Exhibit 4.17


 


MINISTRY OF THE RUSSIAN FEDERATION


FOR COMMUNICATIONS AND INFORMATIZATION


 


LICENSE


 


A 023715     No.  24136


 


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. 24136


 


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 city of
Moscow and the Moscow 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

  	
   

  	
  4,500 numbers

  	
   

  	
  25

  	
  %;

  
	
  2008

  	
   

  	
  9,000 numbers

  	
   

  	
  56

  	
  %.

  



 


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 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.


 


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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.


 


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;


 


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• 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.


 


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.


 


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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.


 


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.


 


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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.


 


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.


 


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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.


 


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.


 


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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.


 


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 


 


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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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