Udmurtiya Cellular Communications (merged with Tele2 Russia)

Active

Prospective

Udmurtia Cellular Communications (UCC) was awarded a 10 year license to provide mobile phone services in Republic of Udmurtiya in May 1997. Its service area covers the city of Izhevsk and the surrounding area of 30-40 km radius around the city center with a population of 1.6 million. The company was established in April 1996 as a closed Joint-Stock Company. The main owners were the Russian Invest Consulting Ltd., and the Millicom International Cellular (MIC) with a 55% stake. The company had Ericsson as equipment supplier. The network had four base stations RBS 884 macro, AXE-10 switches mounted for 2000 numbers, and OKS-7 signaling system with the common network by 1998. The company had around 3,600 subscribers by end of 1999. In mid-2001 Udmurtia Cellular Communications provided services under two trademarks - Bee Line and FORA. 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 Udmurtia Cellular Communications and other Tele2 subsidiaries switched to Tele2 brand. Tele2 planned to invest up to US$80 million in GSM communications in Russia in 2003. Udmurtia Cellular Communications has received GSM-1800 license in August 2001 for 10 years. Tele2 launched GSM-1800 mobile network in Izhevsk in September 2003 and UCC received a supplement to its GSM-1800 license allowing it to provide services in the GSM-900 standard. In September 2003 Tele2 increased it’s ownership in UCC to 77.5% remaining stake held by the Regional Investment Company of Izhevsk. Brand name FORA Telecom and Bee line(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. The second investor (Invest Consulting Ltd)and it's share needs to be clarified. Before Sept.2003 it was 34.5% and Tele2 55%. Someone owns another 10%. 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

Information and communication technology (ICT)

World Bank Group

Project

Manufacturing (Industrial), Telecommunications, Government