MOBILE INTERNET TAKING OFF IN RUSSIA

Wednesday, August 19, 2009


Mobile Internet is taking off rapidly in Russia, as all three national mobile operators already operate 3G networks and offer mobile Internet modems. We have been selling the MTS Connect modem in Russia since early 2008 and have sold over 600,000 modems since July 2008, as 3G networks were launched across the country. Currently, we estimate that around 200,000 modems are being sold monthly in Russia by mobile operators, CDMA operators and WiMAX providers, and MTS Connect accounts for around 30% of the total.

Yesterday, we announced a partnership with Intel to support the uptake of mobile Internet solutions in Russia. The first joint initiative under this partnership is a promotion of a bundled offer that will include an Intel-powered netbook, an MTS Connect modem and a special MTS tariff plan.

The first netbook made available under the initiative is Acer Aspire One D250, powered by Intel® Atom™ Processor (http://www.intel.com/technology/atom/). Starting August 18, the netbook will be available across Russia in MTS monobrand retail stores, packaged with an MTS Connect modem, an MTS SIM card with a mobile Internet tariff plan and 600 MB of free traffic.

With a price tag of RUB 14,990 (approx. $470), the new netbook will be an attractive offer to customers in Russia who are looking for greater portability or an entry-level PC solution. As MTS’ 3G networks are already available in 39 Russian cities, the new netbook will let MTS subscribers connect to the Internet with speeds of up to 3.6 Mbit/sec using our HSPA networks. MTS Connect modem allows subscribers to connect to Internet in international roaming and through EDGE/GPRS networks in Russia where 3G is yet to be deployed.

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