MTS Belorus

MTS is mobile operator of Belarus by the number of subscribers. As of January 1, 2014 MTS had 5.39 million subscribers from whom 1.7 million constantly use the mobile Internet. Communication of MTS is available for 98.4% of the territory of Belarus where 99.85% of the population of the country live – communication is provided by nearly 6,700 base stations, from them 1,942 – 3G connection objects. The most part of base stations of third generation is transferred to technology of high-speed packet data transmission DC-HSDPA allowing to go on-line at a speed up to 42 Mbps.

Performance Indicators

2011

For September, 2011 MTS services 4.7 million Belarusian subscribers.

History

• In 2001 the Belarusian MTS is created by the Russian company MTS of the same name which won the license in the republic. However Russians received only 49% of shares in the company, and so could not increase the share to control.

• In 2005 the Belarusian authorities were appointed in MTS of the CEO Vladislav Karpovich, having pushed aside Russian Andrey Rumyantsev.

• In the spring of 2011 the president of Belarus Alexander Lukashenko suggested the Russian MTS to redeem a controlling stake of their 'daughter' for $1 billion, having threatened to offer it for an auction otherwise. Russians answered that they are interested in consolidation of the Belarusian MTS, but at reasonable price. In case of holding the auction in MTS promised to sell also the share too.

• In September, 2011 it became known that the State committee on property of Belarus made the decision on holding the auction selling 51% of the stocks of local mobile operator MTS belonging to state Beltelekom. The auction will take place on December 1, 2011, the starting price is $1 billion. Requests are accepted till November 15, participants should list a deposit in the amount of $50 million till November 28.

For the fact that the auction was declared valid one participant who will offer the price for 5% exceeding starting suffices. The unit of account sets US dollar to avoid speculation on Belarusian ruble exchange rate. The starting price is determined in compliance with assessment of 'Institute of the real estate and assessment'.

In MTS refused comments about the forthcoming auction. The company also does not say how much estimate this asset, but the head of the State Committee of property Georgy Kuznetsov opened the amount offered by Russians: $400-500 million Kuznetsov also supported change of the charter of mobile operator which does not allow the controlling shareholder to make strategic decisions solely.

The source in one of the Russian telecommunication companies doubts that the authorities of the republic will be able to find the buyer for $1 billion. 'In Belarus saturated market and a difficult macroeconomic situation, - the interlocutor of CNews says. - The government just tries to fill at any cost the budget, besides after the price called by Lukashenko in $1 billion the power cannot make the starting price lower in any way'. 'Lukashenko first of all tactics, but not the strategist, - the director of Institute of national strategy Stanislav Belkovsky notes. - Its task now - to shake a situation, to tense passions, and he will make the final decision on the future of an asset in the last 24 hours^[1]'.

• In January, 2014 the Belarusian authorities reduced the starting price of a state share in MTS mobile operator from $1 billion to $863 million. The Russian JSC MTS owning 49% in the joint venture refused participation in an auction because of overestimated, according to him, the prices earlier. However then again confirmed the interest in purchase of the Belarusian asset.