Mobile Content Russia

MegaFon Caucasian branch has announced the launch of 3G network in Chechnya Republic. The carrier invested about 500 million rubles (17 million dollars) in building the network. Now 116 3G base stations operate in the republic, - altogether they provide high quality radio coverage on large scale. New 3G services will be available for all subscribers in 3G coverage area with UMTS handsets or special USB-modem.

MVNO «PROSTO dlya obscheniya» («Simply for communication») has announced that it has signed up more than 350,000 subscribers. Promotion campaign and pricing down of data plans have significantly improved the sales figures, - the company hopes to sign up half a million subscribers by the end of this year. In august the number of MVNO subscribers reached 260,000 users.

Colibria, in partnership with Acision, the world's leading messaging company, today announced that it has enabled Russia's largest operator, MTS, , to interconnect its 'Chat' Mobile Instant Messenger (MIM) service with MegaFon and VimpelCom (which operates under the Beeline trademark). This allows subscribers of the three operators to seamlessly exchange messages across their respective services. The new service, which will be jointly branded as 'Chat' across all three networks, builds on year-on-year growth in messaging for MTS since 2008. This trend is expected to continue by the expansion of messaging access across Russian subscriber communities.

Russia's smallest of the big three dominant operators, MegaFon has reported a 10.8% drop in second quarter profits, which it put down mainly to currency changes. The company reported a quarterly profit of RUB 9 billion (US$284.8 million), while revenues rose by 3.4 percent to RUB 43.9 billion (US$1.4 billion).

Sergey Soldatenkov, Chief Executive Officer of MegaFon, said: "We had a very good overall performance in the six months ended June 30, 2009, showing growth in financial indicators versus the corresponding period in the previous "pre-crisis" year. The first quarter of 2009 was not easy, our subscribers reduced their monthly usage and spending, and new subscriber additions slowed, but we were able to offset this by pursuing a conservative approach to costs and by efficient business management. As a result, by the end of the current period we managed to reverse the negative trends which were evident at the beginning of this year and were able, through effective marketing initiatives in the second quarter of 2009, to realize improved MOU and ARPU".

Russian cellular carrier MegaFon has launched bundled service В«Unlimited Internet with Opera MiniВ» for its subscribers in Moscow. Now MegaFon network users signed up to the package can view websites all day and night without any data transfer limits for only 0.22 dollars (7 Russian rubles) a day.

To use the new opportunity subscribers have to install Opera Mini mobile browser on their mobile phone and sign up to bundled services �Unlimited Internet with Opera Mini'.

J'son & Partners Consulting presents the key results of conducted research includes analysis of current situation and regions (America, Europe and Asia), a detailed review of mobile the further market development. The research contains the analysis of such mobile VAS as SMS, transfer, mobile commerce, mobile marketing and mobile TV.

Size and structure of Russian mobile VAS market

J'son & Partners Consulting estimates the volume of the mobile VAS market in Russia at 94 bln RUR (3.8 bln USD) in 2008, and at 55 bln RUR ($1.681 bln; at average currency rate 32,71 rubles per 1 US dollar) in the 1st half of 2009.

Further confusion over Iran's 3rd mobile license after Russia's MegaFon denied earlier reports that it had been awarded the contract. Although the company has previously suggested it would be interested in a license in the country, it is now saying that it has lost all such interest.

The Iranian TV channel, Press TV reported earlier this week that Megafon had been granted a license to build a mobile phone network in the country.

"MegaFon does not plan to enter the market of Iran," said Peter Lidov, PR Director of MegaFon. "We monitor opportunities to enter promising markets outside Russia but Iran is not among them", he added.

Fitch Ratings has changed the Outlooks on Russian mobile network operator, MegaFon's Long-term Issuer Default rating (IDR) and National Long-term rating to Positive from Stable. The change reflects Fitch's expectations that Megafon shareholders will ultimately be able to put in place a sustainable dividend policy that will be consistent with the company's creditworthiness.

At the same time, Fitch has affirmed the Long-term IDR and senior unsecured rating at 'BB+', the Short-term IDR at 'B' and National Long-term rating at 'AA(rus)'. MegaFon's US$375m eurobond due in December 2009, which is guaranteed by Megafon, is affirmed at 'BB+'.

As estimated by consulting company AC&M Consulting, gross revenue of Russian mobile value added services market in the first quarter 2009 reached 856.2 million US dollars (29041.7 million roubles). In the fourth quarter 2008 revenue was 994.9 mln dollars (27124.7 mln. roubles). In roubles the revenue grew since 4Q08 by 7.1%, but in dollars it decreased in 1Q09 by 13.9%.

Mobile VAS ARPU in the fourth quarter fell to 1.5 dollars from 1.8 dollars in 4Q08. In roubles ARPU grew by 6.7% from 47.9 roubles in 4Q08 to 51.1 roubles in 1Q09.

Mobile VAS share in the general revenue of operators in 1Q09 increased up to 17.7% from 15.1% in 4Q08.

Research and Markets has announced the addition of IE Market Research Corp.'s new report "2Q09 Russia Mobile Operator Forecast, 2008 - 2013" to their offering.

Total subscribers in Russia to reach 201.8 million in 2013 with MTS losing market share to Vimpelcom and Megafon over the next five years

Mobile Operator Forecast on Russia provides over 65 operational and financial metrics for Russia's wireless market and is one of the best forecasts in the industry. We provide six-year forecasts at the operator level going out to 2013. We also provide quarterly historical and forecast data starting in 1Q2003 and ending in 4Q2013. Operators covered for Russia include: MTS, VimpelCom, and MegaFon. Our Mobile Operator Forecasts are updated quarterly and are available for one-time delivery or through regular updates.