TeliaSonera and UCell

Success Stories

TeliaSoneraand UCell

TeliaSonera in brief

TeliaSonera is one of the largest telecommunication companies in Europe in terms of market value. The company was formed in December 2002 as a result of the merger of the Swedish leading telecom operator Telia with the Finnish leading telecom operator Sonera. Both companies had roots reaching far back to the start-up of telecommunications in Sweden and Finland. Thereby TeliaSonera is proud of its more than 100 years' heritage in the global telecommunication industry,

Today, TeliaSonera provides telecommunication services in the Nordic and Baltic countries, the emerging markets of Eurasia, including Russia and Turkey, and In Spain. TeliaSonera is also the leading European wholesale provider of quality cross-border voice, IP and capacity services, provided through its international carrier network.

TeliaSonera is now present in 20 markets with close to 460 million inhabitants. The number of subscriptions of the companies where TeliaSonera has shareholding reached around 157 million in 2010. TeliaSonera net sales in 2010 amounted to approximately USD 15 billion. The Group has around 29,000 employees.

TeliaSonera is an international group with a global strategy, but wherever we operate we act as a local company.

TeliaSonera in Eurasia

TeliaSonera has a proven track record of more than 15 years in building established and profitable operations with strong involvement of local management and local partners in the Eurasian region. We are a significant long-term industrial investor and play an important role in developing the infrastructure and contributing to the economic growth in this part of the world. We are one of the largest employers and tax payers in the region.

TeliaSonera business area Eurasia comprises majority-owned mobile operators with strong or leading brands in seven markets: Kazakhstan (Kcell), Azerbaijan (Azercell), Uzbekistan (Ucell), Tajikistan (Tceil), Georgia (Geocell), Moldova (Moldcell) and Nepal (Ncell). We are also minority owners of MegaFon in Russia and Turkcell in Turkey (including Turkeell's subsidiaries In Ukraine and Belarus), and have a financial holding in Afghanistan.

Wilh its large and youthful population, low fixed-line penetration and a growing economy in Central Asia, Uzbekistan is a strategic market for TeliaSonera to invest in. TeliaSonera acquired 74 percent shares of FE COSCOM LLC in July 2007. Since then, the number of mobile subscriptions of this operator has grown from about 500,000 to nearly 7 million as of the end of 2010.

Thanks to a strong local partnership, a successful development strategy combining global know-how with local expertise and a focus on superior network quality and customer experience, TeliaSonera has helped COSCQM to grow into the second largest operator in Uzbekistan, with the image of a modern, pioneering and socially responsible local mobile communication company.

In June 2008, COSCOM conducted a successful rebranding and started operating under the UCell brand.

InQ4/2008, UCell launched 3G services in three largest cities of the country. And in July 2010, UCell acquired the frequencies and license for provision of services of the next, fourth generation on the basis of LTE technology, and conducted a successful test of a small 4G start-up network in Tashkent. UCell will be ready to unfold the network, when the demand for 4G services grows to high enough levels.

In the meantime, UCell continues expanding and strengthening its 2G and 3G networks to provide high quality voice communication and data services to the people living in Uzbekistan. Today, UCell 2G network covers nearly 90% of the country's population and about 35% of the territory. In early 2011, UCell announced an upgrade of its 3G network to 3.5G, which means even higher quality of communication and data transfer speeds.

On February 2, 2010, TeliaSonera announced that it had increased its ownership in FE COSCOM LLC from 74 percent to 94 percent by acquiring 20 percent of the snares in the jointly owned TeliaSonera Uzbek Telecom Holding B.V.

TeliaSonera has invested over USD 600 million in UCell during 2007-2010 and is committed to further investing in the development of the company and the mobile communication industry in Uzbekistan, thereby contributing to the growth of the economy and the well-being of the citizens.

Success Stories