Mobile TeleSystems (MBT) is Eastern Europe's largest cellular operator with a subscriber base of 79.1 million as of October 31 2007. The company provides mobile communications services over an integrated network in Russia, Ukraine, Uzbekistan, Turkmenistan, and Belarus. It was the first GSM operator in Russia and is currently licensed to provide 900/1800 MHz wireless services covering 83 regions. In addition to standard voice services, the company offers value-added services, including voice mail, Short Message Service (SMS), General Packet Radio Service (GPRS), and various SMS- and GPRS-based information and entertainment services (including Multi-media Message Service, or MMS). AFK Sistema, a Russian financial and industrial holding company, and T-Mobile, a wholly-owned subsidiary of Deutsche Telekom (DT), controlled 53.1% of the total outstanding shares as of December 31, 2006. MBT generates most of its revenue from Russia (73% of the total revenue in 2006). Ukraine and Uzbekistan accounted for 23% and 2% of the revenue, respectively. The company remains the leader in Russia, with a market share of 33%, but VimpelCom (VIP), the primary competitor, poses significant challenges as subscriber retention initiatives continue outside of Moscow. In terms of subscribers, the company is the second largest mobile operator in Ukraine.
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