Uzbekistan allowed MTS to return to the local market • Republic (ex. Slon.ru) • RIMA

Uzbekistan allowed MTS to return to the local market

The Government of Uzbekistan on Wednesday June 25 adopted a resolution according to which MTS OJSC will create a subsidiary in conjunction with the State National Operator, Uzbektelecom. The joint venture will work under the MTS brand, Interfax reports. Thus, the Russian company returns to the market of Uzbekistan after the other “daughter” of MTS, Uzdunrobita, was deprived of a license in 2012.

The subsidiary of the Russian operator was the leader of the mobile market of Uzbekistan with a subscriber base of 9.3 million people. In 2012, the regulatory authorities had a number of complaints to her: the audits were conducted by the Prosecutor General, the Tax Inspectorate, and the local communication regulator. As a result, the license was withdrawn, several “Uzdunrobits” managers for tax evasion and financial fraud were arrested. In November 2012, the company was nationalized on debt to state bodies that Uzbek law enforcement officers estimated at $ 1.35 billion. In January 2013, the company declared itself bankrupt.

In September 2012, the Investigative Department of the Ministry of Internal Affairs, at the request of the leadership of the MTS, opened a criminal case with an article of the Criminal Code of the Russian Federation (“prevention, restriction or elimination of competition”). As part of the case, according to Interfax, the Moscow apartment of the daughter of the President of Uzbekistan Gulnara Karimova was arrested.

At the end of 2013, the remaining property of Uzdunrobit was transferred to the “responsible storage” “Uzbektelecom”, since no applications for trading were received after bankruptcy. MTS estimated its investments in Uzbekistan, fully written off for a loss as a result of nationalization, more than $ 1 billion.

Now in Uzbekistan four cellular operators are operating: the daughter of the Vimpelcom Unitel, the daughter of Teliasonera Coscom, Rubicon Wireless and Uzmobail, created on the basis of the Uzbektelecom branch.