Interview with MTS President, Part 4
“Company Secret” (“CS”): MTS deployed 3G networks in 19 Russian cities, and in Moscow frequencies are taken by the military. How will your company resolve this issue?
MIKHAIL SHAMOLIN (MS): Now a working group comprised of representatives from Ministry of Communications and Ministry of Defense determines whether our base stations interfere with the work of military systems. Experiments with compatibility in subway and inside buildings are completed already. Starting January 2009 we are doing experiments with compatibility on the streets. If we confirm that there are no any compatibility issues, then by the beginning of 2010 our 3G network will cover city central and main highways.
“CS”: VimpelCom didn’t wait for the permission to deploy 3G networks. It acquired Golden Telecom and Corbina Telecom. It allowed them to offer subscribers high-speed Internet via Wi-Fi networks. Why didn’t your company acquire Internet providers or deploy Wi-Fi networks in order to keep up with competition?
MS: Right now Komstar (a part of Systema Telecom group) deploys a Wi-Fi network in Moscow. The network access points are located at homes of operator’s subscribers. These subscribers are offered discounts for letting public use of their access points to other subscribers (when password for home access point is disabled any iPhone owner in its vicinity can be granted access to Wi-Fi – CS). This way Wi-Fi coverage in Moscow will be established in a year and it will be no worse than Golden Telecom’s. In the future we will be able to use Komstar’s Wi-Fi network. But 3G network is more convenient to use. First of all, there is no total Wi-Fi coverage. Second, this service doesn’t include roaming. And third, in order to access Wi-Fi network, a user should enter his login and password, while 3G network doesn’t require that. When I am driving a car or walking, or even simply sitting in one place – the cost of 3G vs. Wi-Fi should be huge to induce me to enter login and password to switch networks.
“CS”: Do you think that this much-talked-about merger of VimpelCom, Golden Telecom and Corbina is senseless?
MS: We are not seeing any confirmed synergy effect yet. A subscriber is offered a discounted package which has mobile telephony and broadband access to Internet. In our opinion, integration with content providers, not with broadband providers, offers a larger potential. In the latter case, a subscriber will be paying not just for communication but for content as well.
“CS”: Does it mean that you will be acquiring content providers?
MS: For us partnership with them is more efficient, for now. Soon you will see our company making specific steps in this direction. Our company is already the largest content seller among mobile operators and we will be continuing playing in this field. I don’t want to talk about our potential projects in advance, but it’s not just a theory in my head.
”There are no silver bullets or golden rules”
“CS”: What are you thinking of outside your office?
MS: I am a hunter with experience. I am going to a traditional Russian hunting, to Africa, and to other exotic countries. I hunt elephants, crocodiles, and buffaloes. I also enjoy flying an airplane, riding a sports motorcycle, diving, mountain skiing, and surfing. I love all extreme sports.
“CS”: How do you find time to manage MTS?
MS: I’ve been working in McKinsey Company, where people are usually working for 16 hours a day. I’ve been working there no longer than 10 hours and it didn’t slow down my promotion potential. I think that one of the tasks of a manager in any position is to organize work so that results would be reached by the end of eight-hour working day.
“CS”: How do you accomplish this?
MS: There are no silver bullets or golden rules for making a manager successful. Open any book, and here they are – principles of company management. The main ingredients: professionals in their own places, precise goals, a measurement system and a motivation system tied to measurement. Everything else will be happening by itself.
