MGTS Moscow City Telephone Network

Moscow City Telephone Network OJSC is one of the largest local wire communication companies in Europe. MGTS is part of the telecommunications business direction of AFK Sistema and is part of the Komstar-OTS group of companies. The operator serves more than 4.3 million subscribers, including 3.6 million - individuals.

Assets

There are 527 telephone exchanges on the MGTS network. The company's payphone network today has about 7 thousand devices. The share of the main telephones of MGTS in the Moscow fixed-line market is 77.2%, the share in the market of private users is 97.8%. Tariffs for the main service - local telephone connections - are regulated by the state.

Since 2004, MGTS has been carrying out a large-scale reconstruction of the network, which will be completed in 2012. The company's network will be completely digital. Now the digitalization of the MGTS network is about 50%, and by the end of 2007 it will reach, according to forecasts, 54%. Every year, the company puts into operation more than 500 thousand rooms, most of which are used to replace obsolete equipment.

Board of Directors

Main article: MGTS Board of Directors

Composition of June 2018

Dmitriev Kirill Alexandrovich - Chairman of the Board of Directors, Vice President of Sales and Services of MTS PJSC.

The Board of Directors on June 22, 2018 also included:

• Ershov Andrei Viktorovich - Advisor to the President of MTS
• Kamensky Andrei Mikhailovich - Vice President of Finance, Investments, Mergers and Acquisitions of MTS
• Kornya Alexey Valerievich - President of MTS
• Nikolaev Vyacheslav Konstantinovich - Vice President of MTS Marketing
• Sergey Plotnikov - Director of the MTS Business Market Department
• Ushatsky Andrey Eduardovich - Vice President of MTS Technology and IT
• Khrenkov Vladimir Vladimirovich - Director of the MTS Innovation Center
• Shorzhin Valery Viktorovich - Vice President of Procurement and Administrative Affairs of MTS

CIO's

• Baklykov Andrey - since January 2010, IT Director of MGTS.
• Lebedev Vladimir - since June 2009, Deputy General Director, Technical Director of MGTS.
• Medvedev Dmitry - head of the joint directorate of information and reference services MGTS, develops services 09 and 009. "Medvedev is now engaged in one of the company's strategic projects," said a CNews source at MGTS. - Pooling of resources of help-desk, single contact center, technical support, central repair office, etc. More than 10 services should become unified, which are now located on different Moscow sites. " Until December 2009, Dmitry Medvedev served as IT Director of MGTS.

Performance indicators

Main article: MGTS financial indicators

2020: Revenue growth to 41.16 billion rubles, profit - 12.95 billion rubles

MGTS finished 2020 with revenue in the amount of 41.16 billion rubles received following the results of work in this 12-month period. In 2019, the indicator was measured at 39.73 billion rubles.

In the direction of B2C services, the revenues of the telecommunications operator have practically not changed and amounted to about 19.49 billion rubles in 2020. Most of this amount (9.15 billion rubles) came from the sale of fixed telephony services. In 2019, the company's revenue in this market reached 9.87 billion rubles.

Revenues from mobile communication services to individuals in 2020 increased to 2.15 billion rubles from 1.93 billion rubles a year earlier. The provision of broadband services to private users brought the company 6.57 billion rubles, which exceeds the 2019 result of 6.24 billion rubles.

In 2020, MGTS revenue reached 41.16 billion rubles

MGTS revenue from the provision of services to legal entities in 2020 decreased to 3.49 billion rubles from 4.02 billion rubles a year earlier. Sales of fixed telephony services decreased from 1.62 billion to 1.46 billion rubles. In the B2B segment of broadband access on the Internet, a decrease in revenues from 1.11 to 1.03 billion dollars was registered.

In the B2G category (services to budget organizations), MGTS revenues in 2020 decreased to 2.21 billion rubles from 2.5 billion rubles in 2019. Fixed telephony services to such customers added about 1.62 billion rubles to the company's revenue, and 1.7 billion rubles in 2019. The second largest source of income in this segment was video surveillance services, on which the operator earned 248 million rubles in 2020.

MGTS revenue from the provision of services to telecom operators in 2020 reached 5.94 billion rubles, which is significantly more than a year earlier (4.27 billion rubles).

In 2020, MGTS net profit amounted to 12.95 billion rubles against 15.52 billion rubles in profit a year earlier.^[1]

History

2021

Albert Gilmanov - the new general director of MGTS

On August 11, 2021, MGTS announced the appointment of Albert Gilmanov as the new CEO of the company. He replaced Vladislav Medvedev, who led the telecommunications operator since November 2019. More details here.

Start installing sensors on cable protection hatches, investing 1 billion rubles in the project

At the end of May 2021, MGTS began to put wireless sensors on the hatches to protect the cable network. The company intends to extend this technology to 50-75 thousand hatches out of 150 thousand available from the telecom operator.

According to Vedomosti, the representative of the controlling MGTS Mobile Television Systems (MTS) Alexei Merkutov, testing the access control system in its cable sewer proved its effectiveness: it ensured a quick response by the company's security service, thanks to which the number of cable thefts decreased by 42%, and the number of acts of vandalism, accompanied by damaging communication lines, decreased by 27%.

MGTS has begun to equip hatches with sensors for cable protection and will invest 1 billion rubles in this

MGTS did not disclose the costs of this project. A Vedomosti source close to the company says that it took 400 million rubles to create the system alone, and by 2023 the operator can spend more than 1 billion rubles to protect cable sewers. Another source of the publication, close to MTS, says that the scale of the project is planned to be clarified during 2021.

The use of the system will also prevent the illegal laying of cable in the sewers of MGTS, explains Alexey Merkutov. Installed sensors can be used in other areas of the urban economy, for example, to detect open wells or those on which the covers are not completely closed. This will reduce the number of pedestrian injuries and accidents.

Earlier, MTS tested the Digital Water Utility solution in the Samara Region, in which sewage hatches for water supply and drainage of the city were equipped with sensors. If the hatch is damaged or deviated from the fixed position by more than 3 °, the sensor sends an alert to the employee of the organization, after which the team leaves to check the hatch. Sensors installed on hatch covers operate in the frequency range of the NB-IoT standard for the Internet of Things^[2]

2020: MGTS brand will disappear

On January 16, 2020, it became known that MTS had completed the restructuring of the Moscow business in the field of mobile and fixed-line services, as a result of which it began to develop under single management. The MGTS brand will gradually disappear, under which MTS provided wired Internet services.

According to "Kommersant" MTS, on January 15, 2020, an advertising campaign was launched that uses a symbolic image of an egg in the corporate colors of operators - blue (MGTS) and red (MTS), as well as two logos at once - MGTS and MTS Home. Also in the advertisement will be promoted a new promotional package, which includes home Internet, TV and subscription to. online cinema ivi

MTS began to remove the MGTS brand

It will take time for residents of Moscow and the region to get used to the fact that MTS is not only a mobile, but also a fixed operator, so we use the MGTS logo in the transitional advertising campaign, "said Alexei Nazarov, commercial director of the Moscow region of MTS.

He also noted that the operator will offer subscribers the opportunity to pay for fixed and mobile services with a single account, a single personal account and an ID for the My MTS mobile application.

Creating a single brand is a logical step for MTS, said Konstantin Ankilov, general director of TMT Consulting. MGTS has been dealing with a reduction in the number of landline phone users for quite some time, which is happening throughout the country while maintaining demand among the older generation, says TelecomScienceCEO Denis Kuskov. In his opinion, combining brands and personal offices will allow the company to increase subscriber loyalty.

Among the services that can be combined with MTS, in addition to the fixed Internet and TV, there may be video surveillance services, smart intercom phones, etc ., which now offset the costs of MGTS for preserving fixed telephony, Kuskov believes.^[3]

2019

Appointment of Vladislav Medvedev as MGTS Director General

On November 28, 2019, the Moscow City Telephone Network company announced the appointment of Vladislav Medvedev, General Director of MGTS PJSC, from November 29, 2019, who, since October 2019, concurrently held the position of Executive Director of MGTS PJSC, answering for the technical unit of the Moscow region of MTS PJSC. More details here.

Installation of charging stations for electric vehicles in Moscow

At the end of October 2019, it became known that MGTS was starting the installation of charging stations for electric vehicles in Moscow.

As reported in a press release received by TAdviser from MTS (owns MGTS), by November 20, 2019 it is planned to launch 10 electric stations. Seven of them will have a power of 50 kW and charge batteries of electric cars in 20-30 minutes, and the remaining three with a power of 22 kW - in 4-5 hours. The equipment will be located between the TransTeleCom and the Moscow Ring Road.

MGTS begins to install stations for charging electric vehicles in 20 minutes

As explained in the company, MGTS has a wide network of PBXs, in which energy-intensive equipment was located for a long time. After the network upgrade and the transition to GPON technology, the volume of this equipment decreased, and, accordingly, its energy consumption decreased. This allows the ISP to use the supply of energy for the development of new business areas, including the power supply network.

The pilot project takes place in several areas, including the demand for the service, its effectiveness and the possibility of transferring MGTS corporate vehicles to electric.

During the experiment, electric vehicle charging is free for car owners. Once the technical aspects of supporting the ESD network have been worked out, MGTS will decide on the further development of the project.

According to the MGTS forecast, published at the end of October 2019, in 4-5 years the fleet of electric cars in Moscow may amount to about 20 thousand units, more than 1000 high-speed charging stations will be required to charge them.

In the summer of 2019, the mayor Moscow Sergey Sobyanin announced his intention from 2021 to abandon the purchase of buses powered by motor fuel and switch to purchases of domestic electric. transport Then about 300 such cars worked in Moscow, in the future it is planned to purchase 300 cars annually.

Pavel Kuznetsov appointed vice-president of MTS and general director of MGTS concurrently

Since September 16, 2019, Pavel Kuznetsov combines the post of general director of MGTS with his work as vice president - director of the Moscow region of MTS. This decision was made by the MGTS Board of Directors on September 13, 2019. More details here.

The appointment is associated with the functional association of MGTS and MTS in the Moscow telecom market. It is assumed that the solution will create a strong team for the implementation of projects in the field of high technologies and digital services in the Moscow region, which is most important for the MTS Group.

Nikolai Pozhidaev appointed financial director of MGTS

On June 4, 2019, the Moscow City Telephone Network (part of the MTS group) announced the appointment of Nikolai Pozhidaev as financial director, member of the company's Management Board. More details here.

Olga Belousova, who previously headed the MGTS financial unit, continued her career as financial director of the pharmaceutical holding JSC FP Obolenskoye.

2018

23.5% increase in net profit

According to the announced MGTS financial and operational results of 2018, the company's revenue under RAS decreased slightly (minus 0.5%) and amounted to 38.7 billion rubles, which became known on April 4, 2019. Net profit at the same time increased by 23.5% - to 19.6 billion rubles. Net profit margin exceeded 50.7%. The subscriber base for all services increased by 5%, exceeding 5.5 million, which is the third indicator in the Russian fixed market. communications

The share of revenue from services unregulated by the state, including such as broadband, digital TV and other services provided to both private and corporate clients, in the total income structure exceeded 61%. The total revenue from unregulated services amounted to 23.8 billion rubles. In turn, the company's revenues in the consumer market grew by 4%, exceeding 19 billion rubles, and revenues from the provision of digital services grew faster - by 23%, to 8.1 billion rubles.

MGTS demonstrated the highest growth rates in the MVNO market (providing mobile communications according to the virtual model) - revenues from this line of business almost doubled and amounted to 1.437 billion rubles, exceeding revenues from pay TV services. By the end of 2018, the number of MGTS mobile users amounted to more than 480 thousand subscribers, an increase of more than 50%.

At the same time, revenue from broadband Internet services in the mass market, according to the MGTS report, increased by 12%, to 4.9 billion rubles. MGTS maintained a high rate of broadband connections in the stagnating market, increasing the number of Internet subscribers by 11% over the year, which significantly exceeds the growth rate of the market itself. Revenues from the provision of digital TV services reached 1.4 billion rubles. (+ 23%), the subscriber base exceeded 620 thousand customers, an increase of 16.5%.

In the corporate segment, according to the report, MGTS revenue remained at the same level and amounted to 8.2 billion rubles. In the broadband access market for B2B customers, revenue increased by 22%, exceeding 1 billion rubles. The number of BD connections for the year increased by 15.3%

As for the profit from the sales of MGTS, it grew by 22.9% - to 10.1 billion rubles. While the cost of the company decreased by 5.3% to 22.1 billion rubles, and management costs - by 16% - to 4 billion rubles. Other company revenues amounted to 12.5 billion rubles. (an increase of 17.8%), of which 7.7 billion rubles. received in the form of dividends from subsidiaries.

MGTS commercial director Alexei Nazarov commented on the results of the company in 2018 as follows:

The year 2018 was very rich for MGTS both in terms of transforming various aspects of the company, and in terms of optimizing the organizational structure, changing and improving key business processes. All these changes eventually helped us finish 2018 with financial and operational results exceeding the original forecasts.

Speaking about the growth of indicators at the MGTS MVNO project, Alexey Nazarov said:

We plan to continue to grow, ahead of the market, especially in digital services. We are fully satisfied with the results of the MVNO project and see its positive impact on the results of the company itself and the MTS group as a whole. The launch of MVNO led to the creation of products - converged packages with home Internet at speeds of up to 1 Gb/s, digital TV and mobile communications, which allow customers to save, and companies to increase the average ARPU and significantly reduce user outflows, which is less than 3% of the base of converged users in annual terms.[4]

Free distribution of Internet of Things-enabled routers

In December 2018, it became known about the intentions of MGTS to provide subscribers with routers with Internet of Things support. The operator will spend 1.4 billion rubles on the purchase of equipment.

As the representative of MGTS Tatyana Martyanova told Vedomosti, the company will distribute about 550 thousand routers at the beginning of 2019. Subscribers will be able to get devices free of charge when connecting a tariff that assumes a data rate of 200 Mbps. By December 10, 2018, MGTS has about one third of such customers with a total database of broadband Internet access subscribers of 1.5 million.

MGTS will distribute routers with Internet of Things support to subscribers for free

MGTS will offer routers with support for the ZigBee protocol , which is popular among manufacturers of devices for a smart home. Thanks to the new routers, users will be able to connect various third-party modules to them. Users will be able to buy sensors and set up routers on their own, but perhaps the operator will offer them sensors complete with a setup service, Natalia Bizhanova, director of marketing and product development at MGTS, told the publication.

Meanwhile, VimpelCom notes a weak interest in smart home systems in Russia. The operator himself installed throughout Russia more than 100 thousand devices with support for ZigBee.

In 2017, MegaFon sold about 40 thousand sets of systems for a smart home. Since 2017, Rostelecom has been selling smart home kits, but the operator does not disclose the number of devices sold.

Since the beginning of 2018, MGTS has been providing a smart house for rent. With this solution, users can remotely configure and perform basic housing management actions: automatically turn on and off electrical appliances and lighting, control electricity when the sensors open the door, movement, smoke or leakage of water supply systems. The complex is designed to increase the level of safety and comfort, prevent emergency situations, save energy resources.^[5]

Sales and Service Block Assignments

"Moscow City Telephone Network" - a fixed-line operator in Europe, part of the MTS group - on August 14, 2018 announced appointments in the sales and service unit: Pyotr Lepyokhin was appointed director of the sales department, Ilya Emelin was appointed director of the customer service department.

To fulfill complex and at the same time interesting tasks to strengthen the position of MGTS in the dense and highly competitive market of Moscow and Moscow region, our team needed bright and bold managers. Both our new leaders have these qualities, and I am sure that thanks to their professional skills we will be able to give MGTS the additional commercial impetus necessary for further development, "commented Alexey Nazarov, Director of Sales and Services of MGTS.

Appointments: MGTS General Director - Pavel Kuznetsov, Chairman of the Board of Directors - Kirill Dmitriev

On June 1, 2018, by a decision of the Board of Directors of MGTS PJSC, Pavel Kuznetsov was appointed Director General of the Moscow City Telephone Network Company (part of the MTS Group). The decision on the appointment was made during a meeting of members of the Board of Directors, which took place on May 31, 2018. In this post, he replaced Andrei Ershov. More details here.

Vice President MTS of Sales and Services was appointed Chairman of the Board of Directors of MGTS PJSC. Kirill Dmitriev

2016: MGTS fined 562.5 thousand rubles for various tariffs on infrastructure

For violation of the law on the protection of competition, the MGTS telecom operator must pay a 562.5 thousand rubles fine. Such an amount was appointed by employees of the Federal Antimonopoly Service (FAS) for setting different tariffs for the services of providing seats in line-cable communication facilities for companies financed and not financed from the state budget. This is stated on the website^[6] the department of Moscow MGTS^[7]

As the FAS managed to find out, in some cases the cost of the tariff for budget organizations was 40% higher than the cost of a similar tariff for non-budget ones. And this despite the fact that the cost of such services for both parties includes the same costs.

As Oleg Korneev, deputy head of the Moscow OFAS of Russia, noted, "the law provides for a ban on the establishment by a person in a dominant position of different prices for the same goods."

2015

Purchase of 1.1 million routers

On December 7, 2015, it became known about MGTS plans to acquire more than 1 million routers for connecting to the Internet through the GPON optical network (gigabit passive optical networks - the standard implies laying fiber in each apartment). More details here.

"Computer assistance" to corporate users

On December 8, 2015, the Moscow City Telephone Network announced the launch of the Computer Assistance service for corporate customers.

According to the company's statement, using the MGTS service, small businesses can get modern telecom services, optimize administrative and IT costs.

The list of "Computer Assistance" services includes work on diagnostics, prevention and repair of office equipment and IT equipment, installation and configuration of software (operating systems, antivirus, etc.). Maintenance equipment includes computers, printers and multifunctional and network devices (routers, plotters, Wi-Fi access points) and cable network infrastructure. The service is provided by MGTS employees.

Enterprise customers can use the service as needed or enter into an agreement for regular IT support. Depending on the amount of equipment serviced, the cost of permanent service support is from 1 thousand rubles. up to 4 thousand rubles. per month. The contract includes from one to three preventive visits, during which MGTS specialists will perform network diagnostics (checking the network infrastructure and the correctness of equipment connection), update anti-virus databases and configure the connection of newly installed computers at the subscriber.

The service is provided to the company's active broadband clients. The service is aimed at small and medium-sized businesses in various areas of activity with the number of IT equipment in operation up to 20 units.

Dmitry Kulakovsky, MGTS Marketing and Product Development Director, said:

- In accordance with the Digital Office concept, we offer our corporate customers not only modern telecom services, but also full technical support for equipment and networks. The launch of Computer Assistance was a logical continuation of our strategy to support small businesses through the use of expertise from MGTS IT specialists. At the same time, our customers get a reliable service and the opportunity to save up to 50% of the cost of their own IT staff. We are confident that the new service will be in demand, as it allows you to increase the reliability of IT systems and, as a result, the effectiveness of the entire business.

2014: Implementation of fiber optic links using GPON technology

The technology GPON (Gigabit-capable passive optical network) allows one optical cable spent in the apartment to provide the subscriber with modern digital telephone communication, digital TV, high-speed Internet access at a data rate of up to 1 Gb/s. MGTS in 2011 began the modernization of the communication network Moscow in terms of replacing the outdated copper network infrastructure with a high-quality GPON optical network. In 2014, more than 4.4 million apartments will receive the technical ability to connect to a modern fiber optic network. In 2015, the switching of subscribers from copper to optical lines will be completed. The cost of the entire project of introducing "optics" is about 2 billion. dollars The GPON transport network will also become the basis for the introduction To Moscow of the LTE standard in the fourth generation wireless network. Thus, Moscow will create a unique network infrastructure for high-speed data transmission: in both fixed and wireless networks.

In July 2014, MGTS announced an increase in the number of enterprises in the small and medium-sized business segment that connected the broadband Internet access service by 36% in the first half of 2014. Over the year, the number of users of such MGTS services among small enterprises in Moscow doubled.

The main drivers of the growth of the number of customers in the B2B segment were the increase in the length of the new network infrastructure based on GPON technology, which currently covers more than 70% of Moscow, and the emergence of segmented package offerings for the corporate segment. More than 90% of companies that connected the Internet in the first half of 2014 chose special tariffs for small businesses. Of these, more than 50% of customers chose packages from two or more services - Double and Triple Play.

MGTS offers a wide range of tariffs for companies in the corporate sector, including special offers for small businesses. For example, the Triple Play service package for microenterprises, which includes wired broadband Internet using GPON technology, the basic Digital Television package and unlimited telephony. The package proposal from MGTS will allow entrepreneurs to organize electronic document management, automate work with customers, establish operational interaction between departments and effectively control business processes.

"The use of integrated telecommunications solutions enables small business entrepreneurs and executives to optimize their business processes by receiving a service from one supplier at competitive prices. The growth that MGTS demonstrated in the first half of 2014 confirms the correctness of the chosen strategy for the development of package offers and will allow the company to increase market share in the small and medium-sized business segment to 25% by 2016, "said Dmitry Kulakovsky, Director of Marketing and Product Development of MGTS OJSC.

2012

Komstar-OTS owns a 29% stake in MGTS

As of December 20, 2012, Komstar-United Telesystems owned 29% of the shares in the Moscow City Telephone Network company.

Switch to ten-digit numbers

2012 - the beginning of the industrial introduction of PON technology. Switch to ten-digit numbers

Number of Internet users - 469 thousand customers

The number of Internet users of MGTS increased by 26 percent - to 469 thousand customers in the second quarter of 2012, compared to 373.5 thousand customers in the second quarter of 2011. The increase in the number of MGTS Internet users is due to the company's marketing policy aimed at increasing the speed of Internet access and reducing the cost of the service while maintaining the high quality of service. The share of new subscribers connecting to 6 Mbit/s and higher rates increased to 75 per cent by the end of June 2012, compared with 45 per cent in the second half of 2011. In addition, every month about 3 thousand valid MGTS subscribers switch to faster tariff plans.

"MGTS continues to improve the quality and availability of Internet service from MGTS for subscribers. The company offers a democratic line of tariffs with Internet access speeds of up to 20 Mbps using ADSL technology and up to 200 Mbps using GPON technology at affordable prices to meet the demand of various categories of users. With the development of the GPON fiber-optic network, MGTS will be able to offer more residents of Moscow maximum speeds of Internet access at competitive prices, as well as expand the number of services that a subscriber will be able to receive one optical cable per apartment. At the same time, the use of a wide range of services on one optical channel, such as high-definition television, digital telephony, telemetry and a number of other interactive services, will not affect the quality of Internet access, "said Roman Plachenko, Director of Marketing and Business Development at MGTS

In December 2012, the number of Internet users from MGTS increased by 23% compared to December 2011 and exceeded 510 thousand subscribers. According to GPON optical technology, 200 thousand subscribers were connected at the end of the year. The total number of fixed telephony subscribers of MGTS remained stable and at the end of 2012 amounted to 4.4 million numbers.

Construction of a new optical network

In 2012, it marked the 10th anniversary of the launch of the MGTS broadband data network. The copper pair connection made it possible to provide access to the global network with a simultaneous telephone on the existing telephone line. The first subscribers of the network were customers of the corporate segment and private premium users. In 2005, the provision of home Internet for MGTS subscribers began.

By the end of 2012, MGTS will provide technical connectivity to the optical network for 1.7 million Moscow households, in 2013 - for 3.4 million households, and in 2014 the installed capacity of the network will be 4.4 million ports. The connection of subscribers to the optical network will be carried out in stages until 2015, and the dismantling of the old infrastructure - copper cables is planned for 2016-2017 years.

The construction of a new optical network will reduce the costs of the MTS group for the operational deployment of LTE networks in Moscow and ensure the maximum data transfer speed for the Moscow market in fourth-generation networks. As part of the project, the MTS Group will build about 15,000 km of VOLS throughout Moscow. MTS plans to use the fiber-optic network deployed in the capital to connect base stations - already in 2012, a transport infrastructure will be created that will allow transferring most MTS base stations in Moscow to IP technologies by the end of the year. Developing two of the most advanced data networks at the same time, the MTS group will be able to create a unique network infrastructure for high-speed data transmission in Moscow: for both fixed and wireless networks.

2011: MGTS network became 100% digital

In 2011, the MGTS network became 100% digital.

In May 2011, the company launched a project in Moscow to reconstruct the copper infrastructure to fiber-optic based on GPON technology (Gigabit-capable passive optical network). The modernization of the subscriber line according to "optics" changes the priority of services: together with the replacement of the copper telephone line with optical MGTS, it mass installs access to the Internet and digital television. An optical network using GPON technology already allows you to provide broadband Internet access services at speeds of up to 200 Mbps. Upon completion of the network construction, video surveillance, fire alarm, telemetry and other interactive services will be available to subscribers.

2010: Sistema changes Sky Link shares to Svyazinvest's stake in MGTS

On May 5, 2010, Vladimir Putin signed Order No. 672-r that the Government agrees to alienate OJSC Svyazinvest's 22,352,150 ordinary registered shares of OJSC Moscow City Telephone Communications (MGTS), which constitute 23.3% of its authorized capital, by exchanging them for 6,482,736 ordinary registered shares of ZAO Sky Link, the authorized capital, which constitutes 50% of its authorized capital.

The government agreed to give MGTS shares in exchange for Sky Link shares, provided that Sistema pays an additional difference at a price not lower than the market price determined on the basis of the report of the independent assessor.

Ernst & Young estimated 100% of Sky Link at 9.4 billion rubles, and 23.3% of MGTS at 9.7 billion rubles. Thus, Sistema was supposed to pay Svyazinvest 300 million rubles.

The order signed by the prime minister on the transfer of MGTS shares to Sistema actually gives the green light to two mega-deals in the Russian telecommunications market: the exchange of telecommunications assets between Sistema and Svyazinvest OJSC and the reorganization of Svyazinvest itself by creating a "national champion" on the basis of Rostelecom OJSC.

The asset exchange transaction scheme assumes that Komstar-OTS OJSC (controlled by Sistema AFK) returns a 25% stake plus one share of Svyazinvest OJSC to the state. In return, Komstar's debt to Sberbank in the amount of 26 billion rubles. takes on Vnesheconombank (VEB). In addition, Svyazinvest gives Komstar a 23.3% stake in MGTS. To compensate Svyazinvest for the difference between the value of the MGTS package transferred to Komstar and the value of the Svyazinvest stake plus the amount of debt "forgiven" to Komstar, AFK Sistema transfers 100% of the mobile operator Sky Link CJSC to Svyazinvest structures.

1882-2007

The Moscow City Telephone Network was at the origin of the creation of Moscow's telecommunications infrastructure with the advent of the first 800-number telephone exchange, when the subscription fee per year was several times more expensive than a beautiful fur coat. The company, together with Muscovites, survived the adversity of the revolution, the siege during the Great Patriotic War, constantly remaining on guard of the capital's communications. MGTS was the technological partner of the city in the post-war period, when Moscow was actively growing, connecting several hundred thousand subscribers a year, and during major international events. In the new economic conditions of the 90s, MGTS managed to rebuild and prepare for the boom of Internet technologies.

• 1882 - July 13, the first manual telephone exchange of the Gileland system of the Bell company on the Kuznetsk bridge, 6 (the house of the merchant Popov), was opened.
• The most modern in Europe. 1902 - In Milyutinsky Lane, the laying of the Central Bank RTS building took place. The construction of the main sewage system has begun.
• The first automatic. 1930 - The first in Moscow Zamoskvoretskaya ATS B1 (8 thousand numbers), Bauman ATS E1 (7 thousand numbers) entered into operation.
• The first decade. 1948 - Construction of new decadal-step PBXs B3, B8 and B9 began.
• The first seven-digit. 1968 - The entire network was transferred to a single seven-digit numbering. Switching of 625,000 numbers took place simultaneously.
• First computational. 1978 - Computer-based computing center put into operation.
• First broadband. 2002 - Completion of the Public Broadband Data Network (PDP OP).
• Time - combined - subscriber. 2007 - The procedure for providing services has been changed, three tariff plans have been introduced

Notes