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Yota (Skartel)


Skartel LLC (Yota operator) is subsidiary company PJSC MegaFon and works on model of the virtual telecom operator (MVNO) at networks of parent MegaFon.

MegaFon - 100%




+ Free float

As of June, 2019, the main company services — mobile voice communication and internet 4G.

Performance Indicators

2017: Growth of revenue by 2.5 times in three years prior to 28.5 billion rub

In three years revenue of mobile operator Yota grew more than by 2.5 times. At the end of 2017 it made 28.5 billion rubles in comparison with 10.4 billion in 2014.

According to the reporting of the company under RAS, in 2017 Yota increased profit by 8.3 billion rubles, in comparison with 2016, and came to net profit in the amount of 6.9 billion rubles. For 2017 revenue of the mobile operator increased more than by 25% — from 21 billion to 28.5 billion rubles.



Roaming reduction in cost

The Russian operator of wireless communication Yota announced on August 13, 2019 review of approach to a roaming product and reduction in cost of one megabyte of traffic more than by 12 times. Now in the most popular countries for 400 rubles it is possible to purchase 500 megabytes of traffic, and it will not be limited on time.

Change in value and the volume of traffic in roaming occurred for 57 destinations among which there are Portugal, Greece, the Netherlands, Spain, Cyprus, etc. The complete list of the countries is available on the website

For the last three years the profile of consumption of services in roaming changed, and to clients not enough that volume of traffic which we offered is more. Therefore we more than by 10 times increased the number of megabytes in a packet and left invariable key advantage — the traffic packet is not limited on time. Even if the client did not manage to spend all megabytes on a trip, they will not burn down, and they can be used on other travel within a year — Natalya Smagina, the manager of the Smartphone direction of Yota explained.

Oleg Telyukov is appointed the CEO of Yota

On May 13, 2019 it became known that Oleg Telyukov who worked in Tele2 as the head of the macroregion "Northwest" before is appointed the new CEO of mobile operator Yota.

In the press release of Yota it is reported that development and implementation of new long-term strategy of the company will belong to Telyukov's duties.

Konstantin Gorelik's appointment Chief information officer of Yota

On March 25, 2019 in Yota announced TAdviser appointment as the Chief information officer of the company of Konstantin Gorelik having 20-year work experience in the field of formation and development of IT structures in the different companies. Read more here.

Vladimir Dobrynin left a post of the CEO of Yota

In January, 2019 Vladimir Dobrynin left a post of the CEO of Yota operator (subsidiary company PJSC MegaFon). Fulfill duties of the CEO it will be temporary the chief financial officer of Yota Said Munayev. Read more here.

2017: Yota will pay compensation of 20 million rubles by the victim of failure

The Yota mobile operator will pay to victims of failure on May 19 to subscribers compensation in the amount up to 20 million rubles.

"on May 19 parts were unavailable to users of mobile operator Yota a voice communication and also Internet access because of technical issues with network. Accident concerned inhabitants of Capital and Central regions and also the Volga region".

As the CEO of Yota Vladimir Dobrynin explained, effects of accident were completely liquidated. At the same time the company made the decision to pay compensation to 20 million rubles to clients who were left this day without an opportunity to make calls and to use the mobile Internet.

"As compensation the mobile operator Yota will provide to users a discount for the next settlement period. For its receiving it is enough to clients of the mobile operator to address in a support service" — noted in Yota.


Revenue of 21 billion rub

Revenue of Skartel LLC at the end of 2016 increased by 54% in comparison with 2015, from 13.6 billion to 21 billion rubles, follows from its reporting under RAS published in SPARK-Interfax base. Net loss of the operator was reduced to 1.3 billion rubles against the loss of 2.4 billion rubles received in 2015. Cost of sales and services of the operator grew to 18.5 billion rubles from 13.5 billion rubles. The gross profit of the company also increased to 2.4 billion rubles from 39.6 million rubles in 2015. The sales profit of Skartel was reduced in 2016 to 1.5 billion rubles from 2.6 billion rubles in 2015.

The company explains a financial situation with continuation of scaling of business which peak fell on 2015-2016.

"In 2016 we actively expanded geography, and the exit to territories demanded additional investments" — the representative of Skartel Olga Alekseeva explained. According to her, results were affected also by active purchases of customer premise equipment, the prices for which form according to currency rate. "Reduction of a sales profit is caused by development of the company, growth of dealer network, costs for development of advertizing products, lease of premises under trade points" — Olga Alekseeva added.

Skartel does not open a subscriber base at the end of 2016[1].

Unsuccessful attempt of Sberbank of purchase of Yota

On September 7, 2016 it became known of plans of Sberbank to organize own virtual mobile operator. Such decision is made after allegedly unsuccessful negotiations with MegaFon on purchase of Yota operator.

The organization tried to agree with Tele2 and MTS. Anatoly Smorgonsky, the ex-director of Yota confirmed information on the taking place events. Experts estimated Skartel at 45 billion rub[2].

Advertizing of Sberbank, (2014)
Advertizing of Sberbank, (2014)
Telecom operators and data transmissions already work in the sector of some banking services, to some extent creating the competition to banks. Certainly, Sberbank could develop a number of services of mobile banking on the basis of assets of Yota, for example communication provision of services on credit, the SMS notification about transfer of funds for cards, money transfer from the account of the mobile phone to the card of bank. But there are doubts that will be able effectively to operate bank an asset, non-core for itself.

Natalya Milchakova, associate director of analysis department of Alpari company

The basic strategy of economy of the project for Sberbank was calculated by Anatoly Smorgonsky, with reference to an informed source reported the edition. Offer essence: the bank has clients who use cashback service (return of money at payment of purchase using the card). At the expense of means from cashback the user can use free mobile communication with a certain packet for a month, for example 500 MB of Internet traffic, 100 minutes of a conversation and 50 SMS. If the packet is spent within a month, then payment of services will become fixed: in every minute a certain payment will be levied. At the same time appearance of the free mobile operator will have to stimulate clients of Sberbank to switch to cards and the application of Internet banking.

2015: 2.4 billion rubles of net loss and 1.5 million subscribers

At the end of 2015 revenue of Yota increased by 30.7% in comparison with 2014, to 13.6 billion rubles, follows from data of SPARK-Interfax base. Cost of sales and services of Skartel grew by 64.7%, to 13.6 billion rubles. The gross profit of the company fell to 39.65 million rubles from 2.2 billion rubles in 2014.

In 2015 Yota received 2.4 billion rubles of net loss against 3.8 billion rubles of net profit the previous year. In 2012 and 2013 the company also received a loss - 5.9 billion rubles and 2.1 billion rubles, respectively.

"We consider the current financial situation as natural process of scaling of business. In 2015 we actively expanded presence geography. In a year Yota began distribution of SIM cards for smartphones and tablets in 45 regions of Russia and began to render services of the unlimited 4G-Internet in 32 regions. For this reason our expenses increased. The exit to new territories demanded additional investments: costs for legalization of network and SORM, costs for number capacity and so on. We also actively bought customer premise equipment - SIM cards, modems, routers, the price for which depends on currency rate", - the PR-director of Yota Alekseeva Olga told Interfax.

She explains growth of revenue with increase in a subscriber base of the mobile operator - according to the results of the III quarter 2015 it made 1.5 million. The company does not disclose the number of clients according to the results of all 2015. Earlier TMT Consulting estimated the number of subscribers of Yota modems at 1 million.

On August 13, 2015 Yota announced work results in a year since launch of services of mobile voice communication in commercial operation.

The base of the clients of the company using SIM cards for smartphones and tablets exceeded one million by this time.

"Million clients using SIM cards for smartphones and tablets do Yota by one of market leaders of MVNO of century Russia. It was succeeded to reach such high value thanks to a number of factors: uniqueness of a product, broad geographical expansion, various and well debugged distribution channels. Clients can receive Yota SIM cards both in own retail of the mobile operator, and in shops of networks Svyaznoy, "Euroset", other partners, to order delivery by the courier in mobile application or on the website For a year distribution of SIM cards for smartphones extended from 6 to 52 subjects of the Russian Federation. The product for the tablet is also on sale in 52 regions. Until the end of 2015 we are going to begin distribution of SIM for smartphones and tablets in 23 regions", - said Mikhail Dubin, the CEO of Yota.

For August 13, 2015 28% of clients of Yota pay mobile services with bank cards through the application, and the indicator continues to grow. On this value users of Yota are ahead of clients of other mobile operators. 


4.4% of revenue of MegaFon

In 2014 transferred by Skartel to parent company all infrastructure of LTE, but the Yota brand was saved. MegaFon does not open indicators of Skartel - they are consolidated in the reporting of the operator under IFRS. Consolidated revenues of MegaFon in the Russian Federation in 2015 were reduced by 0.8%, to 308.4 billion rubles. Thus, from the reporting Skartel under RAS it is possible to draw a conclusion that about 4.4% of revenue of MegaFon are the share of it (about 3% in 2014).

Lifting of restrictions with VPN

On September 24, 2014 the Yota company announced lifting of restrictions from the VPN mode on smartphones.

Before connection speed when using VPN decreased to 32 Kbps. Now during the work in the virtual private area network, with the assistance of Yota, all limits on the smartphone are lifted.

"About two thousand users of Yota voted on our website for an opportunity to set VPN connection on the smartphone, it is the first idea of users which we implemented. We will continue to select and implement the ideas which we will receive from our clients and to build the operator together" — Anatoly Smorgonsky, the CEO of Yota Group told.

Yota became voice mobile operator

The Skartel company (Yota brand) announced in April, 2014 the beginning of rendering services of a voice communication. Services will be rendered on model of virtual mobile operator based on network of the owner of Yota of MegaFon in all standards: GSM, 3G and LTE. Earlier Yota works in the mode of "limited commercial operation". Only the limited circle of test subscribers who, however, pay for services in the commercial[3] can use services of the operator[4].

Sales of offers of Yota will begin in Moscow and St. Petersburg, and in the long term - through the whole country. In Moscow the basic rate will cost users 750 rub a month. It includes 300 minutes of voice traffic, an unlimited number of the SMS and unlimited Internet traffic. In St. Petersburg the subscription fee will make i590 in a month.

From 301st minute outgoing calls will cost 2.5 rub a minute. In the future there will be an opportunity to purchase additional packets of minutes up to unlimited. Will be ringing between users of Yota free.

As for the Internet, unlike the majority of "unlimited" rates of other operators, Yota, available in the market, will not reduce data transfer rate at achievement of threshold values of traffic.

However, only owners of smartphones will use a complete unlimited tariff. In case of the SIM cards installation in the modem speed will decrease after all.

Subscribers of Yota will be able to use intra network roaming in all territory of the country. At the same time during stay in other region calls to the home region will be rated on a basic rate. Also the international roaming will be available to subscribers.

Will provide to users numbers in the 999 code. SIM cards from Yota will support technology of wireless identification of NFC. The SIM card going in a set will be universal: the subscriber will be able independently to turn it into micro-SIM or nano-SIM.

SIM cards from Yota will not be on sale in cellular shops: they can be ordered with delivery by the courier via the website or through the application for iOS and Android. Besides, Yota will have no normal subscription service: service of users will be performed through a chat in the application or on the website of the operator.

The CEO of Skartel Anatoly Smorgonsky considers that in five years the company will gain 10 million subscribers. Now Yota services 1 million clients who use only data services in the LTE standard via modems and routers.

All subscribers who will be taken by Yota will be considered in base of MegaFon. Earlier MegaFon already had an experience in area of virtual operators: in Moscow the project "Simply" which was positioned as the operator of the low-profit low-speaking subscribers moved ahead in the form of an independent product. This project was closed afterwards.


MegaFon redeems "Skartel/Yota" from Garsdale for for $1.85 billion (including $566 million a debt)

MegaFon purchased Skartel in October, 2013 from the shareholder of Garsdale (it is controlled by Alisher Usmanov and his partners) for $1.85 billion (including $566 million a debt). At the time of purchase of Skartel owned LTE networks in two tens regions of the Russian Federation and also licenses for LTE frequencies in the range of 2.5-2.7 GHz (the coupled bands on 30 MHz) in all territory of the country.

SD of MegaFon recommended to shareholders to approve purchase of Skartel

In August, 2013 the MegaFon open joint stock company announced that the Board of Directors of MegaFon recommended to shareholders of the company to approve purchase of 100% "Skartel / Iota" at Garsdale controlling the shareholder of MegaFon at the Extraordinary general shareholder meeting appointed to September 12, 2013.

The Board of Directors of MegaFon defined that the recommended acquisition provides a number of the expected strategic benefits:

  • Significant increase in quality and network transmission capacity that will allow to strengthen the leading position of MegaFon in quickly growing market of mobile data transmission due to improvement of all range of services and customer service;
  • An opportunity to perform deployment of 4G network/LTE at reduction of capital and operating costs of Mbps, thanks to increase in width of a frequency spectrum of MegaFon;
  • Significant savings of money at deployment and operation of network, mainly, due to reduction of essential current and future operating expenses.

The total cost of purchase "Skartel / Iota" is 1,180 mln. dollars ("Payment for actions"), not including the amount of Net debt "Skartel / Iota" when closing the transaction.

  • Payment for actions in the amount of 1,180 mln. dollars will be made with a payment deferral as follows: 50% of the amount (590 mln. dollars) plus 6% of annual interest rates from the moment of closing of the transaction to a payment date will be paid in a year from closing date, and the remained payment amount for actions (590 mln. dollars) plus 6% of annual interest rates from the moment of closing of the transaction to a payment date will be paid in 2 years from closing date of the transaction;
  • The maximum amount of Net debt "Skartel / Iota" within the transaction is recorded at the level of 600 mln. dollars plus 20 mln. dollars a month, since July 1, 2013 before closing of the transaction. The net debt consists from: the loans granted "Skartel / Iota" by the selling shareholder and affiliates (about 400 mln. dollars for June 30, 2013 – MegaFon will purchase this debt face value) and also loans and the credits before the third parties, but does not include obligations for working capital;
  • Conditions of closing of the transaction include standard conditions of closing of similar transactions and also existence of fully current licenses 4G/LTE. Besides, if any claim from MegaFon (including any claims concerning judicial proceedings calling into question validity of any license on 4G/LTE belonging "Skartel / Iota") arises to one of payments within Payment for actions, the amount of such claim can be withheld from the corresponding payment to satisfactory permission of a claim.

FAS approved merger of Yota by MegaFon company

In July, 2013 the Federal Antimonopoly Service (FAS) approved the petition of MegaFon for acquisition of 100% of stocks of Skartel company. MegaFon specified that really consider such transaction, but so far to speak about its parameters early.

According to the signed agreement, MegaFon will have to pay Skartela within five years of 55 billion rubles for use of its infrastructure. Cooperation with Skartel allowed MegaFon to be ahead of the competitors - MTS and VimpelCom - in terms of start of LTE: at frequencies of Skartel MegaFon already built networks in several tens regions.

"Skartel has a small subscriber base – about 800 thousand subscribers, besides in regions very flat demand on services LTE, - the CEO of the analytical agency "Rustelekom" Yury Bryukvin says. - Besides, the main driver of consumption of data services is not modems, but smartphones any more, but so far there is not a lot of like those devices with support of LTE. By that moment when this problem is solved, competitors of MegaFon will be able to catch up with it on speed of construction of network".

Bryukvin estimates fair value of Skartel taking into account a debt at $700 million. But as the transaction will be performed between constituencies, its price can be several times higher, the analyst adds[5].

648 thousand subscribers

"Skartel / Iota" – the only operator in Russia with the functioning network 4G / LTE in many cities of the country. He possesses a band in 2x30 MHz of a national frequency spectrum 4G/LTE in the range of 2.5-2.6 GHz and the network providing with a covering about 27% of the population of Russia. "Skartel / the Iota" services about 648 000 4G/LTE of clients of the mass and corporate markets as of June 30, 2013.

2012: Usmanov agreed about consolidation of assets of MegaFon and Skartela in Garsdale holding

In 2012 the controlling shareholder of MegaFon - Alisher Usmanov – agreed with owners of Skartel about consolidation of assets. The Garsdale Services holding formed as a result of the transaction received more than 50% of shares of MegaFon and 100% of Skartel. Shareholders of Skartel got 18% of stocks of holding, the rest – to Usmanov and his partners.

In 2012, approving this transaction, FAS set a condition: Non-discriminatory access to the infrastructure and other mobile operators should provide Skartel.

Executing the instruction, Skartel was separated by the business into two parts. Actually Skartel is engaged only in infrastructure business under the Yota Networks brand now, and all subscribers were transferred to Yota company. Skartel offered the open offer to all mobile operators on use of the network, but except MegaFon and Yota nobody cooperates with it. Earlier concluded arrangement with Rostelecom did not become effective, Rostelecom went on Skartel to law and FAS, but unsuccessfully.


Agreement with Rostelecom on sharing of 4G networks

On December 2, 2011 it became known that Rostelecom and Yota signed the agreement on joint development and use of wireless networks of communication of fourth generation (4G). Signatures under the agreement were appended by the president of Rostelecom Alexander Provotorov and the director of Yota Denis Sverdlov[6].

Within the signed agreement Yota grants to Rostelecom the right to use wireless links of the network and to render to clients communication services using the MVNO mechanism (Mobile Virtual Network Operator – the virtual cellular operator) and also to use the platforms which are available for Yota for placement of telecommunication equipment and wire channels of communication to these platforms.

Rostelecom, in turn, grants to Yota the right on use of wire channels of communication to platforms of placement of telecommunication equipment, channels of accession to the Internet, trunk communication channels between the cities which are available for Rostelecom of platforms for placement of telecommunication equipment and the data processing centers.

According to the president of Rostelecom Alexander Provotorov, "joint development and use of infrastructure will allow the companies to reduce considerably terms of construction of 4G networks, to lower at the same time capital costs and also it is essential to reduce operating costs. All this will make possible not only in the shortest possible time to begin provision of services of 4G networks, but also to increase the number of residents of Russia who will be able to use them".

In the presence of V. Putin MTS, MegaFon, VimpelCom and Rostelecom agreed to use Skartel network and to redeem 20% of the company in 2014

In 2011 the operator got permission to use of the frequencies which are available for it for other technology – LTE - the cellular communication relating to fourth generation (4G). After that Skartel agreed with MegaFon and Rostelecom about joint construction of LTE networks.

On March 3, 2011 MTS, MegaFon, VimpelCom and Rostelecom signed the agreement under which they will use together its network with Skartel, and in 2014 will be able to take 20% of stocks of the operator.

The agreement on sharing of Skartel network (Yota brand) for development of LTE technology was signed:

At a ceremony there were a prime minister Vladimir Putin, the Minister of Communications Igor Shchegolev and also shareholders of the above-named mobile operators:

The essence of the agreement is that "the big three" of mobile operators and Rostelecom have an opportunity to use infrastructure of Skartela LTE network by wholesale purchase of traffic. It was expected that will build Skartel network in 180 cities independently, its cost was estimated at $2 billion earlier, now the cost amount will become more. Sverdlov promises that the company will not involve financial resources and bank guarantees of "the big three" and Rostelecom, and construction will perform on borrowed funds.

In 2014 all four partners of Skartel will have an opportunity to exercise options for acquisition of its stocks in equal shares. If all four companies show such willingness, then Skartel will have five shareholders, including Rostekhnologii. Sverdlov explained CNews that options will be concluded with the Telconet Capital fund owning now 74.9% of the stocks Yota Holding. It is planned that Telconet, as well as Rostekhnoloiya, will become the shareholder of Skartel directly, and stocks of the Russian company will be a subject of option agreements.

Still only one shareholder of Telconet was known - it is Sergey Adonyev. The realization value of the concluded options with it will be determined proceeding from market assessment of the company at the time of stock acquisition. The amounts which operators will pay for use of the Skartela resources are not disclosed.

Still "the big three" of mobile operators wanted to receive independently LTE frequencies and to construct on them 4G-networks. At the end of 2010 three operators were included into specially educated consortium at the head with Rostelecom for development of rules for apportionment of LTE frequencies. Moreover, a year ago Rostelecom won in the territory of 39 regions of frequency in the range of 2.3 — 2.4 GHz, suitable for LTE. But with these frequencies there were difficulties, Shchegolev reminds (earlier it was reported that it was not succeeded to get permissions, necessary for their use, from military yet).

Cooperation with Skartel will allow Rostelecom and mobile operators to use more effectively a frequency range and to save considerable means on creation of infrastructure as instead of 3-4 networks only one will be under construction, top managers of operators and their shareholders explained to Putin. Besides, on all frequencies just would not be enough, Yevtushenkov added. Shchegolev also assured Putin that the signed agreement will not raise questions at antimonopoly department as operators will continue to compete with each other. "Moreover, now they will be able to release the resources from construction of networks and to focus on rendering services", - the Minister of Communications added.

Deployment of LTE requires big frequency band, and the farther, the more there will be requirements, CNews on the condition of anonymity the top manager of one of mobile operators stated. "There will not be enough frequencies which are available for Skartel for construction of five networks in any way, - the interlocutor of CNews is sure. - Big three does everything not to allow appearance of the federal competitor which could become Skartel and the strategy of Rostelecom just consists in accumulation of the greatest possible frequency resource. Further continuation of fight for 4G, in particular, for free frequencies in the range of 2.5 — 2.7 GHz and for an opportunity to use under the LTE earlier issued frequencies is necessary".

Skartel owns frequency bands 30 — 40 MHz wide (depending on the region) in the range of 2.5 — 2.7 GHz which for March, 2011 is used for WiMAX technology. In 2010 the operator tried to pass to LTE technology, but not only did not get permission from the regulator, but also lost across all Russia of additional frequency band width 20-30mgts. Skartel does not refuse plans to independently render services to LTE network: in December, 2010 the company was already separated into service which will be responsible for service of subscribers, and network (Yota Networks), responsible for construction of the general for all operators of network infrastructure. The existing Skartel WiMAX-networks are intended to be closed after deployment of LTE.

Essence of the agreement signed in March, 2011 that "the big three" of mobile operators and Rostelecom have an opportunity to use infrastructure of Skartela LTE network by wholesale purchase of traffic. Will build Skartel network in 180 cities independently, its cost was estimated at $2 billion earlier, now the cost amount will become more. Sverdlov promises that the company will not involve financial resources and bank guarantees of "the big three" and Rostelecom, and construction will perform on borrowed funds.

Thus, on one network "Skartela" about 5 operators will have to accommodate. Sverdlov is sure that there will be enough frequencies existing at the company for this purpose. If Skartel is able also to receive new frequencies, then in accordance with general practice and by tenders, Igor Shchegolev told CNews. The frequencies which are rather selected in 2010 Shchegolev noted that they are a subject of judicial proceedings and this question is not connected with the signed agreement.


Roskomnadzor tries to deprive the company of all frequencies

On August 2 Skartel announced at a press conference obtaining the copy of the order of the deputy head of Federal service on supervision in the field of communication and mass communications (Roskomnadzor) Alexander Katulevsky about recognition invalid all permissions to use of the radio frequencies issued to the company this year. From January to May, 2010 Skartel got from Roskomnadzor 50 permissions allowing to expand the companies the frequency band which is available for it in 30 – 40 MHz on 20 – 30 MHz depending on the city. The meeting on this subject on Friday, July 30, took place between Katulevsky and the CEO of Skartel Denis Sverdlov.

According to the message of Roskomnadzor (it was published on the website of the department after holding a press conference of Skartel), during verification of the regulations adopted in January – May, violations at assignment of radio-frequency permissions of this company were detected. The further analysis which is carried out by the commission which is specially created by department revealed violations from officials of Roskomnadzor and Federal State Unitary Enterprise Main Radio-frequency Center (performs examinations, necessary for obtaining frequencies). Concerning them service check is begun. As specified in department, frequencies were appropriated in defiance of the solution of State Radio Frequency Commission (SCRF) of the August 19, 2009 permitting to issue frequencies and to carry out expertizes of electromagnetic compatibility in the range of 2.5 - 2.7 GHz (it is used by Skartel) only within earlier appropriated radio frequencies.

Denis Sverdlov learned about the publication of the message of Roskomnadzor from the correspondent of CNews. He claims that neither in the order of department received by the company, nor during the meeting with Katulevsky of the basis for a withdrawal of radio frequencies were not reported. Concerning the sounded reason Sverdlov said that the decision of SCRF did not limit issue of frequencies across territories:

"If the company used certain specific face values of radio frequencies in regions, it could receive similar face values and in other regions that we also made".

Sverdlov states special surprise in connection with the fact that orders on selection of frequencies of the company which were repealed now were signed by Katulevsky and personally the head of Roskomnadzor Sergey Sitnikov. With respect thereto Skartel it intends to take legal action with the claim to supervising department. Besides, the company appeals and personally to the president Dmitry Medvedev. The president already helped Skartel, Sverdlov reminds, for example, at the end of 2009 Medvedev was recognized that he personally uses Yota services then the company could resolve the problems with the FSO which were available for it, and in May, 2010 advanced the project of the company during the visit to Turkey.

Irrespective of the future of the withdrawn radio frequencies, assured of Skartel that it will not affect users of the Moscow and St. Petersburg Yota WiMAX-networks. In the capital from 60 MHz remain with the company 40 MHz from which 20 MHz it is possible to use for start of LTE network (steam on 10 MHz – 2.500 - 2.510 MHz, 2.620 - 2.630 MHz). But frequencies which are lost by the company are used in a number of regional networks – Sochi, Krasnodar, Ufa - where now the operator services 100 thousand subscribers. Skartela should be transferred subscribers to other frequencies and to incur the corresponding expenses.

According to Sverdlov, failures of his company can be profitable to someone, and gives as an example recently created structure Rusenergotelekom, 75% minus one action of which belong to the UST group of Grigory Berezkin, 25% plus one action - to Rostelecom. Rusenergotelekom applies for frequencies for LTE technology just in the range of 2.5 - 2.7 GHz while in Moscow in this range there are no free frequencies, assures a genirektor of Skartel. Meanwhile, until recently relationship of Skartel with public authorities developed quite successfully. Was considered that the company is obliged to it to Rostekhnologii state corporation and its head Sergey Chemezov.

But, as the president of Institute of the political analysis Stanislav Belkovsky notes, Skartel suffered because of ambitions of group of the businessmen close to the present management of the Ministry of Telecom and Mass Communications – above-mentioned Berezkin and the managing partner of Marshall Capital Partners fund, the board member of Svyazinvest holding Konstantin Malofeyev. "The conflict of Skartel with the regulator began in connection with intention of this command to build federal 4G network and search of free frequencies for it, - Belkovsky says. - And the fact that Medvedev personally played for Skartel will hardly be able to protect the company: as practice of the Russian political system shows, a final role is played not by(with) the words of the first person, and the one who will be able to concentrate around himself the greatest administrative resource".

The first base stations of Huawei for LTE network in Kazan are set

The first base stations of LTE network were set in Kazan in July, 2010. In Skartel suppressing the majority of cases for their connection uses channels of Tattelecom. Servers for operation of applications are installed in the Kazan technopark IT park. The total amount of costs for deployment of network was $20 million, the CEO of Skartel Sverdlov says.

In August, 2010 it is announced that the Yota LTE network constructed in Kazan should earn within two weeks. In the presence of the correspondent of CNews on the notebook with the connected LTE modem the speed of the entering flow reached 40 Mbit / cек that allowed to watch HD video directly from Network during the trip on the car around the downtown.

Denis Sverdlov told that rates in LTE network will be a little higher than the existing rates in Yota WiMAX-networks (900 rub a month for unlimited access), but will still remain unlimited.

In Kazan about 150 three-sector base stations of Huawei are already set, however yet not all of them are connected. The operator signed the delivery contract of 1000 more such devices with the same vendor, Sverdlov told CNews. Let's remind that for deployment of WiMAX-networks the company bought the equipment of Samsung. The Kazan network works in the frequency range of 2.5-2.7 GHz, normal for the company.

Client devices – modems – for Skartel Samsung traditionally delivers. Besides, the operator develops own modem. According to Sverdlov, the Korean producer of chipsets for these devices and the Chinese plant on which they will gather is already selected. Their price at the initial stage will be around 4 thousand rubles, but further (not earlier than in a year) it is reduced to 2 thousand rub, he claims.

Most likely, own devices will be offered participants of test operation. For their set the company will suggest visitors of the website to fill out the questionnaire and to receive the modem free of charge.

Denis Sverdlov expects to pass to commercial operation of the Kazan LTE network till 2011, but also the regulator position - Roskomnadzor is important for implementation of these plans. The matter is that the company still did not manage to get permissions of department to operation of some base stations. During demonstration of Skartela LTE network, the car of the radio-frequency center of Roskomnadzor carried out around one from base stations measuring works. Skartel hopes that the corresponding permissions nevertheless will be got in the nearest future.

In 2010 the network of the high-speed unlimited wireless 4G-Internet was unrolled in Moscow, St. Petersburg and Ufa. The company provides Internet access with a speed up to 10 Mbps and switching between stations without connection break.

Yota Group organization for management of foreign assets

In 2010 in connection with expansion of number of the markets of presence Yota the Yota Group management company with offices in St. Petersburg and London is founded. Control functions of group by the local companies are assigned to it: Yota Russia, Yota Bel, Yota de Nicaragua, Yota Del Peru.

Yota Group is completely focused on the business development strategy, marketing strategy and promotion of a brand, development of new services and products.

Opening in London of office of Yota Holding management company

The sign Yota appeared in one of office centers of the London region of Farringdon at the beginning of February, 2010. According to a source in the company, to her employees already announced restructuring. In London the control structure under the name Yota Holding will be placed. It was headed by Denis Sverdlov, the CEO of Skartel. It was reported that Yota Holding will manage all international projects of the company.


Reaching the level of operational payback. Total costs of start of network of $400 million

In October, 2009 reached Skartel the level of operational payback. Operating costs, the including administrative expenses, personnel training, promotional costs, for the first time in October were completely covered with revenue. According to him, revenue of the company for October made $6 million, and an indicator of EBITDA is "insignificant" above zero.

The exit to operating profit is also planned for 2010 — while the company is unprofitable, Sverdlov says.

At this time the operator renders services of wireless Internet access on Mobile WiMAX technologies (IEEE 802.16-2005 standard). Works under the name of Yota.

Skartel intends to invest 170 million dollars in development of networks of wireless communication WiMax. A part of the money provided Skartela in the form of a loan by Telconet fund is spent for commercial start of WiMax in Moscow and St. Petersburg, and a part - on deployment of networks in Ufa, Sochi, Krasnodar and two more Russian cities.

It is expected that in regions to networks of fourth generation, advanced by Skartel, it is necessary to compete with 3G networks which are not unrolled in Moscow yet. In total by this time Skartel already spent 300 million dollars for development.

It was reported later that Skartel will spend $300-350 million in 2010. The president Denis Sverdlov said it it. According to him, capital expenditures of this WiMax-operator in 2009 will make $110 million. For all the time of existence of the company for its development $400 million were spent.

200 thousand subscribers

In the first half of October the subscriber base of the operator exceeded 200,000 users, and 2000 new clients are daily connected. And 80% of subscribers are connected to the unlimited rate "Yota pass" — 900 rub a month.

100 thousand subscribers

For August 18, 2009 the number of a subscriber base of the company overcame a level in 100 thousand people. And it is about active subscribers who pay for traffic. Since June 1, 2009 when commercial operation of Yota network in Moscow and St. Petersburg began, about 60 thousand new subscribers were connected. The others — the "old" subscribers who passed since the period of test operation of network in these cities. At the end of June test operation of Yota network began in Ufa, it will last till September 30, 2009. Only in one month since the beginning of official sale of devices of connection in Ufa 5 thousand subscribers were registered.

Average traffic on the subscriber of Yota made 10.3 Gbytes in July. As much it is the share on average of the subscriber of providers of the wire Internet in Moscow. But at the same time subscribers of Yota began to use much more actively mobile properties of the WiMAX-Internet. If the share of mobile subscribers (those who used 6-10 sectors of base stations) and ultramobile (more than 10 sectors) in April-May made 25-30%, then in July — 46%. Respectively, the share of stationary subscribers decreased (those who used 1-2 sectors) — from 30% in April-May to 13% in July.

Joining of 7 regional operators

Till summer of 2009 of 100% of the operator belonged to the Cyprus offshore of WiMax Holding Limited which 74.9% the Telconet Capital fund had, and another 25.1% — at Rostekhnologii state corporation. But according to entry in the USRLE of June 29, 2009 the contribution WiMax Holding to the authorized capital (AC) Skartela increased from 10,000 to 26,400 rub, and UK grew by eight times — to 80,000 rub. The remained 53,600 rub were invested by the new participant of Ltd company — the Cyprus offshore of Kristiva Holdings Limited. Thus, the share of WiMax Holding could decrease from 100% to 33%, and the controlling stake (the remained 67%) was received by Kristiva Holdings.

The representative of Skartel Natalya Tsarevskaya-Dyakina explains appearance of the new founder with reorganization of the company passing in the first half of the year 2009. By accession of seven companies "Skartel" notified Federal Antimonopoly Service on reorganization. All attached companies are the regional operators owning licenses for communication services, Tsarevskaya-Dyakina says, they were founded by Kristiva Holdings Ltd. And the ratio of shares in Ltd company reflects a ratio of company assets before reorganization and the joined companies, she adds.

But the founder of Kristiva Holdings, according to Tsarevskaya-Dyakina — the same WiMax Holding, i.e. effective shares of final owners of Skartel — Russian Technologies and Telconet — did not change. It was confirmed by a source, close to state corporation.

The list of the persons entering into one group:

  • WiMax Holding
  • Kristiva Holdings
  • Skartel
  • Makmiks
  • Bion
  • Beat Service
  • Yusten
  • Sinamaks
  • Individual

End of the free period of use of network

Use of Yota network were free till May 31, 2009. On June 1, 2009 the company brought into commercial operation networks of mobile broadband Internet access (ShPD) on WiMax technology in Moscow and St. Petersburg. The cost of unlimited monthly access was from 900 to 1400 rubles. For connection to the Skartel network sells both modules for mobile devices, and the first-ever communicator with support of WiMax HTC Max 4G and also a line of notebooks. Later the network was started in Ufa.

2007: Foundation of Skartel company

By Skartel it was created in 2007, the Telconet Capital fund of entrepreneurs Sergey Adonyev and Albert Avdolyan and also Rostekhnologii state corporation (nowadays – Rostec) were its shareholders. The company built the Russia's first network of wireless data transmission of the WiMAX standard.

The WiMAX Holding company possesses 100% of Skartel (33% - directly, 67% - through Kristiva Holdings)

In turn 74.9% WiMax Holding belonged to Telconet Capital fund, and another 25.1% – at Rostekhnologii state corporation

That Sergey Adonyev — one of owners of Skartel, told Vedomosti the source close to one of Internet service providers. Adonyev is the former partner of Vladimir Kekhman, the owner of the importer of JFC fruit, largest in Russia. Adonyev confirmed to Vedomosti that he owns a minority stake in Telconet Capital which, in turn, through Wimax Holding controls 74.9% of Skartel.

Adonyev also represents the interests of Telconet in Board of Directors of Wimax Holding, told Vedomosti a source in Rostekhnologii state corporation which owns the remained 25.1% of Skartel. It was confirmed by the CEO of Skartel Denis Sverdlov. According to him, all in council five places: three places, including the chairman, are occupied by the Cyprian lawyers, one — Adonyev and one more — the chief of staff of the CEO of Russian Technologies Sergey Chemezov Sergey Kulikov. Adonyev does not comment on it and does not reveal the partners in Telconet.

In an interview to Vedomosti in the spring of 2009 Chemezov just told that in 2006 Sverdlov and "two more persons" came to it with the idea "from area of a fantasy" about creation of the WiMax-operator. But "just in case" Chemezov began to support them — in particular, Russian Technologies helped Skartel with obtaining frequencies, and at the end of 2008 purchased a block packet of the company.