Moscow, Russian Federation — 30 October 2001 — Mobile TeleSystems OJSC (NYSE: MBT), Russia’s largest GSM 900/1800 mobile operator, has upgraded its current billing system.
Having introduced new algorithms, which track the correlation between services rendered and subscribers’ current accounts, MTS is now able to provide a qualitatively different service to its customers.
The three main payment methods for mobile services currently used by the mobile market include: credit, advance and pre-pay. Following a thorough research into payment methods used both in Russia and abroad, MTS specialists have developed a comprehensive system, which best meets high standards, serves subscribers’ needs, at the same time taking into account the specifics of the Russian accounting system.
The main benefit of the credit payment method is the maximum range of services available to subscribers as well as the flexibility in choosing a tariff. The disadvantage of the above method is the fact that the cost of services provided is shown only on the monthly statement, and not at the time when the service was purchased. The pre-pay system, on the other hand, offers real time data on subscribers’ balance. It, however, does not offer the same variety of services and tariff flexibility. The free subscription fee is compensated in this method by the limited time of keeping the money in a personal account. As a result subscribers need to pay in more money, not necessarily because they have to pay for real services rendered. Additionally, the current pre-pay method does not offer a variety of payment schemes. The only way to pay for it is by scratch-cards.
“Mobile TeleSystems” uses the advance method as its prime accounting system, which comprises the advantages of both credit and pre-pay payment methods. This method, is characterized by: flexible tariffs, variety of services and payment schemes. At the same time the balance of account information is available to subscribers before they receive their monthly statement. This payment method is subject to a technological delay between the time of providing services to subscribers and the moment of them going through the billing system. The duration of a delay depends on the load on the network switching system, as well as on the technological processes used in the billing system.
To further optimize its billing system, together with “SoftPro” CJSC, the billing systems developer, MTS has carried out a range of tasks, aimed at reducing substantially the time gap between providing services and putting them through subscribers’ personal accounts. The introduction of new algorithms has made it possible to reduce the time gap incurred in charging to subscribers phone calls made within Moscow and the Moscow region. The actual time delay now does not routinely exceed one or two hours, which makes it easier for subscribers to keep an eye on their balance. Besides, regular services, the most complex ones for real time accounting, are now charged in real time and only for real services rendered to date.
The aim of the measures taken is to ensure that information, available to subscribers through the Automatic Customer Care Service (ACCS) and MTS call centers, shows the range of services provided and the current state of account with a minimum time delay.
MTS’ upgraded billing system provides for the best combination of all the best features of all methods of payment. MTS’ billing system is now the leading system on the Russian mobile market.
For further information contact:
Press Secretary Eva Prokofieva tel: +7 (095) 104-49-38 e-mail: eva@mts.ru
Investor Relations department tel: +7 (095) 766-01-03 Fax: +7 (095) 766-01-00 e-mail: ir@mts.ru |
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to conform them to actual results. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, including our most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures; rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, risks associated with operating in Russia, volatility of stock price, financial risk management, and future growth subject to risks.
Mobile TeleSystems OJSC (NYSE: MBT) is Russia’s leading GSM 900/1800 mobile cellular operator. MTS has GSM 900/1800 licenses to provide mobile cellular telephony services in 46 regions of the Russian Federation, covering 86 million people or 56% of the country’s population. MTS network has operations in 26 regions, which cover more than 55,6 million people or 38% of the population of the Russian Federation. Additional information about MTS can be found on MTS’s website at https://www.mtsgsm.com. |
|