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20
Apr

Russian Cellular Market in March 2005

The number of Russian cellular customers grew 5% in March to reach 85.6 mln.

There were 59 SIM cards issued per 100 of population as of 31 March 2005 (compared to 29 in March 2004 and 51 at the end of 2004).

Russian Mobile Subscribers

Mobile Subscribers March 31, 2005 February 28, 2005
Total Russia 85,560,000 81,700,000
  Penetration* 58.9% 56.3%
Moscow 18,608,083 18,129,914
  Penetration* 109.6% 106.7%
St.Petersburg 6,053,309 5,911,085
  Penetration 95.5% 93.2%
Subscribers outside Moscow and St.Pete 60,898,608 57,659,001
  Penetration 50.0% 47.3%

* Please note that penetration figures are calculated based on official data from 2002 population census (17 mln for Moscow and 6.3 mln for St.Pete). Reportedly, the population in Moscow License Area reaches as high as 23-25 mln while St.Pete License Area population figure is above 7 mln.

Russian Cellular
Market Breakdown, March 2005
Russian Net Additions,
March 2005

Top 10 Mobile Operators

# Company March 31, 2005 February 28, 2005
1 MTS 40,085,000 38,480,000
Moscow
8,110,000 7,955,000
Ukraine (UMC)
8,080,000 7,895,000
Belarus
1,400,000 1,328,000
Uzbekistan
352,000 337,000
2 Vimpelcom 30,750,000 29,450,000
Moscow
8,120,000 7,945,000
Kazakhstan
1,131,000 1,055,000
3 MegaFon 15,684,945 14,867,250
Moscow
2,255,879 2,127,996
Tajikistan
50,138 49,212
4 Uralsvyazinform 2,400,000 2,283,100
5 SMARTS Group 2,101,000 2,010,000
6 Tele2 1,490,000 1,410,000
7 Sibirtelecom 1,198,255 1,116,000
8 N.Novgorod Cellular 798,036 775,322
9 Ekaterinburg Cellular Communications - MOTIV 509,384 486,520
10 New Telephone Company 326,770 311,570

Almost 0.5 mln net additions were signed in Moscow. Penetration in the city reached 110% (73% in March 2004). According to our estimates the real penetration in the capital (if one takes adjusted population figure of ~25 mln vs. 17 mln official and discount for inactive users) is around 60-65% at the end of March. Big 3 players were almost on par in terms of new customer additions. However, Vimpelcom did slightly better than others and returned the leadership in the capital (though 5-10k difference so far do not look very convincing).

MegaFon outperformed MTS and Vimpelcom on its home market of St.Petersburg where it had been losing to competition since Oct-04, while MTS attracted the largest number of customers outside Moscow and St.Petersburg license areas.

Moscow and St.Petersburg

Moscow License Area

Moscow Market Breakdown
March 31, 2005

Net Additions in Moscow,
March 2005

St.Petersburg and Leningrad Region

St. Petersburg Market Breakdown
March 31, 2005
Net Additions in St.Petersburg
March 2005

Regions outside Moscow and St.Pete

Regional Market Breakdown
March 31, 2005
Regional Net Additions
March 2005