In the past year Gars Telecom’s business faced with cardinal transformations.
“New time” required to change the strategy on the telecommunications market for the corporate clients. The result was the double increase of real estate properties number and a radical client base renewal.
Commercial Director of Gars Telecom Evgeniy Pickersgill says, the global macroeconomic cataclysms, happened in the end of 2008, have led to the significant alteration of the client landscape. Taking into consideration that the clients pool is represented by all industries, its erosion practically reflected the nation’s economy: 3% of the companies were closed, 88% reduced the stuff, 95% reviewed the terms of the collaboration, 36% — changed the telecommunications supplier.
According to Pavel Gorenkov, CEO of Gars Telecom, the key factor of the corporate communications market in the past year were mass clients’ moves, that started in the Q3 2008. Then, in order to overcome the trend of the telecom-services revenue decrease in the office centers of premium class, Gars Telecom has made a decision to change the strategy of behavior on the market.
The new strategy takes advantage of the clients’ migration and is oriented to the fast growth of a number of business centers, where service is provided, — the Director for corporate communications Michael Sergeev reports. — The instruments of a new policy were the renovated schedule of charges (“premium” quality for affordable prices), the personnel increase (+91%), last miles to the business centers organization (+96%, up to 187 estate properties). The structural reforms of the rival companies also played in favor of Gars Telecom.
The first conclusions about the efficiency of the new strategy could be made upon the 2009 year results. During the reference period the company has lost 26% of SMB sector clients with ARPU up to $2000 and 3% of the clients with ARPU $5000+. At the same time, the company has got 41% of the new clients, which allowed it to keep the revenues.
By the 2009 year results Gars Telecom total revenue was 532462 thousand roubles (VAT not included) in comparison with 528178 thousand rubles the year before. The structure of the revenues of the group of companies remained the same. 64,28% of revenue were brought by the Internet access service and voice communications (342253 thousand roubles against 347022 thousand roubles a year before). Range of the smart capacity services (telecom-outsourcing, telecom-consulting, communications audition, and the integration projects as well) brought 190209 thousand roubles against 181165 thousand roubles a year before.
In Gars Telecom they plan to continue the development of presence on the market and to cover 85% of the total amount of the commercial properties in Moscow and 30% in Saint-Petersburg in the nearest 2-3 years, that will allow to restore the carrier’s business pre-crisis expansion rates.
Gars Telecom profile: telecommunication management, integration projects realization and telecommunication services rendering. Company is oriented to cooperate with big-sized corporate clients and telecom-carriers. Along with tradition telecom-services company renders services in telecom-consulting, outsourcing of the communication services and telecom-infrastructure, and also telecom-budget management.
Since 2003 Gars Telecom has been working as a Virtual Mobile Network Operator for corporate sector. The host providers are Megafon, SkyLink.
Company exclusively realizes in Russia specialized telecom-solutions for commercial real estate market that fit international BLEC standard (Building Local Exchange Carrier), and develop telecom-consulting practice in Russian development market.
By the end of 2009 the total amount of the serviced area has overpassed 4’200’000 square meters.