- MegaFon
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This article is about the cellular phone operator. For a sound amplification device, see megaphone. For the Austrian street newspaper, see Megaphon.
MegaFon 
Type OJSC Industry Mobile telecommunications Founded May 2002 Headquarters Moscow, Russia Key people Sergey Soldatenkov, CEO Products Mobile networks Revenue 
$6.1 billion USD (2009)Net income $1.2 billion USD (2009)Website www.megafon.ru MegaFon (Russian:МегаФон),previously known as North-West GSM, is the second largest mobile phone operator in Russia.[1] It works in the GSM and UMTS standard. Its main competitors are Bee Line GSM and Mobile TeleSystems (MTS).
The name "MegaFon" in Russian looks exactly like the word for a megaphone; other connotations are mega- as "big" and fon as "telephone". Its headquarters are located in Moscow.
In 2002 the company changed its name from North-West GSM to MegaFon when it acquired several regional companies, becoming the first GSM company in Russia to cover all its territory. As of February 2007[update], MegaFon had 30,657,864 subscribers.[citation needed]
Contents
Ownership
The company was founded by Finnish and Swedish national telecom companies, now merged into TeliaSonera along with the Russian holding company Telecom-invest. As of March 2006[update]
- Telecom-invest together with its Bermuda based sister company IPOC International Growth Fund own 39% of the company.
- Jeffrey Galmond, a Danish lawyer publicly claims to own and control both companies, but they are rumored to in fact represent the personal interests of former Russian telecommunications minister Leonid Reiman.[2]
- TeliaSonera now owns 36% of the company.
- Alfa Group of Russian oligarch Mikhail Fridman owns 25.1%.
A battle for control of the company is ongoing between Alfa Group and Jeffrey Galmond's party.
- References: Helsingin Sanomat, March 28, 2006 [1] [2] (requires subscription)
Megafon outside Russia
Georgia
Allegations
The Georgian National Communication Commission has accused the Russian mobile telecommunications company MegaFon of illegal business operations and participation in the military and economic annexation of Georgia.
According to the GNCC, “MegaFon” has provided unlicensed mobile phone coverage in the conflict zones of Georgia beginning in 2005, in particular – the South Ossetia region. The company covered mostly the areas of dislocation of the Russian military forces present in Georgia under the CIS peacekeeping mandate. The rest of the area was mostly covered by the Georgian mobile phone carriers “Geocell” Ltd. and “Magticom". In the spring of 2008, GNCC received complaints from Georgian mobile communication companies regarding the destruction of their communication facilities in the region and installation of MefaFon antennas. The GNCC conducted survey monitoring trips to establish the presence of MegaFon’s unlicensed coverage. The GNCC has imposed two fines on MegaFon: the first – in the amount of 5000 GEL (3750 USD) in July 2008, and the second, for the recurrence of violation in the amount of 500,000 GEL (approx. 350,000 USD) in September 2008.[citation needed]
Because Georgian law envisages criminal liability for illegal business activities, the GNCC has notified the General Prosecutor of Georgia on the alleged violations committed by MegaFon. The Prosecutor General of Georgia is expected to initiate criminal proceedings against key officials of MegaFon.
On October 2, 2008, Tbilisi City Court upheld the decision of GNCC, finding MegaFon liable for providing unlicensed telecommunication services in Georgia.
MegaFon’s appeal of the second administrative fine shall be heard by Tbilisi City Court in November 2008.
Tajikistan
MegaFon's only subsidiary outside Russia is Tajikistan's TT Mobile.[1]
Uzbekistan
Kommersant reported on September 7, 2006 that MegaFon is negotiating in buying an 85% stake in Uzbek mobile operator Coscom from the MCT Corpation. The other 15% stake in Coscom would be held by Coscom management and private shareholders. Analysts estimated Coscom is worth between USD $180–200 million. Coscom's has over 300,000 customers.[1]
Iran
BBC Persian reported on May 13, 2008 that Megafon has opened its office in Tehran.[3]
Sponsorship
- For the 2009 Formula One season, MegaFon was one of the sponsors for the Renault F1 Team.
References
- ^ a b c "МегаФон" больше не третий Kommersant
- ^ Venäläisministeri paljastui TeliaSoneran liikekumppaniksi (Finnish) Russian minister is revealed as TeliaSonera's secret business partner in Russia - Digitoday 24 May 2006
- ^ BBCPersian.com | اقتصاد و بازرگانی | گشایش دفتر شرکت مگافون روسیه در تهران
- Helsingin Sanomat 28 March 2006 (Finnish)
- Russia at Heart of German Probe - Moscow Times July 26, 2005
- European Commission to investigate TeliaSonera deals in Russia - Helsingin Sanomat 28 March 2006
External links
- MegaFon English corporate site
- Alfa Group Accused of Bribing to Buy MegaFon June 13, 2006
- Reuters: Georgia's Communications Commission Fines Russia's Megafon; Decries 'Economic Annexation'
- Reuters:Georgia threatens to multiply Russia MegaFon fine
- Reuters: Georgia files charges against Russia's MegaFon
- Reuters: Megafon Goes to Court in Georgia over Disputed South Ossetia Operations
- EurasiaNet: THE FIGHT BETWEEN TBILISI AND MOSCOW OVER SOUTH OSSETIA GOES CELLULAR
- Reuters: Court Upholds Fine Against Megafon for Illegal Operations in Georgia
- Guardian: Dreams of empire strike back Q: What do Osama bin Laden and Vladimir Putin have in common? A: Worrying ambitions to reverse imperial decline
- Unofficial MegaFon page
Russian mobile phone companies Categories:- Telecommunications companies of Russia
- Mobile phone companies of Russia
- Companies based in Moscow
- Telecom-invest together with its Bermuda based sister company IPOC International Growth Fund own 39% of the company.
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