Russia's Holding for the iPhone

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Apple has most often struck a deal with only one operator in each country, although it's not clear that it will follow that strategy in all markets. An Apple spokesman declined to comment on its plans for Russia.

Izosimov is relieved that Apple has modified its original approach to the mobile-phone market. When the Silicon Valley company first cut deals to sell its phone in Europe—to France's Orange (FTE) and Germany's T-Mobile (DT)—Apple insisted on taking a cut of the service revenues that the carriers collected. Now Apple is moving away from that strategy and collecting money primarily by selling the phones themselves. Izosimov calls that approach "a much more natural model, where the money is up-front for them."

Selling sophisticated mobile phones like the iPhone is important not just because consumers want them, but also because they use them differently from traditional phones. Izosimov says that when people get phones with advanced capabilities—such as the ability to surf the Net or check e-mail—their data usage grows by four times. "So, clearly the right device can trigger behavior," he says. "The next frontier is not voice, but data." More data usage on mobile phones means more revenue for wireless operators like VimpelCom.

First-Mover Advantage in Russia

The company is taking big steps to become a bigger player in Internet services more broadly. Last year, VimpelCom paid $4.3 billion for Golden Telecom, which sells broadband Net access. VimpelCom plans to use Golden's technical expertise and its own marketing prowess to greatly expand its broadband offerings. "The broadband story is the story in Russia," says Izosimov.

There is plenty of opportunity. UralSib analyst Belov estimates broadband penetration is 50% in Moscow and 4% to 6% in the rest of the country. "VimpelCom has a nationwide presence, a strong brand, strong sales, so it's natural to try to catch this growth opportunity," says Belov, though he cautions that Golden was a pricey acquisition for VimpelCom. Izosimov says the company's first-mover advantage in this realm will be strategically important. His company is focusing on installing fiber in urban high-rises in Russia, where highly active consumers reside.

Near the end of his interview, Izosimov reflected on what he believes are serious long-term challenges in the fast-changing wireless market. Apple, Google (GOOG), and Microsoft (MSFT) are all making aggressive moves in the mobile-phone business, as they see more people using their phones to tap into the Internet. Ultimately, he thinks the mobile Internet will become more like the mainstream Net, with tech companies playing a central role in the business. "We need to search for completely different business models. The only value we have is our subscribers and our depth of knowledge and our ability to transact," he says. But that is years away. "Before the day after tomorrow, you have tomorrow, which is where we are now," he says.

With Jason Bush in Moscow.

Yarow is an intern at BusinessWeek.