Mobile Content Russia

Russian backed Indian mobile network operator, Sistema Shyam Teleservices (SSTL) has launched its CDMA network Tamil Nadu, Chennai and Pondicherry, under the MTS brand. The company outlined plans for a US$5 billion investment over the next five years, and expects to list on the local stock-exchange by the end of next year.

The firm is controlled by Russia's Sistema, which has built up a 73 percent stake in the Indian operator. Sistema also controls the Russian and CIS operator, MTS and licensed the brand to be used in India last year.

Polystar OSIX, a supplier of OSS/BSS solutions, has announced that MTS Uzbekistan has placed an order with it for Interconnect, Network and Service Performance Management. Under the terms of the agreement, MTS Uzbekistan will deploy Polystar Interconnect Peering Assurance, Network and Service Assurance solutions to cover legacy, as well as GPRS, VoIP and UMTS technologies.

Jupiter's Crystallizer module will enable users to work with the visualisation techniques and have an instant access to usage and performance information for voice, messaging and data services from the customer and network perspectives.

Last week Russian WiMAX operator Yota announced that Yota Media and Yap-Yap services have become available for every Internet user. To begin using Yota's vast library of licensed multimedia content you have to sign up by visiting the web site www.yota.ru. You don't even have to be a Yota subscriber.

Yota Music is a service of Yota Media that allows listening to music from Yota's catalog at any time online. Yota Music collection features over 360 000 of licensed tracks provided by world's largest record labels. It comprises renowned hits as well as rare tracks.

MTS (Mobile TeleSystems) announces its consolidated US GAAP financial results for the three months (unaudited) and full year ended December 31, 2008.

Consolidated revenues up 24.2% y-o-y to $10,245 million due to subscriber growth and increasing contribution from voice and data usage Consolidated OIBDA up 21.7% to $5,140 million y-o-y with 50.2% OIBDA margin due to continued revenue growth and cost control Consolidated net income down 6.8% y-o-y to $1,930 million due to non-cash FOREX loss through US GAAP translation of US dollar-denominated debt Free cash-flow positive with $2,148 million for the full year 2008 due to the overall revenue growth of the Group

Key Corporate and Industry Highlights:

J'son & Partners reports that in February 2009 the number of registered SIM cards in Russia reached 190.4 million. Penetration rate in Russia increased to 134%, in Moscow region – to 185%. Compound subscribers base increased by 1.1 million (0.56%) in February 2009. During February 2009 monthly subscribers base growth decreased by 44% since February 2008.

During last 12 months compound user base of Russian operators increased by 23.9 mln. subscribers, or 14%. In March 1, 2009 MegaFon took the first place in growth figures – its subscriber base grew by 7 mln. VimpelCom (which operates under the Beeline trademark) got the second position, adding 6.6 new subscribers. The third place went to MTS with 6.4 new subscribers.

VimpelCom (which operates under the Beeline trademark) announces commercial launch of 3G network in Novosibirsk, with data transfer rate up to 2 Mbps. Novosibirsk is the third-largest city (population is 1,390 mln. residents), after Moscow and Saint Petersburg, and the administrative center of Novosibirsk Region. It is also the largest city in Siberia.

Beeline started building 3G network in the city about two years ago – in spring 2007. In early 2009 the carrier has gained permission for commercial launch.

VimpelCom (which operates under the Beeline trademark) (which operates under the Beeline trademark) published the rating of content-providers for February 2009. Top-20 is based on total fee paid to companies by VimpelCom for providing services via partner programs (voice, SMS, WAP). Top 5 companies in the rating are A1, i-Free, INFON, Iricom, Neva Line.

1. A1
2. i-Free
3. INFON
4. Iricom
5. Neva Line
6. SMS Online
7. IncoreMedia
8. Inform-Mobil/IMMO
9. Next Media Channels
10. Plastic Media

MTS, the largest mobile networld operator in Russia and the CIS, announces that its consolidated subscriber base reached 91.77 million users on February 28, 2009. During February,

MTS consolidated subscriber base increased by 0.4 million subscribers with 340 thousand subscribers added in Russia.

(1) Note that MTS owns a 49% stake in Mobile TeleSystems LLC, a mobile operator in Belarus, which is not consolidated.

The Russian government is reported to be preparing to take an indirect stake in an Indian mobile phone network, local media reports have suggested. According to a copy of the government budget, Russia has set aside 23.7 billion rubles "for acquiring shares in the joint venture Shyam Telelink," - a new Indian mobile phone network.

A source close to the deal told Kommersant the funds would go to buying a 20 per cent stake in Sistema Shyam TeleServices

The firm is controlled by Russia's Sistema, which has built up a 73 percent stake in the Indian operator. Sistema also controls the Russian and CIS operator, MTS.

The newspaper reported that the deal would enable Sistema to retain a majority stake in the Indian operator, and Russia would buy the shares as part of a plan to settle New Delhi's outstanding Soviet-era debt to Moscow.

According to a new research report by J'son & Partners, by the end of 2008 number of mobile internet users in Russia grew up to 32.5 million. Mobile internet users, by J'son & Partners Consulting understanding, are mobile subscribers who use WAP/GPRS/EDGE and since second half of 2008 also 3G (UMTS) subscribers. Moscow license region share is 43% (that's 13,97 mobile internet users), while Saint-Petersburg license region share is 8%. Share of other regions does not exceed 50%.

Compound annual increase in user database in 2008 was 14.7 million - by 82% comparing to 2007. In 2007 subscriber base increase was 68% comparing to 2006. 57% of all mobile internet users are from Volga region, Central and South Federal regions. North-West, Ural and Far East shares are decreasing.