PRESS: Russia's MTS Files Bid for GSM License in Egypt

MOSCOW, Mar 13 (Prime-Tass) -- Russia?s largest mobile operator Mobile TeleSystems (MTS) has filed an application to participate in the auction of a third GSM license in Egypt, MTS' spokeswoman Galina Istratova said, Vedomosti business daily reported Monday.

MTS paid U.S. $25,000 to participate in the auction, Istratova said, adding that the starting price for the license is set at $430 million. The company that obtains the license would have to give 3% of its revenue to Egypt's government, she added.

The deadline for submitting technical applications is April 17 and the auction is to be held in June, Vedomosti reported.

MTS' President Vasily Sidorov said that MTS has good chances to win the auction, adding that the company plans to cooperate with some local companies. "It will considerably expand our opportunities," he told the daily. The local regulator plans to give priority to applications filed jointly by foreign and local companies, Vedomosti said.

"Although the auction is likely to be quite competitive, MTS has a higher chance of winning in our view, given that what are probably the two most aggressive players in the region - Vodafone Egypt and MobiNil - are already present in the Egyptian market," Deutsche UFG said in a research note Monday.

Mobile penetration in Egypt, which has a population of about 70 million people, stands at 15%. Average revenue per user (ARPU) amounts to $15-$16, Vedomosti reported.

The subscriber base of Russia?s largest mobile operator Mobile TeleSystems (MTS) stood at 61.687 million people as of January 31, Advanced Communications & Media (AC&M) said Thursday. MTS operates in Russia, Belarus, Ukraine, Uzbekistan and Turkmenistan.

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Posted to the site on 13th March 2006