Center for Radio Communication, Broadcasting and Television (CRBT) under the State committee for communications, development of information systems and telecommunications technologies of the Republic of Uzbekistan owns other 49.99% shares in the joint venture.

According to the Russian company, it is planning to launch network for commercial exploitation on 1 December 2014.

Currently, Universal Mobile Systems LLC received 2G/3G/LTE licenses, a frequency range, a numbering capacity and other permits for operation, as well as investment guarantees under Uzbek legislation, the Russian company said.

Earlier it was reported that Alokabank provided a loan to Universal Mobile Systems LLC for 500 billion soums (over US$211.553 million).

The joint venture will operate on the basis of assets, equipment and infrastructure, which were previously owned by Uzdunrobita FE LLC, a former subsidiary of MTS in Uzbekistan, and which will be transferred to this newly established joint venture.

Soon, MTS and Uzbekistan are planning to submit a joint application to discontinue ongoing legal proceedings in the International Center for Settlement of Investment Disputes, Member of the World Bank Group (ICSID).

The Settlement agreement is governed by English law and provides for resolution of any disputes arising out of the Settlement agreement in the International Court of Arbitration under International Chamber of Commerce in Paris (ICC).

MTS Uzbekistan worked in Uzbekistan till the summer 2012. In 2012, Uzbek Communication Agency suspended its licenses and later the court abolished its licenses. Several employees of Uzdunrobita were fined and sentenced for correctional works for schemes, created for receiving illegal income. Assets of the company were handed over to the government, but the court abolished decision and said the operator should pay US$600 million of fines and penalties.

Tashkent Economic Court recognized FE LLC Uzdunrobita, a 100% subsidiary of Russia’s MTS in Uzbekistan, as bankrupt on 22 April 2013. In December 2013, assets of Uzdunrobita were handed over to balance of Uzbektelecom, national communication operator of Uzbekistan, without right to use them.