MTS Belarus

active

In September of 2001 Russia's Mobile TeleSystems (MTS) won a license to provide GSM cellular service in Belarus. In order to implement the project MTS create a joint-venture with state owned Beltelecom subsidiary UE Mezhdugorodnaya Svyaz. UE Mezhdugorodnaya Svyaz owns a controlling 51% of the joint venture with MTS holding the remaining 49%. MTS paid $2.5 million for the 49% stake, a license fee of $5 million, a one time fee to the Belarus budget of $10 million, and a further $6 million fee to be paid in five annual installments by 2007. Initial investments in the GSM 900 and GSM 1800 network amounted to $15 million. By June 2002 MTS's network covered Minsk and the area of Minsk national airport. As of June 2002, MTS planned to achieve 90% coverage of Belarussian territory by 2005 through investments of $200 million. Commercial operations were launched on June 27, 2002. In May 2002, Siemens was selected to provide GSM network to MTS, which is valued at 30 million euro (US$28.3m). MTS had 2.13 million clients as of December 31, 2005, up from 465,500 just two years prior. MTS annual report should be checked in late 2014 for CAPEX updates as CAPEX figure for Belarus is not included. 2009 investment commitment is for Q1 & Q2 only. Fully-year capex was not reported on MTS website. MTS website should be rechecked in 2010 and 2011 for capex updates. http://company.en.mts.by/company/report/ 2010 CAPEX is an average estimated from MTS annual reports http://www.mtsgsm.com/resources/reports/ 2011 Capex is MTS Total Capex * (4.9/100)share of subscribers in Belarus 2013 CAPEX is estimated proportionally, using Belarus' share of fixed and mobile subscribers expenditure on MTS' total expenditure on Plants, Property & Equipment. To be updated again after AR2013 is published.