MOSCOW-Russia finally returned cellular frequencies to two major carriers after Communications Minister Leonid Reiman canceled the orders stripping Mobile Telesystems (MTS) and Vimpelcom (BeeLine) of the spectrum.
Earlier, Reiman suspended the orders of the frequency control agency Gossvyaznadzor that annulled the permission to use the frequency bands beginning Nov. 1. In a letter to Prime Minister Mikhail Kasyanov, he later said the orders had been canceled altogether.
MTS thus retained the GSM frequencies mostly used for cellular phones in subways, while BeeLine kept two-thirds of its frequencies in the GSM 900 MHz band.
The scandal erupted after the General Headquarters of the Russian army said it had been unlawfully stripped of some frequencies in favor of the carriers. But Reiman said in the letter it was in his ministry powers to distribute the frequencies, thus confirming the bands had been assigned lawfully.
MTS and BeeLine suspected the frequencies were intended for the Finnish Sonic Duo company, which quite unexpectedly received the status of a third GSM operator in Moscow earlier this year.
Now it is believed additional frequencies may be provided in the 880 MHz to 890 MHz band, which is also currently occupied by the military. Experts say the decision can be passed in the second quarter of 2001.
Besides Sonic Duo, Mobile Cellular Communications (MCC) also plans to launch a GSM service in Moscow.
