Zimin's Book

As is well known, in January, 1993, the Communications Ministry of the Russian Federation issued license # 313 to VympelCom (Moscow), and to GPSI (Moscow region) with the purpose of creating and operating an AMPS cellular network in Moscow and the Moscow region. Following that, VympelCom successfully launched in Moscow its cellular system Bee Line, which now is serving about 4000 subscribers. At the same time, in order to realize its license in the Moscow region, GPSI has organized TOO RSS, whose main partner was Millicom. Up to July, 1994, VympelCom and RSS have been cooperating with regard to frequency and territorial coordination, roaming, etc., although the RSS technical policy determined by Millicom had lead in the Moscow region to a number of unnecessary difficulties in the creation of the system, as well as to its stagnation on an inadmissibly low level.

At the end of July, 1994, the Communications Ministry issued to the same two companies (by that time GPSI had been transformed into AO Elektrosviaz of the Moscow region) a new license, which extended the term of operational activity to 2004, and obliged the holders thereof to found a joint venture for establishing and operating a unified network on the licensed territory, using one common type of equipment.

Meanwhile, in July of that year, upon the insistence of Millicom, the management of RSS was replaced. The new RSS management, headed by former Millicom employees, began its tenure by stealing base station equipment which had been installed by VympelCom in collaboration with AO Electrosviaz, by request of its general director Mr. Argunov, in order to fulfill its long overdue obligation to create a cellular communications network. The internal investigation conducted by VympelCom has shown that this action was directed personally by the new director of RSS, Mr. Frolov.

VympelCom views this extraordinary and incredible event as an attempt by Millicom to undermine the constructive work of the license holders in Moscow and the Moscow region, and to minimize the differences between the work it has accomplished in the Moscow region and that of VympelCom.

In connection with these events, VympelCom has undertaken the following measures:

1. Transferred the pertinent documents to the prosecutor’s office in order to open a criminal case of theft of especially large dimensions.
2. VympelCom is warning all interested legal and physical entities working with Millicom that its Moscow affiliate is resorting to the services of criminals.
3. VympelCom is suspending all service agreements, including those on roaming, with Russian companies involved with Millicom.

VympelCom’s Press Service