MOBILE TELESYSTEMS Moscow, Russia Russian Market Keeps This Firm Dialing In.(A)

Byline: KIRK SHINKLE

While mobile-phone companies have taken a big hit in the U.S. in recent years, a Russian firm is reaping the benefits of a population that doesn't yet have a handset attached to every ear on the street.

Russia is going through a change that much of the developed world has already embraced -- mass acceptance of wireless technology.

Until recently, cell phones were primarily sold to the wealthy in a few cities, most notably Moscow, where half the population goes wireless.

Now Mobile TeleSystems is carving up the rest of the country -- alongside a few rivals -- as cell phones become everyday appliances.

The Russian financial crisis in 1998 was instrumental in changing the cell-phone market in Moscow. Most providers charged in dollars, and the economic collapse left wealthy customers with far less cash.

So rival Vimpel Communications went mass market, and Mobile followed suit. A bitter fight for Moscow's customer base ensued. Cheaper phones and rates became available, and wireless technology flourished in that city.