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Siberian Cellular Communications (Omsk) (merged with Sibirtelecom)

Sector: Telecommunications • Location: Russian Federation

Source: World Bank Group

Project
Active

Siberian Cellular Communications received its license for the operations of an AMPS network in the Omsk region in July 1995, after paying a US$3 million license fee. The company was created as a closed joint stock company whose main shareholder was Millicom International Cellular (60%) by 1997. Other shareholders included Omsk regional operator JSC Electrosvyaz, Property Fund of Omsk region, Omsk

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The project “Siberian Cellular Communications (Omsk) (merged with Sibirtelecom)” is an infrastructure initiative in the Telecommunications sector, located in Russian Federation. Taiyo aggregates data on it from World Bank Group.

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Description

Description

Siberian Cellular Communications received its license for the operations of an AMPS network in the Omsk region in July 1995, after paying a US$3 million license fee. The company was created as a closed joint stock company whose main shareholder was Millicom International Cellular (60%) by 1997. Other shareholders included Omsk regional operator JSC Electrosvyaz, Property Fund of Omsk region, Omsk JSC Pic&Co, and Omsk JSC KF-Invest. The company started its commercial operations in July 1995. The company had 2900 subscribers by 1997. The company served Omsk, and surrounding areas with two base stations supplied by Ericsson by 1997. The total population in the license area was 1.2 million. The Ministry of Communications issued three additional licenses in this area by 1997. There were two other operators in GSM 9090 and NMT 450 services. The company invested $6 million by 1997 and planned to invest an additional $1.5 million until the year 2000. 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 Siberian Cellular Communications in September 2001 for 10 years. Tele2 launched GSM-1800 mobile network in Omsk in August 2003. On June 13, 2006, Tele2 acquired the remaining 30% minority stake in Siberian Cellular Communications in the Russian region of Omsk, for SEK 259 million. 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

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