MTS LAUNCHES OFFICE ZONE BILLING

Tuesday, April 13, 2010

Last week, MTS launched a new service aimed at encouraging business enterprises to adopt mobile communications. The new service, dubbed “Business Territory”, provides special calling rates for mobile communications both within a customer’s office and extending 500 meters from the office location.

Though prices vary by region, in Moscow the service costs 1,200 rubles per month per line, and each line gets 3,000 calling minutes per month. The service is an add-on to current corporate tariff plans allowing enterprises to switch to mobile communications at a price comparable to fixed line. The service should be of particular interest to companies that do not have installed fixed-line telephony, something common among small businesses and non-commercial ventures.

We are noticing that many enterprises are gradually increasing their usage of mobile compared to fixed-line telephony, and we expect the new service to be of interest to over 7% of our corporate subscribers and up to 16% of corporate subscribers who are not yet clients of MTS. According to research conducted by MTS, 42% of surveyed companies would have chosen only mobile communications provided the associated costs were comparable to those of a fixed line service.

MTS is providing a great degree of flexibility with the new office zone billing service. All corporate customers, ranging from small businesses to large corporations, can subscribe to the service and combine it with virtually any tariff plan. Customers can select specific locations for the special zones and can change them in case of office relocation. A company can add the service to as many mobile lines as it deems necessary.

According to the research company ROMIR, at the end of 2009, 49% of surveyed companies in Russia were enterprise customers of MTS.

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