First Pan-Regional 3G Network in Russia to Initially Cover Four Cities
MOSCOW, May 28 /PRNewswire-FirstCall/ -- Mobile TeleSystems OJSC (NYSE:
MBT), the largest mobile phone operator in Russia and the CIS, announced
the commercial launch of its 3G network in Saint Petersburg and technical
readiness of 3G networks for commercial launch in Sochi, Yekaterinburg and
Kazan.
Saint Petersburg becomes the first Russian city where MTS launched its
next-generation network. The Company plans to launch additional 3G networks
in over 10 cities during 2008 and in up to 40 cities in Russia through
2009. MTS also holds 3G licenses in Uzbekistan and Armenia, where the
network will be launched as early as 2009. The Company plans to invest
around 38 billion roubles(1) in 3G network development over the next three
years to provide high-speed data transfer services to its customers in
Russia and the CIS.
The key benefit of a next-generation network is the ability to provide
customers with faster data download speeds with top download capacity using
HSPA technology up to 3.6 Mbit/s. This is over ten times faster than the
currently available 2G EDGE technology. Higher speeds enable faster
download of mobile content and higher quality email services, particularly
for work with large attachments. 3G brings true mobile broadband to
subscribers of MTS Connect, a proprietary mobile Internet solution from MTS
that comes as a modem for desktop PCs or laptops.
MTS also launched a number of innovative services available only
through the 3G infrastructure. Customers on the new network are now able to
make video calls, access mobile TV and roam on 3G networks. In addition,
international roamers are able to access fast speeds and advanced services
on MTS' 3G networks.
"With the launch of 3G networks in major regions of Russia, MTS is
starting a new phase in the development of telecommunications in the CIS.
We are keen to offer 3G services to our customers, as we see great demand
for data and broadband solutions in Russia," noted Mr. Mikhail Shamolin,
CEO of MTS Russia.
Mr. Shamolin continued: "We believe that conditions for the 3G launch
in Russia are more favorable than in the developed markets. Today's
HSPA-enabled infrastructure allows download speeds up to 10 times faster
than the first phase of 3G networks, while the costs for equipment and
devices are significantly cheaper. We have access to best-practice
implementation from around the world and our 3G network benefits from
higher-quality and more advanced mobile services and devices."
Development of the 3G network is a cornerstone of MTS' strategy to
provide mobile broadband in the CIS. As the CIS markets demonstrate
relatively low levels of fixed-line penetration and historic
underinvestment in infrastructure, MTS views its networks as an ideal
vehicle to meet the growing broadband Internet needs of its subscribers
through attractive data products and services. MTS possesses 3G licenses in
Russia, Uzbekistan and Armenia, as well as operating a CDMA-450 network in
Ukraine to provide high-speed data access for its clients.
Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in
Russia and the CIS. Together with its subsidiaries, the Company services
over 85.68 million subscribers. The regions of Russia, as well as Armenia,
Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its
associates and subsidiaries are licensed to provide GSM services, have a
total population of more than 230 million. Since June 2000, MTS' Level 3
ADRs have been listed on the New York Stock Exchange (ticker symbol MBT).
Additional information about MTS can be found on MTS' website at
http://www1.mtsgsm.com.
Some of the information in this press release may contain projections
or other forward-looking statements regarding future events or the future
financial performance of MTS, as defined in the safe harbor provisions of
the U.S. Private Securities Litigation Reform Act of 1995. You can identify
forward looking statements by terms such as "expect," "believe,"
"anticipate," "estimate," "intend," "will," "could," "may" or "might," and
the negative of such terms or other similar expressions. We wish to caution
you that these statements are only predictions and that actual events or
results may differ materially. We do not intend to update these statements
to reflect events and circumstances occurring after the date hereof or to
reflect the occurrence of unanticipated events. We refer you to the
documents MTS files from time to time with the U.S. Securities and Exchange
Commission, specifically the Company's most recent Form 20-F. These
documents contain and identify important factors, including those contained
in the section captioned "Risk Factors" that could cause the actual results
to differ materially from those contained in our projections or
forward-looking statements, including, among others, potential fluctuations
in quarterly results, our competitive environment, dependence on new
service development and tariff structures, rapid technological and market
change, acquisition strategy, risks associated with telecommunications
infrastructure, risks associated with operating in Russia and the CIS,
volatility of stock price, financial risk management and future growth
subject to risks.
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(1) Approximately $1.6 billion according to the official exchange rate
on May 28, 2008.
For further information, please contact:
Mobile TeleSystems, Moscow Investor Relations
Tel: +7-495-223-2025
E-mail: ir@mts.ru
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SOURCE Mobile TeleSystems OJSC
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CONTACT:
For further information, please contact:
Mobile TeleSystems, Moscow Investor Relations, Tel:
+7-495-223-2025, E-mail: ir@mts.ru
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