MegaFon
Encyclopedia
MegaFonpreviously known as North-West GSM, is the second largest mobile phone operator in Russia
. It works in the GSM and UMTS standard. Its main competitors are Bee Line GSM and Mobile TeleSystems
(MTS).
The name "MegaFon" in Russian
looks exactly like the word for a megaphone
; other connotations are mega- as "big" and fon as "telephone". Its headquarters are located in Moscow
.
In 2002 the company changed its name from North-West GSM to MegaFon when it acquired several regional companies, becoming the first GSM company in Russia to cover all its territory.
, MegaFon had 30,657,864 subscribers.
and Swedish
national telecom
companies, now merged into TeliaSonera
along with the Russian holding company
Telecom-invest.
A battle for control of the company is ongoing between Alfa Group
and Jeffrey Galmond's party.
According to the GNCC, “MegaFon” has provided unlicensed mobile phone coverage in the conflict zones of Georgia beginning in 2005, in particular – the South Ossetia region. The company covered mostly the areas of dislocation of the Russian military forces present in Georgia under the CIS peacekeeping mandate. The rest of the area was mostly covered by the Georgian mobile phone carriers “Geocell” Ltd. and “Magticom". In the spring of 2008, GNCC received complaints from Georgian mobile communication companies regarding the destruction of their communication facilities in the region and installation of MefaFon antennas. The GNCC conducted survey monitoring trips to establish the presence of MegaFon’s unlicensed coverage.
The GNCC has imposed two fines on MegaFon: the first – in the amount of 5000 GEL (3750 USD) in July 2008, and the second, for the recurrence of violation in the amount of 500,000 GEL (approx. 350,000 USD) in September 2008.
Because Georgian law envisages criminal liability for illegal business activities, the GNCC has notified the General Prosecutor of Georgia on the alleged violations committed by MegaFon. The Prosecutor General of Georgia is expected to initiate criminal proceedings against key officials of MegaFon.
On October 2, 2008, Tbilisi City Court upheld the decision of GNCC, finding MegaFon liable for providing unlicensed telecommunication services in Georgia.
MegaFon’s appeal of the second administrative fine shall be heard by Tbilisi City Court in November 2008.
reported on September 7, 2006 that MegaFon is negotiating in buying an 85% stake in Uzbek
mobile operator Coscom from the MCT Corpation. The other 15% stake in Coscom would be held by Coscom management and private shareholders. Analysts estimated Coscom is worth between USD $180–200 million. Coscom's has over 300,000 customers.
reported on May 13, 2008 that Megafon has opened its office in Tehran
.
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
. It works in the GSM and UMTS standard. Its main competitors are Bee Line GSM and Mobile TeleSystems
Mobile TeleSystems
MTS is the largest mobile operator in Russia and CIS with over 102,4 million subscribers as of 31 December 2009.Having started in the Moscow license zone in 1994, МТS in 1997 received licenses for further areas and began expansion, later entering other countries of the CIS...
(MTS).
The name "MegaFon" in Russian
Russian language
Russian is a Slavic language used primarily in Russia, Belarus, Uzbekistan, Kazakhstan, Tajikistan and Kyrgyzstan. It is an unofficial but widely spoken language in Ukraine, Moldova, Latvia, Turkmenistan and Estonia and, to a lesser extent, the other countries that were once constituent republics...
looks exactly like the word for a megaphone
Megaphone
A megaphone, speaking-trumpet, bullhorn, blowhorn, or loud hailer is a portable, usually hand-held, cone-shaped horn used to amplify a person’s voice or other sounds towards a targeted direction. This is accomplished by channelling the sound through the megaphone, which also serves to match the...
; other connotations are mega- as "big" and fon as "telephone". Its headquarters are located in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
.
In 2002 the company changed its name from North-West GSM to MegaFon when it acquired several regional companies, becoming the first GSM company in Russia to cover all its territory.
, MegaFon had 30,657,864 subscribers.
Ownership
The company was founded by FinnishFinland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
and Swedish
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
national telecom
Telecommunication
Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded...
companies, now merged into TeliaSonera
TeliaSonera
TeliaSonera AB is the dominant telephone company and mobile network operator in Sweden and Finland. The company has operations in other countries in Northern, Eastern Europe, Central Asia and Spain, with a total of 150 million mobile customers...
along with the Russian holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
Telecom-invest.
- Telecom-invest together with its BermudaBermudaBermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
based sister company IPOC International Growth Fund own 39% of the company.- Jeffrey GalmondJeffrey GalmondJeffrey Peter Galmond is a Danish lawyer and businessman. He is the owner of the law firm J. P. Galmond & Co. He owns large portions of the holding companies that own the Russian mobile telecommunications operator Megafon. One of these portions is currently contested...
, a Danish lawyer publicly claims to own and control both companies, but they are rumored to in fact represent the personal interests of former Russian telecommunications minister Leonid ReimanLeonid ReimanLeonid Dododzhonovich Reiman, in Russian: Леонид Дододжонович Рейман; born July 12, 1957 in Leningrad is a Russian businessman and government official, former Minister of Communications and Information Technologies of the Russian Federation...
.
- Jeffrey Galmond
- TeliaSoneraTeliaSoneraTeliaSonera AB is the dominant telephone company and mobile network operator in Sweden and Finland. The company has operations in other countries in Northern, Eastern Europe, Central Asia and Spain, with a total of 150 million mobile customers...
now owns 36% of the company. - Alfa GroupAlfa GroupAlfa Group Consortium is one of Russia's largest privately owned investment groups, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, water utilities and special situation investments...
of Russian oligarch Mikhail FridmanMikhail FridmanMikhail Maratovich Fridman is a Jewish Russian businessman. Mr. Fridman graduated from Moscow Institute of Steel and Alloys in 1986. In 1988 Fridman started his career in trading and financial services before founding Alfa Group Consortium in 1989...
owns 25.1%.
A battle for control of the company is ongoing between Alfa Group
Alfa Group
Alfa Group Consortium is one of Russia's largest privately owned investment groups, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, water utilities and special situation investments...
and Jeffrey Galmond's party.
- References: Helsingin SanomatHelsingin SanomatHelsingin Sanomat is the largest subscription newspaper in Finland and the Nordic countries, owned by Sanoma. Except after certain holidays, it is published daily. In 2008, its daily circulation was 412,421 on weekdays and 468,505 on Sundays...
, March 28, 2006 http://www.hs.fi/talous/artikkeli/EU+tutkii+TeliaSoneran+operaattorikauppoja+Ven%C3%A4j%C3%A4ll%C3%A4/1135219314967 https://www.hs.fi/kirjautuminen/kirjaudu?TYPE=33554433&REALMOID=06-51554e13-ef04-4abf-abd0-3605eb96f795&GUID=&SMAUTHREASON=0&METHOD=GET&SMAGENTNAME=hs-www-01&TARGET=$SM$http%3a%2f%2fwww%2ehs%2efi%2fuutiset%2fverkko-hesari%2fartikkeli%2fEU-komissio%2bryhtyy%2bselvittämään%2bTeliaSoneran%2bVenäjä-kauppoja%2f1135219316687 (requires subscription)
Allegations
The Georgian National Communication Commission has accused the Russian mobile telecommunications company MegaFon of illegal business operations and participation in the military and economic annexation of Georgia.According to the GNCC, “MegaFon” has provided unlicensed mobile phone coverage in the conflict zones of Georgia beginning in 2005, in particular – the South Ossetia region. The company covered mostly the areas of dislocation of the Russian military forces present in Georgia under the CIS peacekeeping mandate. The rest of the area was mostly covered by the Georgian mobile phone carriers “Geocell” Ltd. and “Magticom". In the spring of 2008, GNCC received complaints from Georgian mobile communication companies regarding the destruction of their communication facilities in the region and installation of MefaFon antennas. The GNCC conducted survey monitoring trips to establish the presence of MegaFon’s unlicensed coverage.
The GNCC has imposed two fines on MegaFon: the first – in the amount of 5000 GEL (3750 USD) in July 2008, and the second, for the recurrence of violation in the amount of 500,000 GEL (approx. 350,000 USD) in September 2008.
Because Georgian law envisages criminal liability for illegal business activities, the GNCC has notified the General Prosecutor of Georgia on the alleged violations committed by MegaFon. The Prosecutor General of Georgia is expected to initiate criminal proceedings against key officials of MegaFon.
On October 2, 2008, Tbilisi City Court upheld the decision of GNCC, finding MegaFon liable for providing unlicensed telecommunication services in Georgia.
MegaFon’s appeal of the second administrative fine shall be heard by Tbilisi City Court in November 2008.
Uzbekistan
KommersantKommersant
Kommersant is a commerce-oriented newspaper published in Russia. , the circulation was 131,000.- History :The newspaper was initially published in 1909, and it was closed down following the Bolshevik seizure of power and the introduction of censorship in 1917.In 1989, with the onset of press...
reported on September 7, 2006 that MegaFon is negotiating in buying an 85% stake in Uzbek
Uzbekistan
Uzbekistan , officially the Republic of Uzbekistan is a doubly landlocked country in Central Asia and one of the six independent Turkic states. It shares borders with Kazakhstan to the west and to the north, Kyrgyzstan and Tajikistan to the east, and Afghanistan and Turkmenistan to the south....
mobile operator Coscom from the MCT Corpation. The other 15% stake in Coscom would be held by Coscom management and private shareholders. Analysts estimated Coscom is worth between USD $180–200 million. Coscom's has over 300,000 customers.
Iran
BBC PersianBBC Persian
BBC Persian is the Persian language radio station and TV operated by the BBC which conveys the latest political, social, economical and sport news relevant to Iran, Afghanistan, and Tajikistan, and the world. Its headquarters are in London, United Kingdom...
reported on May 13, 2008 that Megafon has opened its office in Tehran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...
.
Sponsorship
- For the 2009 Formula One season2009 Formula One seasonThe 2009 Formula One season was the 60th FIA Formula One World Championship season. The season took place over 17 rounds, and started with the on 29 March 2009. It ended on 1 November 2009 with the inaugural ....
, MegaFon was one of the sponsors for the Renault F1 TeamRenault F1Lotus Renault GP, formerly the Renault F1 Team, is a British Formula One racing team. The Oxfordshire-based team can trace its roots back through the Benetton team of the late 1980s and 1990s to the Toleman team of the early 1980s. Renault had also competed in various forms since , before taking...
.
External links
- MegaFon English corporate site
- Alfa Group Accused of Bribing to Buy MegaFon June 13, 2006
- Reuters: Georgia's Communications Commission Fines Russia's Megafon; Decries 'Economic Annexation'
- Reuters:Georgia threatens to multiply Russia MegaFon fine
- Reuters: Georgia files charges against Russia's MegaFon
- Reuters: Megafon Goes to Court in Georgia over Disputed South Ossetia Operations
- EurasiaNet: THE FIGHT BETWEEN TBILISI AND MOSCOW OVER SOUTH OSSETIA GOES CELLULAR
- Reuters: Court Upholds Fine Against Megafon for Illegal Operations in Georgia
- Guardian: Dreams of empire strike back Q: What do Osama bin Laden and Vladimir Putin have in common? A: Worrying ambitions to reverse imperial decline
- Unofficial MegaFon page