Russian mobile operators spent $1.38 bln on expansion in CIS

MOSCOW, August 18 (RIA Novosti) - Russian cellular operators spent $1.38 billion to buy companies from the Commonwealth of Independent States since the start of expansion in 2001, a consulting company study reported Friday.

"With the Russian market approaching saturation, expansion by mobile communications operators has gone beyond the borders of the Russian Federation and continued in CIS countries, where the most active fight for assets is underway now," the iKS-Consulting study said.

According to the study, Russia's two largest operators - Mobile TeleSystems and VimpelCom - have spent almost equal amounts on acquisitions in the former Soviet Union.

iKS-Consulting said MTS has a larger share in the CIS because of the Ukrainian market, which the company entered in 2003, but added that there were good prospects for VimpelCom to increase its share.

According to the study, MTS's share in the CIS (not counting the Russian market) is 32%, VimpelCom has a 7% share, and MegaFon, 0.2%. The number of cellular communications subscribers in the CIS has grown 21% since the start of the year.