Mobile TeleSystems of MTS
Central Federal District of the Russian Federation
109147, Marksistskaya St. 4
Zakharchenko Anton Sergeyevich
Dmitriyev Kirill Aleksandrovich.
Yevtushenkov Felix Vladimirovich
Ushatsky Andrey Eduardovich
Ibragimov Ruslan Sultanovich
Kuznetsov Pavel Vladislavovich
Main article: Financial performance of MTS
2019: Growth of revenue by 5.5% to 476.1 billion rubles
In 2019 revenue of group of MTS reached 476.1 billion rubles (with accounting of deconsolidation of results of former "subsidiary" of MTS Ukraine), having increased by 5.5% in comparison with previous year earlier. The operator earned 472.6 billion rubles against 448.1 billion rubles in 2018 from the Russian market. Revenues of the company in Armenia and Belarus decreased by 2.2% to 56.6 billion rubles.
MTS completed 2019 with net profit in the amount of 54.2 billion rubles that honor in 8 times more profits in the 2018th. In Russia net profit rose by 45.3% to 99 billion rubles.
As the president of MTS Alexey Kornya at the conference devoted to the publication of financial statements told net profit was affected by "steady growth of consumption of services" and also lack of superfierce competition in the market.
|It has two pacing factors. Last year we had low base because there was a reserve which we added. The second factor is the growth of operating profit and growth of OIBDA — Alexey Kornya in response to a question of factors of growth of indicators told journalists.|
Revenue of MTS in the Russian market of mobile services in 2019 reached 320.1 billion rubles that for 2.4% exceeds income of year prescription. In a segment of services of fixed connection the company received 60.1 billion rubles (decrease by 0.5%).
Services of system integration added to revenue of MTS in 2019 about 10.3 billion rubles that is 39.2% more, than the previous year. The income of group from MTS of Bank jumped by 151.8% and was 29.8 billion rubles. One more item of income — sales of goods — provided the operator with annual revenues in the amount of 69.4 billion rubles (growth by 0.3%).
As of December 31, 2019 MTS had 86.9 million clients, including 79.1 million in Russia. The subscriber base of the operator in the Russian market increased by 1.4% concerning the end of 2018.
Main article: Subscriber base of MTS
For 2017 the number of subscribers of MTS exceeds 110 million
Ecosystem of MTS
Development of 5G networks
Main article: a 5G in MTS
Information technologies in business
Main article: Information technologies in MTS
Investment of 125 million rubles into service of accounting of finance
On September 11, 2020 MTS announced investment of 125 million rubles into CoinKeeper through the corporate venture fund. Within the transaction the operator of mobile and fixed connection became the minority shareholder of service of accounting of personal finance, expense control and savings. Read more here.
Closing of 600 cellular shops since the beginning of year
On August 19 MTS announced closing of 600 cellular shops since the beginning of 2020. The company implemented the plan for retail reduction ahead of time — the operator wanted to stop work of 600 sales points during the whole 2020. Optimization affected both own, and franchasing shops.
According to with reference to the reporting of MTS, temporary closure of a part of cellular shops in the period of a pandemic and diversification of sales channels additional 1.7 billion rubles to operating income to a deduction of fixed asset depreciation and intangible assets (OIBDA indicator) according to the results of the second quarter 2020 allowed the company to receive Kommersant.
As a result of closing of 600 salons the retail network MTS was reduced by 10% — by August 19, 2020 the company has 5281 points. The operator allows a possibility of closing of new shopping facilities, but finally the solution will depend on a situation in the market.
|If competitive environment allows us, then we will continue further optimization of network — the senior vice president of MTS on telecommunication business Inessa Galaktionova said.|
According to the head of "Infoline-Analitiki" Mikhail Burmistrov, operator retail is unprofitable, and closing of inefficient sales points reduces the need for their additional financing that positively affects financial performance of operators. Telecommunication companies already began to cut down the retail, however by August 19, 2020 superfluous are another 15-20% of salons, he considers.
The analyst of Mobile Research Group Eldar Murtazin notes that the number of operator cellular shops exceeds twice the sales demand which also decreases against the background of increase in term of life of smartphones. On this background reduction of retail leads to revenue growth of MTS, even at small drop in sales of the equipment, the expert added.
The former head of presidential administration Valentin Yumashev received a share in MTS
On July 8, 2020 it became known that Valentin Yumashev received a share in MTS. Read more here.
The updated structure of Board of Directors: Konstantin Ernst entered it
On June 25, 2020 the CEO of Channel One Konstantin Ernst officially joined MTS the board. The operator reported about it on the website according to the results of holding the correspondence annual general shareholder meeting.
In addition to Ernst, new board members became: chairman and chief executive officer of Coriant company Shaygan Heradpir and also former vice president for technologies of Amazon and former vice president for technologies of Amazon and member of the supervisory board of X5 Retail Group Nadia Shurabura.
The quantitative structure of Board of Directors of MTS remained, 9 people enter it. The structure of Board of Directors left managing partners of AFK "Sistema" Vsevolod Rozanov and Alexey Katkov and also the independent director Antoniu Teodosiu.
In Board of Directors there was a head of MTS Alexey Kornya, the board member of AFK "Sistema" Felix Yevtushenkov, the vice president of System for strategy Artyom Zasursky. Positions of independent directors were saved by Regina von Flemming, Thomas Holtrop and Valentin Yumashev.
The press service of the company noted that inclusion in Board of Directors of new candidates contributes to the development of strategy of the company. It is directed to creation around the client of an ecosystem of digital services.
According to the statement of the representative of MTS, new board members have the first-class managerial competences and outstanding experience in creation and an output to the market of successful digital and media products.
Konstantin Ernst became the board member of MTS after the company and Channel One created joint venture for development of the recommendatory system of media content based on individual preferences of users. Under the terms of the agreement, MTS has an opportunity to show content of TV channel, and Channel One — tools for measurement and the analysis of the audience on the Internet.
Purchase of Stopol of a Car and Koagent Rus companies
On June 22, 2020 MTS announced acquisition of the companies "Stopol of a car" and "Koagent Rus" which became a basis for the new business direction of the telecommunication operator — development of automobile technologies. In more detail here.
The head of MTS explained why in Board of Directors nominated Ernst, Galitsky and the former vice president of Amazon
During a conference call of top managers of MTS with analysts at the end of the May, 2020 devoted to work results in 1 quarter, the president of the company Alexey Kornya explained the choice of new persons in the candidate list on inclusion in Board of Directors. The decision on their inclusion was made on May 21, however at that time the company did not comment on the choice of specific persons in media.
Election will go to Board of Directors of MTS at the annual general meeting of shareholders of the company on June 24, 2020. The head of Channel One Konstantin Ernst, the managing partner and the co-founder of Almaz Capital Partners fund Alexander Galitsky, the chairman and the chief executive officer of Coriant company Shaygan Heradpir and also the member of the supervisory board of X5 Retail Group and the former vice president for technologies of Amazon Nadia Shurabura became new candidates in the list.
Follows what Alexey Kornya said during a conference call that, thus, the Board of Directors amplifies to help MTS to implement its new strategy meaning ecosystem approach and growth outside traditional telecom business.
In a conversation the head of MTS called Konstantin Ernst "the leading guru of media in Russia". Connected its promotion in Board of Directors of Kornya with the fact that earlier in 2020 MTS and Channel One signed the agreement on creation of joint venture for formation of the new media offer which assumes the "essentially new format of media of the offer" based on individual preferences of each user. In the light of the fact that the companies will develop it together Ernst's inclusion in Board of Directors looks logical, the head of MTS noted.
As for Nadia Shurabura, she is very experienced professional in creation and development of ecosystems. In view of the fact that MTS faces a set of ecosystem calls and questions, Shurabura will help the company to answer correctly them and to develop, Alexey Kornya explained. In particular, it is relevant for the business development strategy of data centers of MTS where Nadia Shurabura has especially good experience with Amazon, the head of the company emphasized.
In the nearest future MTS is going to pay special attention to business development based on data centers. Alexey Kornya reminded that before MTS purchased one of the largest commercial DPCs – Avantage. Follows from his words that in 2020 the company will direct special efforts to receiving more revenue from the direction of data centers.
Shaygan Heradpir, in turn, is attractive to the company and the experience in a telecom where he got experience of the Chief information officer in telecommunication corporation Verizon, and in digital banking. Heradpir worked as the chief operating officer of Barclays Bank. And banking business, its experience in this sphere is also modern for MTS developing. During a conference call brought data into the companies that in 1 quarter 2020 the number of users of its banking application for the first time exceeded 1 million people, and growth year-on-year was 70%.
Concerning Alexander Galitsky the president of MTS emphasized that that has extensive experience in the different industries and in startups, creation and development of businesses.
Alexey Kornya noted that in the new offered structure most of board members – independent directors.
Purchase of telecom company "Green Point"
On May 22, 2020 details of the transaction on sale of Green Point of MTS company became known. Follows from annual accounts of the operator of "Big Four" that he paid 1.37 billion rubles for purchase of 51% of stocks in Cyprus offshores of Achemar Holdings and Clarkia Holdings which own operators from the Green Point group. Read more here.
Interview of TAdviser with the vice president for government relations and public relations Ruslan Ibragimov
MTS and Skoltech started laboratory of artificial intelligence
On March 2, 2020 MTS announced start of laboratory of artificial intelligence at the Skolkovo institute of science and technologies (Skoltech). This project is directed to creation of new algorithms for recognition and understanding of texts that will allow the telecommunication operator to improve product quality and services, such as virtual assistants. Read more here.
Development of artificial intelligence for medicine
On February 6, 2020 MTS and the Samara state medical university (SAMGMU) announced start of laboratory of artificial intelligence. AI technologies for primary diagnostics of patients and the system of automatic conversion of a voice to the text for doctors will develop there first of all. Read more here.
Entry of representatives of MTS into Board of Directors of Just AI
On January 23, 2020 Just AI, the developer of technologies of colloquial artificial intelligence, announced closing of transactions with strategic partners – PJSC Sovcombank and PJSC MTS. The cumulative share of investors in the capital of Just AI made 22.5% at the overall market assessment of the company in 40 million dollars. Representatives of MTS and Sovcombank joined the board Just AI as observers. Read more here.
Purchase of 15% of a share in Swipglobal
On January 22, 2020 it became known of sale of a 15% share in Swipglobal (the owner of Smart Purse company) to the telecommunication operator of MTS. The price of the transaction is not set. Read more here.
Beginning of liquidation of a brand of MGTS
On January 16, 2020 it became known of end in MTS of restructuring of the Moscow business in the field of services of mobile and fixed connection therefore it began to develop under uniform management. The brand of MGTS under which MTS provided services of the wire Internet will gradually disappear. Read more here.
Creation of the company for management of booking services MTS Entertainment
On January 10, 2020 it became known of creation of MTS of Entertainment company within which MTS integrated management of booking services Ponominalu and Ticketland and also all directions of business of the operator connected with actions. Read more here.
Growth of mobile traffic by 65% in the Moscow agglomeration
On February 28, 2020 announced PJSC MTS results of development of a communications infrastructure in Moscow and the Moscow region. In 2019 – as well as in previous years, the company continued by the accelerated rates to build and upgrade networks, having provided at the end of year with high-quality mobile communication 4G more than 90% of the territory of the localities of Moscow area and thoroughfares.
In 2019 the volume of traffic of the mobile Internet in 4G network of MTS grew almost by 65% in the Moscow agglomeration that is comparable to dynamics of 2018. MTS is one of leaders in the capital region in a total quantity of base stations, at the same time 91% of platforms of the operator are equipped with base stations of LTE.
As well as the previous year, in 2019 MTS built more than 3.2 thousand base stations, the vast majority of which work in the LTE standard. A third of the started stations were started in Moscow, the others – in Moscow area. As a result of upgrade 4G network covering outside MKAD exceeded 90%, and in a quarter of localities in the area approached 100%.
In 2019 MTS built the fixed data network in five cities of Moscow area: Elektrostal, Lyubertsy, Dzerzhinsky, Kotelniki and Pushkino. Taking into account this construction about 500 thousand households in 58 localities of the Moscow region have access to the high-speed home Internet. Besides, the operator organized public Wi-Fi-network in the central park of Elektrostal, provided with Wi-fi network and surveillance cameras of a stop of public transport in Zhukovsky and started installation of video cameras of access observation in Reutov.
The covering is improved not only in localities, but also on the thoroughfares playing a special role in the Moscow agglomeration: daily to the capital for work from Moscow area there come more than one million people, more than 8.5 million use every day the subway and MTsK. In 2019 MTS completed the construction of 4G network in tunnels of Moscow Metro, Neva Moscow – St. Petersburg and also on sections of the Central Ring Road, the Moscow central diameters and other trunks set base stations along Highway M11. It allowed MTS to provide with LTE network of 90% of all extent of the highways of federal and regional importance passing through the Moscow region.
|In 2019 the volume of traffic of the mobile Internet in our 4G network grew almost by 65%, and demand for it will continue to grow – by 2025 we expect increase in Internet traffic four times. Therefore for us it is important to develop networks on advancing, providing equally comfortable conditions of use of the Internet to all clients in the Moscow region where they would not be – in the subway, the electric train or the car, in the center of the capital or at the dacha in distant Moscow area. Already soon in Moscow and the cities of area higher speeds and tanks therefore we not only upgrade LTE network will be necessary, but also actively we prepare for implementation of a 5G, building backbone networks and testing modern technologies in pilot zones,|
MTS started on VDNH two permanent test zones 5G in the ranges of 28 GHz and 4.9 GHz. In the first zone solutions for Smart City on increase in security, development of the transport system and management systems for city services, product development for the city on a basis are shown added and virtual reality. In the second zone laboratory 5G for the startups developing products in the field of cloud rendering and data storage Internet of Things, remote reproduction of games, streaming in formats Ultra HD, VR/AR and 360 ˚ works.
1,300 complaints in Roskomnadzor to communication services
On February 12, 2020 Roskomnadzor summed up the results of systematic work with citizens' appeals, the concerning questions of communication services provision operators of "Big Four". In 2019 more than 6.4 thousand similar addresses from which 1,300 it was the share of PJSC MTS are considered. Read more here.
MTS delivered multi-billion investments into digital economy of regions on a flow
In September, 2019 MTS expanded the list of regions in which is going to invest means for development of digital projects. The company signed agreements on cooperation with Khabarovsk Krai in which digitalization it is going to invest more than 1.4 billion rubles, Buryatia (1 billion rubles), the Lipetsk region (900 million rubles), Yakutia (500 million rubles). Investments are calculated until the end of 2021.
In Khabarovsk Krai, in particular, when developing regional and municipal digital projects it is going to use cloud services, Big Data technologies, artificial intelligence, cyber security, solutions in the field of a fintekh, mobile applications. Creation and testing for territories of the region of projects of Internet of Things (IoT), including on the innovation network MTS NB-IoT operating in Khabarovsk Krai since April, 2019 will become one of elements of implementation of the agreement.
In Buryatia MTS invests in a row projects, including in digitalization of a system of collecting and processing of household waste, implementation of geoanalytics for data processing about tourist flow in the region, digital service development and financial services for the population and also start of test zones within the federal program "Smart City".
With the government of Yakutia, in turn, MTS is going to create the pilot zones Smart City with "smart" solutions in the field of housing and public utilities, road construction and logistics, to develop medical digital services, including in remote localities, to implement the projects increasing security of the urban environment and efficiency of use of resources of regional economy.
In the Lipetsk region development of technologies for digitalization of economy of the region and its social sphere, including starts of test zones and implementation of elements of "the smart city" will become the priority direction of cooperation. The parties also plan cooperation in the field of digitalization of process of collecting of household waste in the region, projects with use of geoanalytics and opportunities of Big Data for development of tourist capacity of the area, projects on security of the enterprises, digital service development and financial services for inhabitants of the region.
Together with the specified regions the total volume of the investment plans read by MTS in 2018-2019 in relation to projects of digital economy in regions is more than 45 billion rubles. In 2018 the operator concluded with administrations of five regions of the agreement on cooperation within which till 2020 he is going to invest 9.7 billion rubles in development of projects of digital economy in the Voronezh, Rostov and Novosibirsk regions, Primorsky Krai and the Republic of Ingushetia. In April of the 2018th the agreement with the Administration of Saint Petersburg on strategic partnership where the priority direction of cooperation — development of the technologies connected with digitalization of city infrastructure was signed. In the next two years MTS is going to invest about 4 billion rubles in development of the region. The agreement, the providing investments into 1 billion rubles, in the 2018th was also signed with the Orenburg region.
In 2019 MTS signed agreements with administrations of Moscow, Tatarstan, the Kaluga, Ryazan and Samara regions on cooperation in development of digital projects for the total amount of 24 billion rubles. The main volume of these means should fall on Moscow – 21 billion rubles. At the beginning of the 2019th year the agreement with the Leningrad Region where MTS is going to invest more than 4 billion rubles in digital development was signed.
MTS preferred not to comment on TAdviser of model of public-private partnership which are going to apply in regions within implementation of these investment plans. The operator referred to the fact that it is competitive market, and the company would not like to disclose all details publicly yet.
At the beginning of 2019 the vice president for digital business solutions of MTS Valery Shorzhin in an interview toldthat in the field of projects of digital economy the company is guided by business projects and by the different types of public-private partnership, for example, connected with power service contracts on smart lighting, smart transport, smart housing and public utilities – to all Smart City systems.
|It is comfortable to us to see ourselves including as concessionaires when we at first invest, and then we receive return. Such investment model is very close telekomovsky because operators got used that it is necessary to construct at first infrastructure, and then to earn from it, - Shorzhin noted.|
Speaking about the directions of the regional investments in general, MTS notes that they go, mainly, on infrastructure: data networks, networks of narrow-band Internet of Things (NB-IoT), and a part of means - on platforms for use of elements of the smart city. NB-IoT networks are one of crucial elements of projects of "the smart city". In 2018, according to the annual report of operator, MTS built the Russia's first federal network NB-IoT for Internet of Things, having provided a continuous covering with it in all million-plus cities and in a number of the large cities of Russia and also provided services for work with smart devices.
Also the operator has opportunities connected with the analysis of Big Data. For the last three years the company turned classical analytical storage of the telecom company into data lake of the IT company with a set of metrics and knowledge of users. It is huge layer of data, including location-based – the operator knows about movements of people, about how tourist flows are distributed, for example, as pendular migration where and in what time a large number of people concentrates looks. According to MTS, its such data are already used for development planning of transport infrastructure, tourist objects, city security systems in Moscow.
Participation in clearing of frequencies for a 5G
"Big Four" of the Russian mobile operators will be engaged in clearing of frequencies for development of networks of fifth generation (5G) in Russia. About it to journalists on the sidelines of East economic forum (the WEF; On September 4-6, 2019) the president of Rostelecom Mikhail Oseevsky reported. Read more here.
Purchase of Kinopolis film industrial complex
On August 28, 2019 it became known of sale of Kinopolis film industrial complex to the telecommunication operator of MTS. The last purchased a film studio from other "subsidiary" of AFK "Sistema" – Business-nedvizhimost company. Read more here.
Purchase of the developer of the platform for acceleration of start of IT solutions of Containerum
At the end of August, 2019 MTS announced Containerum acquisition — a startup from own accelerator of MTS StartUp Hub. Financial terms of transaction do not reveal. Send the operator the rights to the Containerum platform and a command of the purchased company. Read more here.
FAS: increase in prices for SMS mailings up to 120%
On August 21, 2019 it became known that the Arbitration court of Moscow satisfied the claim of MegaFon to the Federal Antimonopoly Service (FAS). A claim was submitted in connection with the FAS decision of May, 2019 in which the company was recognized as the violator of the antitrust law regarding value increase of SMS mailings and establishment of unequal conditions for the national and non-state banks. According to data of materials of FAS on the case of value increase of SMS mailings by the four of federal telecom operators, the largest growth of quotations occurred at MegaFon - up to 500%. In VimpelCom cost grew to 200%, in MTS - to 120% and in Tele2 - to 80%. Read more here.
Closing of 300 cellular shops
On August 20, 2019 MTS announced intention to close up to 300 salons by the end of December. Thus, the retail network of the operator to be reduced by 5%.
According to the RNS agency with reference to the vice president for telecommunication business of MTS Inessa Galaktionova, by August, 2019 at the company is 5880 salons.
MTS sees opportunities for reduction because it "rather comfortably feels with sales". In particular, such feeling at MTS developed thanks to partnership with Svyaznoy, she noted. Galaktionova also added that MTS prepares the project on upgrade of salons.
MTS calculates that also competitors will follow the example of the company regarding reduction of retail.
|Usually for the leader such actions are taken by other players in the market. We see all premises for all players in the market to optimize a retail format and quantity of points and we think that the industry will go in this direction. All tools at us in hands, and we see premises for optimization of quantity of retail outlets for all players of the market — Inessa Galaktionova noted.|
The president of MTS Alexey Kornya spoke about the future reduction of retail at the end of July, 2019. Then he noted that all operators have "the big three" an excess number of cellular shops. Kornya explained need of reduction of number of retail outlets with three reasons:
- Increase in term of use of old phones;
- Increase in demand for purchase of devices on the Internet;
- Withdrawal of consumers from street retail in shopping centers.
MTS promises to report on reduction of number of monobranded shops quarterly.
The statement of the updated organization structure of group of MTS
As it became known on July 31, 2019, the Board of Directors of PJSC MTS approved the updated organization structure of group. The vice president for the equipment Andrey Ushatsky, the director of the center of artificial intelligence Arkady Sandler, the director of the Big Data center Leonid Tkachenko and the director of business ethics and compliance Yulia Romashkina will submit directly to the president of MTS Alexey Kornya now. Thus in the company want to select the innovation commands in separate structural divisions to start an ecosystem of digital products.
Commands of the AI and big data business directions will have an opportunity to quickly make decisions and to quickly bring new products to the market.
|Selection of the innovation commands in separate divisions at the level of top management and creation of the functional business directions are necessary for start of an ecosystem of digital products. We delegate them considerable powers, decision making, thereby we give the chance to react quickly to market calls — the president of MTS Alexey Kornya commented on changes in the company.|
In addition to structure of group in MTS also the board will change. Since August 1 should enter into it: vice president for financial services Ilya Filatov and vice president for information technologies Dmitry Homchenko. The vice president for digital solutions for the house Kirill Dmitriyev and Andrey Ushatsky left board. The reason of changes in board in MTS was not explained.
The senior vice president on telecommunication business Inessa Galaktionova, the vice president for personnel management Maria Golyandrina, the vice president for strategy and development Alexander Gorbunov, the vice president for government relations and the public Ruslan Ibragimov, the vice president for finance Andrey Kamensky, the senior vice president by client experience and marketing Vyacheslav Nikolaev and the vice president for cloud and digital solutions Valery Shorzhin updated the membership in board.
The vice president and the CEO of "MTS of Media" (TV-services) will be appointed in the nearest future.
|MTS is transformed from the classical telecom operator to an ecosystem of digital products. It is important to continue evolutionary development and to create multi-profile integrator of modern services and solutions due to synergy of basic technologies and the innovative developments — the chairman of the board of directors of MTS Felix Yevtushenkov said.|
Updating of a brand of MTS
On June 24, 2019 the MTS company, the Russian telecommunication operator and provider of digital services, provided the updated positioning of a brand, a slogan and visual style. Change of a brand reflects the strategy of the company on transformation and creation of digital products in the new markets.
|Updating of visual style and slogan — natural process on the way of growth and development of the company — the vice president of MTS for marketing Vyacheslav Nikolaev noted. — The strategy of MTS assumes concentration around new digital products. The visual style follows this concept by means of creation of the umbrella brand including new product business lines behind telecom borders which will be reflected in writing of a brand.|
In a portfolio of MTS, in addition to traditional telecom services, there are financial technical-products based on own bank; entertaining applications, including services for purchase of tickets for concert and theatrical performances; the direction of MTS Home which integrated technologies of Smart home; the multiplatform TV including access to hundreds of TV channels by means of cable, satellite and mobile TV; own cybersports strimingovy platform; telemedicine platform of MTS Telemedicine SmartMed project; application of online education Smart Education; the Digital B2B direction which integrated cloud products, federal network of Internet of Things, services based on artificial intelligence and Big Data.
In visual style MTS will get rid of the become irrelevant concept of craft (the red band stylized under dab by a brush), having placed emphasis on more dynamic formats reflecting orientation to a digital component of business of the company. The red band growing from typographics of a new logo of MTS becomes the central element of branding.
According to representatives of the company, change of positioning is based on results more than four global and over 20 point researches of lifestyle, customer needs, tests of visual style for different segments. The updated positionings and visual style were created with assistance of two agencies: ASVK Consulting Ltd from Great Britain and BBDO Branding from Russia.
The second place among operators of "Big Four" on the total number of BS LTE
On June 20, 2019 it became known that T2 Mobile LLC (Tele2 brand) increased the number of the base stations (BS) of the LTE standard since the beginning of year by a quarter — up to 65,056 distribution zones. Now Tele2 lags behind PJSC MTS on 2.9 thousand BS LTE. At the same time at MTS the number of base stations of LTE for the beginning of June decreased on 136 in comparison with an indicator of the beginning of May. Read more here.
FAS recognized VimpelCom, MTS and Tele2 by violators of the antitrust law
On May 15, 2019 it became known of what the Federal Antimonopoly Service (FAS) recognized mobile operators "Mobile TeleSystems" (MTS), VimpelCom and "T2 of Mobile" by violators of the Law "About Protection of the Competition". It is about establishment of discriminatory conditions when forming rates for SMS mailings for the state and commercial organizations which put consumers in unequal position. Read more here.
Network of attraction and transfer of startups
PJSC MTS started in the spring of 2019 the program for creation of a partner network for attraction and a transfer of startups in the main innovation centers of the world. The operator will open the first partner networks in three innovation hubs - Israel, Germany and Singapore. In each of regions of MTS the command of technology scouts who will be engaged in search of startups for business of MTS and interaction with local incubators and institutes of development will represent. Experts are positive for an initiative of MTS and explain it with the fact that work only in the local market will not allow to create disruptive solutions, and the best projects are born as a result of global cooperation.
MTS expects that the international skauting will allow to conduct more effectively monitoring of world innovation ecosystems and to attract foreign startups to implementation of pilots and also will open new opportunities for an exit of the best Russian startups with individual share of the operator on foreign markets. In the long term foreign startups will be able to scale the business, having become long-term partners of MTS.
|"More than a year of MTS actively works with the Russian market of open innovations, integrating products into business of the company. We want to scale this experience, going beyond the local market, attracting the best world practices and business models which can be adapted for the Russian market in MTS. Thus, MTS will be able to propose the advanced solutions for our clients and subscribers, - the head of MTS StartUp Hub Dmitry Kurin commented on an event. - Regions of presence are selected not accidentally - today they are a link between Asia, Europe and the East. In the long term we see interest also in the American market".|
Creation of the largest base of voice data in Russian
On April 16, 2019 MTS announced the beginning of creation of the largest base of voice data in Russian. The operator intends to collect and place more than 15 thousand hours of the Russian speech with attraction personnel and the Skolkovo technical resources.
MTS will use collected data for creation of own voice interfaces and also to provide them to other companies, first of all — to residents Skolkovo.
MTS is going to place the equipment and jobs of experts of the created center in the territory of technopark Skolkovo. MTS will also attract residents of the innovation center to record of the Russian speech and the subsequent transfer of collected audiomaterials to the text. Specialists of MTS together with experts from the partner universities will develop uniform standards of structurization and verification of data and will mark collected information.
Based on collected data of MTS will develop own solutions in the field of colloquial interfaces and also will create thematic sets for providing them on foreign market.
The total amount of investments of MTS into creation and work of the center in 2019-2020 is estimated by about 150 million rubles. After creation of base of speech data the Skolkovo Foundation within the existing grant programs will support residents in gaining access to collected data sets.
Earlier MTS created division for implementing solutions based on artificial intelligence. It complements operator services with the new features based on technologies of natural languag processing including recognition of a voice and computer vision, and creates products in the field of customer service, medicine, law, etc.
Start of corporate venture fund for support of technical startups
The MTS company, the Russian telecommunication operator and provider of digital services, announced on April 16, 2019 TAdviser start of own corporate venture fund for development and support of perspective technology startups. This solution is already approved by Board of Directors of MTS. The fund based on a corporate accelerator of MTS StartUp Hub will function.
As told in the company, can expect the startups of an early stage having perspectives of rapid growth and synergy with the new business directions of MTS support of fund. At the same time MTS will be able to apply for venture investments as the projects which went successful piloting to MTS StartUp Hub, and external startups. Investment will be performed by acquisition of a minority share in such projects. Startups from Russia and the CIS countries are of interest to fund.
|Creation of corporate venture fund is a logical step of development of the innovation ecosystem of MTS. Venture investments will become one of key instruments of expansion of a product portfolio and services of MTS and also increase in revenue of already existing directions — the director of the Center of innovations of MTS Vladimir Hrenkov commented on an event. — In development of the directions outside telecom market, traditional for MTS, we go both by own product development, and by acquisition of the perspective companies or participation in their capital stock. The venture fund will allow to do not only joint pilots of products within an accelerator, but also to invest the best Russian a startup command, providing them a venture capital for faster development.|
As he added, MTS is also going to display startups and on international market — for this purpose the company develops a partner network in the main innovation countries of the world and opens own representations there. In general, according to Vladimir Hrenkov, creation of venture fund will open the companies ampler opportunities for investments into startups of an early stage.
For simplification of internal procedures and acceleration of decision making in MTS the venture committee where four participants will enter will also be created. Its structure is going to be approved is later.
Growth of revenue from integratorsky business for 32%
Revenue of MTS from the direction of system integration in 2018 grew by 32.7%, to 7.4 billion rubles, reported TAdviser in the company. The president of MTS Alexey Kornya in the conference call devoted to results 4 quarters 2018 noted that at the end of year the company received record revenue, and the directions out of traditional operator business became the main drivers of its growth. It designated system integration among them.
The direction of system integration is provided to MTS, mainly, by Nvision Group subsidiary company. However their revenue from this direction of MTS and revenue of NVision Group are considered separately. It is connected with what for example, a part of services in this direction of MTS renders to corporate clients without participation of NVision Group, and the last generates a significant share of the turnover from deliveries of licenses which in the reporting of parent company formally do not belong to "integratorsky activity".
Data brought TAdviser into MTS that revenue of NVision Group in 2018 made about 14 billion rubles including VAT, having increased by 37.3%. Thus, positive dynamics was in both cases.
The company reported to TAdviser that new projects and services technical ̆ supports were drivers of revenue. Among projects were the most noticeable: the Wi-fi installation at stadiums of the Russian cities for the FIFA World Cup, contracts for implementation of a hybrid cloud of Microsoft Azure Stack to corporate clients and also IT services where IT outsourcing is most demanded.
Deliveries of software, first of all, of Microsoft, and the equipment of the leading vendors for solutions based on IoT in the industries and also projects in information security field were noticeable projects also.
Remained the industries, key for the company, in the field of integration services: telecom, financial sector and industry. The contracts of NVision Group with several largest domestic retailers signed in 2018 also displaid retail in drivers of revenue, speak in MTS.
Still among key customers of the company of group of MTS and AFK "Sistema". In reporting period cooperation with Sberbank continued, the previous year told TAdviser about purchase of licenses of Microsoft, record for the domestic financial sector.
In the industrial sector among new clients in MTS noted United Metallurgical Company. For NVision Group, in particular, the cooperation with Kirov Plant in automation of productive activity and increase in efficiency of industrial production starting in 2018 using the innovation IT became sign.
Increase in an equity interest of "MTS of Bank" up to 95%
The Russian telecommunication operator and provider of digital services of MTS announced on February 12, 2019 purchase through the 100% Mobile TeleSystems B.V subsidiary company. For 11.4 billion rubles PJSC AFK Sistema has 39.48% of stocks of PJSC MTS-Bank, the public Russian diversified holding company, the largest shareholder of MTS and its subsidiary companies. Read more here.
Purchase of cloud business of IT Hail for 2.5 billion rubles
On January 9, 2019 MTS announced purchase "IT-Grad 1 klaud" for 2.49 billion rubles taking into account a net debt of cloud provider. The transaction is issued through child structure of MTS — Vostok Mobile B.V company. Read more here.
IT outsourcing entry into the market
On August 6, 2018 the MTS company announced IT outsourcing entry into the market. The operator will use examination of child system integrator "Nvision Group" and the state from more than 5 thousand. IT specialists in the whole country.
MTS begins to provide to corporate clients such services as system integration, service of network infrastructure and IT systems, management of business applications and other internal services of corporate clients. Customers will be able to rent capacities at MTS, to transfer the capacities to clouds or to transfer it to maintenance infrastructure. NVision Group is responsible for technical support of solutions.
According to the message MTS, the company guarantees the service level through the agreement on the level of service (SLA). Duration of the contract can be from one to five years.
|Cloud computing becomes one of the key directions of complex IT outsourcing and the main driver of the industry. MTS it is ready to offer clients services and solutions, unprecedented in terms of reliability and security, based on a distributed network of data processing centers — the vice president of MTS for sales and service Kirill Dmitriyev noted.|
According to him, consolidation of MTS and NVision Group, technology infrastructure, personnel resources and experience allow the operator to build optimistic forecasts in the IT outsourcing market. The company expects to occupy up to 10% of the Russian market of IT outsourcing by 2022. By estimates of analysts of IDC, sales of IT services in Russia at the end of 2017 reached $5.16 billion.
MTS notes that thanks to transition to IT outsourcing business cuts down administrative and management expenses for IT due to reduction of number of salaried employees which are connected with IT, and optimization of capital costs — disposals of unnecessary office spaces, furniture and the equipment.
Sales of telemedicine services of OnDoc
In June, 2018 it became known of sale of medical services of OnDoc by MTS company. The mobile operator decided to extend packets of telemedicine service "Doctors online" which will be available at 400 offices MTS and Телефон.ру cellular shops belonging to the company in the Northwestern Federal District (NFD). Read more here.
Alexey Kornya is appointed the president of MTS
On March 1, 2018 Alexey Kornya is appointed by the solution of Board of Directors of MTS to the position of the president of the Russian telecommunication operator and provider of digital services of MTS for a period of three years. It released Andrey Dubovskov who at own will ahead of schedule stopped fulfillment of duties of the president and chairman of the board of the company from this duty. Read more here.
Acquisition of Ticketland and "Пономиналу.ру"
On February 12, 2018 the MTS company announced acquisition of two Russian booking operators in the market of cultural and entertaining actions: 100% in MDTZK LLC (Ticketland.ru brand) and 78.2% a share in Cubichall company — 100% the owner of Cultural Service LLC (Пономиналу.ру brand). It is expected that the transactions aimed at business diversification will allow MTS to strengthen positions in the perspective market of sales of tickets in theaters, on concerts, musicals and festivals and also to offer subscribers service of purchase of e-tickets with its integration into the loyalty program and an ecosystem of mobile applications of MTS.
The redemption of 100% of a share in MDTZK ("The Moscow directorate of theatrical and concert and sports and spectacular cash desks") cost the operator 3.25 billion rub the Seller the company belonging to a number of investors including Sergey Solonin and ITech Capital fund acted.
In turn, transaction amount on acquisition of 78.2% of a share in Cubichall — the only participant of Cultural Service LLC — was 387 million rubles (proceeding from business valuation of this company in 495 million rubles). Structures of founders of this business Yury Sosnitsky and Vikenti Korsunsky and also Buran Venture Capital fund acted as sellers.
The transaction prices are specified taking into account a net debt. One of founders and the head of Cultural Service LLC Mikhail Minin has indirect share in the amount of 21.8% of Cubichall company. The parties signed the option agreement assuming by the end of 2020 bringing a share of group of MTS to 100% of the capital of Cubichall based on activity of the company.
|Purchasing assets which control a quarter of turnover of sales of theatrical and concert tickets in Russia, we enter steadily growing market with perspectives to become on it the leading player. In addition to consolidation of business and opportunities of sales increase of tickets among subscribers of MTS due to integration of our services and examination of Big Data, we also receive additional tools for marketing activities, customer interaction and partners. MTS delivers to the clients digital content in different formats, and in the nearest future will offer them with discounts tickets for "live" actions — performances and concerts within our loyalty program. Subscribers will be able to buy tickets directly from mobile devices soon and to receive personal recommendations to visit these or those interesting places and events — the vice president of MTS for marketing Vyacheslav Nikolaev commented on events.|
After transactions booking operators will continue activity as the independent organizations, operational management will remain at the current management, at the same time MTS will participate in strategic management by assets through Boards of Directors and to exercise financial control behind activity of the companies.
Financial results of MDTZK and Cultural service join in the consolidated statements of group of MTS from the date of their acquisition.
Acquisition of a share in software developer for online cash desks
Purchase of Sotel operator
In July the MTS company announced acquisition of 100% of stocks of the regional telecom operator "Cellular communication of Bashkortostan" at Bashinformsvyaz, subsidiary company of Rostelecom, for 300 million rubles, including a net debt. As expect in MTS, purchase of an asset will allow to expand presence in Bashkortostan and to receive an additional frequency resource, including two bands on 15 MHz in the range of 2100 MHz and also two bands on 4.4 MHz in the range of 450 MHz. In more detail about an event it is possible to read here.
31.171 billion rubles of dividends
The Board of Directors of MTS recommended to the annual general shareholder meeting to approve in April, 2017 dividend payout for complete 2016 in the amount of 15.6 rubles on one ordinary registered share with a nominal value of 0.1 rubles everyone (31.2 rubles on one ADR). In case of adoption of this solution by MTS shareholder meeting can pay up to 31.171 billion rubles at the end of 2016.
In 2016 according to the results of complete 2015 the company paid dividends in the amount of 14.01 rubles for one ordinary registered share (28.02 rubles for ADR) or in total to 28 billion rubles.
Sale of a share in the Uzbek operator of UMC
500 million on infrastructure for corporate clients
Within such projects the operator creates to corporate client infrastructure with necessary parameters on the speed, quality, a covering, security and capacity. Projects by means of femtocells (the miniature base stations set indoors), repeaters, full-size and mini-base stations and fiber-optical communication channels are implemented.
Total number of such projects of MTS was 2 thousand. The volume of the corresponding investments of MTS for 2016 reached 500 million rubles.
Including the number of the base stations set to MTS especially for the specific corporate clients grew by 30%. Number of repeaters and femtocells – approximately twice.
As a rule, more than a half of projects in which MTS foots the bill on creation of infrastructure is the share of the small regional cities or the remote territories where the customer often is the only or main consumer a telecom of services.
In particular, it can be new industrial productions, the logistic centers, shopping complexes, new premises which are under construction in "open country" where earlier there was no economic feasibility in construction to a communications infrastructure.
MTS explained that growth in 2016 of the number of projects of corporate clients in which the operator pays construction of infrastructure is connected with change of criteria at which the company is ready to foot the bill on creation of network on the customer's requests. If it is about projects of system integration or implementation of significant projects on business process automation by means of complete solutions of MTS, then the company is ready to invest and build network "under the client".
AFK "Sistema" sold shares of MTS, having lowered the share to 50.03%
Subsidiary company of Sistema corporation – Sistema Finance S.A. – sold to not affiliated buyer 6.2 million American depository shares of MTS making 0.63% of authorized capital of operator. Contract amount was $55.359 million less the commission, it is told on the website of AFK.
As a result of the transaction the effective share of group of AFK "Sistema" in authorized capital of MTS decreased to 50.03%.
"During 2016 we implemented a number of successful transactions on monetization of stocks of MTS according to our strategy for diversification of an investment portfolio of Corporation. Remaining the leader of the Russian telecommunication market, MTS also provides high yield for the shareholders, and AFK "Sistema" is going to remain the controlling owner of the company", - the president of AFK Mikhail Shamolin noted.
According to him, the transaction will provide to corporation additional resources and will allow to continue investments into new perspective projects in the Russian market.
MTS made a complaint to Svyaznoy for 800 million rub
Sanctions are initiated based on audit of a company performance regarding connection of subscribers of MTS in network of Svyaznoy salons. MTS also should assess in addition the consequences of the suffered losses that can become a subject of supplemental claims to Svyaznoy, the company in the press release stated.
MTS received the status of the entrusted operator of e-document flow of FTS
MTS entered the market of electronic document management (e-document flow) in 2013, having started own Certification center and sale of the electronic signature on USB tokens to corporate clients. In December, 2015 MTS received the status of the entrusted operator of e-document flow of the Federal Tax Service, having expanded a range of services in the field of electronic document management for B2B-clients. MTS is going to provide the electronic signature on the SIM card to the mass consumer.
The consolidated revenue of Group of MTS for 2014 nominated in Russian rubles grew by 3.1% to 410.8 billion rubles in comparison with a similar indicator of 2013, due to increase in income from voice and data-services and increase in number of subscribers in Russia.
The corrected indicator of OIBDA of Group of MTS grew in 2014 by 0.3% to 175.5 billion rubles in comparison with a similar indicator of 2013. The corrected OIBDA margin at the end of 2014 was reduced by 1.2 percent points to 42.7%.
Consolidated net income in 2014 was reduced by 35.1% to 51.8 billion rubles. The free cash flow from the continuing activity in 2014 was reduced in a year by 22.6% to 57.0 billion rubles in connection with growth of capital costs because of prepayment to vendors for supplies of equipment for the purpose of leveling of rate fluctuations of currencies and also purchases of assets in the Russian Federation.
In Russia, in the main market of Group of MTS, revenue for 2014 grew by 5.6% to 374.9 billion rubles in comparison with an indicator of 2013 or for 4.1% in the fourth quarter year on year. The indicator of OIBDA increased in a year by 4.5% to 164.8 billion rubles or for 0.5% in the fourth quarter year on year. Profitability of business of MTS in Russia at the end of 2014 made 44.0% and 42.1% in the fourth quarter.
Revenue from mobile business in Russia without sales accounting of phones and the equipment in 2014 grew to 291 billion rubles – for 7% in comparison with 2013 or for 4.5% in the fourth quarter 2014 year on year.
Revenue from data services in Russia in 2014 in comparison with 2013 grew by 36% to 64.4 billion rubles. In the fourth quarter 2014 revenue from data services grew by 27.2% in comparison with the fourth quarter 2013.
Return to MTS business in Uzbekistan
In July, 2014 MTS announced the conclusion of the settlement agreement with the authorities of Uzbekistan which should put an end to the conflict which began between them in 2012. Under this agreement, in Uzbekistan the new mobile operator which 50.01% of stocks will belong to MTS, the remained 49.99% will be created - to the State committee on communication, informatization and telecommunication services.
Undertook to delegate to the power to the new operator of the license for rendering services in the GSM, 3G and LTE standards and also the corresponding frequencies, number capacity and a possibility of lease of trunk communication channels. Besides, the new operator will receive all property of Uzdunrobit - former "subsidiary" of MTS because of which the conflict erupted. In exchange MTS will withdraw the claim to Uzbekistan submitted to the International arbitration at the World Bank.
Now MTS safely leaves already the third unsuccessful history in Central Asia. In 2010 MTS was expelled from Turkmenistan, but in 2012 dogovorilsas with the authorities of the republic about the return, having promised to deduct in exchange to them 30% of the net profit of Turkmen "subsidiary".
In 2005 MTS purchased the Bitel mobile operator, largest in Kyrgyzstan. But in several days its office was occupied, and the corporate property was transferred to newly created operator "Skye Mobile" who was purchased at first by Alfa Group, and then VimpelCom. In 2013 Alfa Group and VimpelCom paid to MTS compensation for loss of this asset in the amount of $150 million.
Year on year the consolidated revenue of MTS grew by 5% to 398.4 billion rubles. The consolidated indicator of OIBDA increased by 8% to 175.0 billion rubles. The indicator of OIBDA increased by 1.1 items to 43.9% in 2013. Consolidated net income was 169% to 79.8 billion rubles. The free cash flow from the continuing activity for 2013 increased year on year by 52% to 68.9 billion rubles. In 2014 the group waits for growth of revenue at the level of 3-5%. Already until the end of the year the operator will start in Russia LTE network in the range of 1800 MHz.
In January MTS completed upgrade of the fiber-optic communication line between Moscow and St. Petersburg more than 1000 km long.
In March MTS implemented the new intellectual platform for management of billing, having set the hardware and software system Medio SCP worth about 600 million rubles.
Purchase of 25% of stocks of MTS bank
In April MTS closed the deal on acquisition of 25.095% of placed shares of MTS Bank for the amount 5.09 billion rubles in accordance with the terms of the indicative offer signed in October, 2012 with MTS Bank and AFK Sistema.
In April MTS approved the new medium-term dividend policy of MTS providing a binding of payments to a free cash flow of the company that provides growth of dividend payments in 2013-2015 on average for 30%.
Start of shop of the SaaS-applications
In May, 2013 MTS announced start of shop of cloud applicaions for corporate clients which located at the address cloud.mts.ru. At the time of opening in it services "1C: Enterprise online", "1C: Small Business Management 8", "1C: Trade Management 8", the Guarantor system and also the Spontaniya application are available to data exchange and the organization of voice and video conference.Details.
In May MTS started a tariff line of SMART with tariffing only of data transmission and free calls.
In May MTS completed the project on a refarming of frequencies of the range of 900 MHz, having started networks of third generation UMTS-900 in all districts of Moscow region.
In May the brand of MTS for the sixth time entered the rating of hundred leading world BRANDZ™ brands created by the leading international research agency Millward Brown Optimor. The cost of a brand grew in a year by 11.2% to 10.63 billion dollars.
In May MTS expanded network of fourth generation in Moscow, having started in addition to the existing TDD LTE network the first section of network in the FDD standard.
In June MTS reached the agreement with companies Altimo, Nomihold Securities Inc. and other related parties about settlement of all disputes connected with investments into OSOO "Bitel" in Kyrgyzstan.
In August, 2013 Solutions and Networks Nokia signed with MTS the delivery contract of base stations and the equipment for upgrade and expansion of cellular transmission networks of MTS subsidiary companies in Ukraine and Turkmenistan.
The pure cash flow of the company for 2012 made $1.284 billion that is 25% higher than a similar indicator for 2011. The cash flow from operations increased by 10% for the same period and made $4.237 billion. The ratio of a net debt / LTM corrected by OIBDA at the end of 2012 made 1.3.
OIBDA indicator for complete 2012 increased by 11% to 148 billion rubles in comparison with result of 2011. Profitability of business of MTS in Russia increased by 1.2 items up to 43.8% according to the results of complete 2012.
In January MTS brought into commercial operation in the Moscow region the Russia's first 3G network in the range of 900 MHz in addition to already unrolled networks of third generation at a frequency of 2100 MHz for more complete covering of the territory of Moscow and capital area high-quality services of mobile Internet access.
In March MTS became the winner of a prestigious award in the field of personnel management "HR brand 2011" which awards the best employers of Russia at the end of year. The highest award of an award was occupied by the project of MTS "On a crest of innovations" on implementation of creative potential of employees, applicants and clients of the company for improvement of business of MTS and the telecom industry in general.
In April MTS brought into test operation network of fourth generation of TDD LTE in the Central Administrative District of Moscow.
Hit in TOP 100 of world brands
In May, 2012 the brand of MTS, the only Russian brand which the fifth year in a row is included into the annual rating of hundred leading world BRANDZ brands published by the international research agency Millward Brown Optimor became the most expensive telecommunication brand of Russia with cost to $9.55 billion. The second year in a row only two Russian companies – JSC MTS and JSC Sberbank of Russia get to the rating of BRANDZ.
In 2008 when MTS became the Russian company, the first in the history of rating, which was included in the list of hundred most valuable world brands, its brand was estimated at $8.1 billion. Brand cost in the rating of BRANDZ considers forecast revenues of the company which are generated by a brand, and its current market positions defined on a basis a research of opinions of consumers. Originators of rating investigate more than 50,000 brands and poll more than one million consumers worldwide.
In May of MTS together with MasterCard and MTS Bank presented the Russia's first solution on the basis of NFC technology which allows the subscriber of MTS to pay using the bank card emulated on the SIM card of phone purchases and services in "one contact", having just attached phone on the NFC reader at the checkout.
Purchase of the telecom operator by Task
In May, 2012 MTS through the subsidiary company MGTS purchased Taskom Ltd, the Moscow operator of services of fixed connection, one of market leaders on providing a telecom of services for public institutions and corporate clients.
Start of digital broadcasting in 150 cities of Russia
In July MTS started digital TV broadcasting in 150 Russian cities that allowed to increase the number of TV channels in TV-packets of MTS and to provide to users access to HD content and interactive services.
Business stop in Uzbekistan
In July MTS stopped provision of services of communication in Uzbekistan according to the instruction of the Uzbek communication agency and informatization about suspension of action of the telecommunication license of SP Uzdunrobita LLC, 100% of MTS subsidiary company in Uzbekistan.
Resuming of activity in Turkmenistan
In July MTS reached the agreement on resuming of activity of the subsidiary company in Turkmenistan and obtaining the licenses, technical and legal conditions necessary for work in this country.
Purchase of operators of broadband access in Belgorod
In August MTS purchased Elf LLC companies and Efkom LLC providing services of fixed connection in Belgorod and the Belgorod region under the Elf brand. Purchase allowed MTS to take the leading positions in the markets broadband access and cable TV in Belgorod.
Purchase of Intercom company in Volzhsk
In August MTS purchased Intercom LLC, the market leader of cable TV and broadband access in the Internet in the city of Volzhsk, the second in value of the city of the Republic of Mari El.
Resuming of business in Turmenistan
In August MTS resumed rendering mobile services in Turkmenistan, having started network in all territory of the country. In the first day of work of MTS Turkmenistan connected more than 600 thousand subscribers who did not terminate earlier signed contracts.
Start of TDD LTE network in Moscow and Moscow area
In September MTS started commercial operation of the first Russian network of fourth generation of the TDD LTE standard in Moscow and Moscow area.
In September MTS passed to the new coding standard of a signal by transfer of voice traffic in 3G networks – Wide Band AMR which provides broadcast of a voice in high quality – HD-Voice.
In October MTS started sale of SIM cards for all subscribers in Turkmenistan.
In October the Group of MTS signed the indicative offer on acquisition of the blocking packet (to 25.095% of authorized capital) in JSC MTS-Bank.
Purchase of operators several broadband access in Kursk region
In October and November of MTS strengthened positions in the market of services of fixed connection, the Internet and cable TV of Kursk region. The company purchased Zheleznogorskiye Gorodskiye Telefonnye Kommmunikatsii Ltd (Zhelgortelekom), the market leader of broadband access of Zheleznogorsk, Pilot LLC and TVKIK LLC providing services of cable TV and the fixed broadband access in the cities of Kurchatov and Shchigry.
In December MTS entered the markets of the broadband fixed Internet and paid TV more than 20 Russian cities, having built new networks in the Amur, Astrakhan, Voronezh, Nizhny Novgorod, Penza, Tver and Tula regions, the Yamalo-Nenets Autonomous Area, Perm Krai.
Court on Bitel, arrest of assets in England
On January 24, 2011 Moody's reported that it delivered the corporate rating of MTS (Ba2) on review, and can lower it. The reason — a possibility of a default on two bond issues of MTS for the total amount of $1.15 billion.
The day before MTS announced plans of an early bond buyback for $400 million with circulation period till January, 2012 released its "daughter" MTS Finance. The matter is that on January 5, 2011. The London Supreme Arbitration Court obliged her to pay in addition to Nomihold Securities company about $176 million for Kyrgyz mobile operator "Bitel", control over which MTS purchased in 2005, but did not enter the property rights. Non-execution of court's decision was one of the technical default bases according to these papers.
At the same time MTS asked holders of other issue of bonds (for $750 million, repayment in 2020) to agree to canceling of the condition providing a cross-default in MTS Finance event of default on eurobonds for $400 million.
MTS Finance solves, to execute the decision of the London court or not. But if till March 5, 2011 the company is not calculated with Nomihold, that can file a lawsuit against it that is fraught with bankruptcy or the related reorganization of MTS Finance, analysts of Moody's argue. It, in turn, can lead to a default as on the bonds repaid in 2012 and according to papers with a repayment period in 2020.
Moody's realizes that loss of MTS in court significantly will not affect its capability to fulfill financial liabilities and risks for creditors are small. Nevertheless there is no confidence that the operator will repay the debt in time, says the agency.
MTS made the decision on the redemption of eurobonds on $400 million and advance entering of necessary changes into other credit agreements with holders of eurobonds just to avoid a technical default in connection with trials on Bitela, the press secretary of the company Irina Osadchaya notes.
On January 31, 2011 MTS announced obtaining the decision of the High Court of England on seizure of assets of its "subsidiary" of MTS Finance in England and Wales. MTS Finance is forbidden to dispose of assets in these jurisdictions for the amount within $208 million and also to reduce their cost.
Arrest of assets is executed in connection with non-execution of MTS Finance of the November decision of the International arbitration in London. In MTS reported that consider the decision of the London arbitration unfair as Bitel was displaid from under Tarino control, and consider options of further actions. "MTS lets know that it does not intend to perform the arbitration award as formally it concerns not most, but its offshore "daughter" for whom do not cost any assets", - the CEO of the analytical agency "Rustelekom" Yury Bryukvin notes.
Consideration of a possibility of the redemption of MTS in Belarus
In March, 2011 the president of Belarus Alexander Lukashenko called the price which the state wants to help out from sale to Russians of the share in Belarusian MTS. "We not against: $1 billion for a table, - the president said. - Assessment is made. You want to buy - please, you do not want - we will offer for an auction". For the end of 2010 the Belarusian MTS serviced 4.72 million subscribers.
In April, 2011 the Deputy Prime Minister of Belarus Anatoly Kalinin expressed the intentions of the authorities to expose 51% of shares of local mobile operator MTS which the state holds through Beltelekom on the international biddings. The Russian MTS which is already owning in the Belarusian enterprise of 49% of stocks wants to purchase a packet. However Russians suggest to pay only a part of cost of a packet, and then to pay in addition, depending on the rating of the operator whereas Belarus needs payment of all packet at once, Kalinin says.
The Russian MTS wants to redeem a controlling stake of the company, but at reasonable price, explained in the company. If Belarus puts up for sale 51% local MTS, then the Russian side will also offer the share for sale, the director of public relations of MTS Elena Kokhanovskaya said. A question of whether really the Russian company suggested to pay a share in Belarusian by MTS parts, Kokhanovskaya does not comment.
Dubovskov is appointed the president of MTS
In March, 2011 there took place appointment as the president of Group of MTS of Andrey Dubovskov who was earlier holding a position of the director of MTS Ukraine. Andrey Dubovskov released from a post of the head of the company of Mikhail Shamolin holding the president's position since May, 2008.
The new strategy of the Regionalization Group according to which the attention of management of the company was focused on regions, key for business, is accepted.
The brand of MTS with the cost of $10.9 billion is recognized the fourth year in a row the most expensive Russian brand in the annual rating of hundred leading world BRANDZ™ brands.
Obtaining the license GSM 900 in the Penza region, thus, the company provides services to GSM in all regions of the Russian Federation
Completion of accession of JSC Comstar-United Telesystems to JSC MTS
Purchase of four operators in Tula
In October MTS started a new line of the tariff plans "Super MTS" providing to subscribers free calls in MTS network at account replenishment on a certain amount. The purpose – to tell stimulation of subscribers more by phone and to use the money which remained on the account for payment of other services of the operator.
In October within the joint project with operators of "the big three" MTS completed construction of facilities of communication on the route "Amur".
Purchase "Broadcasting companies "TVT" in Tatarstan
In October, 2011 MTS purchased at group of investors 100% of authorized capital of JSC Broadcasting Company TVT - the regional provider, largest in Tatarstan, of the fixed services - cable television, broadband access in the Internet and the fixed telephone communication. Transaction amount was US$162.9 million.
In October MTS started in Perm the Russia's first project on contactless payment of fuel at Lukoil gas stations using NFC technology. In December of MTS started the Russia's first commercial system of instant mobile payments based on NFC technology in the field of the vending machine.
Purchase of 24% in MGTS company
In December, 2011 MTS closed the deal on acquisition at AFK "Sistema" of 100% of shares in Sistema-Invenchur Ltd which is the direct owner of 24.4% in authorized capital of JSC Moscow City Telephone Network (MCTN), for 10.56 billion rubles.
2010: Purchase of Multiregion and Metro-Telekom
In July, 2010 MTS announced acquisition of 100% of stocks of Multiregion holding. Transaction amount was $123.5 million, besides, MTS assumed debt obligations of holding in the amount of $94.4 million. After purchase of Multiregion of MTS will be able to offer the integrated services of mobile and fixed connection, Internet access and cable television in 110 cities of Russia, the president of the company Mikhail Shamolin said.
In August, 2010 MTS announced acquisition of 95% of a share of capital stock Metro-Telekom at Svyazinvest company, 100% of AFK Sistema affiliated enterprise. MTS purchases 95% of shares of capital stock Metro-Telekom for 339.35 million rubles ($11.01 million). The Metro-Telekom company owns fiber optic network in the territory of Moscow Metro. Financial results of Metro-Telekom are consolidated in the reporting of MTS since August 27, 2010.
2008: Start of network on Chukotka
In January, 2008 MTS brought into commercial operation GSM-900/1800 MTS networks in Chukotka Autonomous Okrug. Thus, the MTS network is brought into commercial operation to 82 of 83 regions of Russia in which MTS has licenses for communication services provision.
2007: Licenses on 3G in Russia and Uzbekistan
In April, 2007 MTS obtained licenses for construction of 3G network in the UMTS format in Russia and Uzbekistan, the license for construction of WiMax network in Uzbekistan, frequencies for provision of services in standard 3G (UMTS) in Armenia.
In June, 2007 MTS brought the share in Uzdunrobit, subsidiary company in Uzbekistan, to 100%.
In September, 2007 MTS acquired 80% of shares of the chief Armenian operator of K-Telecom Ltd (VivaCell trademark) and signed the option agreement on purchase and sale of the remained 20% share.
In October, 2007 MTS became the first operator in the CIS which started services of BlackBerry. Subscribers of MTS Ukraine got the protected mobile access to corporate mail, applications and the Internet on the modern BlackBerry smartphones.
In December, 2007 MTS announced acquisition of 100% of Bashsel Ltd (Bashsell trademark), mobile operator of the Republic of Bashkortostan.
In 2007 MTS provided with communication all stations of the subways in Moscow and St. Petersburg where all communication services of MTS, including services in data transmission became available to subscribers.
In 2007-2008 the authorities of Belarus left control in two of three local GSM operators - "Mobile Digital Networks" (Velcom trademark) and Best, stocks of the companies were taken by Telekom Austria Group and the Turkish Turkcell respectively. Then the Russian MTS tried to increase a share in the Belarusian subsidiary. For 2% of stocks of the Belarusian mobile operator MTS offered $200 million, also Russians were ready to conclude the five-year option for the redemption of the remained 49% of stocks for $400 million. But the authorities of the republic rejected the offer.
2006: Leonid Melamed is the president of MTS
In May, 2006 MTS completed restructuring of the company within which the following levels of management were created: corporate center, business unit, macro-region, region. The corporate center defines general strategy of the company, uniform standards, regulations and procedures of management. Business units are responsible for accomplishment of planned targets (P&L). Macro-regions exercise operational management of activity of regional branches. For today nine macro-regions of MTS work, each of which integrates regional branches in several subjects of the Russian Federation.
In May, 2006 presented the updated brand of the company within a new end-to-end brand of Sistema Telecom group at the Svyaz-Expokomm 2006 exhibition of MTS. "The visual solution selected for an end-to-end brand – the simple and egg-shaped eternal character – very precisely opens an essence of modern technologies: external simplicity which hides fascinating complexity of contents", – the president of MTS Leonid Melamed commented on an event.
In June, 2006, together with the First rate, MTS provided the updated line of tariff plans where for the first time the principle of "designer" which allowed users "collect" individual tariff plans is applied to rates without subscription fee, connecting on the discretion to a basic rate the different services focused on a profile of use of the specific subscriber. Developing a portfolio of rates, in 2007 MTS started a credit system of payment of mobile communication on mass tariff plans on the basis of service Credit.
In July, 2006 MTS acquired a controlling stake of Dagtelekom LLC, the cellular operator in GSM-900 standard in the Republic of Dagestan.
Entry into the market of Turkmenistan: purchase of BCTI
In 2005 MTS began to be rendered services of cellular communication in Turkmenistan, having announced acquisition of Barash Communications Technologies, Inc. (BCTI) company.
Fight for Bitel operator in Kyrgyzstan
In November, 2005 along with purchase of MTS Finance of 51% of stocks of offshore Tarino for $150 million put the option for 49% of stocks of this offshore was concluded. For the seller – Nomihold Securities - as was considered, stood the son of the president of Kyrgyzstan Askar Akayev Aydar and structure of the Kazakh Alyans-Capital group overthrown the same year. At the time of the conclusion of the transaction of Tarino through three offshores on the Isle of Man - Flaxendale Holdings, Kyrgyz Mobil Tel and George Resources – owned 100% of stocks of the only thing on that the GSM operator of Kyrgyzstan of Bitel.
However in several days after the declaration of the transaction the office "Bitel" was occupied by representatives of unknown Russian company "Rezervspetsmet". Later half a year assets with Bitel, including a subscriber base, were displaid in the Skye Mobile company belonging to the Russian holding Altimo (is a shareholder of the competitor of MTS - VimpelCom). At the beginning of 2008 "Skye Mobile" was purchased by structures of Kazakh "ATP Bank" at the expense of VimpelCom, the received operator in management. At the end of 2010 VimpelCom took 51% of shares of the Kyrgyz operator for $150 million, MTS was not succeeded to regain control in Bitel.
- In Russia in 2005 MTS increased the share in the following affiliated enterprises to 100%: "Gorizont-RT" in Yakutia, in company "Uraltel", "Telesot-Alania", "Sibintertelekom", "Reky".
- Same year MTS began to provide services of cellular communication in Kalmykia, the Jewish Autonomous Region, the republics of the North Caucasus – Ingushetia, Karachay-Cherkessia and Kabardino-Balkaria; obtained license GSM-1800 in the Chechen republic.
- In 2005 upon the demand of the president of Belarus Alexander Lukashenko the CEO Belarusian was replaced by MTS: instead of Russian Andrey Rumyantsev the Deputy Minister of Telecom and Mass Communications of Belarus Vladimir Karpovich became him.
- In 2005 the company significantly expanded a portfolio of additional services and the first among the Russian operators offered subscribers a range of services based on LBS and RBT technologies.
Continuation of regional expansion
In 2004 MTS began to provide services of cellular communication in the Irkutsk, Samara, Ulyanovsk and Kemerovo regions, the Republics of Yakutia, Sakha, Buryatia, Chuvashia, Mari El, Mordovia; in Stavropol Krai, on Kamchatka and in the Magadan region and also, thanks to acquisition of Sibintertelekom company, in the Chita region and the Agin-Buryat Autonomous Okrug.
In March, 2004 brought the share to 99.5% in Sibirskiye Sotovye Sistemy — 900 Ltd (SSS-900), in April increased a share to 91% in JSC Mobilnye Sistemy Svyazi (MCC) in the Omsk region, acquired a controlling stake of Telesot-Alania company, the cellular operator in the Republic of North Ossetia.
In 2004 brought the share in Dalnevostochnye Sotovye Sistemy — 900 Ltd (DVSS-900) and JSC TAIF-TELKOM to 100%. MTS became the owner of 100% of the stocks "Primtelefona" and Tsifrovye seti Udmurtii — 900 Ltd (TsSU-900), Astrakhan Mobile Ltd and Volgograd Mobile Ltd.
Purchase of 74% in Uzdunrobita - the largest mobile operator of Uzbekistan
Acquisition of 100% in UMC - the largest mobile operator of Ukraine
In August, 2003 MTS completed acquisition of 100% of the stocks UMC, the market leader of mobile communication of Ukraine.
Buying up of regional mobile operators
Implementing the strategy of regional expansion, in 2003 MTS became the owner of a controlling stake of the largest operator of Tatarstan to "TAIF-TELKOM". Besides, as a result of a series of transactions of 50% "Astrakhan Mobile" (Astrakhan region), 50% "Volgograd Mobile" (Volgograd region) became MTS the owner of 50% of stocks of Primtelefon company (Primorsky Krai and Siberia).
According to the strategy of consolidation the company increased the participation to 100% in Kuban GSM company, up to 88.5% in Siberian Cellular Systems-900 company (The Novosibirsk region, Altai Republic), up to 99.85% in Uraltel company (Sverdlovsk region).
Along with acquisition of regional cellular operators, MTS continued construction of own networks and in 2003 performed their commercial start in the Orenburg and Saratov regions, in Altai Krai.
In 2003 MTS acquired 100% of shares of a number of the leading regional cellular operators: "Сибчелендж" (Krasnoyarsk Krai, Republic of Khakassia, Taymyr Autonomous Okrug), "Tomsk Cellular Communication" (Tomsk region), Marmobayl GSM (Republic of Mari El).
2002: Purchase "Kuban GSM", Dontelekom expansion in the Urals
In April, 2002 MTS purchased the largest operator of the South of Russia "Kuban GSM" that allowed to include in MTS network the main resorts of the country. In October MTS strengthened the presence in this strategically important region, having announced purchase of one more operator in the Southern Federal District — Dontelekom company.
The same year MTS strengthened the positions in the Urals through acquisition of the local operator in Bashkortostan, construction of networks in Perm and Chelyabinsk.
In 2002 MTS networks in Murmansk, Tambov, Arkhangelsk, Vologda, Tyumen, the Republic Nenets Autonomous Okrug Karelii and in Altai were started.
In October, 2002 the company expanded the license portfolio: acquisition of Bit LLC brought MTS of the license for provision of services of mobile communication of GSM-900 standard in four regions of Russia - Tuva, the Sakhalin region, Chukotka Autonomous Okrug and the Republic of Kalmykia.
In June, 2002 MTS started network in Republic of Belarus.
2001: Pokupka Telekom21, JV in Belarus
- In 2001 the company continued regional expansion and came to the northwest of Russia, having purchased Telekom21 company, the same year MTS expanded the network on seven regions of Russia.
- In 2001 the Russian MTS won tender for creation of the second GSM network in Belarus and built under own brand a cellular network in the republic, however Russians possess only 49% of stocks of the company. MTS initially aimed to increase the share in Belarusian MTS to control to have an opportunity to consolidate financial performance of the enterprise in the reporting.
2000: Placement of ADR at the New York Stock Exchange
On April 28, 2000 the Federal Securities Commission of the Russian Federation registered initial issue of shares of JSC MTS. The same year the company entered the world stock markets. Since June 30, 2000 stocks of MTS are quoted at the New York Stock Exchange (in the form of American depositary receipts) under the MBT index.
In 2000 the MTS network began work in the Amur and Yaroslavl regions and also in the Republic of Udmurtia.
1998: Purchase of "The Russian of the telephone company" for licenses in many subjects of the Russian Federation
In 1998 MTS purchased "The Russian telephone company" and together with it purchased licenses for construction of network in the Smolensk, Pskov, Kaluga, Tula, Vladimir and Ryazan regions. Participating in a company performance Reky, MTS began construction of network in the Bryansk, Kursk, Oryol, Lipetsk, Voronezh and Belgorod regions.
The agreement signed with Rosiko company allowed MTS to develop GSM-1800 standard in 17 regions of the central Russia and 11 regions in the Urals.
1996: AFK "Sistema" and DeTeMobil consolidate stocks of the company
1994: Start in the Tver region, Kostroma and the Komi Republic
1993: The joint venture with Germans, start in Moscow
The company is formed in October, 1993 by JSC Moscow City Telephone Network (MCTN), Deutsche Telekom (DeTeMobil), Siemens and several more shareholders as private company. Four Russian companies possessed 53% of stocks, to two German companies — 47%.
MTS started in the Moscow license area in 1994.
- ↑ Financial statements of MTS for the fourth quarter and all 2019
- ↑ Operators free squares
- ↑ MTS announces results of the annual general shareholder meeting
- ↑ As Internet of Things changes business and life around – MTS tells
- ↑ MTS is going to close up to 300 salons
- ↑ MTS updated a management structure
- ↑ MTS will open in Skolkovo the research center for development of solutions based on speech technologies
- ↑ MTS got Sotel
- ↑ [http://www.cnews.ru/news/top/2017-04-12_mts_potratila_500_millionov_na_infrastrukturu of 500 million on infrastructure for corporate clients
- ↑ 10,0 10,1 [http://www.cnews.ru/news/line/2015-10-02_mts_napravila_v_adres_svyaznogo_shtrafnye_sanktsii of MTS
- ↑ MTS returns to Uzbekistan. The conflict is ended
- ↑ In England assets of MTS are arrested
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