The new license gives UMC the opportunity to provide communication services in the CDMA 450 standard throughout the territory of Ukraine, where the company has been rendering communication services in the GSM standard since 1997.

 

 

"Reception of the new license marks the end of a serious stage on our way to construction of a new national network. Now, we are facing the next major task – to develop construction of the CDMA network in Ukraine, which will allow subscribers of the company to use the high-speed wireless Internet even in the most remote areas of the country. We are sure that the ramified network of sales and UMC service centers all over the country will help us to offer new services for all those interested," emphasized Adam Wojacki, UMC’s Director General.

 

The CDMA 450 standard makes it possible to provide data transmission and Internet access services at the speed of up to 3.2 Mbit/sec. UMC will provide services including wireless virtual data transmission networks, removed access to corporate mail, high-speed Internet access, and multimedia services (video on demand). The company is planning to offer the services to both individuals, and to corporate subscribers.

 

Qualitative and accessible services, interesting additional services in combination with wide coverage of the CDMA network open for UMC new prospects of development and will positively influence growth of the company’s subscriber base.

 

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CJSC “Ukrainian Mobile Communication” network covers more than 91% of the territory of Ukraine, where 95% of population reside. The company services more than 15 million subscribers. UMC owns licenses for provision of mobile (GSM-900/1800 NMT-450 standard), fixed and international / inter-city communication, as well as provides international roaming services in five continents. In 2005, its profits were $1.2 bln.

 

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UMC is the 100% subsidiary of the OJSC "Mobile TeleSystems" (МТS), the largest mobile communication operator in Russia and CIS countries. Together with its affiliated companies, МТS serves over 64.1 million subscribers. Since June, 2000, shares of МТS are quoted at the New York Stock Exchange under the code "MBT".

 

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Some statements in the given press release may contain information about projects or prognoses concerning future events or future financial actions of МТS and/or UMC according to clauses of the USA Legal Act on Securities of 1995. Such statements may contain words "expected", "estimated", "has the intention of", "will be", "might" or other similar expressions. We would like to warn you that these statements are only assumptions and the real course of events or results may differ from what was declared. We have no intention of reconsidering these statements with the purpose of adopting them to real results. We direct you to the documents that the Company sends to the USA Commission on securities and stock exchanges, including form 20-F. These documents contain and describe the important factors, including those specified in the section "Risk factors" in form 20-F. These factors may affect deviation of projects and forecasts from real results. They comprise: possible changes of quarterly results, conditions of competition, dependence on development of new services and tariff structures, fast changes of technological processes and position in the market, purchase strategy, risk connected with the infrastructure of telecommunications, risk of working in the Russian market, fluctuations of shares quotations, financial risks management, as well as occurrence of other risk factors.