MTS Uzbekistan
Uzdunrobita was the largest mobile phone operator in Uzbekistan in the 1990s and 2000s. Uzdunrobita was founded in 1991, as a joint venture between a group of American investors, the International Communications Group, with a 45% stake; and the government of what was then the Uzbek Soviet Socialist Republic, with a 55% stake. When Uzbekistan declared independence several weeks later, the registration of the joint venture was shifted from Moscow to Tashkent, with the government stake taken over by the independent Uzbek government.[25]
The company first turned a profit in 1993. By 1996, it had $50 million in annual revenues, 7,000 subscribers, and employed 224 staff.[25] Gulnora Karimova gained control of the firm in the late 1990s or early 2000s,[26] and by 2005 it was 74% owned by Russia's MTS, which paid $121 million for the stake.[27] In 2006 it was reported to have 250,000 subscribers, ahead of Daewoo Unitel, which had 100,000, and some much smaller firms.[28]
The company launched an LTE network on 2.6 GHz in July 2010,[29] and received a license to expand it on 700 MHz in December 2010.[30]
The brand UMC in Uzbekistan existed until mid-2007, when a major rebranding campaign took place, transforming UMC into MTS. In July 2012, authorities in Uzbekistan announced the suspension of the operating license of MTS's subsidiary Uzdunrobita. Officials argued that MTS-Uzbekistan has been responsible for a series of technical violations, and its operations have been suspended beginning on the evening of 17 July. According to the MTS, the suspension could affect millions of Uzbek mobile phone users. An MTS statement said the firm has some 10 million clients among Uzbekistan's population of 28 million.[31]
In August 2012, the government of Uzbekistan revoked the company's operating license and arrested several of its top management, citing repeated regulatory violations. MTS protested the action as a "shakedown", but was unable to oppose it effectively, and moved to write down its stake.[32] After the case in September 2012, the company's assets were seized, and some of its executives sentenced to prison terms.[33]
The Russian Foreign Ministry reacted and declared that Russia was concerned about the situation with Mobile TeleSystems' Uzbekistan subsidiary Uzdunrobita, after Uzbek authorities suspended the mobile operator's license and put a senior official into custody. The dispute, which analysts fear may lead to MTS exiting the market, erupted at the beginning of 2012 when Uzbek authorities launched a nearly $1.3 million back-tax claim against MTS. MTS said in an emailed statement that the actions of the Uzbek authorities may be interpreted as "baseless attacks on the business of the Russian investor".[34] However, in 2019, The United States Department of Justice charged the firm for bribery to secure contracts in Uzbekistan. MTS agreed to pay a penalty of $850 million.[35][36]
MTS Turkmenistan
On 25 July 2012, MTS signed an agreement with the Turkmentelecom enterprise of the Ministry of Communications of Turkmenistan, which says that MTS Turkmenistan will, every month, pay to Turkmentelecom 30% of its net profit derived from operations in Turkmenistan. This agreement is for a term of five years and may be extended for an additional five years, subject to certain conditions. The company has also been granted GSM and 3G licenses for a three-year term.[37]
MTS Turkmenistan in September 2017 faced the potential termination of its permit to use the dedicated radio frequency spectrum and other required resources. The provision of communication services to subscribers in Turkmenistan was suspended due to a network shutdown and the absence of a successor.[4] As of 2016, MTS-Turkmenistan had reached its peak with 1.7 million subscribers.[4]
MTS India
In 2008, Sistema formed a 74:26 joint venture with India's Shyam Group to form Sistema Shyam Teleservices (SSTL), and acquired a pan-India licence to provide CDMA services in the country. In March 2009, SSTL launched the MTS India brand in the state of Tamil Nadu, followed by neighbouring states Kerala and West Bengal in April and May, respectively. Following the cancellation of its licences by the Supreme Court of India, MTS is present in 9 circles out of 22 telecom circles of India. MTS India was acquired by Reliance Communications (RCom) on 14 January 2016 in an all-stock deal, in which SSTL received a 10% share in RCom. SSTL was merged into RCom on 31 October 2017.
MTS Ukraine
On 31 October 2008, Vodafone announced a partnership deal with MTS, whereby Vodafone services will be available to MTS subscribers, and both companies have noted the potential for more efficient purchasing, starting with operations in Ukraine.
In October 2015, Mobile TeleSystems and Vodafone expanded their strategic partnership; this resulted in the rebranding of MTS Ukraine to Vodafone Ukraine.[38] MTS sold its Ukraine operations in 2019.[39]
MTS Armenia
In Armenia, services under the MTS brand were provided by K-Telecom CJSC, under the brand names VivaCell-MTS (from 2007 to 2019) and Viva-MTS (from 2019 to 2024), 80% of which were owned by Mobile TeleSystems.[40] The number of subscribers of VivaCell-MTS in Armenia by 31 March 2011, was 2.55 million. By May 2011, VivaCell-MTS occupied more than 60% of the mobile market in Armenia,[41] and by December 2017, VivaCell-MTS had 2.1 million subscribers.[4]
In January 2024, it was announced that MTS had sold its Armenian unit to Fedilco Group, selling 100% of its shares.[42]
