Moscow, Russian Federation — 23 October 2001 — Mobile TeleSystems OJSC (NYSE: MBT), Russia’s largest GSM 900/1800 mobile operator, today announced the launch of its operations in Kirov. This brings the number of Russian regions in which the MTS network now operates to a total of 26.
In the Kirov region MTS will provide services through “Rosiko” CJSC, MTS’ 100%-owned affiliate that has the license for providing GSM 900/1800 mobile communications services.
Commenting on the event, Mikhail Smirnov, President of Mobile TeleSystems OJSC, said: “The launch of MTS operations in Kirov represents the 26th Russian region in which the MTS pan-Russian network operates. The Kirov launch is unique in the sense that it unites three other regions in which MTS already operates. The Kirov region borders upon the Kostroma and Nizhny Novgorod regions as well as Republic of Udmurtia.
The advantage of uniting regions in which MTS already operates is that it provides our subscribers with the opportunity to travel over Russia’s regions while staying within their network. In commencing operations in Kirov, MTS is moving closer to the policy of developing a pan-Russian network, not only in terms of the tariff policy but also in terms of uniting territories.”
In Kirov, MTS has installed an integrated GSM 900/1800 network using equipment by Lucent Technologies to execute its operations. The initial capacity of the switch center is up to 30,000 subscribers. During the first stage of MTS’s presence in Kirov, 15 base stations have been installed in the region.
The next stage of MTS’ network development in the Kirov region will see a further enhancement of radio subsystems. By the end of 2001, it is anticipated that 19 base stations will operate, ensuring the full coverage in Kirov, in Kirovo-Chepetsk and along the Kirov-Syktyvkar highway.
Under the agreement with the local fixed line operator in Kirov, 3,000 numbering capacity has been allocated to the company’s subscribers who choose to have a direct local number. Therefore users both with federal (pre-fix 902) and direct local numbers can subscribe to the MTS network in Kirov.
MTS offers its subscribers four tariff plans: “Youth”, “Saver”, “Active” with federal numbers and “Business” with direct local numbers. The clear tariff segmentation allows different social groups to choose the tariff plans that suit their budget and needs.
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For further information contact:
Press Secretary
Eva Prokofieva
tel: +7 (095) 104-49-38
e-mail: eva@mts.ru
Investor Relations department
tel: +7 (095) 766-01-03
Fax: +7 (095) 766-01-00
e-mail: ir@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 MTS, 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 statements to conform them to actual results. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, including our most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” in our Form 20-F, 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 46 regions of the Russian Federation, covering 86 million people or 56% of the country’s population. MTS network has operations in 26 regions, which cover more than 55,6 million people or 38% of the population of the Russian Federation.
Additional information about MTS can be found on MTS’s website at https://www.mtsgsm.com.
Notes to Editors
Information on the Kirov region
The Kirov region is one of the largest regions in the Nonchernozem area of the Russian Federation. It is located in the north-east of the European part of Russia. The population of the region is 1,600,000 people, 70% of which are urban inhabitants. Kirov is the regional center with the population of 501,000. The distance from Moscow is 896 km.
The region's railroads link the Russia' center with the North, the Urals, Siberia and the Far East. The length of railroads is 1600 km. The Kirov region's infrastructure integrates the “Vyatka” federal highway, another federal highway to cross the region — St. Petersburg — Ekaterinburg — is under construction.
The Kirov region has a developed industrial infrastructure where machinery construction, metallurgy, food production and light industry, forestry, woodworking and cellulose-paper processing industry have the highest weighting in the general production volume. The local GDP in 1998 was 15,3 billion roubles. Over 25% of the local GDP was produced by the industry, the one-fifth — by the agriculture, over 40 % — in the sphere of market and nonmarket services. |
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