OREANDA-NEWS. Mobile TeleSystems OJSC, the largest mobile phone operator in Russia and the CIS, announces allocation of frequencies to offer 3G (UMTS) services in Armenia, MTS' press service reported. The Public Services Regulatory Commission of the Republic of Armenia has allocated the frequencies to K-Telecom, MTS' 80%-owned subsidiary. These frequencies will allow MTS to offer high-speed mobile voice and data services throughout the territory of Armenia. The allocation is valid for a 10-year period. K-Telecom is licensed to offer 3G (UMTS) services.

Oleg Raspopov, Acting Vice-President, Head of Business Unit MTS Foreign Subsidiaries, remarked: "The opportunity to bring exciting 3G products and services to our subscribers in Armenia will only strengthen our leadership position in this market. Given our 3G efforts in Russia and Uzbekistan, we aim to leverage the full scale of the Group capacities in our deployment of 3G throughout our markets of operation."

K-Telecom, operating under the VivaCell brand, is the largest wireless operator in Armenia. As of July 1, 2007, K-Telecom had more than 986,000 subscribers and a market share of 66%. In 2006, revenues of K-Telecom amounted to $104.1 million, OIBDA to $57.8 million (54.4% margin), ARPU was $15.61. The company has 54 service centers, more than 3,000 outlets and 750 employees. Mobile penetration in the country is around 39.2%. There are two GSM operators in the country.