Russia's Altimo Buys Kyrgyz Co with GSM Mobile License

MOSCOW, June 29 (Prime-Tass) -- Russia's Altimo, the telecommunications arm of Alfa Group, has purchased a 100% stake in Sky Mobile, which holds a GSM mobile license for the entire territory of Kyrgyzstan, Altimo said in a press release Thursday.

The stake was purchased from Katel, which operates in the DAMPS mobile standard, Altimo said without providing the financial details of the deal.

Sky Mobile does not currently provide mobile services. Altimo's Vice President Kirill Babayev said that Altimo plans to work out an investment program to build a network in Kyrgyzstan soon.

Mobile penetration in Kyrgyzstan amounts to 14%. As of February 1, GSM operator Bitel had 510,000 users, Katel had 35,000 users and CDMA operator Fonex had 15,000 users.

Meanwhile, Russia?s largest mobile operator Mobile TeleSystems (MTS) purchased a 51% stake in Kyrgyzstan?s largest mobile operator Bitel in late 2005, but the purchase was challenged by little-known Russian company Rezervspetsmet, reportedly linked to Altimo. At the moment, Rezervspetsmet has operating control over Bitel, while MTS is seeking to regain control over the leading operator in courts.

In late April, BiMoCom launched GSM services in Kyrgyzstan under the MegaCom brand name. Two Russian businessmen, Vladimir Androsik and Dmitry Ivanter, are reported to be behind BiMoCom. Russia?s third largest mobile operator MegaFon has provided consultations and technical support to the operator.

Altimo holds a controlling stake in MegaFon and is one of the two key shareholders in Russia?s second largest mobile operator VimpelCom.

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Posted to the site on 29th June 2006