Mobile TeleSystems OJSC (MTS), the largest mobile phone operator in Russia and the CIS, announces that the Company received a 3G (UMTS) license in Uzbekistan.

The Communications and Information Agency of Uzbekistan allocated a 3G license to MTS Uzbekistan. The license is valid for the entire territory of the country and is valid until the end of 2016.

MTS is planning to begin developing its 3G network in Uzbekistan this year after completing a tender to choose an equipment supplier.

The 3G network will compliment the existing GSM network in the country. Subscribers finding themselves outside the 3G network’s coverage will automatically switch to GSM network.

"We welcome the decision of the Communications and Information Agency of Uzbekistan to allocate the Company a 3G license. MTS is a leader in the country’s wireless market and plays a vital part in the development of the telecommunications market in Uzbekistan. The launch of 3G will allow subscribers to use high-tech and innovative services coupled with high service quality and level of customer service," commented President and CEO of MTS, Leonid Melamed.

3G network will be launched in the major cities, where there is effective demand and a need to increase network capacity. The company is planning to launch its 3G network in 2008 in Tashkent followed by Samarkand, Bukhara and Andijan.

"Currently the development of traditional Internet technologies is limited by the low fixed-line penetration levels. Therefore, broadband access to the Internet and new services using 3G will satisfy the increasing needs of the country’s subscribers," highlighted Head of MTS Uzbekistan, Bekhzod Akhmedov.

Mobile TeleSystems OJSC (MTS) is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the company services over 61.77 million subscribers. The regions of Russia, as well as Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of approximately 233.1 million. Since June 2000, MTS’ Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT).