Mobile TeleSystems OJSC (MTS), the largest mobile phone operator in Russia and the CIS, has announced the appointment of Mikhail Shamolin as President and CEO. Shamolin, replaces Leonid Melamed, who is taking up the role of President and CEO at Sistema, the largest private sector consumer services company in Russia and the CIS and the majority shareholder of MTS.
Under Melameds two years of leadership, MTS says it has grown from a regional operator, into a globally-recognized leader and innovator. MTS has grown its subscriber base by 24 million and increased its footprint through acquisitions in Russia and Armenia.
Melamed supervised the launch and roll-out of the MTS brand to each of the companys operating markets. He also presided over a substantial increase in the companys dividend payment from $1.03 (0.51) per ADR in 2005 to a recommended payout of $3.12 in 2008.
Mikhail Shamolin joined MTS in 2005 as Vice President, Sales and Customer Service. Later he assumed leadership of MTS Russia following the companys 2006 reorganization. During this time, he managed the largest MTS business unit, which contributes roughly 75% of value to MTS. During his tenure, revenues grew 67% and operating efficiency improved considerably as Shamolin presided over sustained growth in voice usage, and adoption of value-added services, both of which led to an increase of over 50% in average revenue per user (ARPU).
One cannot argue with Leonids record of success in his stewardship of MTS, as his influence is evident everywhere within the organization, says Vitaliy Savelyev, Chairman of the Board of Directors of MTS. We are grateful for his role in shaping the business that we have, yet we have full confidence in Mikhails ability to carry forward Leonids legacy of growth and development at MTS. His long tenure with the company is clear testimony to his capabilities, while his own track record of extracting growth and creating shareholder value as the head of its largest business unit is irrefutable. On behalf of the Board of Directors, we are eager to begin working more closely with Mikhail. 
