Russian mobile operator MTS is exiting the Uzbekistan market and has sold its 50.01 percent stake in the mobile operator Universal Mobile Systems (UMS) to the government. The State Unitary Enterprise Centre of Radio Communication, Radio Broadcasting and Television of the Ministry of Development of ICT acquired the shares for an undisclosed sum. The state already held the other 50 percent of UMS. MTS said the dale is "due to a variety of business reasons and other circumstances", but did not provide further details. The company expects to record a write-off of the related assets of RUB 3 billion in Q3.
MTS earlier provided its mobile services under the MTS Uzbekistan brand through the subsidiary Uzunrobita, with a subscriber base of 9.3 million in 2012. Uzunrobita was accused of unpaid taxes by the government then and its licence was suspended and then revoked. Uzunrobita was declared bankrupt in 2013. In December 2014, MTS resumed services in Uzbekistan after founding the joint venture UMS with the state.
The subscriber base of UMS totaled 1.3 million at the end of March, according to data from AC&M-Consulting. This was equal to 6 percent of the total Uzbekistan mobile subscriber base.
The US Ministry of Justice and securities regulator SEC are investigating the owners of all three Uzbekistan mobile operators - MTS, Vimpelcom and Telia over possible corruption in obtaining their licences through connections with Gulnara Karimova, a daughter of Islam Karimov, the Uzbekistan President. Some sources claim that MTS's exit from the Uzbekistan market could be an attempt by the Russian operator to avoid fines related to the investigation.
