ArmInfo.Viva Armenia" CJSC has announced the signing of an agreement to acquire the shares of "GNC-ALFA" CJSC, operating under the Ovio brand. This was announced on the telecom operator's official website.
The announcement notes The transaction represents a strategic step in Viva's development and is aimed at establishing a fully converged platform that will integrate mobile communications, fixed Internet, television, telecommunication transport infrastructure, and digital services into a single ecosystem.
Viva's key strategic advantage lies in digital convergence — a model in which mobile, fixed, content, cloud, and other digital services are integrated into comprehensive customer solutions.
The addition of a fully-fledged fixed-line segment to Viva's portfolio will enable the Company not only to strengthen its infrastructure foundation but also to reach a new level of product leadership by achieving maximum diversification of its product portfolio.
The integration of Ovio will expand Viva's capabilities in the fixed services segment, strengthen the Company's fiber-optic, cable, and radio relay infrastructure, and provide the foundation for building a more powerful, resilient, and efficient nationwide telecommunications transport network. The integration of the companies' assets will enable Viva to launch converged products more rapidly, develop more attractive bundled offers, and expand new digital business opportunities for residential, corporate, and public sector customers.
Of high importance is the modern certified data center, which will strengthen Viva's infrastructure capabilities in cloud services, data storage, and data processing. Having its own data center will provide the company with an additional foundation for developing next-generation services, including solutions powered by artificial intelligence and other advanced digital technologies.
"The acquisition of Ovio is of long-term strategic importance to Viva and is fully aligned with the company's course toward digital transformation, business diversification, and strengthening its technology leadership. Our strategic advantage lies in digital convergence. We are consistently building an ecosystem in which mobile communications, fixed internet, television, cloud, content, and other digital services operate as a seamless whole. Establishing and developing our own fixed network infrastructure will enable Viva to significantly strengthen not only its infrastructure capabilities but also its product leadership by ensuring maximum diversification of its product portfolio and delivering a new level of customer experience," said Armen Avetisian, General Director of Viva.
The integration of Viva's and Ovio's network infrastructure will increase network capacity, improve data transmission speeds, and enhance the quality and reliability of communications. Unified network management will enable faster service provisioning for residential and business customers, more efficient development of base station infrastructure, and accelerated deployment of next-generation communications technologies.
The transaction is also of strategic importance for Armenia's telecommunications resilience. Expanding and diversifying international Internet traffic routes will strengthen the country's connectivity with the global digital infrastructure and improve the reliability and resilience of communications, including during periods of increased network load and emergency situations. Ovio subscribers will continue to receive services under their existing terms and conditions. Viva will ensure uninterrupted service delivery, maintain the quality of communications, and continue enhancing the customer experience within the integrated infrastructure.
Viva (Viva Armenia CJSC) (initially known as VivaCell) received its operating license in 2004. It commenced operations in 2005. In September 2007, after selling 80% of its shares, the company became a subsidiary of one of the largest telecommunications companies in the CIS, the Russian company Mobile TeleSystems (MTS). As a result of co-branding in 2008, the company's logo was changed. VivaCell became VivaCell-MTS. During this year, the company also managed to gain a significant market share, exceeding 78%. In 2009, Viva launched a 3G network and by 2010 provided 3G coverage throughout Armenia. In 2009, the company launched a 4G network with speeds of 150 Mbps. Currently, the 4G network is available to approximately 99.4% of the Armenian population. On April 6, 2023, Viva announced the launch of a 5G network in the center of Yerevan, followed by Gyumri. In August 2019, MTS PJSC acquired the remaining 20% of Viva shares. It has four network codes - 93, 94, 77, and 98. The company is the largest taxpayer in the telecommunications sector and is among the largest taxpayers in Armenia. The number of Viva subscribers in Armenia has exceeded 2 million. Back in January 2024, Viva- MTS announced a change of ownership and left the Russian MTS Group. Fedilco Group Limited, a company owned by European and Asian investors, became the new shareholder of MTS Armenia CJSC. Fedilco Group Limited is a company registered in Cyprus, whose ultimate beneficiaries are Zhe Zhang and Konstantin Sokolov. Considering the strategic importance of MTS Armenia CJSC for Armenia, Fedilco Group Limited donated 20% of MTS Armenia shares to the Republic of Armenia. On March 25, 2024, the name of MTS Armenia was changed to Viva Armenia CJSC.
It's also worth noting that GNC-ALFA (formerly Rostelecom Armenia) entered the Armenian telecommunications market in 2009, building over 3,000 km of backbone network and becoming a major player in the wholesale internet market, significantly reducing the market price of wholesale internet in the country. Since 2012, the company has implemented "Fiber Optic in Every Apartment" technology in Yerevan and the regions of Armenia, thereby ensuring digital equality and promoting healthy competition in the internet and digital television services market. By 2024, the company had invested over 37 billion drams in Armenia and paid 14 billion drams in taxes.
Under its new brand, the company has expanded beyond being a traditional telecom operator, transforming and providing a range of digital and cloud services. In May 2024, OVIO opened the largest and most powerful data processing center in Armenia in Abovyan (Kotayk Region). The deal's value stems from the fact that, unlike other operators like TEAM and UCOM, Viva didn't have its own internet television service. Now, with the acquisition, Viva will level its competitive market position with two other major players in the telecommunications market. The deal price has not been disclosed.
