MTS to Hike Tariffs, Won't Introduce Connection Fee"

MOSCOW, Aug 7 (Prime-Tass) -- Russia?s largest mobile operator Mobile TeleSystems (MTS) plans to hike its tariffs for the first minute of an outgoing call instead of introducing connection fees, the company reported Monday.

MTS said earlier that it planned to introduce connection fees between 0.34 rubles and 0.60 rubles, depending on the region, between August 4 and August 21. Instead of introducing connection fees, the company will now hike the tariff of the first minute of a call by the same amount.

The company says it is seeking to make up for projected losses from the abolishment of payments for incoming calls. The Calling Party Pays (CPP) principle was introduced in Russia on July 1.

The fee will be introduced for all tariff plans, excluding the First tariff plan (which already has a connection fee), all corporate tariff plans and tariff plans with unlimited calling, the Profi tariff plans, excluding the Moscow Licensed Area (MLA), MTS.OPEN, Universal and Guest (only in the MLA), MTS said.

The two other Russian leading mobile operators have also decided to amend most of their tariffs after the introduction of the CPP. MegaFon said that it would introduce a connection fee in August, while VimpelCom said that it would introduce a payment for the first three seconds of call if the call lasts more than three seconds. Under Russian law, operators may not charge for calls lasting less than three seconds.

After the operators said that they wanted to introduce connection fees the Federal Antimonopoly Service (FAS) initiated a probe of the operators' actions.

The IT and Telecommunications Ministry said that the connection fees violated the law, as there was no such service as "connection" in the law and it could not be charged separately from basic tariffs. The ministry sent a request to the Federal Service for Communications Oversight asking the service to consider the legality of introducing connection fees.

(26.7710 rubles - U.S. $1)

End"

Posted to the site on 7th August 2006