One of SISTEMA JSFC’ subsidiaries, Mobile Telematic Systems of Positioning JSC (MTS P), started implementing a new project in telecommunications.

MTS P JSC was set up in August 2001 to provide services in navigation and telematics. For nearly two years the company conducted development works with assistance of domestic enterprises to produce electronic equipment that would be reliable enough for transmitting telematic data. Today MTS P is ready to offer customers a wide range of quality services by navigation and telematic systems. These systems ensure determination of object positioning with an accuracy of up to several meters as well as the route of controlled objects and their condition. The technology provides for installing a terminal device in cars, and apartments, at offices and cottages. Through the GSM cellular communication provided by Mobile TeleSystems JSC and the GPS (Global Positioning System)/GLONASS such a device transmits the object status signal to the centralized control desk. Then, the processed signal is transmitted by different communication channels, including the Internet, to client’s control desk - a computer monitor - (it will be a mobile phone display soon), which shows a map with the location of the car or route of its movement, gives picture from video cameras of protection systems as well as other data on the current status of the controlled object.

Any sensor or actuator can be connected to this terminal device so as not only to control but also to direct the object online. For example, by using this technology in transportation it is possible to program the system in such a way that it will generate signal with a start of car movement, its swerving off the planned route, parking in a forbidden area or stopping for a long time. Besides, it makes possible to determine whether there is anyone in a car, to command the start and warm-up of the engine or to block it and turn on the alarm system. In addition to managing video control and protection systems at real estate sites, the technology permits to regulate heating, air-conditioning, electric power supply, etc. MTS P JSC is capable of providing navigation and telematic services not only in the area covered by the GSM cellular network of MTS JSC but also on territories of other countries by using both domestic and international roaming.

According to the marketing study, the capacity of this segment of the market in Moscow and the Moscow region amounts to between 100,000 and 600,000 subscriber terminals. Potential subscribers may include transport companies, municipal services and other corporate customers.

Mobile Telematic Systems of Positioning JSC participates in implementing the city’s complex program “Navigation and telematic systems for municipal management and citizens”. Under this program 160 terminal sets have already been installed in ambulances, vehicles of Mosgortrans Agency and search-and-rescue team offices of the Moscow Central Department for Emergency Situations. Before the end of 2004 the system will be introduced in passenger transport, the First-Aid Service, operative subdivisions of the Central Administrative Board of Internal Affairs and the Ministry for Emergency Situations, control centers of Moscow’s utility companies Mosgaz, Mosenergo, Mosgorteplo, Mosvodokanal, Mosvodostok. The system will be used for improving protection of money collectors and controlling transportation of hazardous cargos.

 Insurance companies also showed interest in navigation and telematic systems because they will set the stage for developing new insurance products. Mobile Telematic Systems of Positioning JSC obtained all required licenses for providing telematic services and services of data transmission.

The controlling stake in MTS P JSC belongs to MTS JSC and the department of state municipal property of the Moscow government owns the blocking stake.