Putin's Ally Enters Moscow's $3.7 Billion Wireless Market
- Tele2 starts network in capital as Russian owners stepped in
- New player threatens profitability of MTS, MegaFon, VimpelCom
Entertainers on stilts parade around a giant Tele2 logo at the launch of the new wireless service. Photographer: Andrey Rudakov/Bloomberg
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Russia’s three dominant wireless providers are facing a new rival in the lucrative Moscow market: a discount carrier backed by the government.
T2 RTK Holding, whose owners include the state and a billionaire ally of President Vladimir Putin, will start services in the capital Thursday, potentially threatening the profitability of Mobile TeleSystems PJSC, MegaFon PJSC and VimpelCom Ltd in the country’s biggest market.