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Uzbekistan Authorities Seize MTS Network Assets
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Government authorities in Uzbekistan have ordered the seizure of assets held by Russia based MTS as part of an ongoing dispute between the mobile network and the government.
Last month, a court in Uzbekistan has canceled all of MTS's operating licenses following a dispute over a US$900 million tax claim.
Four local managers have also been arrested by the authorities, and MTS alleges that some of the employees' testimonies in the court case were obtained under pressure from the prosecution.
MTS said that it believed the move was an attempt to strip what was Uzbekistan's largest mobile operator of its assets before appeals can be held.
It "clearly shows the biased nature of the prosecution and the aim of the Uzbek authorities to carry out a illegal seizure of MTS's business in the shortest possible time," the company said in a statement.
MTS's local company, Uzdunrobita had a 40 percent share of the country's 25 million-subscriber mobile-phone market before it was hit by charges of fraud and a slew of other financial crimes last month.
The closure of the network has also had a significant impact on the country's mobile phone users, who are struggling to get connections with the state-owned rival. The seizure of MTS assets could be a way for the state operator to boost its network capacity in the short term.
MTS has written off the value of its assets in the country to the value of US$1.1 billion, although it is still appealing the closure order.
Tags: [mts] [Uzbekistan]
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