MTS Cuts Back

MTS said it plans capital expenditure of 1.5 billion US dollars in 2009 compared with 2.23 billion in 2008 as the company sees continued risk from the weakening macroeconomic environment, and volatility within the global financial sector may make it difficult to attract additional financing. About 450 million US dollars is earmarked for 3G and EDGE infrastructure and the company's proprietary transport network

MTS, with operations across the CIS, also said the current economic weakness and currency volatility may negatively impact its short-term financial and operational performance. In 2008, MTS's revenues rose 24.2% to 10.25 billion US dollars due to subscriber growth and rising usage. The company's net cash flow from operations climbed 32% to 4.42 billion US dollars. source: MTS presentation