VimpelCom mulling split of fixed and mobile activities

Russian service provider VimpelCom is considering splitting its fixed and mobile businesses, according to local reports.

Sources close to the company told Vedomosti that VimpelCom was looking at a split because the yields from the fixed and mobile arms were different, with the former characterised by low margins and intense competition. The only significant value-added service for the fixed business is IPTV, while mobile customers pay for a range of services.

The source said that the next step following a split could be a move to sell the fixed line business. However, the source said that no decision had been taken on this.