MTS, Mobile TeleSystems OJSC (NYSE: MBT), a major telecom provider in Russia and the CIS, in partnership with Sistema Mass Media (“SMM”), one of the largest media holdings in Russia, majority-owned by Sistema JSFC (LSE: SSA) has launched satellite TV services under the MTS brand across Russia.

      MTS will offer satellite TV subscribers 160 TV channels (including 30 high-definition (HD) channels) available in six languages and access to a variety of value-added services, including delayed viewing, pausing, video-on-demand, an interactive TV-guide, weather forecasts, maps, currency rates information using MTS SIM card integrated in a set-top-box.

      MTS satellite TV will be broadcast using ABS-2 satellite throughout 95% of the territory of Russia in the DV2-S2 standard.

      Under the partnership agreement, SMM provides licenses for satellite TV broadcasting and ensures leasing of satellite channels while MTS manages the project, works with the content owners, oversees construction of the infrastructure on the ground, marketing, billing and customer service.

      “One of the three pillars of our 3D strategy – Differentiation – reflects our mission to offer our customers unique products and services to enhance their digital lives. In line with our strategy to leverage our mobile, fixed and retail networks to expand into complimentary lines of business, MTS is entering the satellite TV market and will focus on developing satellite TV offerings in the areas where digital cable TV is not available. We believe that MTS is uniquely positioned to succeed in this market through the strength of our brand, the quality and diversity of our content portfolio, our unrivalled retail network of 4,100 stores spread out across Russia, and the expertise of our management team in cable and mobile TV services,” said Vasyl Latsanych, MTS Vice President and Chief Marketing Officer.

      MTS satellite TV subscribers will be able to top up their account in 500,000 points of sales and kiosks across Russia, through Internet or mobile applications and have access to 24/7 customer service. MTS subscribers using both mobile and satellite TV offerings will receive 20 percent of their monthly bill back (applied to their mobile account) and will be able to enroll in MTS Bonus, the MTS loyalty program.

      MTS is owned by AFK Sistem, the largest publicly-traded diversified holding company in Russia.