Tag Archives: telecoms

Business deals cast Uzbekistan into a bad light

SEP. 26 2012 (The Conway Bulletin) – Prosecutors in Sweden have opened an investigation into alleged bribery and money laundering by TeliaSonera, a Swedish telecoms company with businesses across the world, linked to a deal in 2007 to buy a 3G licence in Uzbekistan, media reported.

In the 2007 deal, TeliaSonera bought the licence from a Gibraltar registered company called Takilant for $352m. The Swedish media has speculated that the real owners of Takilant may have had close links to Islam Karimov, president of Uzbekistan.

TeliaSonera, in which the Swedish government owns 37%, has denied the allegations. The media, though, reported that the company’s CEO, Lars Nyberg, has said he doesn’t know whether people other than the nominal owner of Talikant benefited from the deal or how it came to own the 3G licence in the first place. Swedish media focused on TeliaSonera’s role in the saga, but it also throws more light on how business is conducted in Uzbekistan. And it’s not pretty.

Russian mobile operator MTS is currently fighting allegations of tax avoidance in Uzbekistan and, separately, Swiss authorities have opened a money laundering investigation into four unnamed Uzbek citizens. Corruption allegations over the TeliaSonera/Takilant deal add to this picture.

ENDS

(News report from Issue No. 106, published on Sep. 28 2012)

Uzbek court troubles MTS

SEP. 17 2012 (The Conway Bulletin) – A court in Uzbekistan has sentenced four managers at Uzdunrobita, a subsidiary of Russian mobile operator MTS, to up to 2-1/2 years in prison, media quoted MTS as saying. Uzbek officials have confiscated Uzdunrobita’s property and cancelled its licence. They said Uzdunrobita has avoided paying taxes and broken its contract.

ENDS

(News report from Issue No. 105, published on Sep. 21 2012)

Uzbekistan seizes MTS assets

SEP. 2 2012 (The Conway Bulletin) – A court in Uzbekistan ordered the authorities to seize the assets of Russian mobile operator MTS’s local subsidiary, Uzdunrobita, media reported. The Uzbek authorities accuse Uzdunrobita of tax evasion and breaking its contract. Uzdunrobita denies the charges and says the government is trying to steal its assets.

ENDS

(News report from Issue No. 104, published on Sep. 14 2012)

MTS woes hit profit in Uzbekistan

AUG. 28 2012 (The Conway Bulletin) – Russian mobile operator MTS said that a row with the Uzbek authorities had knocked $1.1b off its profit in the second quarter of the year. Earlier this month a court in Uzbekistan revoked MTS’s operating licence. MTS had over 9m subscribers in Uzbekistan. It has said the move is an attempt to steal its business.

ENDS

(News report from Issue No. 103, published on Aug. 31 2012)

MTS returns to Turkmenistan

AUG. 20 2012 (The Conway Bulletin) – Russian mobile phone operator, MTS, said it would resume work in Turkmenistan from the start of September. Through its local subsidiary, MTS had an 85% share of the Turkmen mobile market before the government abruptly cancelled is licence at the end of 2010.

ENDS

(News report from Issue No. 102, published on Aug. 24 2012)

Uzbek court bans MTS

AUG. 13 2012 (The Conway Bulletin) – A court in Uzbekistan has cancelled all licences held by the Russian mobile operator MTS, which operates under the local brand Uzdunrobita, media reported. Uzbek officials had previously slapped temporary bans on MTS for alleged tax dodging the breaking its contract. MTS denies the allegations.

ENDS

(News report from Issue No. 101, published on Aug. 17 2012)

MTS’s subsidiary in Uzbekistan faces fines

AUG. 8 2012 (The Conway Bulletin) – The Uzbek subsidiary of Russian mobile operator MTS, Uzdunrobita, is facing fines of $80m for violating various regulations, the AP news agency quoted the company as saying. The Uzbek authorities suspended Uzdunrobita last month after accusing it of avoiding taxes. Uzdunrobita, which had nearly 10m subscribers, denies the charges.

ENDS

(News report from Issue No. 100, published on Aug. 10 2012)

MTS’s fortunes in Uzbekistan fluctuates wildly

JULY 30 2012 (The Conway Bulletin) – The fortunes of MTS, the Russian mobile operator, in Central Asia have been fluctuating wildly.

On July 26, Turkmen officials reinstated its licence, after a 19 month break. Meanwhile in neighbouring Uzbekistan, officials said they would lengthen the suspension of MTS’s mobile operator licence to 90 days (from an original 10 day suspension from July 17) while it investigates allegations of tax evasion. MTS has denied the allegations and accused Uzbekistan of trying to grab assets.

As a correspondent reports for The Conway Bulletin in the accompanying Correspondents’ Notebook, thousands of Uzbeks have queued through the heat to exchange SIM cards at MTS’s rivals.

MTS has played a patient game in Turkmenistan, where it had held an 85% market share, and got what it wanted — its licence back. Now it has to play another game in Uzbekistan.

The fallout for MTS and Uzbekistan has only just started but it’s likely to be costly for both sides. German car maker Daimler has just pulled out of a proposed joint-venture in Uzbekistan. The timing of its withdrawal could, of course, be a coincidental.

ENDS

(News report from Issue No. 099, published on Aug. 3 2012)

Siemens wins contract in Turkmenistan

JULY 24 2012 (The Conway Bulletin) – Siemens, the German industrial conglomerate, has won a contract to update the Turkmen government communication systems, Turkmenistan’s state media reported. Reports did not reveal the cost of the contract. Turkmenistan, made wealthy by gas exports, has become a lucrative client for Western businesses.

ENDS

(News report from Issue No. 098, published on July 27 2012)

Russia steps into MTS row in Uzbekistan

JULY 25/26 2012 (The Conway Bulletin) – Russia’s government stepped into the row between Uzbekistan and Russian mobile operator MTS. It sent a formal note to the Uzbek government noting its concern over the arrest of a handful of MTS executives for tax evasion. In Turkmenistan, MTS said it had resumed operations after being thrown out in Dec. 2010.

ENDS

(News report from Issue No. 098, published on July 27 2012)