news
from 08.09.2011
NOTICE ON HOLDING AN AUCTION.
The State Property Committee of the Republic of Belarus notifies of holding an auction for the sale of the share in the authorized fund of the Joint Limited Liability Company Mobile TeleSystems that is owned by the Republic of Belarus and is under operating control of the Republican Unitary Telecommunication Enterprise Beltelecom.
The auction will be held December 1, 2011 at the following address: 12, Krasnozvezdny Pereulok, Minsk.
Organizer of the auction –– the State Property Committee of the Republic of Belarus, 12, Krasnozvezdny Pereulok, Minsk.
| Full and Abbreviated name, Address of the Company | Joint Limited Liability Company «Mobile TeleSystems». (JLLC«Mobile TeleSystems».) Nezavisimosty av., 95, 220043, Minsk |
| Size of authorized fund, Mln. US Dollars | 5,0 |
| Share of RUE Beltelecom, % | 51,0 |
| Selling share, % | 51,0 |
| Initial selling price of the share, Mln. US Dollars | 1 000,0 |
| Size of deposit to be paid to participate in the auction, Mln. US Dollars | 50,0 |
| Deadline for submission of the documents, hour, date | till 16.00 15.11.2011 |
| Time of the auction conduction, hour | 10.00 |
| Beginning of registration of participants, hour | 9.00 |
To participate in the auction for the sale of share of JLLC Mobile TeleSystems at Minsk, per. 12 Krasnozvezdny, office. 401 the following documents shall be submitted:
an application for participation in the auction in the form approved by the State Property Committee; legal entities - residents of the Republic of Belarus - copies of the charter (for a profit organization, acting only on the basis of the foundation agreement – a foundation agreement), which has a stamp indicating holding of state registration, and the certificate of state registration and their originals for certification of the copies by the auction organizer, the power of attorney for a representative of a legal entity (if a legal entity is not represented by the head) or a document confirming the full power of a legal entity (an assignment order of the head, or a certified extract from a decision of the general meeting, board or other management body of a legal entity in compliance with foundation documents, or a contract of employment (a contract), or an appropriate civil law contract); legal entities, other organizations - non-residents of the Republic of Belarus - dully legalized copies of foundation documents and an extract from the trade register of the country of origin (an extract shall be made not earlier than 6 months before the date of application) or other equivalent proof of a legal status in accordance with the laws of the country of origin with a notarized translation into Belarusian or Russian, a dully legalized power of attorney to a representative of a legal entity, other organization and other dully legalized documents with a notarized translation into Belarusian or Russian language; individual entrepreneurs - residents of the Republic of Belarus - a copy of the certificate of state registration and an original for certification of the copy by the auction organizer; individual entrepreneurs – non-residents of the Republic of Belarus – a dully legalized document, confirming the status, with a notarized translation into Belarusian or Russian language; representatives of Belarusian citizens, individual entrepreneurs - residents of Republic of Belarus - a notary certified power of attorney; representatives of foreign physical persons, individual entrepreneurs – non-residents of the Republic of Belarus – a dully legalized power of attorney- with a notary certified translation into Belarusian or Russian language.Upon provision of documents to participate in the auction physical persons, individual entrepreneurs, representatives of individuals, individual entrepreneurs, legal entities or other organizations shall submit an original identity document, and its copy which shall be certified by the auction organizer.
In cases, specified by the law, the documents confirming authorization of transaction by the antimonopoly authority.
The Bidder admitted to participate in the auction and offered the highest price will be recognized as the winner of the auction.
The deposit for participation in the auction shall be paid up to 28 November 2011 in accordance with Deposit Agreement, concluded with the State Property Fund of the State Property Committee of the Republic of Belarus, to the account № 3642974000028 in the Branch №529 «Belsviaz» JSC «Savings Bank «Belarusbank», Minsk, code 720; recipient of the payment – State Property Fund of the State Property Committee of the Republic of Belarus, UNP 102314789.
The Bidder who won the auction is obliged to reimburse the costs of organization and holding of the auction within 3 business days from the date of its conduct.
The Share purchase agreement is concluded by the results of the auction within 20 calendar days from the date of its conduct.
Contact telephone numbers of the State Property Committee: +375 (17) 284 47 00; 284 85 62.
Information about JLLC «Mobile TeleSystems»
Registration and contact details of the Company Full name: Joint Limited Liability Company «Mobile TeleSystems». Abbreviated name: JLLC «Mobile TeleSystems». Address: Nezavisimosty av . , 95, Minsk , 220043, Republic of Belarus. Particulars of registration: The Company is registered in the Single State Register of legal entities and individual entrepreneurs under № 800013732 on the basis of the decision of the Ministry of Foreign Affairs of the Republic of Belarus of 04 April 2002. Internet site: www.mts.by. Director: General Director of JLLC «Mobile TeleSystems» - Karpovich Vladimir Sigizmundovich. Contact details : tel / fax (017) 237 98 00, 237 98 88.General information about the activity of the Company
I. General information about the Company
JLLC « Mobile TeleSystems» was established on April 4, 2002 . The commercial exploitation of a cellular network of JLLC «Mobile TeleSystems» in the Republic of Belarus started on June, 27, 2002. For nine years of operation in Belarus the Company has raised from the newcomer to the leader among mobile operators in terms of subscribers’ base , network infrastructure and radio coverage.
From April 28, 2003, communication is provided to all regional centers of the country, from the end of 2005 – to all district centers. In April 2003, JLLC «Mobile TeleSystems» came in first place among Belarusian mobile operators on a monthly growth rate of subscriber base. From September 2004, JLLC «Mobile TeleSystems» is the largest mobile operator in the country in terms of subscribers’ base, and from the end of 2005 - the operator with the most advanced network infrastructure, that provides high quality communications. Currently MTS’s communications network covers 97.88% of the territory ofthe Republic of Belarus with 99.67% population of the country.
Market share by the quantity of subscribers constitutes 44,3%. Market share by revenue - 46%.
JLLC «Mobile TeleSystems today is not only the largest cellular operator, but also the company, making a significant contribution to the economy of the Republic of Belarus. The company is building a telecommunications infrastructure, which enables economic growth, creates new jobs, pays significant taxes into the budget (one of the largest taxpayers in the Republic of Belarus), takes an active part in social projects.
The main field of implementation of the socially responsible position of MTS is provision to the subscribers of the best quality and advanced telecommunications services at affordable rates for everyone. A special role is given to high technological effectiveness , and often unique character of the offeredservices and products , that is achieved through the active work in frames of the International Group of MTS, as well as partnerships with leading global players of telecommunications market .
Along with telecommunication technologies MTS consciously develops technologies of socially responsible investing.As a member of the UN «Global Compact» MTS conducts in Belarus a number of programs aimed at supporting and developing of national sport, culture, medicine, education and environmental initiatives.
According to the data of MillwardBrown Optimor, MTS is the most expensive brand in relation to other telecommunications operators in Belarus . Moreover in Belarus based on the results of 2005, 2007-2009 years MTS was recognized as the brand of the year in the category «Mobile Operator » and «Responsible brand » of the National contest «Brand of the Year ». Based on the results of 2010 MTS was recognized as the winner in the categories «Active social position » and «Public-private partnership » in the honor nomination «Socially Responsible Brand 2010 » in the National contest «Brand of the Year ».
General types of the activity of the Company
JLLC « Mobile TeleSystems conducts:
а) provision of telecommunications services (main activity , the share in total revenues for July 2011- 91%); b) retail trade ; c) lease of property (sublease); d) other types of activity not prohibited by law .The main consumers of the rendered communications services are legal entities
and individuals requiring cellular mobile telecommunications of GSM standardin the territory of the Republic of Belarus.
Quality Management System
JLLC «Mobile TeleSystems has become the first cellular operator in Belarus , which received a Conformity Certificate of Quality Management System (QMS) to the requirements STBISO9001. The Conformity Certificate is issued by State Committee Certification BGIPK on standardization, metrology and quality management andis registered in the Register of the National System of Conformity Confirmation of the Republic of Belarus on October 29, 2007 under № № BY/112 05.01. 077 01048.
The obtained Conformity Certificate confirms that the company has successfully implemented Quality Management System, which ensures customer satisfaction with the products, services and service of the company, and also confirms the company's activities focus on meeting the expectations of society, employees, investors and partners.
The surveillance audit conducted in 2010 confirmed compliance of the functioning QMS to the requirements of STB ISO 9001.
In 2010 safety management system was developed and successfully implemented in JLLC «Mobile TeleSystems, the Compliance Certificate with the requirements of STB 18001-2009 (OHSAS 18001) under № BY/112 05.04.077 00466 was received.
The Company operates the system of power consumption, developed in accordance with the requirements of State standard of the Republic of Belarus STB 1777.
Special permits (licenses) of the Company
JLLC «Mobile TeleSystems» has a number of special permits (licenses) to carry out specific types of activity :
License of the Ministry of Communications and Informatization of the Republic of Belarus to carry out the activity in the field of telecommunications (issued by a decision of 30.04.2004 № 31, for the period of eight years and is valid till 30.04.2012.It is registered in the Register of licenses of the Ministry of Communications and Informatization of the Republic of Belarus under № 926);
License of the Ministry of Emergency Situations of the Republic of Belarus to carry out activities to ensure fire safety (extended by the decision of 14.05.2010 № 8 km, for the period of five years and is valid till 06.01.2015.It is registered in the Register of licenses of the Ministry of Emergency Situations of the Republic of Belarus under the number 1128);
License of the Operational and Analytical Center under the Administration of the President of the Republic of Belarus to carry out the activity of technical protection of information, including cryptographic techniques, including the use of digital signature (issued by the order of 10.04.2008 № 54, for the period of five years and is valid till 04.10.2013. It is registered in the Register of licenses of the Operational and Analytical Center under the Administration of the President of the Republic of Belarus under № 111).Company’s Trademarks
The company is the right holder of the following trademarks : «RED», «Giper.Net», «Internight», «Nastroy-kа », «Toning». These trademarks are registered in the National Center of Intellectual Property of the Republic of Belarus. Application for registration of the trademark «Absolut» is under consideration.
II. Financial indicators of economic activity of the Company
Financial indicators for 2008
| Indicator | 1 quarter 2008 | 2 quarter2008 | 3 quarter2008 | 4 quarter2008 | Total for 2008 |
| Quantity of subscribers (thousand) | 3 944,62 | 4 026,32 | 4 161,07 | 4 322,48 | 4 322,48 |
| Revenue from the sale of goods, works and services1 (million rubles) | 219 553,34 | 245 786,80 | 262 054,16 | 263 056,45 | 990 450,76 |
| ARPU (USD/subscriber) | 8,75 | 9,58 | 9,98 | 9,60 | 9,49 |
| MOU (min./subscriber) | 503,34 | 473,24 | 473,52 | 473,95 | 480,70 |
| Capital expenditures2 (million rubles) | 37 526,00 | 39 736,00 | 65 890,00 | 73 162,00 | 216 314,00 |
| Tax payments to the budget3(million rubles ) | 62 525,62 | 68 783,09 | 75 225,32 | 95 066,41 | 301 600,44 |
Main Financial indicators for 2009 and 2010
| Indicator | 4 quarter 2010 | 4 quarter 2009 | Change 4 quarter 2010/4 quarter 2009 | 3 quarter 2010 | Change 4 quarter 2010/3 quarter 2010 | 2010 | 2009 | Change 2010/2009 |
| Quantity of subscribers (thousand) | 4 719,79 | 4 563,85 | 3,42% | 4 643,78 | 1,64% | 4 719,79 | 4 563,85 | 3,42% |
| Revenue (million USD)1 | 123,1 | 109,9 | 12,01% | 118,1 | 4,23% | 452,5 | 424,0 | 6,72% |
| ARPU (USD/ subscriber)2 | 7,73 | 7,89 | -2,03% | 7,78 | -0,64% | 7,52 | 7,78 | -3,34% |
| MOU (min./subscriber) | 514 | 464 | 10,78% | 495 | 3,84% | 482 | 464 | 3,88% |
Year 2009
Revenue from the sale 1 at the end of the 4 quarter reached 304214 millions rubles, at the end of the year 2009 - 1185083 millions rubles. Commercial traffic per a subscriber per month (МОU) at the end of 4 quarter constituted 464,41 minutes per a subscriber, at the end of the year 2009 - 463,71 minutes per a subscriber. Average monthly revenue from the sale of services per a customer (ARPU2) at the end of 4 quarter reached 7,89 US dollars, at the end of the year 2009 - US dollars. Capital expenditures 3 for the 4 quarter equaled 25975 millions rubles, for the year 2009 in total - 112428 millions rubles. Tax payments to the budget4 at the end of the 4 quarter reached 64601 millions rubles, at the end of the year 2009 - 254652 millions rubles.Year 2010
Revenue1 of JLLC «Mobile TeleSystems» for the year 2010 increased for 6,72% till $452,5 million. Revenue for the 4 quarter reached $123,1 million. Indicator OIBDA1 at the end of the year 2010 constituted $235,1 millions, at the end of the 4 quarter - $61,4 millions. Margin OIBDA1 comprised in the year 2010 51,96%, at the end of the 4 quarter - 49,83%. Commercial traffic per a subscriber per month (МОU) at the end of the year 2010 constituted 482 minutes per a subscriber, at the end of the 4 quarter - 514 minutes per a subscriber. Average monthly revenue from the sale of services per a customer (ARPU2) at the end of the year 2010 reached $7,52, at the end of 4 quarter this indicator reached $7,73. Capital expenditures3 for the year 2010 equaled 109.083 millions rubles, for the 4 quarter - 39.458 millions rubles. Tax payments to the budget4 at the end of the year 2010 reached 257.499 millions rubles, at the end of the 4 quarter - 64.778 millions rubles.Main Financial indicators for the first quarter of 2011
| Indicators | 1 quarter 2011 | 1 quarter 2010 | Change 1 quarter 2011/1 quarter 2010 | 4 quarter 2010 | Change 1 quarter 2011/4 quarter 2010 |
| Quantity of subscribers (thousand) | 4 752,81 | 4 568,62 | 4,03% | 4 719,79 | 0,69% |
| Revenue (million USD)1 | 119,2 | 102,8 | 15,9% | 123,1 | -3,68% |
| OIBDA2 | 60,5 | 56,0 | 8% | 61,4 | -1,46% |
| -Margin OIBDA | 50,7% | 54,47% | -3,77 п.п. | 49,83% | 0,87 п.п. |
| ARPU (USD/ subscriber) | 7,68 | 7,14 | 7,5% | 7,73 | -0,64% |
| MOU (min./subscriber) | 495,08 | 431,99 | 14,6% | 514 | -3,68% |
| Capital expenditures (million rubles)3 | 32 789 | 15 523 | 111,2% | 39 458 | -16,9% |
| Tax payments to the budget (million rubles)4 | 81 165 | 52 226 | 55,4% | 64 778 | 25,3% |
2 with interconnect, with guest roaming
3 in accordance with the statistical form of the report 2-IS (annual) 4 including custom payment
III. Information about provided services
Key Events in Q1 2011 and later
3G Network Development: MTS mobile Internet was launched in 1,000 population centers of Belarus, services based on mobile Internet from MTS became available to 60% of the population, coverage area of MTS 3G network increased by 25%, mobile Internet traffic within MTS network doubled. Initiation of LTE Network Testing and its successful completion in May 2011. Network segment deployed as part of the LTE Testing Project was brought as close as possible to the existing commercial network that allowed evaluating reasonably qualitative performance of 4G network. LTE technology fully proved its efficiency and announced data rates. Development of the Operator’s Sales Network. As of March 31, 2011 there are 617 retail points under the brand name MTS, 48 of which are the own MTS Customer Care Centers (four of them started operation in the 1st quarter).Key events for the year 2010
3G Network Development: in September 2010 MTS “third generation” network with HSPA+ technology support was launched into commercial operation. As of the launch date the coverage area of MTS 3G/3G+ Network included Minsk and five regional centers. Over the next four months services based on the “third generation” network became available to residents of 32 other Belarusian cities, coverage area of MTS “third generation” network by the end of 2010 increased nearly twice, high-speed mobile Internet services from MTS became available for over 50% of the population of Belarus.
Wi-Fi Technology: in 2010 MTS became the first among cellular operators to launch into commercial operation wireless Internet network based on Wi-Fi technology. Within a year the company installed over 500 access points to wireless broadband Internet throughout the country and introduced new more convenient billing tools. Mobile Internet: during 2010 Internet traffic within MTS networks of Belarus increased seven times. Development of the Operator’s Sales Network.Throughout the year there was an intensive development of MTS Customer Care Center’s network. During 2010 the network of MTS salons increased by over 20%, for the present moment it includes 1735 salons, Customer Care Centers and sales points of commercial representatives in 724 population centers of Belarus. MTS Customer Care Centers and sales points of commercial representatives started their operation in 176 more settlements. Subscriber Base Growth: in 2010 there was a substantial growth of MTS subscriber base on the corporate communication market — the number of client organizations increased by more than 1.5 times; subscribers’ number within the corporate segment also increased by more than 1.5 times. By the end of 2010 the number of MTS customers comprised 86 enterprises from among the hundred largest taxpayers in the country. Extension of the Network Technical Infrastructure. Due to the active extension of the network technical infrastructure MTS communication became available to 111 more settlements of Belarus and covered the territory with population of more than 99.7% of the country’s population. MTS pays special attention to the network development in rural areas of the country. MTS access area covers all settlements included into the State Program of Village Rebirth and Development for the years 2005 — 2010, — 1481 agricultural towns. Roaming: in 2010 the company provided its subscribers roaming services in the networks of 419 operators in 172 countries, GPRS-roaming services — in 306 networks of 136 countries. Value-Added Services: the range of the value-added services provided by the operator was added by such innovative services as unlimited mobile Internet, «Live balance», «Outgoing Toning», «Corporate toning».Key Events for the year 2009
3G Network Development: JLCC MTS was allocated a radio frequency spectrum for the construction and operation of the new generation network. In 2009, the planned work was carried out to upgrade the network towards HSPA +. Wi-Fi Technology: In 2009, MTS was the first cellular operator in Belarus to launch a test network of wireless access using Wi-Fi technology. Development of the Operator’s Sales Network: During the year, work continued to bring the service to the location of the user as close as possible, to make the service more comfortable and timely through intensive extension of the network of sales and service. On the basis of the results of this year, this network included 1,442 salons, customer care centers and sales points of commercial representatives in 548 settlements of Belarus. Subscriber Base Growth: In 2009, the company's subscriber base surpassed the mark of 4,560,000 users. This year was characterized by a significant growth in sales in the segment of corporate clients: the number of organizations served in this segment increased by more than 1.5 times, the number of subscribers increased by more than 2.5 times. By the end of 2009, 78 enterprises from among the hundred largest taxpayers of the country were the customers of MTS. Extension of the Network Technical Infrastructure. The services of MTS became available to residents of nearly 740 more settlements in Belarus and covered the territory which population amounted to more than 99.44%. During the past year, MTS put into operation 240 new base stations. As a result of the large amount of work carried out, the capacity and throughput increased and the radio coverage of the country hit record highs - it was extended for the year by 3.72% to reach 97.17% of the territory of Belarus. The access area of MTS covered more than a thousand of agricultural towns; over the year 2009, 251 new agricultural towns were provided with the service. Roaming: Abroad, the company offered roaming in 370 guest networks in 164 countries and territories. Subscribers could also use GPRS-roaming services in 246 guest networks of 120 countries and territories. Value-Added Services. The growing range of value-added services was replenished by such innovative services as "Sem`ya pod prismotrom”, "Podelis` balansom”, “Za moi schyot", "Avtooplata", "MuzAgent», iPay. Various bank payment systems, MTS USSD-portal *111# , and wap-portal: wap.mts.by were dynamically developed.IV. Running (implemented) investment projects
Since 2002 the Company has been implemented the investment project for construction and development of cellular mobile telecommunications network in the Republic of Belarus.Since the beginning of the project the coverage of 97,88% of the territory of the Republic of Belarus was provided, 4435 2G base stations were built . In the 2-d quarter of 2010 implementation of the standard of the new generation of the cellar mobile communications 3G with HSPA technology (implemented on the base of UMTS technology) was provided. 1043 3G base stations were built . Intensive expansion of this technology on network elements is continued.
Information of investment assimilation in the frames of implementation
of this investment project is given below . Data is provided in accordance with the methodology of statistical reports 4-IS, 6-IS «Report on commissioning of the facilities, fixed assets and use of permanent investments».
| Investment project | 2008 fact, mln. rubles | 2009 fact, mln. rubles | 2010 fact, mln. rubles | 2011 fact, (6 months ) mln. rubles | 2011 forecast, mln. rubles |
| The development of cellular mobile telecommunication of GSM / UMTS standards | 239 684 | 112 428 | 109 083 | 91 271 | 266 512 |
Due to the economic conditions significantly changed in 2011 the long-term development plans of JLLC «Mobile TeleSystems» formed in 2010 become irrelevant. New business plan for 2012-2014 is currently under development. A list and indicators of investment projects planned for implementation will be determined by the decision of the founders, and depending on the conditions generated by the regulator to implement strategic projects in the telecommunications industry.
V. The structure of works (services) implementation
|
Structure (%) |
2008 |
2009 |
2010 |
1 -st half of 2011 |
|
Domestic market |
97,6 |
97,8 |
97,3 |
95,8 |
|
External market |
2,4 |
2,2 |
2,7 |
4,2 |
|
Total |
100 |
100 |
100 |
100 |
VI. Information about plots of land plots in use, lease, ownership
| Location of the land plot | Square, ha | Right (permanent/temporary use, lease, ownership) | Act of land plot ownership |
| Nezavisimosty av. 95, Minsk | 0,0007 | Permanent use | Contract of leas of the land plot of 30.03.2010. |
| Nezavisimosty av. 95, Minsk | 0,1377 | Lease of the land plot | Certificate № 500/718-5120 of 26.02.2009 |
| Stroiteley av. 8/2, Vitebsk | 0,1895 | Lease of the land plot | Certificate № 200/1041-288 of 31.08.2009 |
| Lenina str. 73, Orsha | 0,0095 | Permanent use | Certificate № 240/654-972 of 10.10.2007 |
As of 26.08.2011 JLLC «Mobile TeleSystems» owns under the right of lease 499 land plots and under the right of permanent use – 878 land plots for location of 575 telecommunications towers and 152 antenna support and other communications installations.
VII. Information about permanent structures (buildings, constructions)
| Name (purpose), address | Year built | Number of floors | Square Sq. m. | Square in lease, Sq. m., term of lease agreement | General condition |
| Building, Nezavisimosty av. 95, Minsk | 1962 | 4 | 3673,4 | - | Reconstruction is required |
| Uninhabited premises, Nezavisimosty av. 95, Minsk | 1989 | 12 | 18,3 | - | Satisfactory |
| Building, Stroiteley av. 8/2, Vitebsk | 2009 | 3 | 1569,1 | 1 sq.m. 21.02.2011-21.02.2016 14,6 sq.m. 20.08.2010-20.08.2015 | Current repair is required |
| Uninhabited premises (part of property in arch of a residential building), Lenina str. 73, Orsha | 2007 | 9 | 71,6 | 1 sq.m. 21.02.2011-21.02.2016 8,18 sq.m. 26.05.2009-26.04.2012 | Satisfactory |
| Official flat, Chorny per. 4, fl. 43, Minsk | 1968 | 5 | 83,1 | - | Satisfactory |
| Official flat, Chekhova str. 3, fl.63, Minsk | 2003 | 9 | 136,1 | - | Satisfactory |
As of 26.08.2011 JLLC «Mobile TeleSystems» owns 575 telecommunications towers.
Information is provided as of 24.08.2011 and 26.08.2011
