MTS Won't Bid for Bosnian Operator Telekom Srpske

MOSCOW, Oct 24 (Prime-Tass) -- Russia's largest mobile operator Mobile TeleSystems (MTS) does not plan to bid in a tender for a 65% stake in Bosnia and Herzegovina's Telekom Srpske telecom operator, Kirill Alyavdin, MTS' press secretary, told Prime-Tass Tuesday.

Sistema Telecom, the telecommunications arm of AFK Sistema, MTS' controlling shareholder, said earlier that it would look into participating in the tender.

The government of Republika Srpska, one of two entities of Bosnia and Herzegovina, announced an international tender for 65% in the operator in August. The bids are accepted until November 4.

The company that purchases Telekom Srpske will have to invest 50 million euros in the company's development within 12 months after the purchase.

About 11 companies, including Norwegian telecommunication company Telenor, Serbia's Telekom Srbije, Hungary's Magyar Telekom, are interested in participating in the tender, according to the news media in Bosnia and Herzegovina.

Telekom Srpske's revenue stood at 176.6 million euros in 2005. It had 344,470 fixed-line and 571,780 mobile subscribers.

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Posted to the site on 24th October 2006