Turkmenistan Government Outlines Reasons for MTS Network Shut-Down
Published on: 8th Mar 2011
Note -- this news article is more than a year old.
The Turkmenistan government has hit back at Russia's MTS following reports that the Russian mobile network is warning investors to avoid the country. Late last year, MTS's network in Turkmenistan was shut down by the government after it decided not to renew a 5 year agreement with the company.
In a statement, the Ministry of Foreign Affairs of Turkmenistan claimed that MTS had charged "unreasonably high tariffs" and failed to reinvest sufficient levels of its profits back into the Turkmen network. The government therefore decided to terminate the operating license, and says that it offered to buy the network assets from MTS.
MTS has been operating in Turkmenistan under a trilateral agreement signed in November 2005 by BCTI, MTS and the Ministry of Communications of Turkmenistan, which expired on December 21 2010. The company said that at all times had reasons to believe that the Agreement would be extended and had approached the Ministry of Communications within the required timeframe to formalize the extension.
According to the Mobile World analysts, MTS had just under 2.4 million subscribers at the end of September. It's market share is nearly 80%, so the shut-down is having a serious impact on mobile services in the country.