MOSCOW-The biggest Russian carrier Mobile TeleSystems (MTS) is negotiating a place in the telecom market of the former Soviet republic of Armenia, where the national operator is likely to lose its wireless monopoly next month.
“Currently MTS is conducting negotiations and will most likely make proposals to develop mobile communications in Armenia,” said Vladimir Rudashevsky, an aide to the board chairman of the Sistema Financial Corporation, which is a major shareholder of MTS.
The local ArmenTel operator enjoys both landline and wireless communications monopolies, however, the latter expires in October. Earlier this year, Armenian President Robert Kocharyan said other investors may be allowed into the national telecom market.
Rudashevsky told Prime-TASS business news agency that MTS was set to enter the Armenian market even if ArmenTel preserved its monopoly. “Cooperation can be both in the form of stock exchange and in the use of modern technologies. MTS has the necessary technologies, and it is much cheaper to access them through us rather than buy them,” he said.
ArmenTel stockholders include the Greek Hellenic Telecommunications Organizations (OTE) (90 percent) and the republican government, which is rumored to be planning the sale of its 10-percent stake. ArmenTel had 45,000 clients in June 2002 and plans to invest US$39.4 million in its GSM 900 MHz network development in the near future to expand the capacity to 200,000 customers.
Russian media reported that Finnish Sonera and Russian Rostelecom are also eyeing Armenia with a population of 3.8 million people.
Besides Armenia, MTS’ interests in the Commonwealth of Independent States (CIS), which unites 12 former Soviet republics, include Belarus, where it launched this year, and Moldova, where the carrier is eyeing a third GSM license.
