Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces allocation of frequencies that will enable the Company to introduce 4G services in Armenia.

VivaCell-MTS, a majority-owned subsidiary of MTS, is the first mobile operator to have been allocated frequencies for the deployment of the 4G network from Public Services Regulatory Commission of the Republic of Armenia. The operator was allocated radio-frequencies in the range of 2500-2520 MHz and 2620-2640 MHz in Yerevan, and 2600-2640 MHz in other regions of the country. In accordance with the regulator’s decision VivaCell-MTS has an obligation to launch the LTE network into commercial operation before March 1, 2011.

Since mid-2010, VivaCell-MTS has been testing 4G technology in cooperation with leading international vendors to determine the best approaches to building the network and evaluating the quality of the services. The mobile operator is expected to launch a special LTE test zone in central Yerevan before December 1, 2010. This will enable VivaCell-MTS to test actual data transfer rates, the network performance, stability of the handover, as well as other parameters essential for a full-scale commercial launch that is scheduled for February-March 2011. Users will be able to test the network with modems that support the 4G standard.

At the initial stage of the commercial launch, 4G network services will be made available to VivaCell-MTS subscribers only in Yerevan, but VivaCell-MTS plans to cover other major cities and regions of Armenia in the future.

LTE is a “fourth generation” technology which is more advanced than 3,5G/HSPA and HSPA+ technologies already deployed in Armenia. 4G network allows for up to 100 Mbps download and up to 50 Mbps upload rates. MTS expects that the actual data transfer speed in the LTE network will be about 10 times higher when compared to the 3G network.

"VivaCell-MTS’ LTE rollout positions Armenia as one of the global leaders in 4G deployment. We are planning to deploy 4G across the country as was the case with the 3,5G network, which already covers 94% of the territory. Rollout of the new innovative technologies and services is one of our key priorities," highlighted VivaCell-MTS General Manager Ralph Yirikian.

Armenia will become the second country where MTS is building a LTE network. In July 2010, MTS became the first mobile operator to launch a 4G network into commercial operation in Uzbekistan. The network was deployed in the range of 2500-2700 MHz. MTS is also in the process of testing the LTE technology in Ukraine.