History

MTS was established in October 1993 by Moscow City Telephone Network (MGTS), T-Mobile Deutschland GmbH (T-Mobile), an affiliate of Deutsche Telekom AG, Siemens AG (Siemens) and several other shareholders. In late 1996, Sistema JSFC acquired a majority stake in MTS and has remained the primary owner ever since.

MTS was the first company to launch GSM services in the Moscow region in 1994. In subsequent years, MTS has expanded rapidly in Russia largely through the acquisition of smaller independent players and became the leading national mobile operator

MTS initiated its international expansion in 2002 through the establishment of Mobile TeleSystems LLC, a joint venture with Beltelecom, the national fixed line operator in Belarus.

In 2003, MTS continued to expand in the CIS by acquiring the leading operator UMC in Ukraine, the biggest CIS market outside of Russia.

MTS entered Central Asia in 2004 through the acquisition of the leading mobile phone operator in Uzbekistan, Uzdunrobita. In June 2005, the Company acquired Barash Communications Technologies, Inc., the number one operator in Turkmenistan.

In September 2007, MTS continued its international expansion through the acquisition of the leading mobile operator in Armenia, K-Telecom.

In December 2008, MTS extended its brand outside the CIS borders. MTS and Shyam Telelink Limited, JSFC Sistema's telecommunications subsidiary in India, announced the agreement to allow Shyam Telelink to use MTS brand in India. The decision to introduce the brand to India is reflective of the brand’s success in the Company’s markets of operation since its launch in May 2006.

With mobile penetration well in excess of 100%, MTS began to shift its corporate strategy from one of acquisition to retention at the end of 2008 by developing its own proprietary distribution channels to engage customers more effectively. A number of acquisitions on national and local level MTS to quickly expand its monobrand retail chain

In October 2009, MTS acquired Comstar-UTS, the leading supplier of integrated telecommunication solutions in Russia and the CIS, as part of its 3i Strategy which calls for a focus on integration, the Internet and innovation to enhance its leadership in the telecommunications’ market. The acquisition provided access to important growth markets in commercial and residential broadband and allowed to realize value-accretive synergies in capital and operational expenditures as well as provided a foundation for the development of effective content platforms and services.

Today, Mobile TeleSystems is the leading telecommunications group in Russia, Eastern Europe and Central Asia, offering mobile and fixed voice, broadband, pay TV as well as content and entertainment services in one of the world's fastest growing regions. Having been recognized internationally for corporate governance and transparency, MTS is not only a leading Russian blue-chip company, but a truly global organization. The MTS brand continues to be ranked as the most valuable Russian brand occupying the 80th position with a brand value of $10.9 billion for the year 2011.