Smolensk Cellular Communications (merged with Tele2 Russia)

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Smolensk Cellular Communications received its 10-year license for the operations of an AMPS network in Smolensk in November 1994. The total population in the license area was 1.4 million by 1997. The company was created as a closed joint stock company whose main shareholder was Millicom International Cellular (MIC) with a 60% stake. The company started its commercial operations in October 1996. The network consisted of one base station (supplied by Celcom) by 1997. The company had 750 subscribers by 1999. The Ministry of Communications issued three other licenses for this region in NMT 450, GSM 800 and DCS 1800 services by 1997. The GSM 1800 license was issued in 2001. 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 (Republuic 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 October 2001 for 10 years. Tele2 launched GSM-1800 mobile network in Smolensk in September 2003. 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. 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