MTS, the number one Russian mobile operator in terms of subscriber numbers (55 million), has just announced that its first 3G network is now functional, covering the area of Saint Petersburg, the second largest city in Russia (more than 4.6 million people).

MTS also readied 3G networks for Yekaterinburg, Kazan and Sochi (all three cities should benefit from the new networks starting the next few weeks) and it will deploy similar networks in other 10 cities by the end of 2008 and no less than 40 new cities by the end of next year (2009). Moreover, the giant carrier intends to invest around $1.6 billion in the upcoming three years, in order to bring the 3G technology to all of its customers from Russia and the CIS (Commonwealth of Independent States).

With the new 3G network, MTS will allow users to benefit from faster data transfer speeds (up to 3.6 Mbps) as compared to the current 2.5G EDGE network. Also, special 3G services will be offered, including video telephony, 3G roaming and mobile TV.

In a press release issued today, Mr. Mikhail Shamolin, CEO of MTS Russia, declared: "With the launch of 3G networks in major regions of Russia, MTS is starting a new phase in the development of telecommunications in the CIS. We are keen to offer 3G services to our customers, as we see great demand for data and broadband solutions in Russia. We believe that conditions for the 3G launch in Russia are more favorable than in the developed markets. Today's HSPA-enabled infrastructure allows download speeds up to 10 times faster than the first phase of 3G networks, while the costs for equipment and devices are significantly cheaper. We have access to best-practice implementation from around the world and our 3G network benefits from higher-quality and more advanced mobile services and devices."

MegaFon, the third largest Russian carrier (34 million customers), has also begun to offer 3G services in St. Petersburg, since the end of 2007, hence its users should expect to have a nationwide UMTS/HSDPA network in the future too.