I'll now turn the call over to Andrei Dubovskov, President and Chief Executive Officer of MTS.Andrei Dubovskov Ladies and gentlemen thank you for joining us on today's conference call to discuss the company's financial and operating results of the second quarter 2012. Joining me today are Alexey Kornya, Vice President, Chief Financial Officer; Aleksander Popovskiy, Vice President, Chief Operating Officer; Michael Hecker, Vice President, Strategy, Corporate Development and M&A; and Оleg Raspopov, Vice President Foreign Subsidiaries. (Inaudible) and other strong set of results for MTS Group for the second quarter. Group revenue for the quarter to reach over $3.1 billion USD in spite of a significant weakening of our core currencies versus the USED. We saw sustained growth in usage of voice and data products in each of our markets of operation. We also see signs of stability and moderate competitive pressures in our markets. For the period total revenue in Russia increased in ruble terms by 9% year-over-year to 82.8 billion rubles. (inaudible) city voice usage, higher value subscribers through our efforts to optimize dealer relationships and sell more through MTS's proprietary retail chain and growth in headset sales including sales of higher value smartphones. Year-over-year our mobile business grew by 10% to 69.3 billion rubles. As we predicted, we continue to see benefits in our mobile business through a combination of strong tariff plans, prudent sales strategies and continued investments in our networks. We see strength in upselling our mass market subscribers to better voice plans as ARPU and MOU by 12% and 15% year-over-year respectively. We also are attracting better subscribers through our own retail and partner channels. Net subscribers also contributed to the rise in ARPU and demonstrate more loyalty. For the period churn rate percent 11.3% to 10.5% and modem sales remain strong despite the cancellation of subsidies. Sustained investment in our networks makes entails the logical choice for customers who want to speak and access to the internet.
Our fixed line business remains stable year-over-year both residential and corporate ARPUs sales slightly due to increased competition and the addition of lower value customers also added roughly 50,000 new subscribers. We remain focused on network improvement both in Moscow and the regions. The work being done to upgrade to full fiber in our networks, we are confident that better networks will all last to further grow this business and increase customer value.In Ukraine, revenue growth continued at 7% year-over-year to nearly 2.4 billion US. Handsets in the market continues to favor us as we saw definite year-over-year growth in ARPU, MOU, and data traffic. We also were able to benefit for the euro 2012 through higher (inaudible) overall contribution from (inaudible). Data traffic grew 9% year-over-year which is strong given the fact that there is no 3G yet in the market. in Armenia, revenue increased by 2% year-over-year to 19.1 billion. The market continued to trend towards stable as we improved churn and subscribers increased their calling and data usage. In Uzbekistan, we did recognize the full quarter of revenue and OIBDA as we witness separation of impact of our district with regulatory authorities only in the third quarter. Operationally realized a strong quarter of revenue increased 22% year-over-year. as four further in Uzbekistan, I will speak to this topic later. Read the rest of this transcript for free on seekingalpha.com