IR Blog

Today, we have released our subscriber numbers for the month of January 2010. Below is a table outlining the dynamics of our customer base.

Subscribers (mln)	Jan 31, 2010	Dec 31, 2009	Growth Subs	Growth %	Jan 31, 2009	Growth Subs	Growth %
Total consolidated subscribers, eop	97.46	97.81	(0.35)	(0.4%)	91.40	6.06	6.6%
Russia	68.88	69.34	(0.46)	(0.7%)	64.49	4.39	6.8%
Ukraine	17.52	17.56	(0.04)	(0.2%)	18.15	(0.63)	(3.4%)
Uzbekistan	7.19	7.07	0.12	1.7%	5.73	1.46	25.4%
Turkmenistan	1.79	1.76	0.03	1.6%	1.00	0.79	78.5%
Armenia	2.08	2.07	0.01	0.2%	2.03	0.05	2.4%
MTS Belarus1	4.55	4.56	(0.01)	(0.2%)	4.37	0.18	4.2%

Subscriber data for Russian mobile operators is compiled by Advanced Communications and Media, a management consulting and research agency specializing in telecommunications and media. You can view their January subscriber report here.

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

Pavel Roytberg, Director for Products and Services at MTS Russia, receives the GSMA Global Mobile Award.

We have attended the 2010 Mobile World Congress in Barcelona this week and wanted to share some highlights of MTS at the show for the readers of our blog.

In a video interview below with Light Reading TV, Dr. Michael Hecker, Vice President for Strategy and Corporate Development at MTS, discusses the rising demand for data in our markets, our growth outlook and plans for LTE.



There have also been a number of announcements at the show relevant to MTS:

          
MTS 835, 3G-enabled phone with a 2 megapixel camera and a 2.4 inch screen

We have been selling MTS-branded phones since the end of last year through our monobrand retail network in Russia. Currently, we have a total of four models on offer ranging from a basic model at 980 rubles* (or around $32**) - one of the most affordable in the market - to a 3G-enabled one at a very attractive price point  of 6,490 rubles (or around $215).
 
Lower-end phone models dominate in Russia, and we estimate that phones for under 5,000 rubles (around $165) accounted for over 35% of the market in 2009. This price point is attractive to customers who are buying their first phone, but also to those that want a phone for a second line or to use during vacation.

So far, we are quite pleased with the sales of MTS-branded phones. At the end of 2009, MTS was among the top five mobile phone brands, accounting for approximately 2% of the market in Q4’2009 (based on our estimates, in terms of sales of devices). During the months of November and December, MTS-branded phones accounted for 15% of phone sales through the MTS monobrand network. MTS-236, the entry-level model, was one of the 10 most popular models in December.

FOX Business Network, interviewed Mikhail Shamolin, CEO and President of MTS, in Davos last week. Shamolin attended the World Economic Forum Annual Meeting 2010 in Davos, using the opportunity to meet with his peers to learn how others are managing through the global economic downturn and discuss trends and ideas shaping the telecom and entertainment industries. In the video below, Shamolin discusses the future of telecoms and the potential for growth in our core markets of Russia and the CIS.

Our English-language corporate website has recently been named the best in Russia in 2009 by H&H Webranking. H&H Webranking conducts surveys of capital market participants such as the financial analysts, investors, business journalists and jobseekers, so as to review such aspects as availability of information, ease of access and frequency of updates of corporate websites.
 
“Mobile TeleSystems took a huge step forward from last year’s 20th position. Climbing 20 positions in one year... to the company in Russia that best fulfils the demands from the international capital market is very impressive,” says Marcus Eriksson, head of H&H Webranking.

3G network in Moscow, as of January 15, 2010.

At the end of December 2009, we launched our commercial 3G network in Moscow, complementing our existing coverage in the Moscow region and throughout Russia. At the time of launch, our network consisted of 197 base stations, which allowed us to offer extensive coverage within the MKAD (the so-called beltway, or highway, that surrounds Moscow) to a population of over 10 million.  By the end of January, we will have installed up to 300 base stations to serve Russia's capital.  For the latest network map, click here.

We estimate that data traffic has already increased 2-3 times in areas where both 2G and 3G networks are available, compared to the traffic prior to the launch of 3G. Currently, we have a variety of special tariffs for 3G users, including unlimited ones.

We have set the tentative date for our Q4 and FY 2009 financial results on April 1, 2010. We will confirm the date closer to the event.

You can view the latest information on our upcoming events here.

MTS is pleased to announce that we launched the first MTS Comstar bundle offer – the STREAM Versatile Box product – through our retail stores in Moscow and Zelenograd, a Moscow suburb, in December 2009. This is one of the first steps of our previously announced Comstar integration plans following our acquisition of the company in October 2009.

President and CEO of MTS, Mikhail Shamolin, recently gave an interview on TheStreet.com. In the interview, Mr. Shamolin provides his views on the Company's stock performance vis-a-vis investors' perception of Russian companies as well as answers a few questions on the latest developments in the Russian telecommunications market.

Earlier this week MTS became the only Russian telecommunications company to obtain the ISO 9001:2008 certificate of conformity for its Quality Management System that covers all of our locations in Russia, Ukraine and Uzbekistan. The certification audit was conducted by SGS, the global leader in inspection, verification, testing and certification services.

 From left to right: Alexander Gamov – Director of the Quality Assurance Department at MTS, Peter Marriott – Vice-President of SGS SA, Konstantin Timoshechkin – Manager in charge of business development at SGS S.A. (Eastern Europe).