Russia's third largest mobile operator by users, OAO Megafon, doesn't intend to follow peer OAO Vimpel Communications (VIP) in raising call prices, the company's Chief Executive, Sergei Soldatenkov, told a group of journalists and analysts on Wednesday.

"Our position is to raise tariffs when we need to, and not to in order to increase the company's revenue," Chief Executive Sergei Soldatenkov told a group of journalists and analysts, adding that Megafon doesn't need to because it has more cash than debts.

"We're planning for the long term, and raising prices isn't going to boost usage in the long term," he added.

VimpelCom last month hiked call prices on some of its most popular tariffs by a quarter. Analysts linked this move to its debt burden of $9 billion debt, most of which is in dollars, although the company denies that it is simply trying to make subscribers pay more for the same services.

Although many Russians are facing their first fall in income for a decade, many telecoms analysts expect the country's largest cellular providers to try and preserve profits by making them pay more for calls.

Russia's mobile operators offer many different tariff plans in each region of the country, and bad publicity associated with hiked prices during a recession could prompt subscribers to shift to another operator.

Russia's largest operator by users, OAO Mobile TeleSystems, hasn't yet announced higher call charges on its most popular tariffs.

"If (MTS) does, it will be bad for them and good for us," said Soldatenkov.

Nordic operator TeliaSonera AB (TLSN.SK) has a 44% stake in Megafon, and the rest is owned by investment companies of local tycoons Alisher Usmanov and Mikhail Fridman.

Company Web site: www.megafon/ru

-By Will Bland, Dow Jones Newswires; +7 495 937 8445; william.bland@dowjones.com