History of MegaFon

• Main article: Megaphone
• Megafon Board of Directors
• Financial performance of Megafon
• 5G in Megafon

2024

MegaFon tested a Russian tablet Kvadra_T

Specialists from MegaFon's St. Petersburg laboratory for device research have completed testing of the KVADRA T tablet for compliance with communication standards and correct operation in all modern networks. The tablet, developed by YADRO, has passed six stages of testing and two verification sessions. MegaFon announced this on March 22, 2024. Read more here.

Megafon combines its IT assets into one company

In February 2024, it became known about MegaFon's decision to combine its IT assets in one company - Nexain. According to the Unified State Register of Legal Entities (USRUL), the telecom operator joins three software developers to Nexain: Algorithm, Mobile Platform and Storm Technologies. Read more here.

2023

Buying Getstar

On December 20, 2023, it became known about the sale of GetStar to MegaFon. The corresponding entry appeared in the Unified State Register of Legal Entities (USRUL). MegaFon confirmed the fact of the transaction. Read more here.

Registration of a representative office in Kyrgyzstan

On September 13, 2023, Megafon announced the registration of a representative office in the Kyrgyz Republic, the office will begin work in Bishkek in October 2023. MegaFon's team will focus on the implementation of digital projects for business and society, based on its many years of expertise in B2B and B2G.

Alexander Kaloshin, Director of National Projects at MegaFon, has been appointed Director of the Representative Office in Kyrgyzstan. Alexander will combine his new position with work on the implementation of ICT projects in Russia.

MegaFon's portfolio includes a number of major projects on the digitalization of industry, housing and communal services, transport infrastructure, the social sector, medicine and the mining industry. Both communication technologies (for example, NB-IoT, Private LTE, fixed Internet) and industrial standards and norms of industries with which joint projects are implemented are involved in the implementation of projects. Thus, for the implementation of the MegaFon Ecology project, the developments of those enterprises or cities that are connected to the environmental monitoring system are used. And in projects on road safety or a smart urban environment - the existing infrastructure of customers from business or the state with a network of smart sensors connected to them.

We have a wealth of experience in implementing digital projects both in Russia and abroad. Our technologies help sectors of the economy, large enterprises and entire cities to solve their tasks more efficiently, more economically and faster every day. I am sure that this experience will be more in demand than ever in Kyrgyzstan, "said Alexander Kaloshin, director of MegaFon's representative office in Kyrgyzstan.

By the end of 2023, MegaFon has planned a number of pilot projects in Kyrgyzstan in various sectors of the social and industrial order. The company implements projects both in the field of urban improvement and transport security, and in the industrial sector with solutions aimed at digitalizing production processes.

Drone with explosives fell on MegaFon tower in Moscow region

On August 22, 2023, the Ministry of Defense of the Russian Federation announced the destruction of several attack unmanned aerial vehicles (UAVs) heading for the Russian capital. One of the drones damaged MegaFon's tower.

Tonight [August 22, 2023], an attempt by the Kyiv regime to carry out terrorist attacks with unmanned aerial vehicles was suppressed. Two UAVs were discovered by air defense systems and suppressed by electronic warfare systems, crashed over the territory of the Bryansk region. Two UAVs were discovered and destroyed by air defense systems over the territory of the Moscow region. As a result of suppressed terrorist attacks, there are no casualties, the military said in an official statement.

According to the Kommersant newspaper, one of the drones was shot down with a special anti-drone gun in Krasnogorsk near Moscow. A powerful explosion thundered over a 25-story 4-entrance brick house located at 10 Krasnogorsk Boulevard. The blast wave and drone debris damaged the roof of the building, ventilation shafts, several dozen windows and 15 cars.

Another neutralized drone fell near the MegaFon cell tower in Ruza, which caused damage to the antenna system. The drone was also shot down over the urban district of Istra: the Pantsir-C1 anti-aircraft missile system was used to destroy this device. It was not possible to establish the types of UAVs destroyed due to their severe destruction.

On August 23, 2023, the Ministry of Defense of the Russian Federation reported another drone attack: three aircraft-type devices were sent to Moscow. Two of them were destroyed by air defense systems in the air over the territory of the Mozhaisk and Khimki districts of the Moscow region. The third drone was suppressed by electronic warfare and, having lost control, collided with the building of the Moscow City complex under construction.^[1][2][3][4]

Usmanov's holding bought the Armory business center from MegaFon

The holding USM Alisher Usmanova bought from the "" MegaFon business center To Moscow in for 4.2 billion. rubles The telecommunication operator announced this in its reports published in August 2023. More. here

Purchase of Yota trademark

On August 21, 2023, MegaFon announced the purchase of the Yota trademark. The relevant information is contained in the financial statements of the Big Four mobile operator. Read more here.

Connection of "Talmer" and "InPlat"

At the meeting of shareholders MegaFon"" held on June 26, 2023, it was approved to join the telecom operator of three companies - Finance LLC Megaphone , the system integrator of LLC "" and Talmer the developer of mobile payment instruments LLC InPlat"." More. here

Inclusion of the company in the US sanctions list

Ministry of Finance USA excluded from sanctions restrictions on the MegaFon provision of communication services.

The Office of Foreign Assets Control of the US Treasury has published a general license under which it allows the operator to provide telecommunications services, export, re-export, sale or supply from the United States or American persons of services, software, hardware or technologies for the provision of communication services over the Internet.

Thus, the company's inclusion in the US sanctions list in April 2023 will not have a direct impact on subscribers and services, including roaming, MegaFon emphasizes. The operator considers its blacklisting unreasonable and illogical and intends to challenge it.

MegaFon increased its share in the software developer for Sharing Technologies communication networks from 50% to 80%

February 22, 2023 to increase the share of MegaFon"" in the company "Technologies of Sharing" - from 50% to 80%. This is evidenced by the data of the Unified State Register of Legal Entities (USRUL). here More.

Rostelecom is in talks to acquire MegaFon

At the end of January 2023, it became known about plans Rostelecom to "acquire MegaFon." The fact that companies are negotiating is written by Kommersant"" with reference to a source close to it Government of the Russian Federation , as well as three market participants.

It is reported that the issue of the purchase of MegaFon by Rostelecom from USM Group was submitted to the government for approval at the end of December 2022. According to newspaper sources close to MegaFon, other investors, including non-core investors, are also interested in buying the company's assets by the end of January 2023.

A source close to USM noted to the publication that MegaFon is showing good results, so offers to buy it have been coming in for several years.

It is logical that there are always applicants for the company. Any offer, of course, and sales options will be considered, but, of course, it all depends on specific conditions, he added.

According to FG Finam analyst Leonid Delitsyn, MegaFon can be valued at 616 billion rubles. But the final price will depend on how the debt is structured, he said. Rostelecom owns a 100% stake in Tele2, and the acquisition of the second largest operator on the market after MTS will make the state holding the undisputed leader in the mobile communications segment, Delitsyn said.

According to him, the transition of the telecommunications business under state control, on the one hand, will help solve problems with access to equipment and preserve the quality of service, but a decrease in competition in the medium term will lead to higher prices.

The Federal Antimonopoly Service (FAS) told Kommersant that by January 30, 2023, the department had not received Rostelecom's petition to acquire MegaFon. The companies themselves declined to comment on the publication's requests.^[5]

"MegaFon" bought 100% of the service for receiving payments on the Internet "InPlat"

MegaFon closed in January 2023 a deal to buy InPlat, a player in the mobile commerce market. As representatives of the operator told TAdviser on January 26, 2023, MegaFon acquired 100% of the company from USM structures for cash. The amount of the transaction was not disclosed. Read more here.

2022

Receipt of an order from the FAS to reduce tariffs after their unreasonable growth by 12%

On December 27, 2022, the Federal Antimonopoly Service (FAS) of Russia announced the issuance of an order to MegaFon on the need to reduce tariffs increased a few months earlier.

According to the press service of the FAS, the regulator found that the level of change in tariffs did not correspond to the level of inflation (consumer price index) since the beginning of 2022. The service conducted an analysis of the economic validity of the increase and concluded that the increase in the company's costs did not correspond to the growth in revenues from the increase in tariffs for communication services.

According to the department, the increase in tariffs in the absence of technological, economic and other justification violates the interests of consumers.

On December 27, 2022, the commission of the department found the operator guilty of establishing and maintaining a monopoly high price for its services. According to the FAS, in May 2022, MegaFon raised tariffs for communication services for more than 16.5 million subscribers by an average of 12%.

The FAS clarified that the antimonopoly case against MegaFon was initiated in accordance with part one of article 14.31 of the Administrative Code of the Russian Federation on "Abuse of a dominant position in the commodity market." The fine under the above article for legal entities is from 300 thousand to 1 million rubles.

In mid-April 2022, the FAS published methodological recommendations for the phased indexation of tariffs of telecom operators, taking into account the current inflation rate, developed to ensure the development of the Russian economy under sanctions. The validity of the change in operator tariffs is determined by the service in connection with the compliance with the change in inflation according to the weekly published data of Rosstat. The change is considered reasonable if the rate of change in tariffs corresponds to inflation from the beginning of the year as of the last week of the month.^[6]

Purchase of the developer of analytical AI platforms oneFactor

On December 28, 2022, MegaFon announced to TAdviser that it had completed the purchase of oneFactor, a company specializing in the development of analytical platforms based on artificial intelligence. As a result of the transaction, the amount of which was not disclosed, MegaFon became the owner of 100% of OneFactor LLC. Read more here.

Purchase of Algorithm

In mid-December 2022, MegaFon and the former head of the USM holding (owns MegaFon) Ivan Streshinsky entered into transactions to acquire 50% of Algorithm. The financial terms of the agreements are not disclosed. Read more here.

Sale of interest in Svyaznoy

MegaFon withdrew from Svyaznoy's capital, said Khachatur Pombukhchan, general director of the telecommunications operator, in early December 2022. However, he did not disclose the details of the transaction, including the name of the buyer. Read more here.

Opening of the updated Subscriber Equipment Research Center

On October 20, 2022, MegaFon announced the opening of an updated federal center for research and testing of subscriber equipment. This is a radio laboratory that examines the work of electronics in the Russian mobile network. In this laboratory, the number of test zones has been increased, which is necessary taking into account the growth in the number of brands in the domestic market.

In the center located in, St. Petersburg specialists test user equipment and give manufacturers recommendations on setting up devices for maximum efficiency in the mobile network. retail MegaFon All devices fall into all devices only after testing - this excludes incorrect operation and gives subscribers the opportunity to use the full potential of their gadget in the operator's network.

{{quote 'To study the operation of devices in mobile networks, we create test zones of existing and promising technologies - 4G, VoLTE, VoWIFI, 5G. We check each device for 250 parameters regardless of the vendor and the country from which it was imported. Updating our center will make it possible to increase the speed of testing new equipment by one and a half times, "said Alexander Jakonia, head of the Center for Research and Testing of Subscriber Equipment. }}

The number of base stations in the updated laboratory has been increased by one and a half times. The quality of screening in testing rooms has also been improved so that the mobile signal does not go outside the building.

A test zone has been opened in the laboratory, which allows you to investigate the operation of the device in 5G networks at any frequency, including in the band most suitable for the fifth generation - 3.4-3.8 GHz. This will help investigate any scenarios for devices in 5G. In 2022, the share of smartphones with 5G support in the Russian market doubled compared to the past - to 16.3%. In addition to flagship smartphones, the technology is starting to support devices in the mid-price range.

In addition to smartphones, tablets, smartwatches and routers, specialists will now be able to test laptops, portable batteries, chargers and about a dozen new categories. The current power will be enough to test the most modern devices for 10 years.

Initiation of a lawsuit from the FAS due to an unreasonable increase in tariffs

The FAS opened a case against MegaFon because of an unreasonable tariff assignment. This became known on October 13, 2022.

Prices rose by an average of 12% for more than 16.5 million people, the ministry said in a statement.

According to the FAS, such an increase in the cost of services does not provide an increase in the level of compensation since the beginning of the year, and an increase in the operator's costs - an increase in revenues from tariff increases, the^[7] to^[8]

Integration of MegaFon and Yota retail chains

MegaFon and Yota on October 4, 2022 informed TAdviser about the merger of their retail chains. Operators expect to complete the project to unite retail chains by the end of 2023. It is expected that according to the results of the project, the costs of network development will decrease by a third, while traffic in salons will increase by 15%. Read more here.

Introduction of measures to support mobilized employees

On September 29, 2022, measures to support employees of Russian cellular companies that fell under partial mobilization became known. Read more here.

The military demands from MegaFon to remove the cell tower from their headquarters

On August 15, 2022, it became known about the lawsuit, in which MegaFon is required to remove the cell tower from the headquarters of the Volga-Ural Military District. The military wants the telecom operator to vacate 4 sq. m on the roof of the building and 7 sq. m in the attic of the "chapel," located on Frunze Street in Samara.

Vedomosti drew attention to the filing of a lawsuit against MegaFon. According to the newspaper, the appeal to the Arbitration Court of the Samara Region was filed by the Deputy Military Prosecutor of the Central Military District in the interests of the Russian Federation in the person of the Volga-Ural Territorial Administration of Property Relations of the Ministry of Defense.

According to a MegaFon representative contacted by the publication, the operator's base station, which is referred to in the lawsuit, was established in the early 2000s. and provides a connection between the population of a residential area and dense buildings.

Due to the expiration of the contract with the owner of the building, we are moving this equipment to a new location, not far from this place. Since there is an important transport node at the base station, we cannot disconnect the equipment until the final transfer of its functionality to a new location so as not to leave subscribers around it without communication, he said.

At the same time, MegaFon did not name the deadlines for the end of the contract for the placement of telecommunications equipment.

As follows from the materials of the case, the military petitioned for a ban on Megafon "to make any transactions with the named property before the consideration of the case on the merits and real execution of the court decision." But the arbitration refused this petition, sent to the court simultaneously with the lawsuit, Vedomosti reports.

Managing partner of the law firm Maria Fabritskaya and Partners, Maria Fabritskaya, speaking about the prospects for a dispute, noted that if the plaintiff is indeed the owner of this property and MegaFon there are no more rights to place its equipment at this facility, then the court will most likely satisfy the plaintiff's claims, since the latter is the owner who has the right to protect his ownership from other people's violations.^[9]

Start of Nat Bai Nat Holding and MegaLabs merger process

Since the beginning of 2021, MegaFon has been preparing to join Net Bay Net Holding LLC and MegaLabs JSC. Officially, this decision was made at the annual general meeting of shareholders at the end of June 2022. Recently, a corresponding record was made in the Unified State Register of Legal Entities on the beginning of the PJSC reorganization procedure.

Thus, MegaFon continues to follow the path of simplifying the structure in order to increase both managerial and operational efficiency. The accession process will be completed before the end of the year.

As for MegaLabs, its projects will be taken over by subsidiaries of Quantera JSC and. At the START beginning of the year, all resources for the development of VAS products for private and corporate clients, including the development team, were transferred to Quantera JSC, which became the center for the MegaFon development of digital solutions. MegaLabs employees involved in the development MegaFon TV are transferred to the combined START video service team, as the operator will now develop both services on a single platform.

In the case of Net By Net Holding LLC (engaged in home Internet), his team is also transferred to MegaFon, which will eliminate duplication of functions.

Disconnecting from LINX Internet Traffic Exchange Point

On March 12, 2022, the Ministry of Digital Development announced that Rostelecom and MegaFon had disconnected LINX, which is located in London, from the Internet traffic exchange point. Disconnecting the British LINX will not affect the speed and quality of the connection of domestic operators. Traffic will be redistributed to other Internet traffic exchange nodes.

Operators Megafon and Rostelecom previously planned to abandon LINX services due to the insignificant amount of traffic.

Rostelecom:

the Russian Internet This will not affect the work with resources. Rostelecom ensures the sustainable operation of digital infrastructure and networks communications for the reliable provision of services and services to all categories of customers, including Internet access and traffic exchange. The company has reserves and alternative routes of traffic exchange with foreign sites.

MegaFon:

Over the past few years, Internet traffic passing through London IX has decreased significantly, so at the end of 2021 we have already planned to end cooperation with this organization in 2022 and have begun a systematic redistribution of traffic. The current blocking of the service will not affect the quality of the services provided.

There is no threat to slowing or lack of traffic in Russia. The damage from LINX's actions will not be noticeable to Russian users.

2021

Buying Nexign

At the end of December 2022, MegaFon acquired 100% Nexign. As a result of the transaction, the financial terms of which have not been officially disclosed, the purchased company will remain an independent legal entity and will retain all partners. Read more here.

Creation of an independent federal player in the Russian tower infrastructure market

On October 27, 2021, MegaFon informed TAdviser that it had agreed with Kismet Capital Group on a deal that would create an independent federal player in the Russian tower infrastructure market. As a result of the transaction, MegaFon will receive a 25% stake in the combined company. Read more here.

Completion of Digital Holding in Uzbekistan

YuSeM Telecom and MegaFon, together with partners from Uzbekistan, completed the formation of a joint venture Digital Holding. MegaFon announced this on September 30, 2021. The parties signed the final package of documents on the creation of the joint venture. Digital Holding will be headed by Vladimir Kravchenko, who previously served as CEO of Ucell. Read more here.

Sale of stake in AliExpress Russia to USM International

In August 2021, it became known about the sale of the entire share in AliExpress Russia owned by MegaFon to USM International. We are talking about 24 million ordinary shares, which correspond to 24.3% of the authorized capital and 28.8% of the vote, the telecom operator said in a statement. The financial component of the transaction was not disclosed. Read more here.

Lawsuit for 677 million rubles from Tinkoff Bank

As it became known on June 16, 2021, Tinkoff Bank filed a lawsuit against MegaFon for more than 677 million rubles. This was reported by TASS Information Agency of Russia with reference to the file cabinet of arbitration cases.

The statement of claim in the Arbitration Court Moscow was registered on June 15, 2021. The third person in the lawsuit is. Federal Antimonopoly Service (FAS) of Russia The essence of the claims is not specified in the court materials.

Tinkoff Bank clarified that the lawsuit against MegaFon was filed for the same reason as before against MTS (the amount of claims is 1.12 billion rubles) and VimpelCom (436.8 million rubles) - abuse of "dominant position by establishing and maintaining monopoly high prices for SMS-mailing services, as well as creating discriminatory conditions." MegaFon did not comment on the bank's claim at the time of publication of the material (17:00 Moscow time, June 16, 2021).

Earlier, the FAS admitted that MTS, Tele2 and VimpelCom violated the law on protection of competition. The agency found out that the cost of their services for organizations without state participation could be 10 times higher than the cost of similar services for organizations with state participation in capital. This created discriminatory conditions and contradicted antitrust laws, the FAS said. In addition, the service revealed that operators set monopolistically high prices for the SMS service. She issued instructions to telecom operators, in connection with which they were supposed to reduce tariffs.

According to the FAS, prices differed not only for banks, but also for other companies, depending on whether the state participated in them. Organizations with state participation paid several times less, in some cases the difference reached ten times. MTS announced its disagreement with the position of Tinkoff Bank and plans to set aside its position.

Other banks, such as Sovcombank and Renaissance Credit, filed lawsuits against operators in the FAS case to increase the cost of SMS mailings. ^[10]

Appointment of Khachatur Pombukhchan to the post of CEO of MegaFon

The executive director "" MegaFon Khachatur Pombuhchan will become the operator's CEO, and the current head of the company Gevork Vermishyan will join its Board of Directors and focus on the development of international and strategic assets. "" MegaFon The corresponding decision will soon be submitted to the Board of Directors of the company for further approval at the General Meeting of Shareholders, reported TAdviser on May 14, 2021 in "." MegaFon The changes are expected from July 1, 2021. More. here

Purchase of a stake in Spectrum Management radio frequency management software developer

In early May 2021, MegaFon received a stake in Spectrum Management, which owns 100% of Sharing Technology. This is evidenced by the data of the SPARK-Interfax system. Read more here.

Signing of binding documents on the creation of two JVs

On February 12, 2021, MegaFon informed TAdviser that, together with VK (formerly Mail.ru Group), USM, Ant Group and RDIF, they signed binding documents on the creation of two joint ventures (JV) - payment and financial. Earlier, in 2019, the parties signed non-binding documents and announced a partnership to expand access to financial services in Russia. Read more here.

Increase the share in the Start video service to 50%

As it became known on January 27, 2021, MegaFon, through its subsidiary MegaLabs, increased its share in the Start video service from 33.8% to 50%. The operator does not plan to further increase this indicator. Read more here.

2020

Working with MPEI to train IT professionals

The National Research University of MPEI and the operator of digital opportunities MegaFon signed an agreement on cooperation on the launch of the educational project "Laboratory of the Internet of Things NRU" MPEI. " This became known on December 25, 2020. This project will allow us to unite the efforts of the company and the university in the training of specialists for the telecommunications industry, the radio-electronic industry and IT enterprises. Read more here.

Approval of the ex-head of Magnit Khachatur Pombukhchan for the post of executive director

On December 17, 2020, MegaFon informed TAdviser that the board of directors approved the candidacy of Khachatur Pombukhchan for the post of executive director of the company. The decision on the appointment will be made by the meeting of shareholders of the company in January 2021. Read more here.

Creation of MegaFon 1440 to develop a satellite data transmission system

On October 29, 2020, MegaFon informed TAdviser that it would invest 6 billion rubles. in the development of a satellite data transmission system.

On November 16, Bureau 1440 (formerly MegaFon 1440) will begin its work, which will investigate the use of low-orbit satellite systems to provide high-speed data transmission. Read more here.

Acquisition of a stake in Digital Media Holding

On October 28, 2020, it became known that MegaFon is acquiring a stake in Digital Media Holding LLC (DMH), the parent company of the Start video service. The entry of a strategic investor will allow Start, a rapidly growing video service in Russia, to continue to strengthen its market position. Read more here.

Changes in a number of MegaFon management posts

On May 26, 2020, TAdviser became aware that MegaFon will change its management posts.

Thus, Pavel Korchagin will replace Frederik Vanoschuyze as director for technical innovation and infrastructure, who, in turn, will take the position of adviser to the general director for strategic infrastructure projects.

Mikhail Berstenev, Director of Procurement and Logistics at MegaFon, will head a single procurement structure within the perimeter of YuSeM Telecom (a division of the owner of Megafon, USM holding), and Ekaterina Zemskova, Director of Transformation and Operational Efficiency of the company, will lead the integration office at YuSeM Telecom in addition to her current role.

MegaFon Security Director Petr Komarov will take a similar position in the YueSeM Telecom holding company. Instead, Vadim Kuptsov will become MegaFon's security director, and Alexey Krutitsky will become the director of procurement and logistics.

Possibility of identification in the WebMoney system in MegaFon salons

On May 20, 2020, the international settlement system WebMoney Transfer announced the launch of full user identification in MegaFon salons throughout Russia. Read more here.

Opening sales of SIM cards with self-registration on Tmall

March 23, 2020 MegaFon announced the opening of sales - SIM cards with self-registration on, Tmall resource, and in AliExpress Russia its own Internet store with free delivery in 1 day. Now you can buy a SIM card and connect to the operator without communications leaving your home. This will minimize contacts and not visit stores for those who are forced to stay at home in the current situation.

You can activate your SIM card yourself at any convenient time through mobile application MegaFon. The balance of the SIM card is 300, the rubles subscriber can choose any of the current tariffs during registration. The proposal is relevant for residents, and Moscow, St. Petersburg but Krasnoyarsk the number of regions will expand.

MegaFon - as of March 2020, the only operator that offers authorization with confirmation of client data through the Public services portal. The process takes 2-3 minutes. You can also use the biometric activation method: take a selfie with a passport in your hands and enter the data in the application.

{{quote 'author = notes the commercial director of MegaFon Vlad Wolfson' To buy a SIM card, it is no longer necessary to visit a communication salon or conclude a contract by communicating with a courier. We have expanded the number of online stores in which you can buy a SIM card with self-registration. This is especially true when many are forced to stay at home, but at the same time it is important for everyone to be in touch with their loved ones. You can purchase an online smartphone and a SIM card for it, choose a convenient tariff in the application and immediately start using the operator's services, }}

Inclusion in the list of backbone organizations

In March 2020, the Government Commission to Improve the Sustainability of the Russian Economy included MegaFon in the list of strategic organizations. Read more here.

Massive network update for tens of billions

In early March 2020, it became known that MegaFon is holding a tender to choose a manufacturer of telecommunications equipment for updating 2G, 3G and 4G networks throughout the country. The winner of the competition will also have to ensure that the network is ready to launch 5G technology in a design that provides for all possible frequencies.

According to Kommersant, the total cost of the purchase is about 35 billion rubles, and Huawei is considered the most likely contractor in this project, which in some regions of the Russian Federation will replace Nokia.

According to MegaFon, we are talking about a tender among providers of radio network solutions (RAN, Radio Access Network) to "close current equipment needs in Russia." The company will accept applications until March 16, 2020.

The operator's representative at the beginning of March 2020 also said that MegaFon plans to soon organize a separate competition for equipment based on the open architecture OpenRAN. As an interlocutor familiar with the company's plans explained to the publication, the operator is considering testing OpenRAN to develop the 5G communication standard.

According to experts interviewed by the newspaper, by early March 2020, there are no OpenRAN devices on the market that would be ready for use in commercial networks. However, in the future, such equipment will make it possible to cope with the monopoly of global manufacturers, the expert is sure. According to him, about 90% of the MegaFon network operates on Huawei and Nokia equipment with a slight advantage towards the Chinese company.

Tigran Poghosyan, Senior Vice President of ZTE in Russia, said that the company is interested in participating in MegaFon's tender.

The emergence of a new player in the person of ZTE allows you to reduce both capital and operating costs due to greater competition, he said.[11]

2019

Opening an online store on Tmall

On November 11, 2019, MegaFon announced the launch of an online platform on Tmall, the AliExpress Russia resource. The starting line of the MegaFon store includes Apple products. Read more here.

2,814 complaints to Roskomnadzor about communication services

On February 12, 2020 Roskomnadzor , he summed up the results of systematic work with citizens' appeals regarding the provision of services communications by the Big Four operators. In 2019, more than 6.4 thousand such appeals were considered, of which 2,814 fell on PJSC "." MegaFon More. here

Launch of educational resource цифроваяграмотность.рф

On December 26, 2019, it became known that the University of 2035 and Russian companies launched an educational resource цифроваяграмотность.рф so that residents of Russia could learn for free the safe and effective use of digital technologies and services.

According to the company, Megafon, Rostelecom, Russian Railways, Er-Telecom, Sibur IT, Rostec Academy, HSE, Rocit and Russian Post, NAFI analytical center will be engaged in the development of IT solutions, the provision of online content, as well as expertise of its quality. The project operator is the University of 2035. Read more here.

Completion of the joint venture AliExpress Russia together with Alibaba Group, Mail.ru Group and RDIF

Alibaba Group, Megafon, VK (formerly Mail.ru Group) and the Russian Direct Investment Fund (RDIF) on October 9, 2019 announced the completion of the transaction to create a joint venture AliExpress Russia. The deal involves the integration of key Russian consumer Internet and e-commerce platforms and the launch of a joint venture on social commerce in Russia and the CIS countries, which will operate in full compliance with federal legislation in the field of personal data protection. Read more here.

Cybersecurity Collaboration with BI.Zone

On September 24, 2019, the company BI.ZONE announced the expansion of cooperation cyber security in the area of ​ ​ s. by telecom operator MegaFon As part of a technological partnership, the operator began to provide real-time information to the developer about fraudsters and their victims. This information is automatically available to all members. Cyber Threat Data Sharing Platforms More. here

Participating in frequency clearing for 5G

The Big Four of Russian mobile operators will clear frequencies for the development of fifth-generation (5G) networks in Russia. About this to journalists on the sidelines of the Eastern Economic Forum (WEF; September 4-6, 2019) said Rostelecom President Mikhail Oseevsky. Read more here.

Megafon challenged in court the decision of the FAS in the case of SMS mailings

On August 21, 2019, it became known that the Moscow Arbitration Court satisfied Megafon's claim against the Federal Antimonopoly Service (FAS). The lawsuit was filed in connection with the decision of the FAS of May 2019, in which the company was recognized as a violator of antimonopoly legislation in terms of increasing the cost of SMS mailings and establishing unequal conditions for state and non-state banks. According to the FAS, the rise in prices in Megafon for SMS mailings amounted to 500%. Read more here.

Rostec sold a stake in MegaFon

At the end of June 2019, it became known about the sale by Rostec of its stake in MegaFon. The state corporation planned to increase the number of shares in the operator, but ultimately abandoned this idea.

The fact that Rostec withdrew from MegaFon's capital is written by Vedomosti with reference to CEO Sergei Chemezov.

The publication notes that Rostec's indirect share in MegaFon was 1.33%, the company received it in 2012, when the Garsdale holding was created. In it AF Telecom Holding (through this structure at that time, the businessman Alisher Usmanov owned the operator's shares) he introduced a controlling stake in Megafon. In turn, Telconet Capital Sergey Adonyev Alberta Avdolana and Rostec transferred 100% ("Yota" brand) Yota  to Garsdale. As a result, Rostec, which previously owned 25.1% of Yota, received 4.5% of Garsdale, and Telconet - 13.5%. In 2013 , Telconet Capital sold its stake in the holding "."To MegaFon

The representative of MegaFon, in a conversation with Vedomosti, noted that Rostec did not directly own the operator's shares. He advised to find out the details from the company's shareholders.

Sergey Chemezov did not rule out the sale of 1.33% in MegaFon on the London Stock Exchange. Then this package was estimated at $76.4 million.

When MegaFon decided to delist global depositary receipts (GDR) from the London Stock Exchange, the operator offered shareholders to buy the operator's securities from them at 659.26 rubles per share. The company agreed to buy out 18.6% of the share capital.

Subsequently, MegaFon Finance again announced the redemption of the operator's securities. As part of the second stage of the offer, minority holders sold a 20.36% stake in the telecommunications company. Currently, MegaFon has the status of a non-public company.^[12]

LTE Base Station Growth by 12% to 98,111

On June 20, 2019, it became known that T2 Mobile LLC (brand) Tele2 increased the number of base stations (BS) of the standard LTE from the beginning of the year by a quarter - to 65,056 RES. Now Tele2 lags behind PJSC "" MTS by 2.9 thousand. LTE BS. At the same time, MTS's number of LTE base stations at the beginning of June decreased by 136 compared to the indicator of the beginning of May. PJSC "" MegaFon increased by 12% to 98,111 BS LTE. More. here

Megafon completed the buyback of its own shares from minority shareholders

On June 7, 2019, All-Russian digital opportunity operator MegaFon announced the completion of the procedure for buying back MegaFon Finance LLC (MegaFon's 100% subsidiary) of the operator's shares in accordance with the redemption requirement received by MegaFon on April 17, 2019. As a result of the buyout, MegaFon Finance acquired 4,966,749 ordinary shares of the company (about 0.8% of the total) at a price of 659.26 rubles per security. Thus, the total value of the block of acquired shares amounted to 3.27 billion rubles. Read more here.

Innovation Technology Exchange Agreement with Fort Ross Ventures

On June 10, 2019, MegaFon and the managing company Fort Ross Ventures, which is part of the Sberbank ecosystem, signed an agreement on strategic partnership and cooperation in the field of innovation, technology exchange and joint search for attractive objects for investment.

As part of the agreement, Fort Ross Ventures will provide MegaFon with its own expertise and information on prospective potential investments and its own portfolio companies. MegaFon, in turn, intends to consider cooperation and investment in funds, the general partner of which is Fort Ross Ventures.

MegaFon will extend fiber optic cable from Helsinki to Tokyo

On June 6, 2019, MegaFon announced the construction of an underwater high-speed optical line between Tokyo and Helsinki. To implement the project, the Russian telecommunications company signed an agreement with the Finnish infrastructure operator Cinia Group to create an international consortium, which, in addition to MegaFon, included "Japanese and Scandinavian companies, as well as international financial organizations." The agreement was signed at the St. Petersburg International Economic Forum (SPIEF). Read more here.

Credit line for 15 billion rubles from Otkritie Bank

On April 29, 2019, it became known that Otkritie Bank it provided the operator with "" Megaphone funding for 15 billion in the rubles form of a three-year approved credit line.

It is assumed that the funds will be used to finance operating and investment activities.

The bank is very interested in developing a partnership with the telecommunications market company. We see significant potential for developing cooperation with PJSC Megafon on all business lines. "

Earlier, the credit institution was one of the organizers of the placement of three-year bonds of Megafon in the amount of 20 billion rubles^[13].

Gazprombank ceased to be a co-owner of MegaFon

Since March 5, Gazprombank has ceased to own its stake in MegaFon, which is estimated at 77.5 billion rubles. Gazprombank, which owned 18.96% of MegaFon's shares, left the capital of the operator, follows from the message of the credit institution on the corporate information disclosure portal.

It follows from it that Gazprombank's right to dispose of this block of shares was terminated on March 5. The basis indicates "termination of participation in the organization."

"The number and share in the percentage of votes<…> that the issuer has the right to dispose of after the onset of the corresponding basis: 0 votes and 0.00%," it was informed. Thus, the credit institution fully withdrew from MegaFon's capital.

Start of work of the joint venture Rostelecom and Megafon

On February 28, 2019, the Russian provider of digital services and solutions PJSC Rostelecom informed TAdviser about the start of joint activities with PJSC Megafon to develop fifth-generation mobile communications (5G) based on the joint venture New Digital Solutions LLC (formerly Digital for Business). As specified in Rostelecom, the partnership participants will own the joint venture in equal shares. And the company will be headed by a member of the board of directors of Rostelecom Vadim Semenov. Read more here.

The volume of bonds placed amounted to 20 billion rubles

On January 28, 2019, Megafon announced that the volume of bonds placed amounted to 20 billion rubles. The face value of one paper is 1000 rubles, the placement price is 100% of the face value. The term of circulation is 3 years, offers are not provided. According to the results of bookbuilding, the coupon rate was fixed at 8.55% per annum. The coupon will be paid on a semi-annual basis.

The bonds are placed under the Exchange-Traded Bonds Program. The funds received from the placement will be used to finance the Company's general corporate purposes.

The issue was organized by Bank GPB (JSC), Otkritie FC Bank, Credit Bank of Moscow, Raiffeisen Bank, SberCIB. Placement agent - Bank GPB (JSC). It is expected that the technical placement of securities will be held on February 4, 2019.

MegaFon sold half of Kometrika to Outpost Holding

In mid-January 2018, the Russian mobile and fixed-line operator MegaFon sold a 50 percent stake in Cometrica to Anton Cherepennikov's Outpost holding. The financial component of the agreement has not been disclosed. Read more here.

Collaboration with GIT

On January 15, 2019, it became known that the Multidisciplinary Holding in the field of housing and communal services "City Innovative Technologies" ("GIT"), the All-Russian operator of digital capabilities "MegaFon" and its subsidiaries "Cometrika" and Netbynet agreed to work together on technological projects in the field of housing and communal services at the federal level. The agreement was signed by GIT founder Grant Agasyan, MegaFon board member Anna Serebryanikova, NETBYNET CEO Andrei Batanov and Cometric CEO Dmitry Petrov.

The main areas of cooperation will be joint investments in the most important technological projects of the country, the acquisition of telecommunications and housing and communal services assets, the use of modern technologies in the field of housing services, improving the quality of service in the housing and communal services industry in Russia, and the formation of new standards. In addition, the companies agreed to work together to implement the Digital Management Company solution, conduct joint research and implement pilot projects in the field of automation of residential real estate management processes.

We are glad that we have a strategic partner who has the same serious plans for the development of the housing and communal services industry as we do, and has the necessary technological competencies. We are confident that we will jointly be able to change the housing and communal services market by ensuring that Russian housing will become one of the most modern and technological in the world. Our plans include a joint arrival in various regions of the Russian Federation, joint investments and active work. We are confident that in 2019 our cooperation will bring concrete results and will cover tens of millions of meters of housing stock throughout the country.

Housing and communal services are the area that especially needs digital transformations. We are actively working in this direction. For example, in the Novgorod region, the Digital Management Company solution is already working in pilot mode. Together with our partners, we will be able to implement solutions that will make it easier for tenants to interact with utilities across the country. To make this a reality, we apply our own developments and leverage the expertise of our partners on big data and the Internet of Things].

2018

Mandatory offer from MegaFon Finance to acquire equity securities

On December 27, 2018, MegaFon"" announced that after prior notification, the Bank of Russia Company received a mandatory offer from LLC "" on the MegaFon Finance acquisition of equity securities (ordinary registered non-documentary shares) "" in the MegaFon amount of 131 212 843 units. More. here

Appointment of Gevork Vermishyan to the post of CEO of MegaFon

On November 13, 2018, as part of an extraordinary meeting of shareholders, MegaFon"" the appointment Gevorka Vermishyana to the post of CEO of the company was approved. As a result, he was contracted for a period of three years. More. here

Establishment of the Big Data Market Participants Association

On October 16, 2018, MegaFon, VK (formerly Mail.ru Group), oneFactor, Tinkoff Bank, Yandex and Sberbank established the Association of Big Data Market Participants. Anna Serebryanikova, operating di⁠rektor of MegaFon, was elected President of the organization. The Board of the Association included representatives of all founding companies. The main goal of the organization is to create conditions for the development of technologies and products in the field of big data in Russia. Read more here.

Receiving a tranche of 21 billion rubles from Alfa-Bank to finance shares

On August 15, 2018, MegaFon, the national Russian operator of digital opportunities, announced that it had received a tranche of 21 billion rubles on August 14, 2018 under an existing loan agreement totaling 25 billion rubles with Alfa-Bank.

A loan at a fixed interest rate was received for three years. The Company plans to fund the issued and placed ordinary shares and GDRs of MegaFon Investments (Cyprus) Limited, a 100% subsidiary of the Company, on the terms and conditions set out in the program, which in turn was announced on July 16, 2018.

Decision to leave the London Exchange

MegaFon, an all-Russian operator of digital opportunities, announced on July 16, 2018 that the operator's Board of Directors at a meeting on July 15 determined that maintaining the status of a public company was not a priority strategic task of the company, and decided to approve the program for the acquisition of ordinary shares and global depositary receipts (GDRs), as well as the cancellation of the listing of GDRs on the London Stock Exchange (LSE).

The program for the acquisition of ordinary shares and GDRs will be carried out by MegaFon Investments (Cyprus) Limited (MICL), a wholly owned subsidiary of the company, in the form of a cash purchase up to 128 950 036 issued and outstanding ordinary shares and GDRs comprising 20.8% of all issued and outstanding shares of the company. The purchase price for the securities for which bids have been made will be $9.75 for each ordinary share and for each GDR. The acquisition program begins July 16, 2018, with completion scheduled for August 22. MICL's offer under the acquisition program will be made to all owners of ordinary shares and GDRs, except USM Holdings (HC SEeM) and Gazprombank Group, as well as MICL.

The Company plans to cancel the listing of GDRs on LSE upon completion of the acquisition program. MegaFon may also consider maintaining or terminating the GDR Program upon cancellation of the listing, including but not limited to the number of GDRs remaining in circulation after the Acquisition Program. At the same time, there is no guarantee that the GDR program will be preserved. Due to the complexity and possible high costs of delisting ordinary shares on the Moscow Exchange, the Board of Directors has not yet decided on such delisting. MegaFon will consider the possible delisting of ordinary shares on the Moscow Exchange after the completion of the acquisition program.

The acquisition program announced by MegaFon provides securities owners with the opportunity to enter at a premium to current market prices before the delisting of the GDRs, the possible termination of the GDR program, the possible reduction of the listing of ordinary shares from the current First level to the Third level on the Moscow Exchange and the possible delisting of ordinary shares in the future.

The delisting proposal is dictated by the large-scale strategic changes that we need to make in order to complete the transformation of MegaFon from a telecommunications operator to a leader in the digital market in Russia. In the transformation strategy we announced in May 2017, it becomes clear that the ambitious scale and nature of the next steps that may be required to achieve this goal could pose significant additional risk to our minority shareholders. Our changes may have a negative impact on our OIBDA, revenue growth and debt levels in the medium term and require additional funds to implement our strategy and revise our previous dividend policy. In view of these factors and the continuing unstable situation in the stock markets, the Board, taking into account the current situation, concluded that it would be right to offer our minority shareholders the opportunity to come out at a premium to the current market value of our shares and GDR, "said Gevork Vermishyan, Executive Director of MegaFon .

Anton Pirogov - Director of the Capital Branch

On June 21, 2018, MegaFon announced the appointment of Anton Pirogov as Operating Director of the Capital Branch. In this post, he replaced Alexei Semenov, who decided to leave the company. Read more here.

Formation of MF Technologies JV

On May 8, 2018, MegaFon announced the creation of a joint venture of MF Technologies JSC (ITF) with Gazprombank, Rostec and USM Holdings (HC SEeM) to develop digital services and implement projects in the digital economy. Under the terms of the transaction, MegaFon will contribute to the joint company 11,500,100 shares of VK (formerly Mail.ru Group) class A (which is 5.23% of the economic and 58.87% of the voting share in the Internet holding). Read more here.

2017

Mobile subscribers

Purchase of 12.5% stake in the authorized capital of Outpost

On December 27, 2017, MegaFon announced the closure of the transaction to acquire a 12.5% stake in the authorized capital of Outpost LLC from the only member of the company - the general director of the IT holding Anton Cherepennikov. The transaction amount amounted to $3.125 million and was paid in rubles on December 26, 2017. Read more here.

MegaFon and Rostelecom will jointly develop 5G networks

Telecommunications companies MegaFon and Rostelecom in November 2017 signed an agreement on cooperation in the development of 5G networks. According to the calculation of companies, this will reduce the cost of building such networks. Within the framework of cooperation, MegaFon and Rostelecom intend to develop optimal scenarios for the introduction of fifth-generation networks based on international experience, taking into account the peculiarities of the Russian mobile communication market. Read more here.

On the sale of MegaFon shares to Telia Company

Telia has agreed to sell its 19% stake in MegaFon to Gazprombank. According to a statement^[14], this transaction is in line with a strategy aimed at focusing business in the Nordic and Baltic countries.

Earlier, the company has already sold 6.2% in MegaFon for about 22.5 billion rubles. The amount of the new transaction with Gazprombank amounted to 60.4 billion rubles, or 514 rubles per share.

Despite the fact that the bank has been sanctioned by the United States and the European Union, the deal does not involve financing the bank and does not fall under restrictions.

On October 31, 2017, MegaFon PJSC commented on a press release from Telia Company, which announced its agreement to sell a 19% stake in the operator Gazprombank. The company's management expresses its deep gratitude to Telia Company, which was at the origins of MegaFon's creation, for its many years of fruitful cooperation and huge contribution to the development of MegaFon.

MegaFon and Veon split Euroset

On July 12, 2017, MegaFon PJSC and Veon announced the termination of joint activities within the framework of Euroset's business. Based on the agreement reached between the parties, MegaFon will acquire a 50% stake in Euroset from VimpelCom and bring its ownership to 100%. At the same time, Euroset will remain on the market as an operating company. PJSC VimpelCom, in turn, will acquire half of Euroset's retail stores.

Key elements of the new strategy

On May 25, 2017, MegaFon announced a new development strategy until 2020. The operator's focus will be on "Big Data" and the Internet of Things.

MegaFon has set itself the goal of evolving and adapting to the new digital world. One of the areas of development is "big data," thanks to which the company hopes to better understand the wishes of each specific client in order to offer him the necessary services.

We aggregate open information about customer values, needs and behaviors from a variety of sources. By analyzing this data, we create the best products for new and existing customers, the company said.

MegaFon also intends to pay attention to projects in the field of information and communication technologies and the Internet of Things, in particular. As part of the development of the ecosystem of partnerships, the operator will offer corporate clients comprehensive industry solutions, including the service of a fiscal data operator, a system for monitoring transport and industrial facilities, smart meters for housing and communal services, etc.

MegaFon is going to develop integration services in the field of communications  for the state and business, providing them in batches.

For example, when a customer contacts us about a partnership, we do not discuss a minute or megabytes, because  customers order turnkey services. This includes a monitoring system, dash boards and other reports. Such a project  is one of the examples of participation in the Digital Economy program, "a MegaFon representative explained to RBC[15]

The company plans to focus on the so-called digital customers, by which the operator understands subscribers who consume a large amount of mobile Internet traffic every month, use mobile applications, communicate  in instant messengers, and also use the phone to pay for goods. By May 2017, such customers make up a third of MegaFon's subscriber base.

Biggest glitch in history

On May 19, 2017, Megafon experienced the largest glitch in its history (more), which left subscribers throughout Russia and beyond without communication throughout the day.

2016

Purchase of controlling interest in Mail.ru Group

On December 23, 2016, MegaFon announced the decision of the Board of Directors to convene a meeting of shareholders to approve the purchase of 11.5 million Class A shares and 21.9 million ordinary shares in the capital of VK (formerly Mail.ru Group) Limited, currently owned by USM Group companies and representing approximately 63.8% of the voting shares of Mail.Ru Group.

Under the terms of the agreement, MegaFon will acquire 11.5 million Class A shares and 21.9 million ordinary shares in the capital of Mail.Ru Group, representing approximately 63.8% of the voting shares of Mail.Ru Group, from New Media and Technology Investment LP, New Media Technologies Capital Partners Limited and Ardoe Finance Limited, members of the USM group, for an agreed cash consideration of $640 million. The United States of America due at the time of closing of the transaction, as well as the payment of a deferred payment of $100 million. The US a year after the deal closed. For more details, see VK (formerly Mail.ru Group).

Partnership with Mail.ru

On November 16, 2016, MegaFon confirmed the fact of negotiations with Mail.ru Group Limited on possible cooperation in the field of joint development of products and services for mobile subscribers and Internet users in the markets of the companies' presence.

According to the published statement, companies see in technologies and trends formed in the market as opportunities for more active cooperation between telecom operators and Internet companies. Mail.Ru Group and MegaFon consider themselves natural partners for such a partnership and discuss various commercial projects aimed at achieving the strategic and economic goals of both companies.

Confirming the general intentions and ongoing negotiations with the shareholders of Mail.Ru Group, MegaFon made it clear in its statement to the press - as of November 16, 2016, there is no clarity on whether MegaFon will be a shareholder of the company Mail.ru. The agreement, whether it is reached or not, regardless of the acquisition of a stake in Mail.Ru Group, will not affect the style of relations and the work of the companies - the partners will continue to act as independent companies in the market. The management teams of the companies will adhere to the established corporate culture and corporate governance, ensuring the development, development of products and cooperation in strategically and economically mutually beneficial projects.

Purchase of the Moscow operator "Combell"

In October 2016, MegaFon's petition to buy a 100% stake in the Moscow operator Combell was approved by the Federal Antimonopoly Service (FAS). Later, the Board of Directors of Megafon approved the acquisition of Combel. As a result, 60% of its share will be acquired from the telecommunications operator Mastertel, 20% each from Mikhail Belov and Vitaly Yezopov.

Sergey Soldatenkov - again the general director of MegaFon

On April 27, 2016, MegaFon announced the appointment of Sergei Soldatenkov to the post of CEO of the company. He will succeed Ivan Tavrin, who decided to resign "to focus on the development of current and new business projects, as well as serving on the boards of USM Holdings, of which he is a shareholder, and its member companies," the operator said in a statement.

2015

MegaFon has concluded government contracts with law enforcement agencies in the amount of more than 500 million rubles

On March 18, 2015, MegaFon announced the victory in tenders for the provision of mobile and fixed-line services to departments related to state security and defense. The total amount of contracts is more than 500 million rubles.

"The department for work with federal state clients" "MegaFon has a high qualification and many years of experience in working with law enforcement agencies," of the Russian Federation said the Sergey Bulancha director for work with state clients of the company. " "We MegaFon have established ourselves as a reliable partner in the Russia public sector communications market and pay a lot of attention to expanding our offer, including through reliable confidential communication channels, which are much needed in the work of law enforcement agencies."

In 2012, MegaFon was registered in the Federal Register of Bona fide Suppliers, prepared by experts from the International Center for Investment Consulting. This fact confirms the compliance of the operator's mobile services with international quality standards.

Purchase of Gars Telecom

On September 18, 2015, it was announced that the acquisition of B2B operator Gars Telecom by MegaFon was closed. The financial side of the agreement is not disclosed.

As reported Interfax with reference to the statement "," MegaFon the company bought 100% of the Cypriot Gars Holding, which owns Gars Telecom, which includes Gars Telecom LLC - Telecom Management, Voip Corporation LLC, GarsTelecom LLC and Retail Gars Telecom North-West LLC.

Through the announced acquisition, MegaFon intends to strengthen its position in the fixed-line segment in Moscow business centers and increase its share in the corporate communications market. Gars Telecom works with such large clients as Alfa-Bank, Binbank, Russian Railways, Epson, ExonMobile, Panasonic, etc., according to the operator's official website.

Gars Telecom has been cooperating with MegaFon since 2003, leasing infrastructure from it to work according to the model of a virtual operator (MVNO, Mobile Virtual Network Operator). Gars Telecom has a similar agreement with VimpelCom.

In addition to traditional telecommunications services, Gars Telecom is engaged in TelekomConsulting, outsourcing communication services and telecom infrastructure, as well as telecom budget management.^[16]

A loan of $600 million in a Chinese bank

On December 4, 2015, MegaFon announced the signing of two loan agreements with the China Development Bank (CDB) for a total amount of $600 million.

As part of the optimization of the debt portfolio, MegaFon will receive a loan of $300 million from CDB with repayment in 2021, which will be aimed at refinancing the operator's current debt. The second loan agreement for a period of eight years (2015-2023) will allow To MegaFon"" to purchase telecommunications equipment Huawei for $300 million for the construction of 4G and 3G networks, as well as for the modernization of existing infrastructure. Interest rates on these loans were not disclosed.

"The company considers the signing of the agreement for refinancing purposes an important step in the development of relations with CDB, since for the first time this financial institution provides the company with funds not only to finance the purchase of equipment. This significantly expands MegaFon's access to  sources of debt refinancing, "the operator said in a statement^[17]

The fact that CDB will open a $600 million credit line to MegaFon was announced by the companies in early September 2015. A framework agreement between the two was signed during the president's then-visit to Russia Vladimir Putin China.

Cooperation between CDB and MegaFon began in 2005. By the beginning of December 2015, the total volume of agreements between the companies exceeded $2.4 billion, and the operator is available on two credit lines more than $500 million for the purchase of Huawei equipment, notes. Kommersant^[18]

2014

Ericsson Equipment & Software Contract for 7 Years

In August 2014, Megafon and the Swedish company Ericsson announced a strategic agreement for the development and modernization of telecommunications infrastructure for a period of seven years.

As part of the agreement, Ericsson will be able to supply the equipment and software of the 2G/3G/4G radio network and the backbone network in order to develop and modernize the Megafon network, including the possible replacement of equipment from other suppliers in any region of Russia.

At the first stage, joint work is planned to modernize the equipment of the reference network in the North-West branch of Megafon.

In the context of fierce competition in the telecommunications market, the quality of customer service is becoming a key factor in maintaining technological leadership. The agreement between Ericsson and Megafon provides for the delivery of a full line of solutions and services that will allow the operator to implement new products as soon as possible and provide the highest level of service by increasing the capacity and coverage of the network, the press service noted.

"Thanks to this contract, we are opening a new stage in the cooperation of the two companies. Choosing such a reliable partner as Ericsson will allow us to offer subscribers the most modern technological solutions. I express my gratitude to the management and the entire Ericsson team for the work done and readiness to meet the partner halfway, "commented Evgeny Chermashentsev, director of infrastructure at Megafon^[19]

.

"The agreement with Megafon takes our cooperation to a fundamentally new level. Our portfolio and global knowledge of the market allows us to be confident that we can solve problems of any complexity and scale in the shortest possible time and with maximum efficiency. Like Megafon, Ericsson attaches great importance to increasing the availability of high-quality mobile services and intends to support the operator in implementing plans for the development of telecommunications infrastructure, "said Charlotte Sund, head of Ericsson in Northern Europe and Central Asia

.

Controlling interest in OJSC MegaFon transferred from offshore to the possession of Russian LLC AF Telecom Holding

USM Holdings Ltd Alisher Usmanova transferred a controlling stake in MegaFon OJSC from offshore to the possession of the Russian holding company - AF Telecom Holding LLC.

"USM Holdings Ltd announces the completion of the process of reorganizing the holding structure in order to transfer control packages of strategic enterprises to Russian holding companies," USM said. In addition to MegaFon shares, Usmanov transferred a controlling stake in Metalloinvest from offshore to the Russian LLC UeSeM Metalloinvest. "Both enterprises, whose control packages will thus transfer to Russian jurisdiction, are of strategic importance for the Russian economy," the USM said in a statement.

The company explained that the reorganization took place in connection with the course announced by Russian President Vladimir Putin to deoffshorize the Russian economy. In addition, another reason for this is the introduction of provisions in the tax code regarding the taxation of profits of controlled foreign companies. Recall, on December 5, Vladimir Putin instructed the government to prepare a law on "offshore amnesty" by July 15, 2015. He spoke about its meaning on December 4 in a message to the Federal Assembly, where he proposed "turning the offshore page in the history of the country."

Ivan Tavrin transferred 2.5% of MegaFon shares to USM

MegaFon CEO Ivan Tavrin transferred to USM a 2.5% stake in MegaFon, previously acquired at a public offering price of $20 per share, as part of a refund for his acquired stake in USM. The terms of the completed transaction also provide for the transfer of the option to acquire an additional 2.5% in the authorized capital of the Company, which was received by Mr. Tavrin as part of the CEO's long-term incentive program approved by the Company's Board of Directors on November 30, 2012.

As a result, USM's share in the Company's share capital increased from 53.82% to 56.32%. This transaction, as well as the previous repurchase of USM shares from Alisher Usmanov, as previously reported by the Company, is aimed at motivating and retaining USM top management and corresponds to statements made during the public offering of MegaFon shares.

2013: The most expensive mobile operator in Russia by capitalization

On May 15, 2013, the market capitalization of "" for MegaFon the first time in history exceeded the indicators of Russian mobile operators and amounted to more than 20 billion dollars (according to Bloomberg).

2012

Management

The top management of the company at the beginning of 2012 included:

• Sergey Vladimirovich Soldatenkov - General Director
• Mikhail Andreevich Dubin - First Deputy General Director for Strategic Development
• Valery Viktorovich Ermakov - First Deputy General Director for Operations
• Vermishyan Gevork Harutyunovich - Deputy General Director for Financial Affairs
• Ostrovsky Eduard Georgievich - Deputy Director General for Implementation of Special Programs and Interaction state with Bodies
• Tigran Karlenovich Poghosyan - Deputy Director General for Strategic Projects
• Konstantin Solodukhin - Deputy General Director for Development of Federal Corporate Sales and Operator Business
• Larisa Sergeevna Tkachuk - Deputy General Director for Commerce
• Anna Andreevna Goryainova - Legal Director, Corporate Secretary
• Zheimo Yuri Antonovich - Director of Internal Audit
• Dmitry Leonovich Kononov - Director of Business Development in the field of mergers and acquisitions
• Lidov Petr Alekseevich - Director of Public Relations
• Irina Borisovna Likhova - HR Director
• Olga Andreevna Narvskaya - Director of Strategy
• Nikolaenko Oleg Veniaminovich - Director for Intersectoral Projects
• Denis Vladimirovich Nochevnov - Director for New Technologies and Services
• Igor Borisovich Parfenov - Technical Director
• Liubov Nikolaevna Strelkina - chief accountant
• Khrenov Sergey Nikolaevich - Head of the Department for Income Guarantee and Frode Management
• Konstantin Vladlenovich Yunov - Information Technology Director

Change of CEO: Soldatenkova replaces Tavrin

On April 20, 2012, it became known that an extraordinary meeting of Megafon shareholders decided to early terminate the contract with the company's general director Sergei Soldatenkov from April 20, 2012. The new head of the company was the deputy general director Ivan Tavrin. At the same time, the board of directors of Megafon recommended the candidacy of Soldatenkov for joining the board.

Soldatenkov's contract expired in the summer. Previously, he said that he did not intend to extend it. Many market participants assume that the head of Megafon will move to the Ministry of Communications after the formation of a new government in May. Soldatenkov himself assured that he was not going to work in the civil service, but his early departure could serve as an additional confirmation of such rumors.

The change in the leadership of Megafon coincided with the emergence of information about the possible sale of Alfa Group of its share in the operator. The fact that Usmanov's partner has become the new general director of Megafon can be seen as another confirmation of Alpha's^[20] of^[20].

MegaFon shareholders have formed a new ownership structure

The structure of the company's ownership at the beginning of 2012:

• Telia Company (formerly TeliaSonera) - 43.8%, including 35.6% directly and 8.2% through Telecominvest.
• AF Telecom Holding - 31.1%, including 8% directly and 23.1% through Telecominvest.
• Altimo - 25,1%.

On April 24, 2012, Alisher Usmanov bought its stake in Telecominvest from TeliaSonera and with it received an 8.2% stake in MegaFon. In addition, AF Telecom Holding acquired 10.7% from Altimo (Alfa Group holding). As a result, Usmanov became the owner of 50% plus the 1st share of MegaFon, of which 31.3% controls through Telecominvest, and 18.7% through AF Telecom Holding.

In May 2012, it became known that Telekominvest OJSC, which previously owned 31.3% of MegaFon OJSC shares in the interests of Alisher Usmanov and TeliaSonera, left the operator's shareholders, follows from the list of MegaFon affiliates as of April 26, 2012.

At the same time, Telecominvest Holdings Ltd, registered in Cyprus, appeared in the list, which, according to MegaFon's materials, owns 48.5% of the operator. Which company Alisher Usmanov transferred another 1.5% to is not indicated.

After the deal with Usmanov to sell 8.2% of MegaFon (as part of Telecominvest), TeliaSonera remained in direct ownership of a 35.6% stake. The list of the operator's affiliates indicates that the structure of the Scandinavian company - the Dutch Sonera Holding B.V. - as of April 26 received 34.1% of MegaFon's shares (owned 26% before the change). Which company has another 1.5% due to TeliaSonera on its balance sheet is also not listed.

Megafon Investments Ltd. subsidiary appeared in the list of affiliates with a 14.4% stake in MegaFon. Megafon Investments bought this stake from Altimo on April 24, simultaneously with Usmanov's deal to buy the mobile operator's shares from Altimo and TeliaSonera.

As a result of these transactions, Altimo fully withdrew from MegaFon's capital in April 2012, reflecting changes in the operator's affiliates.

Alisher Usmanov, who became MegaFon's controlling shareholder after all the transactions, said that simplifying the ownership structure would contribute to the development of the operator. One of the tasks facing MegaFon in the near future is to enter the IPO, the businessman said. Analysts noted that straightening the ownership structure will increase MegaFon's investment attractiveness.

MegaFon is preparing an IPO on the London Stock Exchange. The total volume of placement will be about 20% of the authorized capital of the operator. TeliaSonera is ready to sell 10.6% of MegaFon's shares during the placement, subject to a 25% stake plus a 1st share, another 9.4% of the shares will be offered to investors by MegaFon's subsidiary Megafon Investments. The remainder of the shares on Megafon Investments' balance sheet can be redeemed. The issue of reducing the authorized capital by repayment of securities was submitted to the shareholders on June 4, 2012.

IPO: London Stock Exchange offering

On November 28, 2012, Megaphone"" (at that moment the second largest cellular operator) Russia placed shares at the lower end of the previously defined price range - IPO $20 per GDR, thus, the volume of attraction will be $1.7 billion, the company officially announced on Wednesday. Conditional trading in the company's securities begins today in, London as well as in Russia. When listing, the capitalization of Megafon will be $11.1 billion. TeliaSonera (its package will decrease to 25.1%) and Megafon's subsidiary will receive funds from the placement. Alisher Usmanov does not lose control after the IPO. Free float "Megafon" will be 15.2%.

Trading in Megafon shares on the London Stock Exchange (LSE) began on November 28, 2012 at $19.75 per share, 1.25% lower than the offering price. During the auction, the price continued to decline, reaching $19.45 (minus 2.75% of the placement price), but then this fall was partially recouped: the closing price was $19.6 (minus 2%). Other operators of the Big Three, whose receipts are traded in America, also fell in price on this day: MTS - by 2.09%, Vimpelcom - by 1.19% (at 21.30 Moscow time).

The volume of trading in Megafon's securities on the LSE amounted to $785.5 million - about 47% of the placement volume, on the Moscow Exchange - less than 4 million rubles. Demand was active, the shares differed among a wide range of investors, says the operator's representative Elena Alexandrova. Large global funds behaved most actively, says Gergey Tikhanovskaya, co-head of Morgan Stanley Russia, which served as a global coordinator and placement bookrunner. According to him, approximately 30% of demand was provided by investors from the United States. There were investors from America and Europe, not only focused on Russia, but also diversified funds of developing countries, says the manager of a large European fund. According to his colleague, Swedish funds showed great interest in the placement.

Megafon buyers explain their decision by the fact that they expect a good dividend yield and consider the operator the leader of the Russian market, says Igor Mikhailov, manager of Uralsib Management Company; he bought Megafon securities for about $5 million. And the portfolio manager of Renaissance Asset Management Dmitry Mikhailov, who bought securities worth "several million dollars," likes the quality of Megafon's coverage and its leadership in data transmission.

The fall in quotations after the IPO was all the more unexpected because, as all brokers said, the company was valued at a large discount and there were few speculators among investors, managers complain. Tikhanovskaya from Morgan Stanley calls the start of trading in Megafon securities expected and urges not to rush to estimates. Shareholders and managers of the operator believe in the growth of its shares, he points out: Telecominvest did not sell a single share during the IPO, the operator's general director Ivan Tavrin and TeliaSonera president Lars Nyberg even invested personal funds in the purchase of shares. Tavrin decided to exercise his option to buy 1.25% of Megafon from Megafon Investments (a 100% subsidiary of the operator) at the placement price, a company representative said. The package will cost him $155^[21].

In 2012, MegaFon was the first major Russian mobile operator to provide its customers with access to fourth generation 4G mobile services.

2011: $1bn loan from Chinese to buy Huawei equipment

In June 2011, Megafon entered into an agreement with China Development Bank to receive two credit lines totaling $1 billion for the purchase of equipment 4G Huawei^[22]. Megafon's debt burden is the lowest among the Big Three operators.

In 2011, it was decided to create a subsidiary of MegaLabs, which occupies a unique position in the field of digital services and content. At the end of 2012, MegaLabs launched more than 30 projects in the field of electronic payments, digital television, mobile applications and UMS.

In 2011, MegaFon"" radically reduced the cost of calls, SMS messages and mobile Internet roaming in countries. Europe According to the results of the first winter vacation season, the number of subscribers who used the services roaming increased 1.5 times.

2010

Purchase of "Synterra"

On June 3, 2010, it became known that Megafon signed an agreement on the purchase of 100% of the main operator Sinterra for $745 million, taking into account the debt of Sinterra (about $350 million). Megafon plans to pay in several tranches. At the request of Megafon, Sinterra suspended the placement of exchange-traded bonds for 5 billion rubles, scheduled for June 3, 2010.

With the help of Synterra trunk channels (75,000 km), Megafon will increase the quality of services in third-generation (3G) networks and increase the data transfer rate. Until recently, Megafon was inferior to its main competitors in terms of the length of main channels (22,300 km): after the acquisition of Golden Telecom in February 2008, the VimpelCom network increased to 70,000 km, and MTS, taking into account Comstar-OTS, increased to 35,000 km.

In addition, with the purchase of Sinterra from Megafon, it becomes possible to offer converged services to customers in order to strengthen their position among corporate clients, Soldatenkov adds. Sinterra controls Peterstar, which serves a significant share of corporations in the Northwest region.

Launch of the first network in Russia in the UMTS standard

In 2010, the licensed portfolio of Megafon and its branches, both in the GSM 900/1800 communication standard and the third generation of IMT-2000/UMTS, covers the entire territory of Russia with a population of 142 million people. Also, the subsidiary of the company - CJSC "TT-Mobile" provides cellular services in Tajikistan.

MegaFon became the first and so far the only operator to deploy its own network in all regions of Russia. The company was also the first in Russia to put into commercial operation the third generation network in the UMTS standard.

Launch of Siberia's largest converged network 2G/3G

On December 8, 2010, Alcatel-Lucent and OJSC MegaFon announced the launch of the largest converged 2G/3G network in Siberia. The deployment of this network based on the Alcatel-Lucent solution for converged radio access networks (RAN) will provide advanced mobile services to more than 2.5 million residents of the Altai Territory in the Siberian Federal District.

Within the framework of this project, Alcatel-Lucent's solution for converged RAN networks is deployed, which is capable of integrating 2G/3G and 4G technologies, as well as various mobile frequencies within a single scalable network. This solution will allow MegaFon to expand the capacity of its network, increase the coverage area, as well as increase the flexibility, speed and quality of services while reducing current costs. In addition, the implementation of Alcatel-Lucent's Converged Radio Access Network (RAN) solution reduces hydrocarbon emissions to the atmosphere through more efficient energy consumption.

The solution used includes distributed base stations and "macro" base stations that support GSM/EDGE and W-CDMA/HSPA + technologies and guarantee wide coverage areas and high service reliability. In addition, Alcatel-Lucent will allow you to make a smooth transition to LTE technology in the future.

"Our project can rightfully be called unique for the entire telecommunications industry in Russia. In just a few months, we and our partners not only installed new equipment, but also immediately launched a network with HSPA + support in a large area. This will allow both existing MegaFon subscribers and our new customers to use the most modern services of 3,75G networks - to go online at high speeds, make video calls, talk for free on the'intercity' through the MultiFon Internet telephony program and use other services previously unavailable in the GSM standard "- commented Alexey Tyutin, director of the Siberian branch of MegaFon OJSC.

"Alcatel-Lucent wireless solutions are currently used in 350 commercial networks of various standards. Based on our experience in network transformation, we, together with MegaFon specialists, quickly integrated our solution into MegaFon's existing network and prepared a new infrastructure for the implementation of commercial services. We are proud of our participation in the launch of a new Russian commercial converged network and partnership with OJSC MegaFon, one of the most dynamic companies in the Russian telecommunications industry, - said Alexander Tikhonov, Vice President of Alcatel-Lucent in Russia and the CIS countries - We are ready to assist and support OJSC MegaFon in the subsequent stages of this project development. "

2009: Reorganization in the form of accession of regional companies

On July 1, 2009, the company completed the reorganization in the form of the merger of subsidiaries - regional operating companies.

In 2009, MegaFon became the General Partner of the 2014 Olympic and Paralympic Games.

In 2009, MegaFon offered devices under its own brand before other telecom operators: photo frames and MMS cameras. At the same time, MegaFon was the first and only (for 2013) to offer customers the MultiFon service.

2007: Launch of the first 3G network in Russia

In 2007, MegaFon was the first among Russian mobile operators to launch a new generation of 3G networks. In 2013, more than 75% of the Russian population has 3G-based services available.

2006: Launch of ruble tariffs

In 2006, MegaFon offered subscribers ruble tariffs throughout Russia.

2005

Russia's first EDGE network

In 2005, MegaFon's customers were the first in Russia to gain access to EDGE-based services. The roaming territory from MegaFon on the basis of GPRS and EDGE covered already 50 countries of the world on four continents.

Football Championship among pupils of orphanages

In the same year, MegaFon for the first time held the Russian Open Football Championship among pupils of orphanages and boarding schools "The future depends on you." This is the only tournament in Russia for children in the care of the state. In 2013, the RFU, the ROC, the Ministry of Sports of the Russian Federation and the Football for Children Charitable Foundation joined the organizers.

2004: Petersburg is the first city in Europe with MMS service

In 2004, St. Petersburg became the first city in Europe to launch a multimedia messaging service (MMS). In the same year, the launch of the Mobile Television service took place.

2002: The first tariffs in Russia with free incoming calls

In 2002, MegaFon customers - the first in Russia - received tariffs with free incoming calls.

1999: WAP and Cellular Metro Launch

In 1999, MegaFon was the first to offer its customers Internet access using WAP technology. In the same year, thanks to MegaFon, for the first time in Russia, cellular communications became available in the metro.

1997: Expansion in Northwest Regions

In 1997, the company began expansion into the regions of the northwestern part of Russia. By the end of 2000, the subscriber base of North-West GSM numbered more than 250 thousand people, and by the end of 2002 it reached 2.8 million people.

1995: Launch of GSM network in St. Petersburg

In 1995, the GSM network was put into commercial operation in St. Petersburg. In the first 12 months of operation, the company connected 8 thousand subscribers.

The Megaphone case

1993: Vladimir Putin signs North-West GSM registration certificate

On June 17, 1993, the Chairman of the Committee on External Relations of the City Hall St. Petersburg Vladimir Putin signed the Certificate state of Registration of North-West GSM CJSC.

Notes