Commenting on the introduction of the new system, which will be introduced across the entire MTS network, Igor Timofeev, MTS Marketing Director, said: “The launch of the Unified Payment System today represents yet another big step in the expansion of MTS’ pan-Russian network. We already operate in 24 regions, and are currently building and planning to build a further 16 networks in Russian regions under our present license coverage. The company’s goal is to provide a high standard of customer services to all MTS customers irrespective in what region of Russia they have their basic service contract. In the near future, when travelling across the country, the Unified Payment System will enable our customers to use this most simplified way- to top-up their account irrespective of where they initially subscribed to the MTS network.”

To support the Unified Payment System (UPS), MTS has installed its own unique and unified clearing centre. This centre stores all data relating to phone number distribution between regional segments of the MTS network, it performs automatic identification of subscribers, and also supports the remote interaction between customer care services (including ASSA services) and billing systems of all regional networks integrated into the total MTS network. The Unified Payment System meets the highest reliability standards in terms of guaranteed and fast delivery and registration.

UPS services are currently available to MTS subscribers who live in Moscow and in the Moscow, Kaluga, Ryazan, Vladimir, Tula, Pskov, Tver and Smolensk regions. By the end of 2001, the large majority of all regions within the MTS network, including St.Petersburg, will be connected to the Unified Payment System. In the future, MTS will extend the system by adding new regions and offering additional methods of payment.

A Federal Express Payment card has been introduced as the first stage of the Unified Payment System operation.

The abbreviated number “0850” has been allocated for card activation. It is a unique number common for all regions of MTS network. To activate the card a subscriber will need to dial “0850”, which will be a free number in any place within MTS network coverage areas. When the value of the card is credited to his (her) account, the subscriber will receive a SMS-message from the system confirming the balance replenishment.

MTS subscribers will be able to purchase Federal Express Payment cards at their nominal value in any MTS office within the regions connected to the Unified Payment System.

In April 2000, MTS introduced Express Payment cards for subscribers within the Moscow switch area. During the rather short period since its’ introduction, the Express Payment card has become very popular amongst MTS customers. Express Payment cards allow customers to replenish the balance immediately for all tariff plans, which is the main advantage of the Express Payment cards compared to traditional pre-paid cards, where the set of services and time of use are limited. Today Express Payment cards account for approximately 30% of all payments.