MINSK, Belarus—Belarus has finally given a green light for the biggest Russian carrier, Mobile TeleSystems (MTS), to launch a second GSM network in the country, however, Belarussian red tape delayed the launch for at least three months.
The green light was switched on personally by Belarussian President Alexander Lukashenko, who ordered the government to allow the creation of the MTS joint venture that will operate the network.
MTS won the second GSM license last year and, according to the tender terms, had to create a joint venture with the Belarussian state-run company Mezhdugorodnaya svyaz, which will hold a 51-percent stake in the new carrier. The registration of the MTS joint venture was planned for late 2001, and the network was to be launched into commercial operation on 17 April.
However, the registration stalled in the presidential administration. According to Belarussian laws, if a contribution of a state-owned company into a joint venture exceeds a certain fixed amount, the permission is to be provided personally by the president. Mezhdugorodnaya svyaz has to contribute US$2.55 million in kind, and the figure exceeds the limit.
Now that the Belarussian government is allowed to make the contribution, the joint venture can be registered. MTS spokesman Kirill Maslenitsyn said the license will be issued one to two weeks after the contribution is paid.
MTS is currently holding talks on the postponement of the launch, and the Belarussian Communications Ministry made it clear there will be no problems, as the delay is not MTS’ fault.
The network is to be constructed in three stages. It will first cover the capital of Minsk, then the major industrial cities and will finally expand to 90 percent of the territory of Belarus, which has a population of 10 million. Siemens will supply the equipment.
So far, the only GSM carrier in Belarus is Velcom, which reported 110,000 clients in 2001. MTS’ launch was scheduled for April, as Velcom’s exclusive GSM license expired this month.
