Tag Archives: telecoms

MTS’s fortunes in Uzbekistan fluctuates wildly

JULY 30 2012 (The Conway Bulletin) – The fortunes of MTS, the Russian mobile operator, in Central Asia have been fluctuating wildly.

On July 26, Turkmen officials reinstated its licence, after a 19 month break. Meanwhile in neighbouring Uzbekistan, officials said they would lengthen the suspension of MTS’s mobile operator licence to 90 days (from an original 10 day suspension from July 17) while it investigates allegations of tax evasion. MTS has denied the allegations and accused Uzbekistan of trying to grab assets.

As a correspondent reports for The Conway Bulletin in the accompanying Correspondents’ Notebook, thousands of Uzbeks have queued through the heat to exchange SIM cards at MTS’s rivals.

MTS has played a patient game in Turkmenistan, where it had held an 85% market share, and got what it wanted — its licence back. Now it has to play another game in Uzbekistan.

The fallout for MTS and Uzbekistan has only just started but it’s likely to be costly for both sides. German car maker Daimler has just pulled out of a proposed joint-venture in Uzbekistan. The timing of its withdrawal could, of course, be a coincidental.

ENDS

(News report from Issue No. 099, published on Aug. 3 2012)

Siemens wins contract in Turkmenistan

JULY 24 2012 (The Conway Bulletin) – Siemens, the German industrial conglomerate, has won a contract to update the Turkmen government communication systems, Turkmenistan’s state media reported. Reports did not reveal the cost of the contract. Turkmenistan, made wealthy by gas exports, has become a lucrative client for Western businesses.

ENDS

(News report from Issue No. 098, published on July 27 2012)

Russia steps into MTS row in Uzbekistan

JULY 25/26 2012 (The Conway Bulletin) – Russia’s government stepped into the row between Uzbekistan and Russian mobile operator MTS. It sent a formal note to the Uzbek government noting its concern over the arrest of a handful of MTS executives for tax evasion. In Turkmenistan, MTS said it had resumed operations after being thrown out in Dec. 2010.

ENDS

(News report from Issue No. 098, published on July 27 2012)

Uzbekistan suspends MTS’s licence

JULY 17 2012 (The Conway Bulletin) – The authorities in Uzbekistan formally accused Russian mobile provider MTS of violating the terms of its contract and suspended its operating licence for 10 days.

MTS, which is listed on New York’s stock exchange and operates under the Uzdunrobita brand, denies any wrong-doing and has accused the Uzbek government of trying to steal the company.

The case against MTS appears to boil down to not paying enough taxes. Earlier this month, police in Tashkent arrested a handful of senior Uzdunrobita executives, although the Uzdunrobita CEO had already fled to Moscow, and accused them of tax evasion.

Uzdunrobita is small-fry for MTS. It may have 9.5m subscribers in Uzbekistan but its revenues account for just 3.5% of MTS’s total turnover.

For both sides the row, which has been played since the end of June, is negative publicity.

This is the second time in 18 months that MTS has lost an operating licence in Central Asia. Last January, the Turkmen authorities scrapped a licence and although it has manoeuvred itself into a position to resume operations, MTS is still currently frozen out of Turkmenistan.

Either MTS has become careless or it’s being bullied. For Uzbekistan, whether it has a strong case or not, the row worsens its already tarnished business image.

ENDS

(News report from Issue No. 097, published on July 20 2012)

MTS pulls out of Uzbekistan

JULY 10 2012 (The Conway Bulletin) – Russian mobile operator MTS temporarily shut down some of its operations in Uzbekistan after the authorities accused it of tax evasion, media reported. MTS, which has 9m subscribers in Uzbekistan, says the accusations are untrue and that the authorities are trying to pressure it into relinquishing control of the company.

ENDS

(News report from Issue No. 096, published on July 13 2012)

Uzbek authorities detain MTS’s officials

JULY 6 2012 (The Conway Bulletin) – Uzbek police detained several senior officials at the local unit of Russian mobile operator MTS for allegedly not paying enough tax, the company said in a statement. MTS denied the charges and said the investigation may force it to close its operations in Uzbekistan where it has 9m subscribers.

ENDS

(News report from Issue No. 095, published on July 6 2012)

Uzbek authorities warn Russian telecoms

JUNE 25 2012 (The Conway Bulletin) – The Uzbek authorities warned Russian mobile telecoms provider MTS it may revoke its licence. They said MTS, which has around 9.5m subscribers in Uzbekistan, was providing deteriorating quality and illegally using base stations. Foreign businesses have previously accused the Uzbek government of taking over successful companies.

ENDS

(News report from Issue No. 094, published on June 29 2012)

MTS returns to Turkmenistan

MAY 3 2012 (The Conway Bulletin) – Bringing an end to an 18-month long dispute that soured relations between Turkmenistan and Russia, the chairman of Russian mobile operator MTS, Vladimir Yevtushenkov, announced on Turkmen TV that a deal had been made to allow it back into the country. MTS had been the biggest mobile operator in Turkmenistan before it lost its licence in Dec. 2010.

ENDS

(News report from Issue No. 086, published on May 4 2012)

SIM card market opens up in Turkmenistan

Azerbaijan ready to award new 3G licences