Exhibit 4.16


 


MINISTRY OF THE RUSSIAN FEDERATION

FOR COMMUNICATIONS AND INFORMATIZATION


 


LICENSE


 


A 023714    
No. 24135


 


Mobile TeleSystems


 


Open Joint Stock Company


 


is authorized in accordance with the current


legislation of the Russian Federation.


 


Legal address:


 


109147, Moscow, ul. Marksistskaya, d. 4


 


Type of activity:


 


Provision of
cellular radiotelephone communications services in the 1800-MHz band


 


Conditions of the said type of activity and
territory

are stated in the annex hereto, which forms an integral part of this license.


 


	
  License valid until:

  	
   

  	
  April 28, 2008

  
	
   

  	
   

  	
   

  
	
  Commencement of provision of services

  (no later than)

  	
   

  	
  October 24, 2003

  
	
   

  	
   

  	
   

  
	
  Date of registration of license in the Unified Registry of
  Communications Licenses

  	
   

  	
  October 24, 2002

  
	
   

  	
   

  	
   

  
	
  First Deputy Minister of the

  Russian Federation for

  Communications and Informatization

  	
   

  	
  B. D. Antonyuk

  



 

















 


Conditions of Activity

under License No. 24135


 


1. Mobile TeleSystems OJSC (the “licensee”)
is authorized by this license to provide cellular radiotelephone communications
services of the public communications network using GSM equipment in the
1800-MHz band (CMC-1800) in the territory of the Central and Central-Chernozem
regions and the Bryansk, Vladimir, Ivanovo, Tver, Kaluga, Kostroma, Orlov, Ryazan,
Smolensk, Tula, Yaroslavl, Belgorod, Voronezh, Kursk, Lipetsk, Tambov, and
Nizhny Novgorod oblasts.


 


Within the scope of this license the licensee
may provide cellular radiotelephone communications services of a GSM 900/1800
dual-band (dual-range) network, with installation of necessary equipment
operating at duly assigned nominal frequencies in the 1800- and 900-MHz ranges
in the territory of theNizhny Novgorod oblast.


 


Cellular communications services shall be
provided using the licensee’s communications network, which shall be a part of
the common CMC-1800 cellular network of the Russian Federation.


 


The licensee shall participate in the work of
the body authorized by the Communications Administration of the Russian
Federation to coordinate work for the creation of the common CMC-1800 network.


 


2. The total installed capacity of the
licensee’s communications network and percentage of population coverage, with
allocation of a sufficient frequency resource, by December 31 of the respective
indicated year must be:


 


	
  2003

  	
   

  	
  850
  numbers

  	
   

  	
  4.9

  	
  %;

  
	
  2008

  	
   

  	
  2500
  numbers

  	
   

  	
  15.5

  	
  %.

  



 


3. The CMC network created by the licensee
shall be connected to the public communications network of the Russian
Federation on the interurban level in accordance with the General Plan for the
Creation and Phased Development of the Federal Public GSM Mobile Radiotelephone
Communications Network of Russia.


 


Additional
interaction of the licensee’s communications network with the public
communications network of the Russian Federation is permitted on the local
level for the purpose of providing technical capability of carrying local
traffic and providing subscribers of the licensee’s network with the additional
service of forwarding calls from the local telephone network.


 


However,
additional interaction of the licensee’s communications network with the public
communications network of the Russian Federation on the


 


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local level is permitted
only on the condition that the interurban level of connection is implemented.


 


Until the aforesaid plan is released, the
licensee shall be guided by the instructions of the Communications
Administration of the Russian Federation.


 


4. It is prohibited to arrange roaming
between CMC-1800 communications networks created in the licensed territory.


 


5. Any activity of the licensee directed
toward the interaction of the network created by it with foreign cellular
communications networks must be approved by the Communications Administration
of the Russian Federation or a body authorized thereby.


 


6. The licensee must comply with existing
Russian rules and regulations, as well as ETSI standards determined by the
Communications Administration for CMC-1800 communications networks.


 


The
principles of construction and the functional capabilities of the CMC-1800
communications network must conform to international recommendations concerning
the organization of such networks.


 


7. Use of infrastructure of CMC-900
communications networks by the licensee shall be on a contractual and
nondiscriminatory basis.


 


8. Numbering in the licensee’s network must
conform to the numbering plan of the public communications network of the
Russian Federation and the requirements of the numbering plan for land-based
mobile service networks.


 


9. The licensee’s network must be designed
and constructed such that the rate of failed connections within the
communications network at the hour of peak usage does not exceed 5%.


 


10. The network may be created only after
design specifications have been developed on the basis of the General Plan for
the Creation and Phased Development of the Federal Public GSM Mobile
Radiotelephone Communications Network of Russia and in accordance with
Construction Norms and Specifications (SNIP) and Departmental Technological
Design Regulations (VNTP) applicable in the Russian Federation and have been
agreed and approved in the established manner.


 


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11. The licensee must provide services in the
licensed territory to any person who needs them, subject to technical
feasibility.


 


The licensee may refuse to provide services
in cases when:


 


•
provision of the service would threaten the security or defensive capability of
the state or human health and safety;


 


•
provision of the service is impossible due to any physical, topographical, or
other natural obstacles;


 


•
the user without valid reason does not agree to the terms and conditions of
service or fails to pay for provided services in a timely fashion;


 


•
the user uses or intends to use communications equipment for any unlawful
purpose, obtains communications services by unlawful means, uses provided
equipment in breach of operating rules, or uses uncertified equipment.


 


Refusal
must be justified in each specific instance.


 


12. The licensee shall ensure that the
communications services of the network created by it are provided to all users
of the common CMC-1800 communications network, with the exception of users of a
different licensee’s network in the licensed territory, regardless of their
place of registration or place of acquisition of subscriber equipment.


 


13. The licensee is obligated to provide
mobile subscribers at their locations with free calls to local special services
(firefighting service, police, ambulance, gas emergencies service, etc.) in the
licensed territory.


 


14. Interurban and international
communications services shall be provided to subscribers of the licensee’s
network via the public communications network only in accordance with the
General Plan for the Creation and Phased Development of the Federal Public GSM
Mobile Radiotelephone Communications Network of Russia.


 


15. The licensee is obligated to provide
users with communications services of a quality conforming to standards,
technical norms, certificates, and the terms of the contract for the provision
of communications services.


 


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16. The licensee shall be liable to users in
case of nonperformance or improper performance of its obligations in the manner
and to the extent provided by the current legislation of the Russian
Federation.


 


17. The licensee is obligated to provide
communications services 24 hours a day, every day, with the exception of
interruptions for necessary preventive and repair work, which shall be planned
to take place at a time when such work will be least detrimental to users.


 


18.
The licensee is obligated to organize an information service and issue a
directory of subscribers included in the communications network created by it.


 


19. Subscriber cards enabling the
identification of subscribers and the conduct of settlements for services of
the common CMC-1800 cellular communications network of the Russian Federation
must be made in accordance with the common numbering plan for such cards
established by the Communications Administration of the Russian Federation.


 


20. The licensee is entitled to use
communications channels and physical circuits of the public communications
network of the Russian Federation at the tariffs in effect for the respective
category of users.


 


21. The licensee is obligated to fulfill the
requirements of the Communications Administration of the Russian Federation
concerning the procedure for the carriage of traffic and provision of services.


 


In cases provided for by the legislation of
the Russian Federation, centralized management of the licensee’s communications
networks may be exercised directly by the Communications Administration of the
Russian Federation or a body authorized thereby.


 


22. Costs associated with the development of
the general plan for organization of the common CMC-1800 cellular
communications network of the Russian Federation, the design and construction
of the licensee’s network, its connection to the public communications network
of the Russian Federation, the allocation of a frequency resource necessary for
the creation of the network, the approval of conditions ensuring
electromagnetic compatibility between the radio equipment to be used and
existing radio facilities, settlements with operators of public communications
networks of the Russian Federation and operators of other GSM networks, and the
development and issuance of normative documents shall be borne by the licensee.


 


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23. Mutual settlements for traffic with
operators of public communications networks shall be conducted by the licensee
in accordance with the procedure established for the public communications
network of the Russian Federation.


 


24. Tariffs for communications services shall
be established on a contractual basis.


 


In cases provided for by the legislation of
the Russian Federation, tariffs for specific types of communications services
rendered by communications enterprises may be regulated by the state.


 


The charge for inter-network connections
shall be established on the basis of contracts, terms, and provisions agreed
upon by the respective communications enterprises. Disputes respecting these
matters shall be heard in a court of law or arbitration court.


 


Subscribers will not be billed for calls when
a connection is not made.


 


25. For certain categories of officials of
governmental bodies, diplomatic and consular representatives of foreign states,
representatives of international organizations, and certain groups of citizens,
privileges and preferences as regards order of priority, manner of use, and
amount of payment for communications services may be established for
telecommunications use.


 


The list of privileges and the categories of
officials and citizens entitled to privileges and preferences shall be
determined by Russian Federation legislation and normative legal acts of
federal administrative divisions of the Russian Federation, and by
international treaties and agreements of the Russian Federation.


 


26. The licensee is obligated to provide free
official telecommunications in the manner established by the Ministry of the
Russian Federation for Communications and Informatization.


 


27. In times of natural calamities,
quarantines, and other extraordinary situations of a natural and technogenic
nature, authorized state bodies shall have the right to priority use of, as
well as the right to suspend the operation of, the licensee’s
telecommunications networks and facilities.


 


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28. The licensee shall give absolute priority
to all communications relating to the safety of human life at sea, on land, in
the air, and in space, and the conduct of urgent measures in the area of
defense, security, and preservation of law and order in the Russian Federation;
as well as to communications concerning major accidents, catastrophes,
epidemics, epizootics, and natural calamities.


 


29. At the request of the Ministry of the
Russian Federation for Communications and Informatization the licensee shall
submit information concerning the physical condition and prospects for
development of the network, the terms of provision of communications services,
and current tariffs.


 


30. The licensee is obligated to maintain
privacy of communications.


 


Information concerning messages transmitted
via the licensee’s network, as well as the messages themselves, may be issued
only to the senders and addressees or their legal representatives.


 


Listening to telephone conversations,
inspecting telecommunications messages, obtaining information concerning them,
and other limitations of privacy of communications are permitted only on the
basis of the current legislation of the Russian Federation.


 


31. In developing, creating, and operating
the communications network the licensee is obligated in accordance with the
legislation of the Russian Federation to assist authorities carrying out
operative and investigative activity and enable them to conduct operative and
investigative measures on the communications network, and take measures to
avoid disclosure of organizational and tactical methods of conducting such
measures.


 


If communications facilities are used for
criminal purposes harmful to the interests of the person, society, or the
state, authorized state bodies shall have the right in accordance with the
legislation of the Russian Federation to suspend the operation of the
licensee’s communications networks and facilities.


 


Subscribers may be connected only after
requirements have been fulfilled in accordance with the Law of the Russian
Federation “On Operative and Investigative Activity in the Russian Federation.”


 


32. The licensee is obligated to take
measures to prevent unauthorized interference in the administration of the
created network and unsanctioned monitoring of its functioning.


 


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33. At the request of the Ministry of the
Russian Federation for Communications and Informatization the licensee shall
allow equipment tests to be conducted using its network, provided that its
activity as an operator is not affected thereby.


 


34. The provision of communications services
under this license may be commenced only when permission to operate
communications facilities has been received from the authorities responsible for
state supervision over communications and informatization in the Russian
Federation.


 


35. Communications equipment may be used only
after the obtainment of a Svyaz Mandatory Certification System certificate of
conformity.


 


36. The licensee shall not hinder authorities
responsible for state supervision over communications in the Russian Federation
in their conduct of verifications of the technical parameters of the
communications network and, if required, shall provide said authorities with
access to its measuring equipment in order that it may be used in such work.


 


37. This license shall be regulated,
construed, and performed in accordance with the current legislation of the
Russian Federation.


 


38. The licensee is obligated to carry out
its activity in accordance with current normative acts and legislation of the
Russian Federation.


 


39. The Ministry of the Russian Federation
for Communications and Informatization reserves the right to amend this license
in connection with changes in current legislation of the Russian Federation.


 


40. The licensee is obligated to submit to
local statistics authorities and the Ministries of the Russian Federation for
Communications and Informatization periodic and annual state statistical
reports on communications in accordance with the procedure established by the
State Statistics Committee of the Russian Federation.


 


Violation of the procedure for the submission
of statistical reports will entail administrative liability in accordance with
current legislation.


 


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41. This license is nontransferable.


 


42. The licensee is obligated to make
contributions from income received for services in the area of communications
and informatization to the Ministry of the Russian Federation for
Communications and Informatization at the rate established on the basis of
Russian Federation Government Decree No. 380 of April 28, 2000.


 


Funds shall be remitted monthly on the basis
of actual income received for services in the area of communications and
informatization rendered in the preceding calendar month, no later than the
20th day of the following month. The amount subject to remittance shall be
determined more precisely on a quarterly basis following the submission of
financial statements to the tax authorities.


 


For the purpose of monitoring full remittance
of funds to the Ministry of the Russian Federation for Communications and
Informatization, the licensee shall, at the written request of the management
of the administration for state supervision over communications and
informatization within a federal administrative division of the Russian
Federation, submit the appropriate form of financial statement, reflecting
information on income received for services rendered in the area of communications
and informatization.


 


43. This license must be registered after its
issuance at the appropriate authority responsible for state supervision over
communications and informatization in the Russian Federation.


 


In the event of a change in its postal address,
banking information, or telephone number, or in the event of the reorganization
or liquidation of the legal entity, the licensee must notify the Ministry of
the Russian Federation for Communications and Informatization and the
administration responsible for state supervision over communications in the
Russian Federation at which the license was registered.


 


	
  First Deputy Minister of the

  Russian Federation for

  Communications and Informatization

  	
   

  	
   

   

  B. D. Antonyuk

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Head of the Administration for

  Organization of Licensing

  	
   

  	
  N. M. Popov

  



 


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