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MTS Launches 3G Networks in All Markets of Operation

November 3, 2010

MOSCOW, November 3, 2010 /PRNewswire-FirstCall/ — Mobile TeleSystems
OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia
and the CIS, announces the commercial launch of its 3G network in
Turkmenistan that completes the deployment of “third generation” networks in
all markets of operation of the MTS Group. Today, MTS offers high-speed
mobile Internet access is available to residents and visitors throughout
Russia, Uzbekistan, Ukraine, Belarus, Armenia and Turkmenistan.

In Russia, the Company’s 3G network was launched in May 2008. Mobile
broadband is now available to MTS subscribers in more than 360 cities across
the country. In Ukraine, MTS’ CDMA network provides data transfer rates of up
to 3.1 Mbps and covers more than 200 regional centers. In Uzbekistan, MTS
launched its 3G network into commercial operation in December 2008 and now
provides coverage in Tashkent, Samarkand, Bukhara, Urgench and Khiva. The
employed HSDPA technology delivers data transfer rates of up to 3.6 Mbps
enabling innovative services such as video calling. The first VivaCell-MTS 3G
network was launched in April 2009 in the three largest Armenian cities -
Yerevan, Gyumri and Vanadzor. The HSPA/UMTS technology in Armenia provides
for data transfer speeds of up to 7.2 Mbps with the MTS network covering
about 93% of population in 650 localities. In Yerevan, the network is based
on the more advanced HSPA+ technology that allows for speeds of up to 21.6
Mbps.

In Turkmenistan, MTS’ 3G network currently covers the center of Ashgabat,
the capital city of the republic, as well as the surrounding area of the
international airport. MTS Turkmenistan subscribers will be able to access
Internet with download speeds of up to 21 Mbps and upload speeds of up to 11
Mbps. The Company plans to launch its 3G network in Turkmenbashi City in the
near future and will continue the build-out so as to cover all of the
provincial centers.

“The commercial launch of the HSPA + 3G network is a major milestone for
MTS Turkmenistan and MTS Group as a whole. MTS is now offering its
subscribers a qualitatively new level of broadband Internet access and data
sharing. The significant increase in mobile Internet usage in countries with
3G coverage indicates that there is a great demand for broadband Internet
access that creates a powerful incentive for the further development of
innovative technologies. We plan to expand our next-generation networks,
increase coverage areas and provide innovative services with the aim of
enhancing possibilities for mobile communications in all countries where we
operate,” commented Oleg Raspopov, MTS Vice President and Head of Business
Unit “MTS Foreign Subsidiaries”.

Total capital expenditures (CAPEX) of the MTS Group in the first half of
2010 amounted to $566 million. The Company expects an increase in CAPEX in
the second half of 2010 and maintains its previous CAPEX guidance of 22-24%
of revenue for the full year 2010.

Learn more about MTS. Visit the official blog of the Investor Relations
Department at http://www.mtsgsm.com/blog/

Mobile TeleSystems OJSC (“MTS”) is the leading telecommunications group
in Russia, Eastern Europe and Central Asia, offering mobile and fixed voice,
broadband, pay TV as well as content and entertainment services in one of the
world’s fastest growing regions. Including its subsidiaries, the Group
services over 105.2 million mobile subscribers in Russia, Ukraine,
Uzbekistan, Turkmenistan, Armenia and Belarus, a region that boasts 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 the MTS Group can be found at http://www.mtsgsm.com.

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 undertake or 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, the severity and
duration of current economic and financial conditions, including volatility
in interest and exchange rates, commodity and equity prices and the value of
financial assets; the impact of Russian, U.S. and other foreign government
programs to restore liquidity and stimulate national and global economies,
our ability to maintain our current credit rating and the impact on our
funding costs and competitive position if we do not do so, strategic actions,
including acquisitions and dispositions and our success in integrating
acquired businesses, including Comstar-UTS, 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, governmental regulation of the telecommunications industries
and other risks associated with operating in Russia and the CIS, volatility
of stock price, financial risk management and future growth subject to risks.

SOURCE Mobile TeleSystems OJSC


Source: newswire