Russia: 10 Years of GSM - Largest Mobile Communication Market in Europe in 2006 - Siemens No. 1 in Mobile Phones, Mobile Networks and Cordless Telephones

Business Wire, July 1, 2004

MOSCOW -- Russia is celebrating 10 years of mobile telephony. The first mobile networks were set up in 1994 on the GSM standard. And Siemens was also there at the start as supplier for GSM mobile technology and mobile phones. Today, Russia is the fastest growing mobile market in Europe. In 2004 the number of mobile phone users is expected to grow by 70 percent to around 60 million mobile customers by the end of the year; the figure today is around 46 million. "By 2006 Russia will be the largest mobile communication market in Europe with somewhere in the region of 100 million mobile phone users", said Rudi Lamprecht, Member of the Managing Board of Siemens AG, at a press conference in Moscow to celebrate the 10-year anniversary. Siemens is the number 1 in the Russian market for mobile phones, cordless telephones and mobile infrastructure.

Currently, 32 percent of Russians own a mobile phone, although the market coverage varies greatly from region to region: in Moscow 77 percent of the population use a mobile phone, in St. Petersburg the figure is 67 percent. According to market penetration the demands placed on the mobile phone are changing. In the growth regions outside the major cities, the preference is primarily for entry-level models; in cities like Moscow and St. Petersburg customers are more and more interested in devices in the middle and upper price segment. Siemens has therefore adapted its portfolio to the growing demands and is now also increasingly offering devices in the upper segment - with success: The Siemens SX1 just recently won a prize for best smart phone, and the M65 is nominated for an award as best outdoor mobile phone.

Siemens is the market leader in the Russian market for mobile phones, cordless telephones and mobile infrastructure.