Suffering in Uzbekistan, MTS Returns to Turkmenistan
A bit bruised and on vastly inferior financial terms, Russian cell operator MTS is returning to Turkmenistan.
In a July 26 statement, MTS said authorities in Ashgabat had granted the company a five-year contract for mobile operations, with the possibility of another five-year extension if all goes well. Both sides, the statement said, have agreed to drop legal action against one another.
The hitch? The new agreement with state-run Altyn Asyr requires MTS to pay the company 30 percent of its net profits every month.
MTS was kicked out of Turkmenistan in late 2010 after Ashgabat abruptly suspended the company’s operating license. Since then, MTS has tried to get the government to pay the $137.8 million it claims to have lost when it was booted out of the country, and rumors have circled regularly that MTS would return. As EurasiaNet.org has reported, the dithering and overloaded Altyn Asyr is not loved by most Turkmen, and some have even saved their MTS SIM cards hoping that one day the operator would return.
According to Reuters, MTS claims its cell towers and equipment in Turkmenistan are still in good shape, so its 2.4 million former customers should be able to reconnect soon.
Visitors to a popular local news site posted comments celebrating MTS’ return. But after years of speculation, some were skeptical. “It’s really not sure whether this will happen or not,” said a user identified as Kerki.
MTS is currently experiencing similar troubles in neighboring Uzbekistan. On July 17, Tashkent stopped the company’s operations for 10 days after detaining two of the company’s top managers.