MOSCOW, October 30 /PRNewswire-FirstCall/ -- Mobile TeleSystems OJSC
("MTS"), (NYSE: MBT), the largest mobile phone operator in Russia and the
CIS, and Vodafone today announce a strategic, non equity partnership to
provide customers with high quality communications services and to
collaborate jointly on future technological developments.
Under the agreement, MTS will be able to draw on Vodafone's expertise in
building and developing third generation (3G) networks and mobile broadband
products, working with leading global equipment providers and deploying
innovative CRM practices to enhance quality and further improve the
efficiency of its operations. In addition, MTS will have an exclusive access
to a range of products, services and devices from Vodafone for its markets of
operation in Russia, Ukraine, Uzbekistan, Turkmenistan and Armenia.
The partnership with MTS will give Vodafone valuable insight into the
opportunities of the important telecommunications markets of Russia and the
CIS, which are among the fastest growing in the world. Vodafone's products
will be made available to MTS' 87 million subscribers, including more than 60
million customers in Russia.
Vodafone's products and services will be marketed in Russia and the CIS
under a co-branded approach. Vodafone will also open a representative office
in Moscow to co-operate more closely with MTS on future offerings and
customer services.
"A partnership with Vodafone will allow MTS to bring tangible benefits to
both its customers and shareholders," said Mr. Mikhail Shamolin, President
and CEO of MTS. "This groundbreaking agreement will give our customers the
most innovative products and services from around the world. At the same
time, Vodafone's commercial insights and technical expertise will translate
into significant operational efficiencies for MTS over the long-term as we
transition our networks to 3G and beyond."
Mr. Vittorio Colao, CEO of Vodafone, commented: "Our agreement with MTS
is an opportunity for Vodafone to build its presence and work with the
leading operator in these important markets. By combining the geographical
reach of the company's respective networks, we can give customers greater
roaming capabilities and extended coverage. We are delighted that MTS has
joined our successful Partner Markets community, which will be much stronger
with the addition of Russia and the CIS."
Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in
Russia and the CIS. Together with its subsidiaries, the Company services over
87.57 million subscribers. The regions of Russia, as well as Armenia,
Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its
associates and subsidiaries are licensed to provide GSM services, have a
total population of more than 230 million. Since June 2000, MTS' Level 3 ADRs
have been listed on the New York Stock Exchange (ticker symbol MBT).
Additional information about MTS can be found on MTS' website at
http://www.mtsgsm.com.
About Vodafone
Vodafone is the world's leading international mobile communications group
with approximately 269 million proportionate customers as of 30 June 2008.
Vodafone currently has equity interests in 27 countries across five
continents and over 40 partner networks worldwide. For more information,
please visit http://www.vodafone.com
About Vodafone Partner Markets
Vodafone Partner Markets are a series of strategic alliances across the
globe between Vodafone Group and mobile network operators which Vodafone does
not own. Instead, Vodafone has leveraged its global brand, and international
products and services to agree partnerships which enable its partners to
offer products and services under the Vodafone name. Partner Markets vary
from full Vodafone branding agreements through to product branding, roaming
and service resale agreements. In addition to offering Vodafone products and
services to partner companies' customers, Vodafone customers, when roaming on
partner networks, are able to seamlessly access a range of services familiar
to them from their home markets.
Some of the information in this press release may contain projections or
other forward-looking statements regarding future events or the future
financial performance of MTS, as defined in the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995. You can identify
forward looking statements by terms such as "expect," "believe,"
"anticipate," "estimate," "intend," "will," "could," "may" or "might," and
the negative of such terms or other similar expressions. We wish to caution
you that these statements are only predictions and that actual events or
results may differ materially. We do not intend to update these statements to
reflect events and circumstances occurring after the date hereof or to
reflect the occurrence of unanticipated events. We refer you to the documents
MTS files from time to time with the U.S. Securities and Exchange Commission,
specifically the Company's most recent Form 20-F. These documents contain and
identify important factors, including those contained in the section
captioned "Risk Factors" that could cause the actual results to differ
materially from those contained in our projections or forward-looking
statements, including, among others, potential fluctuations in quarterly
results, our competitive environment, dependence on new service development
and tariff structures, rapid technological and market change, acquisition
strategy, risks associated with telecommunications infrastructure, risks
associated with operating in Russia and the CIS, volatility of stock price,
financial risk management and future growth subject to risks.
