Kursk Cellular Communications (merged with Tele2 Russia)

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Kursk Cellular Communications received a license to operate a AMPS 800 license from the Ministry of Communications on May 17, 1996. The total population in the license area was 1.4 million in 1997. The company was created as a joint venture between Millicom International Cellular (95%), and local investors. The company started its commercial operations in October 1997 with Stanilite Electronics Pty. Ltd. as equipment supplier. The company had only one cell for its 709 subscribers by 1999. 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 were: 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 Kursk Cellular Communications in 2001 for 10 years. The GSM-1800 mobile network in Kursk was expected to be launched in spring 2004. Cellular penetration of Tele2 in Kursk region was only 11%. Brand name FORA Telecom (until 2001), Tele2 (after mid-2001). Starting from 2001 subscribers base is available only for FORA Telecom as a total and there is limited info about individual companies. 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