,620 (41,1%[1]) 4,800 (43,5%[1]) 4,947 (42,5%[1])
Mobile Penetration 71,5% 85,1% 99,4% 109,6% 118,8% 116,6% 123,0%
Year 2014 2015 2016 2017 2018 2019
Wireless Subscribers, mln (Mobile Market Share) 4,950 (42,4%[1]) 4,956 (42,5%[1]) 4,945 (43,2%[1]) 4,864 (42,5%[1]) 4,873 (42%[1]) 4,890 (41,8%[1])
Mobile Penetration 123,3% 123,0% 120,3% 120,5% 122,4% 123,8 %
Fixed Access Lines, mln – – 0,179 0,306 0,452 0,389

The company's revenue (according to international financial statements) for the first quarter of 2020 reached EUR 109.6 million, EBITDA was at EUR 47.5 million.

In 2019, the company's revenue amounted to BYN 997 million, EBITDA – BYN 446.8 million.[1]

YearRevenues, € mlnEBITDA, € mlnEBITDA MarginOperating Income, € mlnCapex
2011 260,9 106,6 40,9% −255,2 44,9
2012 301,2 124,4 41,3% 29,5 43,7
2013 331,7 155,9 47,0% 71,6 34,0
2014 355,0 172,4 48,6% 82,2 48,5
2015 332,2 163,7 49,3% 86,6 66,1
2016 321,0 151,5 47,2% 87,8 73,7
2017 390,5 181,3 46,4% 123,1 47,1
2018 389,3 163,8 42,1% 87,6 49,7
2019 426,1 190,9 44,8 % 100,7 105,1

Corporate social responsibility

The list of A1 priorities as a socially responsible business includes assistance to children, support for national self-identification and the environment.[53]

Helping children

The #velcombegom charity project is one of the company's biggest social initiatives: every year since 2015, two or three campaigns have been held.[54] The mission is to help children's health care institutions, promote healthy lifestyles, and popularize running. The beneficiaries of the campaign included national medical rehabilitation centers for children, a boarding school for disabled children with special needs, and other medical institutions for children. Throughout the project, more than BYN 700,000 in financial support has been transferred to beneficiaries. In 2018, the #velcombegom Running Cities campaign won the best healthy lifestyle nomination of the Eventiada IPRA Golden World Awards 2018.[55]

A1 has supported people with autism since 2015. In 2016, the "i" Family Inclusive Theatre was established at the Pushkaryova Studio as a joint initiative of Children. Autism. Parents international charity and velcom | A1. The carrier provides financial and informational support for the project as its general partner. Since 2016, velcom | A1 has been involved in the annual international campaign Light It Up Blue held on 2 April to support people with autism.[56]

The I see! project has been implemented by company since 2016 till 2020 in cooperation with the Belarusian Children's Fund with the support of the Ministry of Health of the Republic of Belarus. The objective of the project is to assist in the timely diagnosis and detection of early visual impairments in school-age children residing in rural areas. Over the past four years, 35 ophthalmologists visited 693 schools in the Mogilev, Gomel, Brest and Vitebsk regions and tested 51,474 schoolchildren.[57] When the project was close to its conclusion, the "I See!” graphic novel was prepared and published with the participation of the Modern Comics creative association.[58]

In September 2019, А1 became a general sponsor of Junior football school. The sponsorship involves several directions for development of children and youth sport, including creation of the A1 Junior brand and purchase of the new equipment for the club’s players.[59]

Support for the Belarusian language and culture

A1 supports initiatives encouraging the interest in the Belarusian national heritage, traditions, history, culture and art.

In 2016–2019, the company conducted a joint project with Kinakong, entitled Belarusian Weekends. During that period, lots of movies were translated and dubbed into Belarusian, including The Chronicles of Narnia: The Lion, the Witch and the Wardrobe, The Little Prince, Forrest Gump, The Storm, The Book of Eli, The Secret Life of Walter Mitty, Gake no ue no Ponyo, Kaze tachinu, Dikkertje Dap, Chariots of Fire, Fantastic Mr. Fox, Die Hard, Home Alone, Terminator-2, and Hachi. More than 50,000 viewers have enjoyed these movies in Belarusian in more than 60 movie theaters of the country.[60]

In 2018, velcom launched the velcom YOUTH social and outreach project for high school students who want to make a difference in this world. The project was launched in partnership with the Ministry of Education of the Republic of Belarus and the organizers of the TEDx Minsk conferences. The first season featured over 800 contestants[61] from 230 secondary schools across the country. All of the velcom YOUTH communications (from the application to the presentation of the project in the finals) are in the Belarusian language. The final of the project was held on 18 May 2019 as TEDxYouth@Minsk.

In October 2019, Pershiya project was initiated by А1 with support of conference organisers "TEDxMinsk".[62] More than 1,000 school students from all over Belarus took part in educational workshops. More than 100 of them sent their video presentations to enter the contest. The panel of judges selected 10 finalists who will publicly present their socially significant ideas at the TEDxYouth@Minsk conference.[63]

In 2019, A1 became the general partner of the 100th season of the Yanka Kupala National Academic Theatre.[64] The partnership helped organize a free live broadcast of the theatre’s iconic performances via the VOKA video service, including "Radio Prudok", "Two Souls", "Elsa’s Land", "The People of the Marsh", "Night", "Love as Militarism", "Shabany", "Paulinka", "School of Taxpayers", "Weltmeister Accordion" and "Harvest".[65]

In October 2019, A1 together with the Belarusian-Jewish Cultural Heritage Center and the Museum of the History of the Vitebsk People’s Art College launched the project #UNOVIS100[66] in honor of the 100th anniversary of the UNOVIS art association. On 15 February 2020, the National Art Museum of Belarus opened Belarus’s first ever exhibition of the suprematist artist Lazar Khidekel "We Will Be Understood in 100 Years".[67]

On 21 February, A1 presented a new project envisaging the installation of interactive sculptures forming the word MOVA (LANGUAGE) in Minsk and major cities across the country in spring 2020.[68]

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