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OJSC MegaFon

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OJSC MegaFon — Russia's No.2 mobile operator. Provider of a broad range of wireless and wireline telecommunication services to businesses, other telecommunications service providers and retail subscribers.

MegaFon is one of three major mobile networks in Russia, and the only one that operates its own network and provides a range of services throughout the country. MegaFon have more than 57 million active subscriber accounts, and subsidiaries in Tajikistan, Abkhazia and South Ossetia.

Open Joint Stock Company (“OJSC”) MegaFon (the “Company” or “MegaFon”) was formed in the Russian Federation (“Russia”) on May 22, 2002 as a result of the renaming and reorganizing of OJSC North-West GSM and its integration under one brand with Closed Joint Stock Company (“CJSC”) Sonic Duo, CJSC Mobicom-Kavkaz, CJSC MobicomCentre, CJSC Mobicom-Novosibirsk, CJSC Mobicom-Khabarovsk, CJSC Mobicom-Kirov, OJSC MSS-Povolzhie, CJSC Volzhsky GSM and CJSC Uralsky GSM. On July 1, 2009, the Company merged all of its wholly-owned major operating Russian subsidiaries with and into the Company, so that its principal wireless telecommunications operations are now conducted through a single legal entity throughout Russia.











In June 2010, the Company completed the acquisition of a 100% ownership interest in Synterra, an alternative provider of integrated telecommunications services in Russia, for the total purchase price of $745 million, including cash consideration of approximately $298 million (9,27 bln rubles), deferred and contingent consideration in the amount of up to $110 million (3,42 bln rubles) and estimated net debt of Synterra as of the date of acquisition.

In October 2010, the Company completed the acquisition of a 100% ownership interest in CJSC Metrocom, a wireline operator which owns a backbone network in Saint-Petersburg, for approximately 2 bln rubles. The primary reason for the acquisition was to strengthen the Company’s position in the wireline market in Saint-Petersburg.

Synterra offers wireline services in Russia and holds licenses for local and long-distance telephony services, data transmission, wireless broadband access services, and communication channels leasing. The primary reasons for the acquisition were to develop the Company’s position in the wireline market, to expand its fiber optic network, and to realize future revenue, and operating and cost synergies resulting from fixed-to-mobile convergence opportunities.

As a result of the foregoing developments, MegaFon is now a leading universal telecommunications provider in Russia and offers a broad range of voice, data and other telecommunication services to retail customers, corporate and governmental entities and other telecommunications service providers, with licenses to operate in all regions of Russia, covering a population of approximately 142 million. The Company intends, wherever possible, to offer its wireless services under the “MegaFon” brand, and its wireline services under the “Synterra” brand, although some services still carry local brand names because of local market conditions. In addition to its operations in Russia, the Company provides wireless services through its subsidiaries in the Republic of Tajikistan (“Tajikistan”), the Republic of Abkhazia (“Abkhazia”) and the Republic of South Ossetia (“South Ossetia”).

In Russia, MegaFon has constructed and continues to operate a nationwide wireless communications network that operates on the dual band GSM 900/1800 standard. In May 2007, the Company was awarded a license that expires on May 21, 2017, for the provision of 3G wireless telephony services based on IMT-2000/UMTS standards throughout the entire territory of Russia. As of December 31, 2010, the Company is providing and expanding 3G services in almost all of its regions throughout Russia.

The Company holds licenses for local and long-distance telephony services, data transmission, wireless broadband access services, and communication channels leasing covering the whole territory of the Russian Federation. The Company has its own land-line and satellite transmission network and one of the largest frequency resources among alternative Russian operators.

Post address Russia, 115035, Moscow, Kadashevskaya nab., 30
Phone +7 (495) 980-1970
URL http://eng.megafon.ru
Email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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