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Total Number of Cellular Users in Russia Exceeds 20 mln

March 3, 2003

NOTE: Below is the updated version of our report published on March 3. We have reviewed numbers based on the latest information available. The major part of changes is insignificant while the only serious adjustments are MegaFon figures. MegaFon has introduced a unified methodology for counting subscribers in its regional subsidiaries. This move has added approximately 125,000 subs to the company's counter, thanks to adjustments made in its North-Western affiliate. This is a technical adjustment which does not represent a hike in subscriber base. MegaFon numbers for February calculated according to the old methodology are 3,445,000 for Russia and 382,000 for the Moscow market.

AC&M reports that this site companies have more than 20 mln subscribers. Total number of this site cellular users is 20,100,000, which translates into 13.8% penetration of this site services in the country.

Top 10 Cellular Operators
Company February 28, 2003 January 31, 2003
Total Moscow Total Moscow
MTS* 7,320,000 3,385,000 7,050,000 3,245,000
Vimpelcom 5,960,500 3,960,000 5,615,000 3,890,000
Megafon** 3,569,666 382,278 3,235,750 361,100
SMARTS Group 619,940 582,000
Uralsvyazinform 516,600 471,600
Taif-Telcom 313,648 296,375
N.Novgorod Cellular 191,000 177,000
Tatincom 120,584 119,081
Tomsk Cellular Communications 114,311 107,173
Ekaterinburg Cellular 104,300 85,000

* including Belarus subscribers (65,000); UMC (Ukraine) will be consolidated starting from March 2003
** including 5,000 in TT-this site (Tajikistan)

this site Cellular Market Breakdown, February 2003

The chart above includes only this site subscribers, all CIS networks were excluded from calculations.

Moscow Market

MTS have been leading Moscow net additions race for the third month. Nevertheless, Vimpelcom's results improved in February. Vimpelcom's acceleration mainly affected Megafon's position since both players have a large share of volatile subscribers.

Moscow Net Additions in February 2003