OREANDA-NEWS. July 17, 2012. Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications operator in Russia and the CIS, announces that The Federal Service for Supervision in the Sphere of Communications, Information Technologies and Mass Media (Roskomnadzor) has allocated MTS the necessary license and frequencies to provide LTE telecommunication services in Russia.

On July 12, 2012, Roskomnadzor announced the results of the tender for the allocation of LTE licenses in Russia. MTS was one of four recipients and has been awarded 798.5-806 MHz block and 839.5-847 MHz block in the 791-862 MHz range. In accordance with the decision of the State Commission for Radio Frequencies from September 8, 2011, and the conditions of the tender, MTS will also be allocated 2540-2550 MHz and 2660-2670 MHz blocks in the 2500-2690 MHz range, 720-727.5 MHz and 761-768.5 MHz blocks in the 720-791 MHz range. Overall, MTS will receive 2*25 MHz to launch its LTE network in the FDD (frequency division duplexing) standard.

Previously in early 2012, Roskomnadzor awarded MTS a license for provision of communication services under the LTE TDD (time-division duplexing) standard in Moscow and Moscow region in the 2595-2620 MHz range. In accordance with the decision of the regulator, commercial launch of the network now becomes possible after the publication of the results of the tender for nationwide LTE FDD licenses.

Under the terms and conditions of the nationwide LTE FDD tender, each recipient of a license is obligated to fully deploy LTE networks within seven years, starting from January 1, 2013. Each recipient is committed to delivering LTE services in each population center with over 50,000 inhabitants in Russia by 2019. Likewise, each operator is obligated to invest at least 15 billion rubles annually toward the LTE roll-out until the network is fully deployed.

Andrei Dubovskov, MTS President and CEO, commented, "The results of the tender will usher in a new era in the development of the telecommunications industry in Russia. The deployment of "fourth generation" networks will increase Russia’s connectivity and foster the development of the country’s economy. We are planning to start rolling out LTE networks ahead of schedule in order to deliver high-speed Internet to customers in Russia’s largest cities early next year. Completion of the competition also enables us to launch commercially our first LTE TDD network in Moscow and the Moscow region using the frequencies in the 2595-2620 MHz range.”

The license now allows MTS to launch LTE services in its third market of operation. Since 2010, MTS has operated LTE networks in Armenia and Uzbekistan.