MVNO WITH X5 RETAIL GROUP

Monday, May 17, 2010
    

Last week we signed an agreement to create a mobile virtual network operator (MVNO) using MTS’ network with the X5 Retail Group N.V., Russia’s largest retailer in terms of sales. X5 will offer its customers special tariffs that they can subscribe to at the Perekrestok and Karusel stores in Moscow and the Moscow region. It is expected that the launch will take place by the end of summer 2010. This is the second project that MTS has concluded as part of its efforts to expand its distribution channels. Previously, in May 2009, MTS partnered with Auchan, one of the world’s largest food retailers, enabling the company to offer its A-Mobile tariff plan through its stores in Russia.

MTS will dedicate a pool of available telephone numbers to the MVNO and provide X5 subscribers with a full package of mobile communications services, including voice communications and standard services such as roaming, mobile Internet, SMS and MMS. Using its own label, X5 will set the tariffs, attract and service subscribers and ensure in-store information support for the offering.
 
X5’s MVNO platform will be automatically linked to the loyalty bonus system of the Perekrestok and Karusel retail chains, enabling subscribers to exchange points accumulated under the loyalty bonus programs for mobile services. The MVNO will have its own website for customer information in addition to a dedicated call center.

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