MTS (network provider)

Mobile TeleSystems OJSC

Type	Public (RTS:MTSS MICEX:MTSI NYSE: MBT
Industry	Mobile telecommunications
Founded	1993
Headquarters	Moscow, Russia
Key people	Andrey Dubovskov[1] (President & CEO)
Products	Mobile networks
Revenue	US$ 11.2 Billion (2010)
Net income	US$ 1.3 Billion (2010)
Employees	26 343
Parent	Sistema
Website	mtsgsm.com

MTS (Russian: МТС) is the largest mobile operator in Russia and CIS with over 102,4 million subscribers as of 31 December 2009.^[2]

Having started in the Moscow license zone in 1994, МТS in 1997 received licenses for further areas and began expansion, later entering other countries of the CIS. On October 31, 2008, Vodafone announced a partnership deal with MTS, whereby Vodafone services will be available to MTS subscribers and both companies have noted the potential for more efficient purchasing.

Operations

The MTS wireless network operates using the GSM standard. It currently holds licences to provide mobile services in 81 out of 83 regions in Russia and the entire territories of Armenia, Ukraine, Belarus, Uzbekistan.^[3][4] MTS is currently the biggest mobile operator in Central and Eastern Europe.^[5]

In 2009 MTS acquired several independent mobile retail chains, creating MTS monobrand retail network of 3300 stores - the second largest retail network in Russia. Also in 2009 MTS started marketing MTS-branded mobile handsets. Already in 2010 MTS became the 5th best selling handset brand in Russia, after Nokia, Samsung, LG and SonyEricsson.

In 2010 MTS announced acquisition of 62% of the stock of Comstar, the biggest Russian fixed internet and cable TV provider with 7.5 million of passed households.^[6] Comstar products were re-branded to MTS in 2010, forming the largest Russian mobile and fixed telecommunications brand.

India

In 2008, Sistema formed 74:26 joint venture with India’s Shyam Group to form Sistema Shyam Teleservices (SSTL), and acquired Pan-India license to provide CDMA services in the country. In March 2009, SSTL launched the MTS brand in state of Tamil Nadu, followed by neighboring state Kerala and W.Bengal in April and May respectively.^[7] At present MTS India present in 12 circles out of 22 telecom circles of India.

Media reports suggest that Russian government was planning to buy a 20% stake in SSTL for about $700 million.

History

MTS was founded by Moscow City Telephone Network (Russian: Моско́вская Городска́я Телефо́нная Сеть - Moskovskaya Gorodskaya Telefonnaya Set'), Deutsсhe Telekom, Siemens AG and several other shareholders as the closed joint-stock company in October, 1993. Four Russian companies owned 53% of the stock, whereas two German companies had 47%. At the end of 1996 JSFC Sistema (Russian: АФК "Систе́ма" - AFK Sistema) has got a stock pack from the Russian holders of stocks, and DeTeMobil has redeemed stocks of company Siemens.^{[citation needed]}

On March 1, 2000, as a result of a merger of JSC "MTS" and JSC "RTK", OJSC «Mobile TeleSystems» (Russian: Моби́льные Те́леСисте́мы - Mobil'niye Telesistemy) was formed. On April 28, 2000 the Federal commission under securities of the Russian Federation has registered initial stocks issue of OJSC "MTS".^{[citation needed]}

Entry to NYSE

On June 30, 2000 stocks of MTS started trading on the New York Stock Exchange (Index MBT).^{[citation needed]}

Foreign subsidiaries and associates

In June, 2002 MTS started a network in Belarus, as the junior partner in a joint venture.^{[citation needed]}

In August, 2003 MTS finished purchasing UMC, the leader of the market of mobile communication in Ukraine.^{[citation needed]} Brand UMC existed till mid 2007, when major rebranding campaign occurred turning UMC into MTS.

Branding

In May, 2006 MTS changed its logo as a part of rebranding campaign performed by its mother company, JSFC Sistema. Now it has two red squares next to each other. The left one, common in form (but not colour) to all JSFC Sistema's telecom subsidiaries, contains a white egg which symbolizes simplicity and genius, while the right square bears the name of the company: МТС (MTS).^{[citation needed]} In 2010 MTS announced acquisition of Sistema Telecom, the owners of the MTS "egg" logo, for $380 million, thus becoming the sole owner of its logo.^[8]

In 2008 MTS brand was included in the Top 100 World's Most Powerful Brands list by Financial Times/Millward Brown ranking, becoming the most valuable Russian brand.^[9] According to this ranking, in 2010 MTS brand was 72nd most valuable brand worldwide with the brand value of $9.7 billion. In 2010 MTS also became the most valuable Russian brand according to the Interbrand ranking.^[10]

External links

• MTS Web Site (English)
• MTS Web Site (Russian)
• Mobile TeleSystems OJSC (ADR) - Google Finance

References

1. ^ MTS Appoints New Chief Executive Officer
2. ^ "MTS Website - About". http://www.mtsgsm.com/about/. Retrieved 2010-10-22. 
3. ^ "MTS Website - Licenses". http://www1.company.mtsgsm.com/license/. Retrieved 2006-10-29. 
4. ^ "MTS Website - Short summary (In Russian)". http://www1.company.mts.ru/press-centre/briefly/. Retrieved 2006-10-29. 
5. ^ "MTS Website - Company History (In Russian)". http://www1.company.mts.ru/history/. Retrieved 2006-10-29. 
6. ^ "MTS Website - Merger". http://www.mtsgsm.com/merger/. Retrieved 2010-12-16. 
7. ^ Sistema.com
8. ^ "RIA Novosti Russian news website". http://en.rian.ru/business/20101115/161340835.html. Retrieved 2010-12-16. 
9. ^ "Millward Brown Optimor website". http://www.brandz.com/output/. Retrieved 2010-12-16. 
10. ^ "Interbrand website". http://www.interbrand.com/ru/knowledge/BestRussianBrands2010RU.aspx. Retrieved 2010-12-16. 

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