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Belarus to auction third GSM license 15:11, 28/05/2004, SKRIN
Aton Capital quoted Vedomosti as reporting that Belarus is to auction its third GSM license, in a move that Aton believes could see interest from Vimpelcom and Megafon. MTS already has a significant stake in the market.
The Belarusian government plans to transfer a controlling stake in the new company to national operator Belcel, while 49% will be offered to investors. If Russian operators turn out to be interested, their bidding would likely take into account the lack of control in the new company and tough local market regulation.
Belarus has a population of 10mn and cellular penetration stands at 14%. The two existing GSM operators are Mobile Digital Network (MDN) and MTS (in which Russia`s MTS holds a 49% stake). Belcel operates in NMT-450 and CDMA-450. Belarusian MTS holds about 45% of the market and to date has invested $200mn in the business (about $300 per sub).
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