MTS network is currently used by more than 1.5 million active subscribers
Moscow, Russian Federation — 25th April 2001 — The number of active subscribers to the network of Mobile TeleSystems OJSC, Russia’s leading mobile operator, has now exceeded 1.5 million people.
In the period between 1st January and 25th April 2001, MTS’ active subscriber base increased by 28% to more than 1.5 million subscribers (compared to 1,194,000 active subscribers at 31st December 2000). Since the beginning of the year, in a period of less than four months, MTS’ active subscriber base in Moscow and the Moscow region has increased by 263,000 subscribers and reached 1,370,000 people. Regions outside the Moscow licence area are also witnessing a steady growth in their subscriber base. By 25th April 2001, MTS’ regional subscriber base has reached 156,000 people.
Commenting on the subscriber figures, Igor Timofeev, “Mobile TeleSystems” marketing director, said: “Last year we witnessed an unprecedented growth in our subscriber base, but this year we have already witnessed an even faster uptake in new subscribers. The number of contracts issued over the first four months of this year is twice as high as the number of contracts issued over the same period last year.
Mobile communications has become a mass service, accessible to the widest strata of the population. At MTS, we will continue to build a modern hi-tech network and introduce tariffs that are affordable to everyone”.
On 21st March 2001, MTS reduced the rate for outgoing calls within its network in “Business”, “Favourite”, “Saver” and “Youth” tariffs. From 25th April 2001, on the eve of the summer season, the company has decided to reduce its “Local”* tariff. The “Local” tariff is mainly targeting subscribers outside Moscow city.
Now the monthly “Local” fee of $8 includes 40 minutes of free local calls (up from the previous 25 minutes).
Calls made to fixed Moscow region lines have also been considerably reduced. Inter-city connection fees for such calls have been halved for day time calls, and have been decreased 1,5 times for evening and night calls. Now outgoing calls to Moscow region fixed lines made from MTS’ “Oblast” tariff zone will cost MTS subscribers only 29 cents per minute during day time (8am till 9pm), compared to 39 cents before, 22 cents in the morning and the evening (6am to 8am and 9pm to midnight), as well as on weekend and national holidays between the hours of 6am and midnight (compared to 27 cents before), and 14 cents at night (compared to 19 cents before). Beside the Moscow region, the MTS’ “Oblast” tariff zone includes the Vladimir, Ryazan, Kaluga, Tula and Pskov regions.
A call made from Moscow to a fixed line phone in the Moscow region will now cost MTS subscribers only 39 cents per minute (compared to the previous cost of 54 cents). During off peak morning and evening hours, a call to the Moscow region has been reduced to 25 cents from 30 cents before. At night-time a call from Moscow to the Moscow region will cost only 14 cents (down from 19 cents before).
The cost of calls within Moscow has also been reduced. Now a minute of a local call will cost MTS subscribers 29 cents during day time, whilst a call to another MTS subscriber will cost only 19 cents per minute.
“The current share of MTS in the Moscow mobile market is a confirmation of the great popularity of MTS’ tariff plans, and today we are introducing a further proof of our strategy to create clients’ satisfaction and loyalty. " — says Igor Timofeev. “In line with the company’s previous marketing efforts, the current initiative is aimed at reducing costs for our clients. We expect that the “Local” tariff in its new form will not only be highly valued by our users, but will also become an incentive for new subscribers to join up with MTS, especially on the eve of the summer season”.
In line with its strategy, MTS continues to develop the infrastructure for servicing its customers. A new MTS complex service center was opened near Poklonnaya Gora on 25th April 2001. The Poklonnaya Gora center offers MTS subscribers a wide range of services, including network connections, new equipment, new service packages and payment facilities.
Three more MTS complex service centers in Prospect Mira, Sokolniki and Krylatskoye will be opened in the near future.
For further information contact:
tel: +7 (095) 104-49-38
Investor Relation Department
tel. +7 (095) 766-01-03
fax. +7 (095) 766-01-00
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statement to conform them to actual results. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically, the Company’s most recent Form F-1. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors,” that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures; rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, risks associated with operating in Russia, volatility of stock price, financial risk management, and future growth subject to risks.
Mobile TeleSystems OJSC (NYSE: MBT) is Russia’s leading GSM 900/1800 mobile cellular operator. MTS has GSM 900/1800 licenses to provide mobile cellular telephony services in 34 regions of the Russian Federation, covering 45% of the country’s population. It has commenced operations in 21 regions covering more than 41 million people. Information about MTS’s activities and services can be found on MTSs website at https://www.mtsgsm.com.