Tele2, the leading alternative pan-European telecommunications company, launched its first Russian GSM-network in Irkutsk under the Tele2 brand. This launch initiates the rollout of Tele2's GSM-networks in Russia, and the objective is to convert a further four networks by the end of 2003.
Tele2 currently holds twelve GSM-licenses in Russia, and offers mobile services in eleven Russian regions, which are being gradually rebranded to the Tele2 brand. Mobile penetration outside Moscow and St Petersburg is 6-7%, which is low relative to other markets, but is experiencing rapid growth. The number of mobile subscribers in Russia is expected to reach 35 million in 2003, up from 18 million at the end of 2002.
Tele2 is the second mobile operator to launch GSM-services in the Irkutsk region, which has a mobile penetration of 4%. Tele2’s GSM-network in Irkutsk was launched today based on the GSM1800 standard, having similar coverage per base station as the GSM900 standard, by using a phased array antenna solution from Radio Components.
CAPEX for these GSM investments will be in the region of US$ 50-80 million during 2003.
Lars-Johan Jarnheimer, CEO of Tele2 said; "Russia represents a great opportunity for us, as the mobile market has substantial growth potential. With our existing mobile operations in eleven countries, we have the possibility to leverage on our substantial knowledge of mobile services".
