Tuesday, September 08, 2009

As we have discussed before on this blog, we believe that distribution of exclusive and innovative handsets through the MTS monobrand retail network is key to subscriber acquisition, usage growth and customer retention. For Russian consumers, the purchase of a handset is very much an emotional purchase that we see as being key in strengthening their ties with MTS in order to encourage more loyal behavior. By signing exclusive deals with leading device manufacturers, we will be able to drive greater customer traffic to MTS stores and gain competitive advantage over our peers. Selling handsets through MTS stores will also allow us to customize these phones and pre-install handset-specific software and applications to drive data and content usage.

Over the past couple of weeks, we have launched a number of new phones:

The new MTS-branded phone, MTS 236, is the first device to be sold in Russia under the MTS brand through the partnership with Vodafone. The phone was developed by ZTE for Vodafone. MTS 236 is an entry-level phone, priced at RUB 890 (around $28), that will be offered with a Super Zero tariff.

HTC Hero (promo site:, the first Android phone to be sold in Russia, is arriving to our retail network this week. For the first month, the phone will be sold exclusively through our stores with an introductory offer of free 100 Mb Internet traffic for three months. The phone features such high-end specifications as multi-touch touchscreen, 3G HSDPA/WCDMA capability, Wi-Fi and a 5 megapixel camera with autofocus. It will be sold for RUB 22,990 (around $733).

Samsung BEATDJ (promo site:, the new flagship Samsung device aimed specifically at music fans. The phone is to be sold exclusively at MTS stores for a month following the launch, and we are offering a few music tracks for free to encourage usage of our online content store, (more on that in upcoming blog posts). The phone features multi-touch touchscreen, 3G HSDPA/WCDMA access, 3 megapixel camera and a 50 Mb internal storage capacity. It is priced at RUB 14,990 (around $478).

By the end of the year, we will launch more MTS-branded phones that we will deliver through the Vodafone partnership. We aim to continue to offer exclusive flagship devices such as Nokia N97 or HTC Hero in our markets.

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