Moscow, Russia, September 11, 2000 — Mobile TeleSystems OJSC (NYSE: MBT), Russia’s leading provider of GSM-900/1800 based mobile cellular communications services, today announced the launch of new tariffs: “Business” and “Economy”. Their main feature is the unprecedented low airtime charge during the day time, which makes these tariffs very attractive to business professionals, specialists and entrepreneurs, as well as to individuals who talk mostly during the day. At day time new tariffs are substantially lower even than MTS’s tariffs “Favourite” and “Youth”, which today are the hit of sales on Moscow cellular market.
“Today these tariffs are beyond comparison, since not a single tariff, including corporate proposals from other operators, can match them, — said Igor Timofeev, MTS Marketing Director. — The launch of new tariffs adds flexibility to the company’s pricing policy: our subscribers can choose a tariff that would be best adjusted to their needs”.
The “Business” tariff is designed for subscribers who use direct Moscow phone numbers. The main feature of this tariff is the lowest day-time air charge among tariffs with direct numbers offered by all Moscow operators. It is only 25 cents per minute. First of all this plan meets the needs of representatives of large and medium business, top managers who hold lots of business conversations over mobile phones. The tariff should be very attractive to individuals who do not limit themselves on air time usage. At the same time MTS subscribers will not face a necessity to make large monthly payments for the time they did not use, like it happens with some tariffs by other operators on the market. The monthly payment of 16* dollars includes practically all the necessary services: international access, call diverts, call wait, phone number identification, voice mail box, the ability to send and receive SMS messages.
The “Economy” tariff with federal phone numbers (code 902) is designed not only for small and medium business representatives, medium and low level managers, but also for individuals whose main concern is to ensure savings on their expenses for day-time calls. The monthly payment in this tariff is only 5* dollars, the airtime charge is 18* cents round the clock, which is the lowest price for a minute of air time on Moscow cellular market.
Neither “Business”, nor “Economy” tariff — just like other MTS’s tariffs — includes payment for call delivery. The company does not include in any of its tariffs any deposits that would freeze the subscriber’s money. At the same time both new tariffs offer all available services, including automatic international and national roaming, SMS and WAP services. Pricing per second after the first minute and free-of-charge incoming calls from MTS subscribers are also available. Due to the preferential tariff zone “Oblast” MTS’s subscribers in Moscow, Vladimir, Tula, Ryazan, Raluga or Pskov regions pay for the airtime with Moscow tariffs.
The launch of new tariffs provides potential subscribers with another “pro” argument in favour of MTS — in addition to such advantages as the coverage of the Company’s network, modern digital standard, automatic roaming. No other Russian GSM operator can match MTS’s territory of coverage. As of this day MTS has completed building networks in the Amursk region and the Republic of Udmurtiya, with operations to commence soon. The Company is also starting the construction of networks in the Ivanovo, Nizhni Novgorod and Vyatka regions. Thus, the Company’s plans include the expansion of its operations from the present 19 operational regions to 24 in the near future. Reduced prices of the within-network roaming substantially decrease the cost of communications with MTS subscribers who may be hundreds of kilometres away from Moscow. The number of base stations installed in the Company’s network has exceeded 900.
Besides, MTS is the only operator in Moscow developing mobile cellular communications in the subway system. Today MTS’s subscribers and make and receive calls at 13 metro stations. Due to the expansion of MTS’s roaming services, its subscribers can now roam in more than 300 towns in Russia and 83 countries world-wide.
One of the main concerns of the Company is the improvement of its service quality. In 2000 two new offices have been already opened. The subscribers’ facilities are complexes that include a sales office, payments and financial department and service department. Thus, in one place a subscriber can get all necessary services on the spot.
Commenting on the new marketing initiative of the Company, Igor Timofeev said: “MTS continuously follows its strategy to decrease the cost of a minute of air time. The foundation for this has been provided by the substantial growth of the customer base in 2000 along with the decrease of our own costs. Recently we reduced the price for mobile phones in MTS sales offices. Together with that, the current initiative makes MTS’s proposal the most competitive on the market. In future MTS is planning to continue making the emphasis not only on the one-off activation savings, but also on the real monthly savings for our subscribers”.
Prices given in USD under the Central Bank of the Russian Federation rates on the payment day (excluding taxes).
For further information contact:
MTS Press Secretary Eva Prokofieva tel.: +7 (095) 104-49-38 e-mail: eva@mts.ru |
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 the Company, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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 statement to conform them to actual results. We refer you to the documents the Company files from time to time with the U.S. Securities and Exchange Commission, specifically, the Company’s most recent Form F-1. 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, volatility of stock price, financial risk management, and future growth subject to risks.
Mobile TeleSystems OJSC (NYSE: MBT) is Russia’s leading GSM 900/1800 mobile cellular operator. MTS has GSM 900/1800 licenses to provide mobile cellular telephony services in 34 regions of the Russian Federation, covering 45% of the country’s population. It has commenced operations in 19 regions covering 39 million people. |
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