The FINANCIAL — Geocell, one of the major telecommunications companies representing a wireless market share of 46.8% in Georgia has recently finished a rebranding process. The company changed its corporate colours and logo. The slogan “My Network Geocell” has stayed the same. The company said that its service tariffs were not included in the list of changes.
In order to gain international brand awareness, Geocell, Turkcell and Azercell, all of the companies owned by Scandinavian TeliaSonera will have identical brand colours.
As one of the employees of Geocell has said to The FINANCIAL the final decision on the new logo and corporate colours was made by TeliaSonera.
A couple of months ago Scandinavian TeliaSonera bought up the remaining 2.5% of Georgian cell company Geocell for USD 7,000,000, to give its subsidiary Fintur Holdings 100% control of the company.
TeliaSonera is a leading telecommunications company serving more than 135 million customers in 20 countries ranging from the Nordic region to the Baltic countries including Sweden, Finland, Norway, Denmark as well as Turkey and Russia.
TeliaSonera and Turkey’s Turkcell (37% owned by TeliaSonera) both have indirect interests in Geocell via Fintur Holdings (74% owned by TeliaSonera, 26% by Turkcell). In January 2008 Fintur purchased an additional 14.3% of Geocell for USD 33,000,000, taking ownership to 97.5%. On 30 January 2009 TeliaSonera signed an agreement with the Government allowing the Stockholm-based group to purchase the remaining 2.5% share.
Telecommunications companies often decide to rebrand as they have to see themselves as providing a creative platform that allows for self-actualization.
The major competitor of Geocell in Georgia is Magti, which rebranded two years ago.
Geocell chose purple as its new corporate colour. The new logo of Geocell may remind you of a purple stone with carvings on it.
Purple is thought of as the colour of royalty. It also stimulates imagination and creativity and is favoured by many nations. Deep purple is meant to convey ambition and a modern approach to business. With its blend of passionate red and tranquil blue, it evokes mystery, sophistication, spirituality, and royalty (especially in European markets).
Geocell entered Georgia in September of 1996. Its first mobile call was made on March 15, 1997.
The company has already made the investment of USD 316,000,000. As for future plans, this figure will reach USD 552,000,000 in 5 years time. The Geocell finance system operates under SAP and SOX international standards.
Geocell, being a partner company of TeliaSonera, intends to advertise the quality of its services. To be customer oriented and to keep improving service quality is an inseparable part of the company’s strategy. Having the opportunity of sharing the valuable experience of strong partners in this field is very important.
Teliasonera started negotiations with the local partners of Geocell in 2007 and purchased 14.8% at the beginning of 2008. It subsequently conducted negotiations with the Georgian Government about purchasing its 2.5% stake, which was agreed on January 30. The takeover was worth USD 7 million.
TeliaSonera is co-owner of MegaFon, Russia’s third-largest mobile phone operator after MTS and Vimpelcom. Two months ago Georgia threatened to keep increasing the heavy fine it had imposed on Russian mobile operator MegaFon for allegedly operating without a licence in the breakaway region of South Ossetia.
In June, GNCC said MegaFon illegally operated in South Ossetia and ordered it to pay a USD 3,500 fine within 30 days – but it has since increased the figure dramatically.
MegaFon did not pay the original penalty and denied it operated on Georgian territory. It said it could not stop people accessing its services from base stations in nearby Russian regions.
In the previous week Geocell organized a corporate presentation party for its employees. The employees have been wearing purple colour accessories and clothes for more than a month. Regardless of the fact that Geocell tried to keep the rebranding process in secret till its presentation on 19 May, The FINANCIAL managed to uncover the details of this “top secret” surprise ahead of time.
If you look at the tendency of choosing corporate colours globally you’ll obviously come across purple. In Georgia it has been used by such companies as Progress Bank and online business network Mycareer.ge.
Written By Levan Lomtadze and Madona Gasanova
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