MegaFon setting the pace

In terms of pure profitability, MegaFon is setting the pace for Russia's 'Big Three'. Figures from Renaissance Capital put MegaFon's profitability at 20.6% for the first half of 2006, an increase of 2.3% over the same period last year. MTS and VimpelCom achieved just 15.6% and 18.6% respectively. According to US GAAP standards, MegaFon's profits grew by 70.1% in comparison to the first half of 2005, ahead of MTS but still behind VimpelCom.

MegaFon has seen a significant increase in its subscriber base across the country, which market experts attribute to a well-chosen development strategy and successful pricing plans.

© Robert Leitch Mobile Content Magazine

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