BELARUS NEWS AND ANALYSIS

DATE:

06/12/2005

Minister says Russia's MTS may get control over MTS Belarus

MINSK, Dec 6 (Prime-Tass) -- Russia's largest mobile operator Mobile TeleSystems (MTS) may get a controlling stake in its Belarus affiliate, MTS Belarus, in 2007, Belarus' Communications Minister Vladimir Goncharenko told a news conference Tuesday.

MTS holds a 49% stake in the Belarusian company and Belarus' state-owned Mezhdugorodnaya Svyaz (Intercity Communications) holds the 51% stake.

Goncharenko said that the Belarusian government may consider reducing its stake in MTS Belarus after antimonopoly legislation in the telecommunications sector takes effect, which is expected to happen in 2007.

MTS' President Vasily Sidorov said that MTS is looking to increase its stake in MTS Belarus to controlling, but even as a shareholder with a non-controlling stake MTS considers the Belarusian market as very attractive and does not plan to cut investments in the company's development.

MTS plans to invest U.S. $150 million in MTS Belarus' development in 2006. In 2005 MTS Belarus plans to invest $100 million in its operations.

MTS Belarus, or SOOO Mobilnye TeleSistemy (JV Mobile TeleSystems Ltd.), was registered in April 2002 and started commercial operations in June 2002.

With its subscriber base of 2 million users, MTS Belarus is the leading GSM operator in the country.

Source:

http://www.cellular-news.com/story/15127.php

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