Chelyabinsk Cellular Communications (merged with Tele2 Russia)

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Chelyabinsk Cellular Communications was created as a joint venture between Millicom International Cellular (51%), and the local Radiotelephone company (49%) in August 1993. In April 1994 it was granted a license for AMPS 800 Mhz network in the Chelyabinsk region with population of 3.6 million people. The company started its commercial operations in May 1995 with Ericcson as equipment supplier. The network had three cells in Chelyaboinsk, Miass and Ksyty with a radius of connection area of 110 km by 1998. The communications Ministry has awarded three other licenses for GSM, CDMA and NMT networks. The GSM 1800 license was issued in 2002. Millicom provided its services in Russia under the brand name FORA Telecom and held controlling stakes in 12 operators covering a population of 48 million. The regions covered by the FORA group are: Moscow, Saint-Petersburg, Belgorod, Izhevsk(Republic of Udmurtiya), Irkutsk, Kemerovo, Kursk, Nizhny Novgorod, Omsk, Smolensk, Rostov-on-Don, Chelyabinsk. The holding's Russian cellular operators had a total base of 165 thousand subscribers in various parts of Russia in 2001. Since entering the market, Millicom invested over US$100 million into Russian economy. In December 2001 the shares of Millicom in 12 Russian companies were acquired by Tele2 AB which, along with Millicom, is part of the Kinnevik group. The assets included 11 AMPS carriers and the Moscow Cellular Communications NMT 450 MHz carrier. Tele2 AB paid $80 million for the assets and promised another $30 million after the AMPS carriers, which had to abandon their spectrum according to an agreement with the Communications Ministry, received GSM 1800 MHz licenses. After the acquisition all of Tele2 subsidiaries switched to Tele2 brand. Tele2 planned to invest up to US$80 million in GSM communications in Russia in 2003. The GSM-1800 license was issued to Tele2 in 2002 for 10 years. GSM-1800 network was expected to be operational in Chelyabinsk region in 2004. Tele2 acquired an additional 49% in Chelyabinsk Cellular Communications in September 2003. The price of the transaction was not disclosed. Brand name FORA Telecom (until 2001), Tele2 (after 2001). Starting from 2001 subscribers base is available only for FORA Telecom as a total and there is limited info about individual companies. Tele2, launched a GSM-1800 mobile network in April 2004. US$80 million investment (to be invested in Tele2 holdings - 11 companies in Russia in 2003) was added to the project: Sankt-Peterburg Telecom and Oblcom Ownership of Tele2 increased to 70% in 2004. The other 30% were owned by Center Telecom.