As much as 68 percent of MGTS subscribers in Moscow and 54 percent in Russia will wish to change their tariffs this year, bringing a 25-percent rise in profits to the company, experts estimate.
Photo: Yury Martyanov
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MGTS Leaves Options Open for Subscribers
The MGTS telephone network launched a new billing system on Monday with options in choosing price plans. All Russian landline operators will be transferred to optional price plans on February 1. The new system is expected to increase profits for operators by some extra $660 million, experts estimate.
Rates of the MGTS network are quite high compared to those of other operators. One minute in the network costs 0.28 ruble with 125 rubles for the network service, compared to 0.26 ruble at the Svyazinvest holding’s companies. The price of the combined tariff which gives 370 minutes is 229 rubles.
MGTS does not forecast the number of subscribers who will wish to switch on to another tariff. Svyazinvest gives no predictions either while subsidiaries started a transfer to the new system from early December.
Analysts estimate that as much as 68 percent of MGTS subscribers in Moscow and 54 percent in Russia will wish to change their tariffs. Anna Kurbatova from the Aton investment company forecasts that 30 percent of Svyazinvest subscribers and 32 of MGTS subscribers will opt for the combined tariff. 17 percent of MGTS clients and 14 percent of Svyazinvest subscribers will opt for unlimited tariffs.
Industry experts expect that phone operators will reap extra profits with subscribers changing price plans. Yuly Matevosov, head of Dresdner Bank’s analytical department, says that profits of the companies will grow 20 to 25 percent, or some $660 million, after the new billing system has been introduced.
www.kommersant.com
All the Article in Russian as of Jan. 24, 2007
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