Russia's MTS: No Basis For Antitrust Probe On Roaming Prices

Russia's largest mobile operator OAO Mobile TeleSystems (MBT) doesn't see any justification for the competition watchdog's investigation into its roaming prices, the company's Chief Executive said Friday.

Mikhail Shamolin told journalists that MTS last year derived around a tenth of its $9.8 billion revenue from so-called roaming calls, which are made by subscribers outside their home region.

The country's Federal Antimonopoly Service last month began an investigation into whether MTS and its peers had acted illegally in setting prices for these calls.

The watchdog's definition of roaming is narrower than MTS's - it doesn't include most of the calls made by MTS subscribers in different Russian regions - but if MTS is found guilty, it could be ordered to pay up to 15% of the revenue earned from such calls.

"We need to start the discussion with the way that roaming prices are set," said Shamolin, adding that MTS's strategy is to set higher call prices for some subscribers, while giving others the chance to move onto discounted tariffs plans.

"There are discounts available for roaming...please sign up," he told journalists in Moscow, adding that a large section of MTS's subscribers don't take up such offers.

The watchdog is also investigating roaming prices at VimpelCom Ltd. (VIP) and OAO Megafon.

Company Web site: www.mstgsm.com

-By Will Bland, Dow Jones Newswires; [phone]; [e-mail]