Mobile Content Russia

MTS, the largest cellular network operator in Russia and CIS, is eyeing possible acquisitions in Kazakhstan and Azerbaijan, its Chief Executive Officer, Mikhail Shamolin said in an interview with the Reuters news agency.

"There are two countries (where) we are not present yet and I believe we should be present, which is Kazakhstan and Azerbaijan," Shamolin told Reuters Financial Television on the sidelines of St Petersburg Economic Forum. He said that the company was not holding specific talks with any Kazakh or Azeri firms.

MTS, the largest cellular network operator in Russia and CIS, has launched a new location-based service dubbed «Love Compass» for users of its dating WAP-portal wap.mtsdating.ru. «Love Compass» will help MTS subscribers registered on the portal wap.mtsdating.ru search for other users by their location or find out current whereabouts of their friends.

Now users' profiles at the dating service wap.mtsdating.ru contain a link «WHERE?» that lets users search other portal users signed up to the service «Love Compass» by their location and get information on how far from himself or herself this user is at the moment. Also, users can send each other SMS, write emails or invite to the chat.

MTS, the largest cellular network operator in Russia and CIS, and Nokia signed the memorandum of understanding on the direct delivery of Nokia devices to MTS' retail network. The first joint project of the two companies will be the priority sales launch of Nokia N97, Nokia's flagship mobile computer, equipped with exclusive software from MTS.

The agreement signed by MTS and Nokia at the 2009 St. Petersburg International Economic Forum provides for the direct supply of Nokia products to MTS' retail network, joint marketing campaigns to promote Nokia's handsets and a special training program for MTS' retail employees.

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.

MTS, the largest cellular network operator in Russia and CIS, has launched the first phase of its 3G network in Moscow. The operator is following a strategy of covering the largest business and shopping centres with HSDPA networks.

The first indoor network was launched in Moscow's Expocentre, one of the largest exhibition centers in Eastern Europe. MTS has covered the whole Expocentre exhibition space with and HSPA network, providing customers with data download speeds of up to 3.6 Mbit/s.

MTS is planning to launch additional 3G networks in the 35 largest business and shopping centers in Moscow in 2009, including the Domodedovo International Airport. MTS will also launch indoor 3G networks in the offices of the largest corporations based in Moscow. 3G services will also become available in several cities in the Moscow region, including Noginsk and Orekhovo-Zuyevo.

MTS, the largest cellular network operator in Russia and CIS,
has reported that its first-quarter revenues dropped by 24% to US$1.8 billion, due to local currency depreciation and seasonal factors. The company also reported a net loss for the quarter of $57.7 million, compared to a profit of US$610 million a year ago. The loss was due to US$462.4 non-cash foreign exchange losses through US GAAP translation of US dollar-denominated debt.

Mr. Mikhail Shamolin, President and CEO of MTS, commented: "In spite of the volatile macroeconomic situation in Russia and the CIS, MTS demonstrated year-over-year revenue growth in national currencies in all of its markets of operation with the exception of Ukraine, where growth dynamics were inline with the market's overall performance. The changes in the foreign exchange rates impacted our US dollar-denominated results that led to a decline in the Company's main US dollar-based financial indicators, however, the stable financial position of MTS allows us to continue to execute on our business development strategy."

MTS, the largest cellular network operator in Russia and CIS, has recently announced its decision to work with Nokia Siemens networks on a turnkey security application that seeks to ensure secure internet browsing for its subscribers in both GSM and 3G networks. This application is expected to be fully operational by mid 2009.

Along with its subsidiaries, MTS has a subscriber base of over 91.77 million customers. The circles wherein MTS are licensed operators have a total population of over 230 million. The security solution provided to MTS is expected to sieve through general packet radio service (GPRS) and 3G traffic on the roaming interface, and in the process effectively guarding the MTS network from hackers and security breaches.

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.

MTS, the largest cellular network operator in Russia and CIS, announces that it has initiated the testing of outdoor 3G radio coverage in Moscow. The goal of the trial is to confirm the possibility and conditions of joint operation of outdoor 3G radio coverage and radio electronic means of military application. The trials are to be finished by June 2009.

Also, MTS informed that it has received expert findings from Main RF Center confirming the possibility of using base 3G stations in the buildings and houses of Moscow, as well as in the subway and Moscow region. Particularly, expert report defines the parameter the base 3G stations should have, concerning their power, height and antennas' direction. The findings will allow MTS to get permission for commercial launch of 3G network in the mentioned area and begin offering 3G services to its customers.

MTS, the largest cellular network operator in Russia and CIS, announced that it has been named as one of the BRANDZв„ў Top 100 Most Powerful Brands, a ranking published by the Financial Times and Millward Brown, a leading global market research and consulting firm. For the second year in a row, MTS joins the ranks of the most powerful brands in the world with a value of $9.2 billion at the 71st position. As in 2008, MTS is the most valuable Russian brand in the ranking and one of the 10 most valuable telecoms brands in the world.

MTS brand has risen 18 spots to become the 71st most powerful brand globally with a value of $9.2 billion, up from $8.1 billion in 2008. The unequivocal growth in brand value over the year is primarily due to the Company's continued execution on its corporate strategy, strong growth and its leadership positions in the Russian and CIS markets.